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Develop your business or decline. Corporate management often desires higher sales and profits than indicated by the projections for the Strategic Business Unit (SBU) portfolio creating Strategic-Planning Gap.
The question then becomes how to grow much faster than the current businesses’ capabilities to narrow this gap.
First Alternative is to identify opportunities to achieve further business development within the company’s current businesses.
Second Alternative is to identify opportunities to build or acquire businesses that are related to the company’s current businesses.
Third Alternative is to identify opportunities to add attractive businesses that are unrelated to the company’s current businesses.
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