PriceXchanger Strategic Business Unit (SBU) are series of a limited liability company and an autonomous enterprise that operates and has responsibility for a particular range of business activities. SBU are responsible for PRICE Centers:
- Profit Center
- Revenue Center
- Investment Center
- Cost Center
- Exchange Center
There is a magnificent force out in the world today, and it is a force which most people do not even realize is at work. Each day hundreds and thousands of people make a choice to not let this force work in their favor, instead choosing a more difficult path. It is invisible, intangible, and mysterious, and yet it is one of the most powerful things this world has ever produced, the force that I am talking about is RESPONSIBILITY.
Responsibility is a magic force that can and will change your life, it is the cause that leads to the effect that you desire. Being responsible is a matter of thought and power, it is a positive thing, as a matter of fact it is EVERYTHING! There are two parts to this great word, the first is "respons" which is a form of the English word response which comes from the Latin "responsum" which is defined as "answer". The second half is "ibility" which is a variant of the word "ability" which comes from the Latin "habilitas" meaning "aptitude" or "easy to manage". Putting these two words together creates response ability which when broken down to its roots literally means answer with aptitude.
Response with Ability is a management control system based on the principles of delegating and locating response ability. The authority is delegated on responsibility center and accountability for the Responsibility Center. Responsibility is a system under which managers are given decisions making authority and responsibility for each activity occurring within a specific area of the company. Under this system, managers are made responsible for responsibility centers activities under controlled techniques “Response Ability” has assumed considerable significance. While the other control devices are applicable to the organization as a whole, response ability represents a method of measuring the performance within an organization.
The significance of Responsibility management can be explained in the following way:
- Easy Identification: It enables the identification of individual parts and functions of the business for satisfactory or unsatisfactory performance.
- Motivational Benefits: If a system of accountability and responsibility is implemented, considerable motivational benefits are assured.
- Data Availability: A mechanism for presenting performance data is provided. A framework of performance appraisal system can be established on that basis, in motivating a dedicated strategic business unit to act in the best interests of the enterprise.
- Profit center - Book entry tender sales
- Revenue center - Seigniorage Income
- Investment center - Recoup Economic Investment Capital
- Cost center - Cost of Goods Sold Reimbursement
- Exchange center - ZERO book entry tender pricing