Major activity in strategic planning is business portfolio analysis .whereby management evaluates the product and businesses making up the company .The company will want to put strong resources into its more profitable businesses and phase down or drops its weaker ones.
Management first step is to identify the key business making up the company. These can be called the strategic businesses units.
A strategic business units (SBU) Is a units of the company that has a separate mission and objective and that can be planned independently from other company businesses. An SBU can be a company division a product line within a division or sometimes a single product or brands .