Strategic Business Unit

Definition of 'Strategic Business Unit'

A business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets.

A Strategic Business Unit can encompass an entire company, or can simply be a smaller part of a company set up to perform a specific task. The SBU has its own business strategy and objectives, and these will often be different from those of the parent company.

Related Terms