LG, a South Korean electronics company, has four divisions: Home Entertainment, Mobile Communications, Home Appliance & Air Solution, and Vehicle Components. In order for each of these divisions to be considered strategic business units, which of the following must be true? a. They share a single mission and target the same consumers. b. The divisions share the same competitors. c. LG corporate determines resources allotted to each division. d. Each division plans independently of the others.

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Sage

Business

26 July, 17:33

LG, a South Korean electronics company, has four divisions: Home Entertainment, Mobile Communications, Home Appliance & Air Solution, and Vehicle Components. In order for each of these divisions to be considered strategic business units, which of the following must be true? a. They share a single mission and target the same consumers. b. The divisions share the same competitors. c. LG corporate determines resources allotted to each division. d. Each division plans independently of the others.

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Alaina Gill · Answer 1

d. Each division plans independently of the others.

Explanation:

Strategic business units focuses on higher market share, and profit center. It might be possible that the segment is a part of a big organisation, but it focuses and has its own manner and techniques to earn profit.

In this case also there are four different segments. In case if each division in the organization plans, separately, based on its own market conditions, and runs separately, even though they are part of same organization, they will work differently in different techniques to attain maximum share in market and reach maximum profit making situation.