What is a subgroup of a single business or a collection of related businesses within a larger organization called?

A Strategic Business Unit (SBU) is defined as a distinct segment of a business that operates independently yet is part of a larger corporate structure. An SBU typically has its own mission, objectives, and resources, allowing it to function autonomously in pursuit of specific goals related to a particular market or product line. This structure enables the organization to allocate resources effectively, respond quickly to market changes, and develop comprehensive strategies tailored to the needs of its specific business environment.

In larger organizations, SBUs facilitate a focus on distinct market challenges and competitive landscapes, often leading to more nimble and strategic decision-making processes. Each SBU may also have its own management team and be responsible for its profitability, further emphasizing the importance of their independence and specialized focus within the overarching corporate framework.