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What is a SBU?

Anonymous

∙ 11y ago

Updated: 3/22/2024

SBU stands for Strategic Business Unit, which is an independent unit within a larger company with its own business strategy and objectives.

supportbewage ∙

Lvl 5

∙ 1y ago

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What is the disadvantages of SBU?

Excessive fragmentation of strategy-critical processesCan lead to inter-functional rivalry and conflict, rather than team-playMulti-layered management bureaucracies and centralized decision-making slow response timeHinders development of managers with cross-functional experience because the ladder of advancement is up the ranks within the same functional areaForces profit responsibility to the topFunctional specialists often attach more importance to what's best for the functional area than to what's best for the whole business - can lead to functional empire-buildingFunctional myopia often inhibits creative entrepreneurship, adapting to change, and attempts to create cross-functional core competencies

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