A Strategic Business Unit (SBU) is a distinct entity within a larger corporation, characterized by its own vision, mission, and objectives that align with the company's long-term goals. It operates independently with a focus on a specific product or market segment, aiming to maximize profits. An SBU is responsible for its own planning and performance, and although it operates autonomously, it still reports to the parent company's headquarters.

Here are some key points about SBUs:

• They are independently operational and focus on a particular business area with their own vision and direction¹.
SBUs are often small business entities within a large organization and operate like profit centers with separate business divisions¹.
They target specific goods for a particular location or audience, and their performance is crucial for the parent company's market capitalization¹.
SBUs can be categorized into four types based on growth, performance, and market share: cash cows, dogs, stars, and question marks¹.
The establishment of an SBU can be beneficial for market analysis, research and development, pricing, and creating market awareness¹.