ABSTRACT
It is logical to answer this question at two distinct organizational levels:
1 The corporate level or multi-strategic business unit (SBU) level. 2 The single business or SBU level.
A strategic business unit (SBU) can be defined as a unit that produces products or services for which there is an identifiable group of customers. Organization divisions or units are frequently defined on this basis, with an adhesive company, for example, having an automotive division, a packaging division, and a DIY division. Units can also be defined geographically (e.g. Australian and European divisions). In some organizations divisions are defined both by product group and geographical location (e.g. Australian automotive division). The corporate centre normally allows the divisions to operate with varying degrees of operational and strategic autonomy within an overall centrally controlled framework. Organization structures and centre divisional relationships are discussed in Chapter 5.
