Full Form of SBU
SBU stands for Strategic Business Unit. Units formed under Strategic Business Unit (SBU) aim to maximise profits and minimise costs of their own unit, thus maximising profits and minimising costs of the organisation as a whole. SBUs can be identified as small units of different functions, coming under an organisation.
An SBU is a grouping of related businesses amenable to composite planning treatment. As per this concept, a multi-business enterprise groups its multitude of businesses into a few distinct business units in a scientific way. The purpose is to provide effective strategic planning treatment for each one of its products/businesses.
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