3M consumer product group introduced Scotch-Brite Never Rust soap pads made from recycled plastic beverage bottles.Its objective was to capture a major share of the soap pad market and maximise Never Rust's volume growth.The firm's top managers approved a major investment in a new plant and a substantial introductory advertising budget.At the same time,the consumer group maintained high profitability goals for its other established products to provide the cash required for Never Rust's introduction and preserve the group's overall profit level.Identify the business strategy employed here.
A)A firm breaking down its corporate objectives into subobjectives for each SBU.
B)A firm's subobjectives are consistent across the various SBUs.
C)A firm's subobjectives are used only for the existing product market within the unit.
D)A firm using value-based planning as a tool for evaluating alternative resource allocations.

Question

Quizplus · Accepted Answer

The strategy employed here is breaking down the corporate objective into subobjectives for each strategic business unit (SBU). The 3M consumer product group has set a specific objective for the Never Rust soap pads, and is making a major investment in a new plant and advertising budget to capture a major share of the soap pad market. At the same time, the group is maintaining profitability goals for its other established products, which suggests that each SBU has its own set of objectives and targets that align with the overall corporate objectives.

3M Consumer Product Group Introduced Scotch-Brite Never Rust Soap Pads