Class 14: Exploration/Exploitation

Often, a firm has to undertake a radical innovation while maintaining revenues from existing products. Sometimes, a firm has more than one division each of which requires a different S3PE. This session explores the problems associated with the coexistence of different S3PE fits.

 

Reading: Chapter 12 Pages 253-255

Case: PC&D (HBS)

 

Study questions:

(1) Who should be fired: John Martel or George McElroy?

(2) Does PC&D have a problem? If there is one, how would you solve it? 

 


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