See more Excel demos at http://office.microsoft.com/en-us/help/FX100485311033.aspx
Storing information, such as a full address, in one column can limit what you can do with that information. For example, you can't easily filter or sort by part of the address, such as country/region or city. However, if you break up the address into its parts — street address, city, state/province, postal code, country/region — one for each column, you can remove those limits.