Strategic business unit
A strategic business unit (SBU) is a sub-area of a company that can operate in an external market segment independently of other sub-areas of the company. Strategic business units are closely linked market-product combinations with clearly defined market tasks. They make an independent contribution to the success of the company as a whole. Several of these strategic business units from different companies operate in a strategic business area (SGF) .
Criteria for the formation of strategic business units
Strategic business units are able to process customer or product segments independently in their full breadth and depth. To be successful in the market, all SBUs must have relative competitive advantages (central criterion). In order to be able to show the success of an SBU within the entire company, it is necessary to set up a clearly defined set of figures internally ( internal accounting ) and to clearly separate the area of activity from that of other company units. In particular, the costs of cross-SGE functions must either be distributed as services to the SGE or booked as costs of the leading company management. The establishment of SGE is usually associated with the hope of efficient internal management of the unit and a market-oriented external appearance. Accordingly, the heads of an SGE must be given powers of attorney that allow them to shape the SGE's actions in the market at their own discretion. In extreme cases, this is achieved by spinning off the SGE as an independent company and only a leading holding company remains in the actual company . A well-known example is the transformation of Hoechst AG into a Strategic Management Holding with the spin-off of all businesses and all service units into independent companies in 1996/1997.
discussion
Critics criticize the concept of the SGE for not adding any added value to the company. Either they are congruent with the organizational units of a divisional organization and thus only a renaming of the divisions or they are placed as an independent unit over an already existing organizational structure and thus establish a de facto matrix organization in the company with all the associated problems. In the extreme case of independent SBUs, the added value of the holding is questionable or it is unclear why the SBUs have to form a joint company at all.
This criticism is only justified, however, if there are no synergy effects or economies of scale between the individual SBUs , such as B. with joint procurement (and if it is only from outside capital ). Furthermore, supporting tasks in the holding organization can be taken over for the SGE (personnel, accounting, organization, etc.)