Strategic Business Unit Defined
A strategic business unit is a fully functional and distinct unit of a business that develops its own strategic vision and direction.
2. âą A fully functional and distinct unit of a
business that develops its own strategic
vision and direction.
âą It is an important component of the
company and must report back through
headquarters about their operational
status.
What is SBU?
3. Management of SBU
âą Operate as an independent organization
with a specific focus on target markets.
âą Large enough to maintain internal
divisions such as finance, HR and so
forth.
4. Management of SBU
âą A strategic business unit (SBU) is a profit
centre which focuses on product
offering and market segment.
âą SBUs typically have a discrete marketing
plan, analysis of competition, and
marketing campaign, even though they
may be part of a larger business entity.
10. Advantage of SBU
Focus
Allows for the organization to concentrate
on the target audience and provide cost
leadership to the company.
11. Advantage of SBU
Differentiation
Allows a company to meet the distinct
needs of the target audience by
supplying products and services that
are valued by those specific user.
13. Advantage of SBU
âą Own separate ability to craft industry-
specific strategy as it relates to their
function.
âą Helps to understand which business
activities contribute the most value.
âą Enable the ability to make decisions
based on resources and efficiencies.
14.
15. 1. The degree of autonomy given to each SBU
manager.
2. The degree to which an SBU shares
functional programs and facilities with other
SBUs.
3. The manner in which the corporation is
because of new changes in market.
Factors determining the success of SBU