Typically the SBU is a business providing a single product or a number of closely related products that serve a well-defined product-market combination and compete with a well-defined set of competitors. A strategic business unit is a fully functional and distinct unit of a … A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has its own vision and direction. Own set of competitors. Strategic Business Units Definition. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company.

Strategic Business Unit Defined. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis, portfolio diagram), a chart designed by Bruce Henderson for the Boston Consulting Group in 1968, may help corporations to analyze their business units or product lines. In some cases, they are run as a completely separate business. A Strategic Business Unit (SBU) is a basic organisational unit for which it is meaningful to formulate a separate competitive strategy (Grant, 2002).

Alternatively, a strategic business unit may be primarily a marketing team that shares administrative and operational functions with the rest of an organization. A manager who is accountable for strategic planning, profitability and performance of the division.

It reports to the headquarters about its operational status. The BCG matrix (aka B.C.G. Characteristics of Strategic Business Unit Separate business or a grouping of similar businesses, offering scope for autonomous planning. A strategic business unit is a division or team of a company that is responsible for its own strategy and bottom line. This helps the company allocate resources; brand marketing, product management, strategic management, and portfolio analysis can use it as an analytical tool.