Strategic Business Unit

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Description of Strategic Business Unit. Explanation.

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Definition Strategic Business Unit. Description.


Strategic Business Unit is an organizational entity of a company that is given the responsibility to serve the particular demands of one business area and therefore has its own  mission, objectives and business strategy. Acronym is SBU. Contrary to the use of the word "business unit" in everyday life, an SBU in the strategic management sense is normally an entire division in large corporations.


The SBU is the subject of Business (level) Strategy. While the entire corporation is the subject of Corporate (level) Strategy.


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