Definition Strategic Business Unit. Description.
Strategic Business Unit is an organizational entity of a company
that is given the responsibility to serve the particular demands of one business
area and therefore has its own mission, objectives and business strategy.
Acronym is SBU. Contrary to the use of the word "business unit" in everyday
life, an SBU in the strategic management sense is normally an entire division
in large corporations.
The SBU is the subject of Business (level) Strategy. While
the entire corporation is the subject of Corporate (level) Strategy.
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Market Definition at the SBU Level
"A market definition at an SBU is defined in the same way as it would for an entire company. But there are 2 differences between market definition at the company level and at the SBU level:
1. Because marketing plans are made for the SBU, the market definition should be more concrete.
2. The market for an SBU is smaller compared to a company.
The sum of all market definitions of all SBU's will approximately add up to the market definition for the entire company.
Note that the definition of customer need has a direct impact on the ''range of the competition''. After all, a competitor is by definition a supplier that can satisfy the same customer need. Product characteristics can also used when defining a market definition." |
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Strategic Business Units Special Interest Group
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