Understanding when to focus, when to expand and when to redefine a core business has become leadership’s #1 imperative. While it is common for companies to abandon a core businesses too early, it is also common for them to cling to eroding ones for far too long. When core businesses actually are out of gas, it is usually for one of three reasons: 1) Your company is targeting a shrinking or shifting profit pool, 2) your company has inherently inferior economics, or 3) your company’s growth formula simply cannot be sustained.

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