MGMT 322 Chapter Notes - Chapter 2: Market Environment, Reverse Engineering, Experience Curve Effects
Document Summary
Outline of chapter 2: strategic planning for competitive advantage. Strategic planning the managerial process of creating and maintaining a fit between the organization"s objectives and resources and the evolving market opportunities. The goal of strategic planning is long-run profitability and growth. Thus, strategic decisions require long-term commitments of resources. Strategic business unit (sbu) a subgroup of a single business or collection of related businesses within the larger organization. Each sbu has its own rate of return on investment, growth potential, and associated risks, and requires its own strategies and funding. When properly created, an sbu has the following characteristics: A distinct mission and a specific target market. A single business or a collection of related businesses. Plans independent of the other sbus in the total organization. In theory, an sbu should have its own resources for handling basic business functions, such as accounting, engineering, manufacturing, and marketing.
