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Management · Q118

Strategic Management

Graduate and Post Graduate · Management · question 118

Q118

An organization is said to have _______ when it has several different businesses that are independent and that formulate their own strategies

A.
operational units
B.
strategic business units
Answer
C.
competitive advantages
D.
legal subunits

Answer: Option B

Solution

Answer: Option B
Solution:
An organization is said to have strategic business units when it has several different businesses that are independent and that formulate their own strategies. Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company.