strategic business unit (SBU)

  

Definition

An autonomous division or organizational unit, small enough to be flexible and large enough to exercise control over most of the factors affecting its long-term performance.

Because strategic business units are more agile (and usually have independent missions and objectives), they allow the owning conglomerate to respond quickly to changing economic or market situations.


Use this term in a sentence

  • The strategic business unit was able to adapt to the quick changes in the market and we were able to analyze all of this as well.

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  • Our strategic business unit usually soared ad today was no different because they worked very hard and did a great job.

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  • One of our corporation's most successful strategic business units operates almost completely autonomously, but readily accepts over-arching directives from our organization if and when needed.

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