Goals at the business level specify the anticipated performance results of each SBU. Their values are intended to balance with those of equivalent variables for other SBUs and thereby contribute to the achievement of corporate level goals. For example, a corporate-level final goal of sales growth of 5 percent in one year could be achievable partly by acquisition or divestiture moves, but primarily through the contributions of sales increases by present. SBUs. Therefore, in this case an average cross SBU sales increase of 5 percent could satisfy the corporate-level target and one would expect each business-level strategy to contain a sales growth element that defines that SBUs “contribution” so to speak, to the corporate level sales growth goal.
Business-level goals integrate the activities of the SBUs functional departments and guide the behavior of business unit managers. In other words business strategy defines the role of each functional area relative to each other and to resource requirements and availability. One might say that business-level strategy balances the roles of organizational functions within each business unit in terms of their contributions toward reaching higher level goals.
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