Other attributes
A Strategic Business Unit (SBU) is a separate, specialized subsystem in the company which acts as an independent entity. Structuring around SBU's allows an organization to more efficiently strategize. 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. Generally, SBU's operate independently and are focused on a target market, but big enough to maintain their own support functions such as HR, customer support, etc.
For example, LG as a company makes consumer durables such as refrigerators, washing machines, and televisions. These small units are formed as separate SBUs so that revenues, costs, and profits can be tracked and improved independently. Once a unit is given an SBU status, it can make its own decisions, investments, budgets etc. enabling it to be quick to react when the market of the SBU's product changes.
