STRATEGIC BUSINESS UNIT – THE CENTRAL ELEMENT OF THE BUSINESS PORTFOLIO STRATEGIC PLANNING PROCESS

Florin Tudor Ionescu
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Florin Tudor Ionescu: The Bucharest Academy of Economic Studies

International Conference Modern Approaches in Organisational Management and Economy, 2011, vol. 5, issue 1, 224-228

Abstract: Over time, due to changes in the marketing environment, generated by the tightening competition, technological, social and political pressures the companies have adopted a new approach, by which the potential businesses began to be treated as strategic business units. A strategic business unit can be considered a part of a company, a product line within a division, and sometimes a single product or brand. From a strategic perspective, the diversified companies represent a collection of businesses or strategic business units. The present paper aims to highlight from a theoretical standpoint the strategic business unit concept and its strategic implications over company’s performance and competitiveness. Moreover, the paper will emphasize that the best business portfolio is the one that provides optimal consistency of company strengths and weaknesses and opportunities of marketing environment.

Keywords: strategic business unit; planning; business portfolio (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:rom:cmanag:v:5:y:2011:i:1:p:224-228

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