One reason for organizing into SBUs is to help a company make decisions about which product lines warrant commitment of additional resources and which should be removed from the firm's portfolio.

Question

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Organizing into Strategic Business Units (SBUs) allows a company to assess each unit's performance independently, helping in making informed decisions about resource allocation, including which product lines to invest in further and which to divest or discontinue.

One Reason for Organizing into SBUs Is to Help a Company