Guidelines for strategic business unit
For the proper management of the business organization SBU’s are introduced in the business organization. Expert give some guidelines for strategic business units..
1. The number of SBU should be minimized: the number SBU’s should not be excess. There is no hard and fast rules regarding how many SBU should have in an organization. Number of SBU depends on the management ability, resources ability of the organization.
2. The Basis of SBU’s: the basis of SBU is related products and related process technology. Within each SBU the products will be interdependent or related and the technological process will be same for related products.
3. Distinct different from others: Every SBU is different from other; each one has its unique market base, technology process, product, distribution, or delivery of product etc.
