As chief executive of Stalwart Shipfitting Company, a diversified producer of marine supplies and equipment, John needs a method for spotting promising product lines that warrant commitment of additional resources, as well as those that should be removed from the firm's product portfolio. What would be a good choice for this firm?

Question

Quizplus · Accepted Answer

Strategic business units (SBUs) allow a company to manage different product lines or categories as separate entities, making it easier to assess their performance and potential. This approach helps in identifying which product lines are promising and should receive more resources, and which ones are underperforming and might need to be discontinued.

As Chief Executive of Stalwart Shipfitting Company, a Diversified Producer