The SBU strategic manager can make or implement a strategic decision relatively independent of other SBUs.A division of a company may also be treated as Strategic Business Units (SBUs).Īccording to Pearce and Robinson, Strategic Business Units (SBUs) must have certain characteristics: In a diversified company, each business unit is an SBU. In the BCG matrix, SBU(Strategic Business Unit) is a company that has a separate mission and objectives and can be planned independently from other company businesses.įor example, a company division, a product line within a division, or sometimes a single product or brand.Ī strategic business unit (SBU) is a relatively autonomous unit of a firm. What is the Strategic Business Unit (SBU)? Setting strategic objectives for each SBU. Comparing each SBU against other SBUs with the help of a matrix (two-dimensional).Determining the prospects of each SBU of the organization.Companies use the BCG matrix is as a portfolio planning tool. These SBUs form the ‘business portfolio’ of the company. Diversified companies having several SBUs (Strategic Business Units) use the BCG Matrix. In the BCG matrix, SBU(Strategic Business Unit) is a unit of the company that has a separate mission and objectives that can be planned independently from other company businesses.
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