Q. What do you mean by strategic
business unit (Nov’11)?
Strategic business unit (SBU):
In business, a strategic business unit is a profit center which focuses
on product offering and market segment. strategic business units typically have a discrete
marketing plan, analysis of competition, and marketing campaign, even though
they may be part of a larger business entity.
An strategic business units may be a business unit within a larger corporation, or it may be a business
unto itself or a branch. Corporations may be composed of multiple strategic business units, each of
which is responsible for its own profitability. General Electric is an example
of a company with this sort of business organization. Strategic business units are able to affect
most factors which influence their performance. Managed as separate businesses,
they are responsible to a parent corporation.
An
example of a strategic business unit is General Electric. Product offering
typically encompasses a strategic business unit.
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