Question

Blue Billion Inc. is a large company that sells a variety of products such as cosmetics, jewelry, frozen foods, navigation electronics, and airplanes. Apart from this, the company also has a strong presence in the service industry through its chain of dance studios, casinos, and nightclubs. Each of its product divisions operates as an individual business and is responsible for its own profits and losses. Thus, these product divisions under Blue Billion can be referred to as?

Answer 1

Answer: Strategic Business Unit.

Explanation:

Definition: Strategic Business Unit (SBU) refers to independently operation of a business in which if can manage it own mission , vision and objectives which are all done separately from the original enterprise.

It may be used for a product line or particular brand which is aimed at particular customers of particular place.

Characteristics of Strategic Business Unit

- it has its own set of competitors.

- it has separate vision and mission from the parent enterprise

- it targets part your customers or market segment which may require specific experts not commonly used by the parent enterprise.