Which of the following refers to a division of a company that can be managed somewhat independently from other divisions of the company since it markets a specific set of products to a clearly defined group of customers?
A)Business branch
B)Executive department
C)Executive business segment
D)Subsidiary firm
E)Strategic business unit

Question

Quizplus · Accepted Answer

A strategic business unit (SBU) is a division of a company that operates as an independent business with its own strategy and objectives. It is managed somewhat independently from other divisions of the company since it markets a specific set of products to a clearly defined group of customers. SBUs may have their own unique branding, marketing, and operations strategies, and are typically evaluated separately from other business units in terms of their financial performance and strategic goals.

Which of the Following Refers to a Division of a Company