What is strategic business unit (SBU)?

Definition: Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company.

What is a star SBU?

Star SBUs represent business divisions that reap high growth and market share of the business in its particular sector. Star SBUs are units with a monopoly over a market or big industry giants. They demand high monetary investment and constant cash flow maintain the strategic business unit structure.

How do SBU groups work?

That means the SBU groups are independent of each other, and the SBU divisions are connected. In the SBU system, a single strategic business unit is regarded as a profit center and is led by corporate officers. The parent supervisors focus on strategic planning instead of checks or operational control.

What is an example of SBU structure?

Having one or many SBUs, a business can have them respond quickly to shifts in product markets. One typical example of SBU structure is famous brands like LG. They provide a long list of consumer products such as fridges, televisions, air conditions, and more. Each of them is made by different strategic business divisions.