Strategic business unit (SBU): In business, a strategic business unit is a profit center which focuses on product offering and market segment. strategic business units typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity.
An strategic business units may be a business
unit within a larger corporation, or it may be a business unto itself or a
branch. Corporations may be composed of multiple strategic business units, each
of which is responsible for its own profitability. General Electric is an
example of a company with this sort of business organization. Strategic
business units are able to affect most factors which influence their
performance. Managed as separate businesses, they are responsible to a parent
corporation.