Question #1

Suppose you have been offered the job of developing and managing a new medical products unit for a major electronics manufacturer. The purpose of the new SBU will be to adapt technology from other parts of the company for medical applications (diagnostic equipment such as CAT scanners, surgical lasers, etc.) and to identify and build markets for the new products the unit develops. The new unit's performance over the next several years will be judged primarily on its success at developing a variety of new products and its rate of growth in sales volume and market share. Before accepting the job, what assurances would you seek from the company's CEO concerning the administrative relationships to be established between the new SBU and corporate headquarters? Why?

Question #2

Now that you have accepted the job described in question 1, you have been given a $50 million operating budget for the first year. Your first task is to staff the new unit and to allocate your bud- get across its various functional departments. Although you obviously want to hire good people for every position, which departments require the most competent and experienced personnel, and which departments should receive relatively large shares of the available budget? Why?

Please help with question 2