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Fewer new growth opportunities and increased global competition will make “star” businesses a rarity in the late 1980s. Furthermore, divesting “dog” businesses may become difficult because of increased stakeholder activism. Firms therefore may have to decrease their reliance on portfolio planning and increasingly emphasize product extensions and business rejuvenations. A planning framework for managing such a self-renewal is outlined.
Balaji S. Chakravarthy (Sun,) studied this question.
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