How does strategic planning differ at the corporate and the SBU levels?

Question

How does strategic planning differ at the corporate and the SBU levels?

Answer 1

SBU levels of planning have to do with how to compete within the units market space and gain market share. A generic set of SBU strategies are suggested by Michael Porter where you have a choice of either competing by driving down all of your costs and making yourself the lowest cost provider in your market. Or you can differentiate from your competitors by adding value that the others don't/can't that customers will pay a premium for. You can also niche into or through markets with either of these two strategies.

  At the corporate level, planning involves overall growth via business unit mix.  Corporate planning is similar to portfolio planning in that you use the cash flows from one holding to fund risky ventures which have a likelihood for becoming a "cash cow" later which will support your next growth venture.