A Business Unit is a distinct segment within a larger organization that focuses on a specific market, product, or service. Each unit operates semi-independently, allowing it to tailor its strategies and operations to meet the unique needs of its target audience. This structure helps organizations manage diverse offerings more effectively. Business units can vary in size and function, ranging from small teams to large divisions. They often have their own goals, budgets, and performance metrics, which contribute to the overall success of the parent company. This approach enables better resource allocation and strategic planning across the organization.