Podcast
Questions and Answers
What is a strategic business unit (SBU) defined by?
What is a strategic business unit (SBU) defined by?
- Being evaluated solely on sales or profits
- Having similar customers or competitors (correct)
- Being a small division within a company
- Having diverse product portfolios
How are SBUs evaluated?
How are SBUs evaluated?
- On the number of employees within the SBU
- On their market share percentage
- On the sales and profits they generate (correct)
- On the number of products in their portfolio
What kind of decisions can SBUs make?
What kind of decisions can SBUs make?
- Decisions about unrelated markets
- Decisions about internal operations only
- Decisions about corporate-level strategy only
- Decisions about which strategy to use in their markets (correct)
What are the two types of strategies that SBUs pursue?
What are the two types of strategies that SBUs pursue?
What is an example of an SBU?
What is an example of an SBU?
What defines a strategic business unit (SBU)?
What defines a strategic business unit (SBU)?
How are SBUs evaluated?
How are SBUs evaluated?
What do SBUs make decisions about?
What do SBUs make decisions about?
What are the two types of strategies pursued by SBUs?
What are the two types of strategies pursued by SBUs?
What are SBUs responsible for?
What are SBUs responsible for?
SBUs make decisions on product portfolios and on the markets they serve. They can make decisions about which strategy to use in their markets in order to meet corporate goals. They are the experts in their markets and know their customers. SBUs are evaluated on the sales and profits they generate and are responsible for the results of their business. The strategies that the SBUs pursue are either generic (i.e., strategies regularly employed by organizations) or interactive (i.e., the organization’s direct response to
SBUs make decisions on product portfolios and on the markets they serve. They can make decisions about which strategy to use in their markets in order to meet corporate goals. They are the experts in their markets and know their customers. SBUs are evaluated on the sales and profits they generate and are responsible for the results of their business. The strategies that the SBUs pursue are either generic (i.e., strategies regularly employed by organizations) or interactive (i.e., the organization’s direct response to
A strategic business unit is a unit that provides specific products or services in a specific business or market. Small companies often consist of one strategic business unit, whereas larger corporations have many SBUs. Strategic business units are defined by having similar customers or competitors or by having similar strategic capabilities. An example of a SBU is the medical division of a large corporation which serves
A strategic business unit is a unit that provides specific products or services in a specific business or market. Small companies often consist of one strategic business unit, whereas larger corporations have many SBUs. Strategic business units are defined by having similar customers or competitors or by having similar strategic capabilities. An example of a SBU is the medical division of a large corporation which serves
What Strategic Options Does the SBU
What Strategic Options Does the SBU
SBUs are evaluated on the sales and profits they generate and are responsible for the results of their
SBUs are evaluated on the sales and profits they generate and are responsible for the results of their
An example of a SBU is the medical division of a large corporation which serves
An example of a SBU is the medical division of a large corporation which serves
Study Notes
Strategic Business Unit (SBU)
- A strategic business unit (SBU) is a unit that provides specific products or services in a specific business or market.
- SBUs are defined by having similar customers, competitors, or strategic capabilities.
- Small companies often consist of one SBU, while larger corporations have multiple SBUs.
Evaluation of SBUs
- SBUs are evaluated on the sales and profits they generate.
- They are responsible for the results of their business.
Decision-Making Authority of SBUs
- SBUs make decisions on product portfolios and the markets they serve.
- They can make decisions about which strategy to use in their markets to meet corporate goals.
- They are the experts in their markets and know their customers.
Strategies Pursued by SBUs
- SBUs pursue either generic (i.e., strategies regularly employed by organizations) or interactive (i.e., the organization's direct response to) strategies.
Example of an SBU
- The medical division of a large corporation that serves a specific market is an example of an SBU.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of strategic options available to Strategic Business Units (SBUs) with this quiz. Explore the different strategies that SBUs can employ to thrive in their specific markets, from product differentiation to cost leadership and more. Gain insights into the strategic decisions that can drive success for SBUs within various industries.
