Top management sets the guidelines for long-term strategic planning of the corporation In a business that has two or more strategic business units, decisions must he made at t levels. Corporate management must first decide what business area to pursue and priorities for allocating resources to each SBU,

The decision makers for each SBU must select the strategies for implementing the corporate strategy and producing the results that corporate management expects. Corporate-level management should assist SBUs in achieving their objectives. Corporate strategy and resources should help an SBU to compete more effectively than if the unit operates on a completely independent basis. "To remain competitive, corporations must provide their business units with low-cost capital, outstanding executives, corporate R&D, centralized marketing where appropriate and other resources in the corporate arsenal.”

Corporate resources, and synergies help the SBU establish its competitive advantage. The strategic focus and priorities of corporate strategy guide SBU strategies.

Finally, top management's expectations for the corporation indicate the results expected from an SBU, including both financial and no financial objectives. When viewed in this context, the SBUs become the action centers of the corporation