Skip to main content
padlock icon - secure page this page is secure

Discovering significant and viable new businesses: have faith in strategic planning basics

Buy Article:

$42.86 + tax (Refund Policy)

PurposeManagers need research-based guidance on how to find sources of new growth when their core business is maturing. Design/methodology/approachAuthors shadowed managers responsible for finding and entering new businesses, interviewing them every three or four months for an average of two years. They surveyed over 100 corporate venturing units and corporate incubators and assembled a database of over 50 stories of companies that had successfully developed or acquired a significant new business. We interviewed managers in about half of these companies that had successfully diversified and we tested our emerging hypotheses against this database. FindingsAll research indicated that managers need to assess opportunities more strategically and be less activity driven. The authors concluded that managers were investing in too many projects, most of which had little chance of success. Research limitations/implicationsIf research is reported on in the paper this section must be completed and should include suggestions for future research and any identified limitations in the research process. Practical implicationsAshridge Strategic Management Centre has developed a screening tool ‐ The New Businesses Traffic Lights to test opportunities before a business plan has been developed, alongside a business plan to assess the strategic logic for the proposal, or to an existing investment that is failing to meet its short-term targets. Originality/valueApplying the screen to the portfolio of new business investments in most companies will result in red lights for many projects. Not only can significant money be saved from the "new businesses" budget, but also extra resources can be focused on improving the core businesses.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Keywords: Business development; Innovation

Document Type: Research Article

Publication date: February 1, 2005

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more