- This topic has 1 reply, 2 voices, and was last updated 6 years ago by
.
- Posts
Hello!
I would like to confirm on the 2 sub-topics of P3.
Take over/acquisition is like taking over the company and growth strategies take place for further growth and development. Right?
And SBU (strategic business unit) is like a subsidiary where a head office acquires and develops it or sometimes act as parental managers to guide them, like the way parents do to their children. Or they act as portfolio managers to have a hands-off approach on SBU’s…or sometimes as synergy managers (having a hands-on approach),etc…
My concern is that the SBU’s and acquired companies seem to be similar in their treatment. So are they really like the same thing or is there any difference?
Thank you.
An SBUs are parts of a business that require different strategies. They might be in different subsidiaries or divisions but don’t need to be. For example, a company could sell a product to both individuals and other businesses, but these are likely to form two strategic units as the marketing and competition in each are likely to be very different.
Similarly, an acquired company might be merged with an existing company in the group so that they form one strategic unit. For example if one consumer products group had a subsidiary making shampoo, taking over the shampoo division from another group could let the two shampoo makers to be merged to give economies of scale.
- You must be logged in to reply to this topic.