Crucial operating decisions can be made within the SBU.Īn SBU is responsible for its products, services ‘and markets and, therefore, it is also responsible for developing its strategy.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.