An autonomous division or organizational unit, small enough to be flexible and large enough to exercise control over most of the factors affecting its long-term performance.Because strategic business units are more they allow the owning conglomerate to respond quickly to changing economic or market situations.

A strategic business unit (SBU) is a profit centre which focuses on product offering and market segment.

SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity.

An SBU 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 SBUs, each of which is responsible for its own profitability.

General Electric is an example of a company with this sort of business organization.

SBUs are able to affect most factors which influence their performance. Managed as separate businesses, they are responsible to a parent corporation. General electric has 49 SBUs.

There are three factors that are generally seen as determining the success of an SBU

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, and

3.the manner in which the corporation is because of new changes in market.

Strategic Business Unit Strategic Business Unit ModelModel

End!End!