linuszz/business-planning-skills/business-definition

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Determine unified vs separated business entities. Use for portfolio management, strategic planning, and restructuring decisions.

Install

npx vskill@latest install linuszz/business-planning-skills/business-definition

SKILL.md

Business Definition

Metadata

  • Name: business-definition
  • Description: Framework for defining unified vs separated businesses
  • Triggers: business definition, unified vs separated, portfolio structure, business units

Instructions

Apply business definition framework to determine organizational structure for strategic analysis.

Framework

The Definition Test
Unified Business IF:
 
1. Share customers?
2. Share brand?
3. Share assets/resources?
4. Share supply chain?
5. Share channels/distribution?
 
AND:
 
6. Economies of scale or scope apply?
7. Common management/leadership?
8. Integrated planning across business?
 
THEN → SAME BUSINESS
 
IF ANY 'NO' → SEPARATE BUSINESSES
Business Unit Categories
CategoryDescriptionWhen Unified
Product LeadershipSame products across units✅ Yes
Market LeadershipSame geographic focus✅ Yes
OperationsShared manufacturing, logistics✅ Yes
Sales & MarketingShared channels, brand✅ Yes
Innovation/R&DCentralized development✅ Yes
Finance/SupportShared treasury, HR✅ Yes
Organizational Structures
StructureAdvantagesDisadvantages
UnifiedSynergy, efficiency, coordinated strategyComplexity, slow decisions, potential conflicts
Holding CompanyPortfolio management, capital allocation, focused leadershipAgency costs, bureaucracy
Strategic AllianceFlexibility, shared expertise, reduced investmentCoordination costs, partner conflicts
Joint VentureRisk sharing, resource sharingProfit sharing, governance complexity
Federated/IndependentAgility, accountability, clear focusDuplication, lack of synergy

Output Process

  1. Analyze current state - What's the structure?
  2. Apply definition test - Should we unify or separate?
  3. Identify synergies - What value in integration?
  4. Define new structure - Target organizational design
  5. Evaluate feasibility - Culture, systems, capabilities
  6. Develop transition plan - Timeline, steps, governance
  7. Assess value capture - Benefits vs costs

Output Format

## Business Definition Analysis: [Company/Portfolio]
 
### Current Structure
 
**Structure Type:** [Unified/Holding/Federated/Independent]
 
**Business Units Analyzed:** N units
 
**Shared Capabilities:**
- [Capability 1] - [Description]
- [Capability 2] - [Description]
- [Capability 3] - [Description]
 
### Definition Test Results
 
| Test Question | Result | Implication |
|---------------|---------|--------------|
| Share customers? | ✅ Yes | Potential cross-selling |
| Share brand? | ✅ Yes | Brand consistency |
| Share assets? | ✅ Yes | Asset optimization |
| Share supply chain? | ✅ Yes | Cost efficiency |
| Share channels? | ❌ No | Channel conflicts |
| Common leadership? | ✅ Yes | Management coordination |
| Integrated planning? | ❌ No | Planning autonomy |
| Economies of scale? | ✅ Yes | Scale advantages |
 
**Conclusion:** [Unified/Separate business structure]
 
### Proposed Structure
 
**Target Structure:** [New structure type]
 
**Rationale:**
1. [Reason 1] - [Why change?]
2. [Reason 2] - [Strategic benefit]
3. [Reason 3] - [Operational necessity]
 
**Business Unit Alignment:**
- [Unit A] → [New parent/placement]
- [Unit B] → [New parent/placement]
- [Unit C] → [New parent/placement]
 
### Transition Plan
 
| Phase | Action | Owner | Timeline |
|--------|--------|---------|------------|
| Planning | Define new org structure | CEO | Q1 |
| Design | Create governance model | Legal | Q2 |
| Implementation | Transfer assets/people | Ops | Q3 |
| Stabilization | Optimize processes | All Units | Q4 |
 
### Value Capture Assessment
 
| Synergy Type | Estimated Value | Cost | Net Benefit |
|------------|-----------------|----------|------------|
| Cost reduction | $X M | $Y M | [Positive] |
| Revenue enhancement | $X M | $Y M | [Positive] |
| Capability leverage | $X M | $Y M | [Positive] |
| **Total** | $Z M | $W M | [Net Value] |
 
**ROI:** [Net Benefit / Cost] × 100%
 
---
 
### Risk Assessment
 
| Risk | Probability | Impact | Mitigation |
|------|---------|----------|-------------|
| Disruption risk | High | High | [Mitigation] |
| Synergy failure | Medium | High | [Mitigation] |
| Cost overruns | Medium | Medium | [Mitigation] |
| Governance complexity | Low | Low | [Mitigation] |
 
---
 
### Strategic Implications
 
1. **[Implication 1]** - [Analysis]
2. **[Implication 2]** - [Analysis]
 
### Governance Recommendations
 
1. **[Recommendation 1]** - [Description]
2. **[Recommendation 2]** - [Description]
3. **[Recommendation 3]** - [Description]

Tips

  • Don't force unification - structure should serve strategy
  • Consider cultural compatibility - can they work together?
  • Assess synergy potential realistically - don't assume automatic gains
  • Evaluate both benefits and costs - net value matters
  • Consider transition costs - often higher than expected
  • Governance is critical - define clear decision rights
  • Communicate transparently - manage expectations throughout

References

  • Various organizational design and strategy sources
  • M&A case studies and corporate restructuring literature

Security

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Source

Popularity

Repository stars
53
Repository forks
2
7-day trend score
20

Stars and forks are for the whole GitHub repository, not this skill alone. Refreshed 18 Mar 2026, 7 months ago.

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