A strategic business unit structure has the disadvantage of ambiguous roles for senior executives.
A strategic business unit, commonly known as an SBU, is a fully functioning unit of a company with its own vision and direction. Strategic business units usually act as independent entities, but they are also an important part of the organization. Report operational status to the control center.
Strategic business units in strategic business management are profit centers focused on product offerings and market segments. SBUs typically have separate marketing plans, competitive analyses, and marketing campaigns, but can also be part of a larger business unit.
A company may experience some disadvantages when organizing divisions via an SBU structure. A separate entity can create an additional layer of top management that is costly and difficult to manage. SBUs require coordination from headquarters to align with the overall goals of the group.
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