A Business Unit is a distinct segment within a larger organization that focuses on specific products, services, or markets. Each unit operates semi-independently, allowing it to tailor strategies and operations to meet its unique goals. This structure helps companies manage diverse offerings and respond effectively to market demands. Business units often have their own management teams, budgets, and performance metrics. For example, a large corporation like Procter & Gamble may have separate business units for personal care, household products, and healthcare. This division enables better resource allocation and strategic planning, enhancing overall organizational efficiency.