Test your knowledge of strategic options available to Strategic Business Units (...

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Questions and Answers

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?

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?

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?

Generic and interactive Signup and view all the answers

What is an example of an SBU?

The medical division of a large corporation serving hospitals Signup and view all the answers

What defines a strategic business unit (SBU)?

Similar customers, competitors, or strategic capabilities Signup and view all the answers

How are SBUs evaluated?

Based on the sales and profits they generate Signup and view all the answers

What do SBUs make decisions about?

Product portfolios and the markets they serve Signup and view all the answers

What are the two types of strategies pursued by SBUs?

Generic and interactive Signup and view all the answers

What are SBUs responsible for?

The results of their business Signup and view all the answers

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

market conditions Signup and view all the answers

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

hospitals Signup and view all the answers

What Strategic Options Does the SBU

have Signup and view all the answers

SBUs are evaluated on the sales and profits they generate and are responsible for the results of their

business Signup and view all the answers

An example of a SBU is the medical division of a large corporation which serves

hospitals Signup and view all the answers

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.

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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.