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This is a tool by which managers identify and evaluate the various businesses of the company.
Management’s first step is to identify the key business making up the company. These may be referred to as strategic business units An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organised.
The second step is to assess the attractiveness of its various SBU’s and decide how much support each deserves...
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