Which of the following is true of strategic business units (SBU)?
A) They are highly dependent on the other businesses within the organization.
B) The elements of an SBU remain identical across organizations.
C) They lack their own set of competitors.
D) They exclude single divisions, subsidiaries, or single product lines.
E) In a small organization, the entire company may be an SBU.

Question

Quizplus · Accepted Answer

Strategic Business Units (SBUs) are designed to operate as somewhat independent entities within larger organizations, focusing on specific market segments or product lines. They have their own vision, competition, and even profit goals. In smaller organizations, it's possible for the entire company to function as a single SBU, especially if it focuses on a niche market or a specialized product line. This flexibility allows SBUs to adapt and respond to their specific market environment more effectively than if they were managed strictly under the broader corporate strategy.

Which of the Following Is True of Strategic Business Units