SBU
Business & Finance abbreviation · Management & Strategy
| Stands for | Strategic business unit |
|---|---|
| Categories | Business & Finance |
SBU stands for Strategic business unit, a management & strategy abbreviation.
Business unit large and independent enough to have its own mission, competitors and strategy, managed as a separate profit center within a diversified company. The concept is central to portfolio-planning tools that compare the market growth and market share of each unit.
Example: The conglomerate split its operations into five SBUs, each with a president reporting directly to the CEO.
Usage notes
The SBU concept is associated with General Electric and McKinsey in the early 1970s, and SBUs are the units plotted on the BCG growth-share matrix and the GE-McKinsey nine-box matrix. In practice many companies simply say BU or division.
Related abbreviations
More management & strategy abbreviations
- RCA – Root cause analysis
- RFI – Request for information
- RFP – Request for proposal
- RFQ – Request for quotation
- RFT – Request for tender
- SAM – Serviceable addressable market
- SLA – Service-level agreement
- SLT – Senior leadership team
- SMART – Specific, measurable, achievable, relevant, time-bound
- SMB – Small and midsize business
- SME – Small and medium-sized enterprise
- SOM – Serviceable obtainable market