strategic (adjective, stra-te-gic, \ strəˈtiːdʒɪk \) business (noun, busi-ness, \ ˈbɪznəs \) unit (noun, u-nit, \ ˈjuːnɪt \)
Definition: is a part (branch or product line) of a bigger organization that is small enough to have a separate mission and goals, and which can be developed and marketed independently from other units. Due to its more flexible nature, a strategic business unit can be easily changed to align with the trends occurring in the economic and market environments, while still remaining an integrated part of a larger company. An SBU ordinarily possesses its own infrastructure including staff and HR department.
In a Sentence:
- The creation of a separate strategic business unit is an essential step in the development of a company that intends to diversify its product line.
- The world’s leading IT firm has created a new strategic business unit in Copenhagen to streamline the process of conquering the Danish market.
Synonyms and related words: profit center, segmentation, division, marketing team, cost center