Strategic Business Unit Definition Framework PPT
This PPT slide, part of the 26-slide Organisation Design 101 - Best Practice PowerPoint presentation, presents a framework for defining business units based on cost sharing and customer sharing, which are identified as key factors in determining the optimal number of businesses within an organization. The matrix is divided into 4 quadrants, each representing different strategic positions regarding cost sharing and market differentiation.
In the upper left quadrant, it indicates a scenario where a single business can achieve differentiation or occupy a niche position. This suggests that high customer sharing can lead to a unique market offering. The adjacent quadrant emphasizes the potential for cost leadership through separate businesses, indicating that distinct entities may be better suited for cost efficiency.
The lower half of the matrix introduces the concept of separate businesses, which can either operate independently or have the potential for bundling. This implies a strategy where businesses can leverage their distinct offerings while still benefiting from some level of shared resources or customer bases.
The right side of the matrix introduces the idea of substitution, where a single business can offer alternative products or services that may fulfill similar customer needs. This positioning highlights the importance of understanding customer preferences and market dynamics.
An exercise is included, prompting participants to categorize various businesses within the matrix. This practical application encourages critical thinking about where specific products, such as household items and personal care products, fit within the defined strategic framework. Overall, the slide serves as a tool for executives to evaluate their business structures and make informed decisions about organizational design.
This slide is part of the Organisation Design 101 - Best Practice PowerPoint presentation.
EXPLORE MORE SLIDES FROM THIS PRESENTATION
EXPLORE MORE PRESENTATIONS ON
Flevy is the world's largest knowledge base of best practices.
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
