Business unit is a segment of a company representing a specific business function such as accounting, marketing, producing.
What is Business Unit?
- In business strategic management, a profit center that prioritizes product offerings and market segments is known as a strategic business unit (SBU).
- Even though they may be a part of a bigger business organization, SBUs often have a distinct marketing plan, study of the competition, and marketing campaign.
- An SBU could be a branch, a company unto itself, or a business unit within a bigger enterprise. Multiple SBUs may make up corporations, and each is in charge of ensuring its own profitability.
- An organization of this type in a company is General Electric (GE), for instance. The majority of the elements that affect SBUs' performance are within their control. They report to a parent company and are run as distinct enterprises. 49 SBUs make up GE.
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