June 2021
Intermediate to advanced
608 pages
35h 33m
English
Content preview from Marketing Management, 16th Edition
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Allocating Resources Across Business Units
Once it has defined its SBUs, management must decide how to allocate corporate resources to each unit.12 This is often done by assessing each SBU’s competitive advantage and the attractiveness of the market in which it operates. When assessing individual business units, a company might also consider existing synergies among them. Such synergies can be related to company processes (e.g., research and development, manufacturing, and distribution) or to personnel (e.g., experienced management, qualified engineers, and knowledgeable sales force). Based on the assessment of its portfolio of business units, the company could decide whether to grow, “harvest” (or draw cash from), or hold on to a particular ...
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