A strategic department (SGE) is a subrange of an enterprise, which can act in an enterprise-external market segment independently of other subsections of the enterprise. In the management economics one speaks synonymously also of a Strategic Business unit (SBU). A SGE is comparable also with a strategic business field (SGF), this is however not firmly in the organisational structure (OS) embodied, but existent only mental. SGF closely connected market product activities is general.

Criteria for the formation of strategic departments

Strategic departments are able to work on quasi as enterprises in the enterprise of customer or product segments independently in their whole width and depth. In order to be successful in the market, all SGE must have relative competition advantages (central criterion). In order to be able to represent within the total enterprise the success of a SGE, it is necessary to develop a clearly defined number work (internal account system) also internally and to separate the activity area clearly from that of other enterprise units. In particular the costs must be distributed of SGE spreading function either as services on the SGE or be booked as costs of prominent management. The mechanism of SGE is usually connected with hope for efficient internal guidance of the unit and a market-focused occurrence outward. Accordingly must the director/conductor of a SGE with authority be equipped, which permits it to them to arrange in own discretion the actions of the SGE on the market. In extreme cases this is realized by the fact that the SGE is expenditure-created as independent societies and in the actual enterprise only prominent getting thing remains. One of the most well-known examples is the transformation of the most AG into strategic management getting thing with of all business and all service units into independent enterprises a 1996/1997

Discussion

Critics criticize at the concept of the SGE that they would not bring an increase in value to the enterprise. Either they are congruently with the organizational units of a section organization and thus only a renaming of the divisions or however them as independent unit over an organizational structure already existing were put and justified thereby an actual matrix organization in the enterprise with all associated problems. In extreme cases of SGE is doubtful the increase in value that getting thing and/or it is unclear, why the SGE must form at all a common enterprise.

This criticism is justified however only if between the individual SGE no synergies or scale effects arise, as e.g. when common procurement (and if it is only from outside capital). The moreover one supporting tasks can be transferred in the getting thing organization for the SGE (personnel, bookkeeping, organization, etc.)

Further market entrance barriers can be established by the strategic adjustment of the SGE, which lead again to an improved competition position. Thus also the topic market power plays a role. The criticism seems altogether seen correctly, does not place thereby however not the right of existence for SGE in question.

Articles in category "Strategic department"

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