A company needs to group Azure subscriptions by business unit and apply policies across those groups. Which Azure feature should they use?

Azure Management Groups provide a level of scope above subscriptions, allowing you to organize subscriptions into containers. This hierarchical structure enables you to apply governance policies, access conditions, and compliance rules to all subscriptions within a management group, and by extension, to all resources within those subscriptions. This is ideal for grouping subscriptions by business unit and applying consistent policies. Azure Blueprints define a repeatable set of Azure resources and policies, but they are applied at the subscription level, not above it. Azure Tags are used for organizing and categorizing resources within a subscription, not for grouping subscriptions themselves. Azure Resource Groups are logical containers for resources within a single subscription, not for organizing multiple subscriptions.