The John Deere Corporation is organized into three divisions: agriculture and turf; construction and forestry; and finance. Each of these divisions sells unique products and services in distinct markets, and each has its own goals and objectives. These three divisions could be most accurately described as:
A) Cost centers.
B) Strategic business units.
C) Revenue centers.
D) Wholly owned subsidiaries.

Question

Quizplus · Accepted Answer

Strategic business units (SBUs) are parts of an organization that operate within their own guidelines and have their own distinct operations, products, and services, which is consistent with the description of John Deere's divisions. Each SBU focuses on specific market segments and has its own objectives, making them relatively independent from the parent company's other business activities.

The John Deere Corporation Is Organized into Three Divisions: Agriculture