What is the Strategic Business Unit (SBU)? Setting strategic objectives for each SBU.Comparing each SBU against other SBUs with the help of a matrix (two-dimensional).Determining the prospects of each SBU of the organization.
Companies use the BCG matrix is as a portfolio planning tool. These SBUs form the ‘business portfolio’ of the company. Diversified companies having several SBUs (Strategic Business Units) use the BCG Matrix. In the BCG matrix, SBU(Strategic Business Unit) is a unit of the company that has a separate mission and objectives that can be planned independently from other company businesses.
