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Strategic Business Unit – The Central Element Of The Business Portfolio Strategic Planning Process

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  • FLORIN TUDOR IONESCU

    (The Bucharest Academy of Economic Studies)

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.

Suggested Citation

  • Florin Tudor Ionescu, 2011. "Strategic Business Unit – The Central Element Of The Business Portfolio Strategic Planning Process," International Conference Modern Approaches in Organisational Management and Economy, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 5(1), pages 224-228, November.
  • Handle: RePEc:rom:cmanag:v:5:y:2011:i:1:p:224-228
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    More about this item

    Keywords

    strategic business unit; planning; business portfolio;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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