Strategic Business Units


A strategic business unit is a separate, specialised subsystem in the company which acts as an independent company. Having SBU assists organisations to plan their strategies and make manufacturing decisions. The concept provides a review of the critical issues on an SBU benefits and success factors.

Technique Overview

Strategic Business Units

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). Typically the SBU is a business providing a single product or a number of closely related products that serve a well-defined product-market combination and compete with a well-defined set of competitors.

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Business Evidence

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Business Application

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Success Factors of Strategic Business Units *

Measures of Strategic Business Units *

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Professional Tools

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Further Reading

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Strategic Business Units References (4 of up to 20) *

  • Eisenstat, R., Foote, N., Galbraith, J. and Miller, D. (2001) Beyond the Business Unit. The McKinsey Quarterly, Vol. 37(1), pp. 54-63.
  • Grant, R.M. (2002) Contemporary Strategy Analysis: Concepts, Techniques, Applications. Blackwell, Oxford, UK.
  • Hall, W.K. (1978) SBUs: Hot, New Topic in the Management of Diversification. Business Horizons, Vol. 21(1), pp. 17-25.
  • Hansen, O.D. and Peytz, M. (1991) Global Organisation: Designing the Corporate Centre. The McKinsey Quarterly, Vol. 3.

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