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Could you please point out the advantages of st...

Could you please point out the advantages of strategic business unit ?

Could you please point out the advantages of strategic business unit ?

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Jeeba Mar. 08, 2018


SBU is any part of a business organization which is treated separately for strategic management purposes. An SBU is typically created to target a specific market or business concern which requires a production or management specialty not contained within the parent organization.

The concept of SBU is helpful in creating an SBU organizational structure. It is created by adding another level of management in a divisional structure after the divisions have been grouped under a divisional top management authority based on the common strategic interests. 

Followings are the some advantages of Strategic Business Unit.

  1. Establishing coordination between divisions having common strategic interests.
  2. Facilitates strategic management and control on large and diverse organizations.
  3. Fixes accountabilities at the level of distinct business units.
  4. Allows strategic planning to be done at the most relevant level within the total enterprise. 
  5. Makes the task of strategic review by top executives more objective and more effective. 
  6. Helps allocate corporate resources to areas with greatest growth opportunities.

Could you please point out the advantages of strategic business unit ?

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