B) The strategic business units (sbu) structure. While a strategic business unit functions independently, it is also an essential component of the business. It communicates its operational status to headquarters.
Grouping activities by geography, such as into Latin American divisions, is known as geographic structuring. Because it allows for flexibility in product offerings and marketing strategies, geographic structuring is especially crucial when tastes and brand responses differ across regions.
A fully functional business unit with its own vision and direction is referred to as a strategic business unit, or SBU. A strategic business unit is an important part of the company, even though it typically operates independently. It reports to the base camp about its functional status.
Independent operating units that operate independently are part of a strategic business unit structure. Top corporate officials delegate to division owner's responsibilities for business unit strategy and regular operations within the structure.
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