Question

Campbell Soup Company purchased Bolthouse Farms and operates this division as a separate profit center within the firm. In this example, Bolthouse Farms is a(n) _______unit of Campbell Soup Company.

Answer 1

In the context of Campbell Soup Company’s acquisition, Bolthouse Farms is an example of a strategic business unit (SBU) of Campbell Soup Company.

Step-by-step explanation:

An SBU is a subsidiary or a division of a company that is managed independently and is responsible for its own strategic planning, budgeting, and profit. Essentially, it operates as a separate company within the larger corporate structure, with its own distinct brand and business strategies.

The designation as an SBU allows Bolthouse Farms to focus on specific market demands and to be agile in its decision-making, while still benefiting from the resources and brand recognition of Campbell Soup Company. The SBU model facilitates tracking of financial performance and helps in making decisions that align with both the unit's and the parent company's objectives.