Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
Marketing
PREV DEFINITION
Segmentation
Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential.
Read More
NEXT DEFINITION
Definition: A strategic business unit, popularly known as SBU, is a fully-functional unit of a business that has its own vision and direction. Typically, a strategic business unit operates as a separate unit, but it is also an important part of the company. It reports to the headquarters about its operational status.
Description: A strategic business unit or SBU operates as an independent entity, but it has to report directly to the headquarters of the organisation about the status of its operation. It operates independently and is focused on a target market. It is big enough to have its own support functions such as HR, training departments etc. There are several benefits of having an SBU. This principle works best for organisations which have multiple product structure. The best example of SBU are companies like Proctor and Gamble, LG etc. These companies have different product categories under one roof. For example, LG as a company makes consumer durables.
It makes refrigerators, washing machines, air-conditioners as well as televisions. These small units are formed as separate SBUs so that revenues, costs as well as profits can be tracked independently. Once a unit is given an SBU status, it can make its own decisions, investments, budgets etc. It will be quick to react when the product market takes a shift or changes start happening before the shift happens.
PREV DEFINITION
Segmentation
Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential.
Read More
NEXT DEFINITION
Related News
- Post-stake sale, BPCL's LPG business to be in new SBU; new owner to take call after 3 yrsThe firm's cooking gas LPG customers will be transferred to other state-owned firms, Indian Oil Corporation [IOC] and Hindustan Petroleum Corporation Ltd [HPCL], in case the new owner does not want to continue with such a business, an official added.
- L&T's construction arm bags contract for Eastern Dedicated Freight Corridor projectInfrastructure major Larsen & Toubro [L&T] on Friday said its construction arm in consortium with Japan's Kyosan Electric Manufacturing company has bagged a 'significant' order from the Dedicated Freight Corridor Corporation of India [DFCCIL].
- Wipro rejigs roles in energy, manufacturing segmentsEmployees of the Bengaluru-headquartered IT services firm were informed about these changes in senior executive roles through a mail by chief executive officer Abidali Neemuchwala.
- Asia's first public planetarium renovated after 52 yearsKolkata, July 18 [IANS] Asia's first public planetarium, the MP Birla Planetarium here, has been upgraded after 52 years with the latest hybrid projection system from German optical giant Zeiss, at a cost of Rs 42 crore, officials said on Tuesday.
- Infosys reshapes, to split into 12-15 smaller business unitsInfosys, which was beginning to grow strongly under Sikka, posted a relatively disappointing performance in the last quarter.
- Panasonic, US-based AES to install energy storage project in HaryanaPanasonic along with US-based sustainable energy provider AES would install a joint project of 10 MW energy storage array at Jhajjar, Haryana.
- BSNL infrastructure might be shunted to new subsidiaryTotal asset base of BSNL’s proposed tower unit is estimated at Rs 7,226.3 cr, while its equity holdings and reserves are envisaged at Rs 4,076.3 cr.