SBU stands for Strategic Business Unit. It is a fully-functional unit of a business that has its own vision, mission, and objectives, and is responsible for planning, developing, producing, and marketing its own goods or services. SBUs are typically small business units within a larger organization that operate independently. They focus on a product offering and market segment, and have a discrete marketing plan, analysis of competition, and marketing campaign. SBUs are able to affect most factors that influence their performance and are responsible for their own profitability. They may be a business unit within a larger corporation, or they may be a business into itself or a branch. Corporations may be composed of multiple SBUs, each of which is responsible for its own profitability. SBUs are beneficial because organizations creating SBUs can develop and gain success in new products, markets, or technologies, whereas they can avoid the drawbacks of working in huge businesses.