1) When the Organization having multiple products grows very large, it is broken down into separate units, which operates as a profit centre by itself
2) To be called an SBU, it should meet the following criteria:
- Have its own mission
- Have definable groups of competitors
- Prepare its own integrative plans
- Manage its own resources
- Have proper size, neither too large, nor too small
3) Each SBU is headed by a Head
Has its own advantages & disadvantages
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