Term
| What are the two approaches to SBU’s |
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Definition
| Allocate resources & Competition |
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Term
| What is the definition of SBU’s? |
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Definition
| Products, product lines or businesses based on synergistic reason |
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Term
| What is the definition of synergistic reason? |
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Definition
| When the sum of the parts together are greater than the sum of the individual parts |
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Term
| What are the two models that represent allocating resources? |
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Definition
| Financial models and Portfolio models |
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Term
| What 2 types of financial models are there? |
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Definition
| Simple models and Complex models |
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Term
| Which models should you use and why? |
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Definition
| Both, because you should measure from different perspectives |
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Term
| What are two questions you would ask yourself when using a portfolio model? |
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Definition
| Are we good at it? Is this a good business to be in? |
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Term
| What are the pros and cons of financial models? |
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Definition
| Easy to get, understandable Doesn’t take synergy into account |
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Term
| What are the pros and cons of portfolio models? |
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Definition
| Takes synergy into account Hard to measure |
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Term
| What are the 7 parts of the competitive side? |
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Definition
| Marketing, Production, HR management, Finance, IT, Research & Development, Organization design |
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Term
| What are the 4 parts marketing is broken down into? |
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Definition
| Product, Promotion, Price & Distribution |
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Term
| What is product broken into? |
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Definition
| The product itself, package, service and the mix of products |
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Term
| What is the rule for price? |
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Definition
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