This presentation covers the following points: Understanding of term SBU, Unique Proposition and Characteristics of SBU.

1. • SBU
• Strategic Business Unit

2. Defination
• "SBUs operate as autonomous units, and have the primary responsibility
and authority for managing their basic functions (Johnson et al., 2008)."
• A Strategic Business Unit (SBU) is a basic organisational unit for which
it is meaningful to formulate a separate competitive strategy (Grant,
2002). Typically the SBU is a business providing a single product or a
number of closely related products that serve a well-defined product-
market combination and compete with a well-defined set of competitors.

3. Information
technology and
communications
CHEMICAL
CONSUMER
Engineering Product
& ServicesSERVICES
Materials

4. Unique Proposition of SBU
• Fully-functional unit of a business
• Own vision and direction
• Independent entity
• Report directly to the headquarters
• Operates independently
• Focused on a target market
• Have its own support functions such as HR, training departments
• Best for organisations which have multiple product structure

5. The Three Ingredients of a Successful Business Unit Strategy
• Context
• Advantage
• Link to Execution

6. Characteristics of SBU
• Pearce and Robinson
• A unique business mission
• An identifiable set of competitors
• The SBU strategic manager can make or implement a strategic decision
relatively independent of other SBUs
• Crucial operating decisions can be made within the SBU
https://www.iedunote.com/bcg-matrix-strategic-business-unit

7. • You tube link
https://youtu.be/N3C7zdfD0KM