Which of the following BEST describes the strategic business unit (SBU) concept?

Question

Quizplus · Accepted Answer

The SBU concept is a marketing planning tool that is specifically suited for large, diversified organizations. It involves creating separate business units, each with their own strategic plan, goals, and budgets. This allows the organization to better manage its portfolio of businesses and allocate resources more effectively. A is incorrect because the SBU concept is not primarily focused on separating tactical and operational issues. B is incorrect because while the SBU concept may involve separating marketing costs from production expenses, this is not its primary purpose. D is incorrect because while sales potential may be a factor in creating SBUs, it is not the sole determining factor.

Which of the Following BEST Describes the Strategic Business Unit