What is an SBU? If properly created, what characteristics should an SBU have?
What will be an ideal response?
SBU is an acronym for strategic business unit. A popular technique for managing large, heterogeneous organizations is to divide the firm into strategic business units.
When properly created, an SBU will have the following characteristics:
| · | A distinct mission and a specific target market |
| · | Control over its own resources |
| · | Its own competitors |
| · | A single business or collection of related businesses |
| · | Plans independent of other businesses of the total organization |
| · | Its own basic business functions |
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