Strategic Business Units (Sbus) Definition

Strategic business units are an important tool for large organizations. By carving out specific areas of the business and giving them their own goals, objectives, and management structures, companies can better focus on growth and profitability.

In simple terms, a strategic business unit is a division of a company that is responsible for its own growth and profitability. The concept was first popularized by the Boston Consulting Group in the 1960s, and has since been adopted by many large organizations.

There are a few key things to keep in mind when it comes to strategic business units:

1. each SBU should have its own unique mission or purpose;

2. the SBU’s strategy should be aligned with the overall company strategy;

3. the SBU should be given enough autonomy to make decisions and take actions without needing approval from higher-ups; and

4. each SBU should have its own performance metrics that are tracked and reported on regularly.

Organizations can use strategic business units in a number of different ways, but they should always keep the above points in mind to ensure that eachSBU is truly effective.