A firm ensures that no two SBUs within the firm compete for the same customers with similar products.Which SBU characteristic is being discussed here?
A)a homogeneous set of markets to serve with a limited number of related technologies
B)controlling factors that are essential for successful performance
C)a unique set of product markets
D)responsibility for their own profitability

Question

Quizplus · Accepted Answer

This characteristic refers to the firm's ability to differentiate its SBUs in terms of the unique product markets they serve. By ensuring that no two SBUs compete for the same customers with similar products, the firm can effectively allocate resources and focus on serving distinct markets with their own set of customer needs and preferences. This helps to avoid cannibalization and maximize overall profitability.

A Firm Ensures That No Two SBUs Within the Firm