Definition of Strategic Business Unit

The strategic business unit also is known as SBU, is a separate division within a company with separate management, vision, mission, goals, and functionality. The company can have multiple associated businesses, product lines, or product ranges for which separate SBU works. SBU works independently from the rest of the company and their goals may vary from the main goals of the company but their achievement is essential for the success of the company.


Each unit has a separate head who is responsible for all financial and managerial planning. SBU is also formed separately to target a separate audience and class. Special skills are required in each SBU to plan & manufacture target products.

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