A Strategic Business Unit (SBU) is a distinct segment within a larger organization that focuses on a specific market or product line. Each SBU operates independently, allowing it to develop its own strategies and objectives while aligning with the overall goals of the parent company. This structure helps organizations manage diverse product offerings and respond effectively to market changes. SBUs are often evaluated based on their performance, market share, and growth potential. Companies like Procter & Gamble and General Electric utilize SBUs to streamline operations and enhance competitiveness. By focusing on individual units, businesses can allocate resources more efficiently and drive innovation.