Strategic Business Units (SBUs)

A Strategic Business Unit (SBU) is a distinct part of a larger company that operates somewhat independently, focusing on a specific product line or market. It has its own goals, strategies, and resources, allowing it to tailor its approach to meet the unique needs of its customers. SBUs help a large organization organize its diverse activities, manage risks, and capitalize on market opportunities more effectively, much like how a company might run separate departments or divisions for different products or regions to optimize performance.