Strategic Business Unit

[sunset_corniche]

Could you give me a real life example of a Strategic Business Unit(SBU)?

Thanking you in advance.

Have a good day!

[Acid]

Strategic Business Unit or SBU is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets. When companies become really large, they are best thought of as being composed of a number of businesses (or SBUs).
These organizational entities are large enough and homogeneous enough to exercise control over most strategic factors affecting their performance. They are managed as self contained planning units for which discrete business strategies can be developed. A Strategic Business Unit can encompass an entire company, or can simply be a smaller part of a company set up to perform a specific task. The SBU has its own business strategy, objectives and competitors and these will often be different from those of the parent company. Research conducted in this include the BCG Matrix.
This approach entails the creation of business units to address each market in which the company is operating. The organization of the business unit is determined by the needs of the market.


Hope this helps!

Assad

[sunset_corniche]

Thank you for the explanation. I would also like to know about a real life example of a SBU.

Thank you.

[vishwas1980]

Hi Sunshine

A strategic business unit, also known as an SBU, is a unique company which is part of a larger organization. The larger organization may own several businesses or SBUs. Each strategic business unit is a unique and separate company loosely affiliated with the larger one. A good example is General Electric which has a financing business called GE Capital. GE Capital is a separate strategic business unit within the larger parent organization called General Electric. Strategic business units have their own mission, products, services and strategic plans separate from the parent organization. However, the objectives of the strategic business unit are consistent with the objectives of the parent company.

Hope it is clear now

Regards
Vishwas

[Acid]

An example COULD be , say:

The SBU will make strategic goals of the business and translate the aims of business into more detailed plans .

For example a business may have a goal to increase sales next year by 10% so the SBU would develop strategies would help to achieve the increase of 10% in sales!


Acid

[StartABusiness]

One of the most important aspects of SBU is the Merchant Service Provider that will oversee and report back to your company the credit and debit card payments. Everything from the form in which your company will accept credit/debit card payments to sending the end of the month statments for accounting purposes alot of importance lies with any businesses merchant service provider. This is a commonly misunderstood aspect of the sales for businesses and should be looked at closely for any business that plans on growing sales through accepting what is becoming more and more regular use in the credit card payment process for good and services.

To learn more:
http://servicesmerchants.com/
Merchant Account Business Credit Card Processing