Question

Question 5 (Business Strategy): a. Give three different ways in which Strategic Business Units (SBUs) can be organised. Briefly explain the benefits. b. What generic strategy do the following organisations pursue and why: i. Investec Bank (commercial); ii. Nandos; iii. Pick ‘n Pay.

Answer 1

A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.

A. A strategic business unit (SBU) is a division or part of a big company that runs independently with roles and responsibilities and without the support of the larger company.

The ways in which SBUs can be organized are:

1. Organizational structure: the organizational structure is something that helps the strategic business unit to be organized as defines how the organization will look like and what will be the roles and responsibilities of people working in it.

2. Hiring: strategic business units can be organized in a way if hired people are efficient enough. Strategic business units can be organized if they hire people who want to build something from scratch and ready to work in an experimental environment.

3. Culture: These cultural practices along with motivating employees to examine ideas and realize from them how to establish the right habitat for modern product development.

The benefits of the strategic business unit are that it has a quality of differentiation, which means that the strategic business unit runs independently from its parent company and fulfills the needs of its target audience effectively. Also, it helps the company to make a decision of its own according to the resources and competition level.

B. The generic strategy of Investec Bank is that uses a customer-oriented approach because its entire focus is on providing high-level services to its clients with comprehensive digital offerings. They try to be flexible and innovative by giving high-level services.

The generic strategy of Nandos is to focus its effort on special segments and then charge for the added value. They deliver a unique culture, experience, taste, and advertising. This has been one of Nando's focus from the start.

Generic strategy of pick n pay is it focuses on delivering first-class services and products of groceries offer that is irresistible by the customer with unbeatable prices and offers.