Business Segment - Strategic Business Unit, SBU

The video tutorial explains the importance of strategic thinking in business and marketing, focusing on the concept of business segments, also known as strategic business units (SBUs). These segments operate independently within a larger company, generating their own costs and revenue. The tutorial emphasizes the need for strategic management and marketing to ensure these segments align with the overall business strategy.

What is one way businesses can organize themselves strategically?

• By reducing employee numbers

• By developing separate business segments

• By merging with competitors

• By focusing solely on marketing

What is another term for a business segment?

• Corporate branch

• Strategic business unit

• Business division

• Operational department

How does a strategic business unit operate within a larger company?

• It does not generate its own revenue

• It is completely separate and not linked to the larger company

• It functions independently but is part of the larger company

• It only focuses on marketing activities

What role does strategic management play in business segments?

• It isolates business segments from the main company

• It links business segments to the rest of the company

• It focuses only on cost reduction

• It eliminates the need for separate business segments

What is a key characteristic of a business segment?

• It cannot stand alone

• It generates its own costs and revenue

• It is not part of the larger company

• It only deals with customer service