Red Million Inc.is a large company that sells a variety of products such as apparel, jewelry, canned foods, consumer electronics, and automobiles.Apart from this, the company also has a strong presence in the service industry through its chain of hotels, fast food restaurants, and amusement parks.Each of its product divisions operates as an individual business and is responsible for its own profits and losses.Thus, these product divisions under Red Million can be referred to as _____.

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Quizplus · Accepted Answer

These product divisions under Red Million can be referred to as strategic business units (SBUs). Business strategy occurs within strategic business units, the standalone divisions of a larger conglomerate, each with its own profit-and-loss responsibility. General managers in SBUs must answer business strategy questions relating to how to compete in order to achieve superior performance.