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Please explain the following statement as correct…

Please explain the following statement as correct or incorrect: SBU concepts facilitate multi-busi…

Please explain the following statement as correct or incorrect: SBU concepts facilitate multi-business operations.

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Jeeba Mar. 08, 2018

A strategic business unit is a separate, specialised subsystem in the company which acts as an independent company. In other words, it is a separately managed division or unit of an enterprise with strategic objectives that is both distinct from the parent unit and integral to the overall performance of the enterprise.

It is a convenient and intelligent grouping of activities along distinct businesses and has replaced the conventional groupings. SBU facilitates strategic planning, gaining productrelated/market-related specialization, gaining cost-economies and more rational organizational structure.