Strategic institutions can be institutions in large enterprises, subsidiaries or even independent companies. An enterprise will be composed of several strategic institutions, each of which will be responsible for its profits.
Singular Electric is an example of this kind of company. Strategic institutions can adjust most of the factors that affect their performance. Strategic institutions operate independently, but they need to be accountable to their superior institutions.
The best examples of SBU are companies like Procter & Gamble and LG. These companies have different product categories under one roof. For example, LG as a company produces durable consumer goods.
It produces refrigerators, washing machines, air conditioners and televisions. These small units form independent SBU, so that revenue, cost and profit can be tracked independently. Once a unit obtains SBU status, it can make its own decisions, investments, budgets, etc. When the product market changes or begins to change before the change occurs, it will respond quickly.
Matrix of Boston Consulting Group
BCG Matrix (BCG-matrix, Boston Box, Boston Matrix) is a chart designed by Bruce Henderson for Boston Consulting Group in 1968, which can help enterprises analyze their own business departments or product lines.
This helps companies allocate resources; Brand marketing, product management, strategic management and portfolio analysis can all be used as analytical tools.
When using the matrix of Boston Consulting Group, SBU can be displayed as a circle in any of the four quadrants (asterisk, question mark, cash cow, dog), and its area represents their size. Using different colors, you can also show your competitors. The exact location is determined by two axes, the Y axis is market growth and the X axis is market share.
Alternatively, you can show the changes in two years or two years through shading or other design differences. xx。
Star products have high growth and high market share at present. Question marks indicate products with low share but high growth. The share of cash cattle is high, but the growth rate is very low. Finally, low growth and low share of dog label products.