Business Unit Strategic Planning Definition

A strategic business unit popularly known as sbu is a fully functional unit of a business that has its own vision and direction.

Business unit strategic planning definition. Typically a strategic business unit operates as a separate unit but it is also an important part of the company. Strategic planning process within a business unit adapted from kotler keller 2009. Defining the corporate mission establishing strategic business units or sbus assigning resources to each strategic business unit planning new businesses downsizing older businesses.

Strategic planning can be understood as a systematic long range planning activity that an organization uses to fix priorities strengthen operations ascertain objectives and focus on the resources required and are to be allocated in order to pursue the strategy and attain the objectives. Strategic business units definition a strategic business unit sbu is a basic organisational unit for which it is meaningful to formulate a separate competitive strategy grant 2002. To prepare corporate and divisional strategic planning following activities are usually undertaken by the headquarters.

Strategic business unit sbu definition. Sbus typically have a discrete marketing plan analysis of competition and marketing campaign even though they may be part of a larger business entity. Strategic business unit sbu implies an independently managed division of a large company having its own vision mission and objectives whose planning is done separately from other businesses of the company.

Although it operates independently it has to report directly to the organisation s head office about the status of their operations and performance. A strategic business unit sbu is a fully independently operating entity or unit of a business with its own vision and course. A department or team that manages revenue generating products and services.

Strategic business unit sbu an ideal strategic planning process within a business unit is presented below. Business jargons business strategic planning strategic planning definition. Strategic business units sbu are often aimed at a specific market.

It reports to the headquarters about its operational status. An sbu may be a business unit within a larger corporation or it may be a business into itself or a branch. The term is applied loosely such that any team that manages products and services is typically considered a business unit.