Business Management

Business Management

Introduction

Business Units are companies that decentralize in sub-activities, and it is just like each of these activities having its own life, with revenue and costs, while respecting strategies, rules and objectives of the overall context of the organization. These structures are oriented business or a set of related businesses that focus on the development of more specialized units and tuned with a type of market in relation to knowledge, efficiency and expertise. Business Units help to optimize the results of the organization and one of its main advantages is the focus of the business, which ensures greater focus and understanding of the market and developing specific skills for business. In this environment, it required the business units use performance indicators that function as basic elements in the management process. They provide information to support the management of the business and are employed to examine whether the assumptions that underline the strategic use are valid or not. Performance indicators should be developed to assist the implementation of business strategy and organizational learning should be targetted and serve as vital signals to the organization. Thus, they can function as situational diagnostics, where simple financial indicators can act as management tools to target changes, and providing evidence to determine the competitive position of the company as a whole (Day, 2012).

Discussion

Understanding the business units of a company is of great importance to know the composition of the business. These businesses are formed so that a small business within the business can be formed, acting on a person responsible with the best intention to channel sales and profits (Mili, 2010).

These units form a strategic business is unique in some cases, when the action of the marketing is done, it is done in a single fraction of the company. The situation of the company in which they design and make marketing strategies is what is called strategic business unit. Therefore, a Strategic Business Unit is an operating unit, which includes differentiated products or services sold to a defined set of customers and at the same time facing a particular group of competitors.

The essence of strategy is related to the positioning of the business to respond effectively to the need for a client, outbidding competitors. This concept was born in the late 60s, when the General Electric decided to separate its businesses into a set of autonomous units, according to the recommendation made ??by McKinsey & Co. General Electric had been transformed from a producer of electric motors and lighting business to a widely diversified business conglomerate. The complexity was increased along with the size, diversity, international scope and variety of technologies. This led to a significant challenge being imposed on the managers General Electric (Freeman, 2010).

The answer was to divide the company's businesses into autonomous units that could be directed from a central power as isolated entities and capable of generating your own profitable business. Each business unit has its own market segment and is responsible for the same, has all the ...