Question

How many strategic business units (SBUs) does Nestle have, and what are the SBUs?

Answer 1

Strategic business units (SBUs) are fully functional and distinct units of business that develops its own strategic vision and direction. SBUs are key business units having very different business from each other and hence need to enjoy independendence in decision making. For example: ITC manufactures Tobacco products as well as soap and shampoo, the nature of these two products are so different that common decisions might not suit the needs and hence SBUs are created at the top to separate the segments. The parent company might still control fund allocation, fund raising etc. but other critical decisions are taken at SBU level.

Nestle has many SBUs world wide and locally, the key ones are:

1. Baby foods
2. Bottled water
3. Cereals
4. Chocolate & confectionery
5. Coffee
6. Culinary, chilled & frozen foods
7. Dairy
8. Drinks
9. Food service
10. Healthcare nutrition
11. Ice cream
12. Pet care
13. Sports nutrition
14. Weight management