The consumer electronics division of a company that also manufactures automobiles, apparels, and processed food best illustrates a strategic business unit (SBU). Business strategy occurs within strategic business units, or SBUs, the standalone divisions of a larger conglomerate, each with its own profit-and-loss responsibility. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-05 Describe the roles of corporate; business; and functional managers in strategy formulation and implementation. Topic: Strategic Leadership 42. A company's strategic business unit:
Business strategy occurs within strategic business or SBUs, the standalone divisions of a larger conglomerate, each with its own profit-and-loss responsibility. Analytic Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Learning Objective: 02-05 Describe the roles of corporate; business; and functional managers in strategy formulation and implementation. Topic: Strategic Leadership 43. Who the following is responsible for making business strategies in a large conglomerate? General managers in strategic business units (SBUs) must answer business strategy questions relating to how to compete in order to achieve superior performance. AACSB: Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Describe the roles of corporate; business; and functional managers in strategy formulation and implementation. Topic: Strategic Leadership 44. Red Million Inc. is a large company that sells a variety of products such as apparel, jewelry, canned foods, consumer electronics, and automobiles. Apart from this, the company also has a strong presence in the service industry through its chain of hotels, fast food restaurants, and amusement parks. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under Red Million can be referred to as _____. These product divisions under Red Million can be referred to as strategic business units (SBUs). Business strategy occurs within strategic business units, the standalone divisions of a larger conglomerate, each with its own profit-and-loss responsibility. General managers in SBUs must answer business strategy questions relating to how to compete in order to achieve superior performance.
An emergent strategy describes any unplanned strategic initiative undertaken by employees of their own volition. Analytic Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-06 Evaluate top-down strategic planning; scenario planning; and strategy as planned emergence. Topic: The Strategic Management Process 79. The production head at the canned juice unit of True Foods Inc. would frequently stay back after office hours and experiment with new fruit juice flavors though this was part of the new product development team's job. As a result of these experiments, he came up with two new flavors of fruit juices, cherry-melon and melon-mint. After rigorous test marketing, which proved that the market would accept the new drinks, the product variants were successfully launched. Which of the following strategies does this scenario best illustrate? This scenario best illustrates an emergent strategy. An emergent strategy describes any unplanned strategic initiative undertaken by mid-level employees of their own volition. If successful, emergent strategies have the potential to influence and shape a firm's strategy. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-06 Evaluate top-down strategic planning; scenario planning; and strategy as planned emergence. Topic: The Strategic Management Process 80. A _____ is best described as any activity a firm pursues to explore and develop new products and processes, new markets, or new ventures. level