STRATEGIC BUSINESS UNIT
A SBU (strategic business unit) is a unit of the firm that isrelatively autonomous, an entity responsible for developing itsown strategy. A business unit is responsible for its own products &markets, with its own competitors. Assets required to run thebusiness are under its control & has its own managerialresources, at same time it is unlikely to be independent. Theremay be linkage with other units either through markets served,technology, facilities & operations or R&D.Business level strategy is concerned with how to manage &develop strategy of the relatively autonomous unit in the contextof the firm corporate strategy.The distinguishing feature of a diversified firm is that it consists of a number of interdependent business units.
Resource allocation –
The corporate level is responsible for decision on on the dynamicscope of the firm, the portfolio of business that comprises thefirm. The firm must actively engaged in ensuring the emergenceof new business opportunities, even when it abandons old ones.This may include –
Buying & selling of business units,
Developing business internally,
Closing or exiting business,
Forming alliance & networks with other firms,
Redefining business in the current portfolio.