Profit from the Core: A Return to Growth in Turbulent Times

These are indeed "turbulent times". Prior to the worst economic meltdown since the Great Depression, many large and successful corporations seemed to embrace the philosophy of constantly expanding their operations, to foster "increased opportunities" for their employees; a very noble mission statement, indeed. As a result, many corporations took their eye off the ball. Often, the new subsidiaries weren't nearly as profitable as their core business; they often required an inordinate amount of management time to keep them afloat, which in turn, resulted in diminished returns from the core business. It was a messy situation, at best. Then came the global economic catastrophe, fueled by a housing bubble that finally burst, along with the disasters on Wall Street. Lehman Brothers & Bear Stearns were the most notable failures. Suddenly, every sector of business seemed to be on life support. In a wonderfully crafted analysis of what businesses should do to once again foster growth, Chris Zook and James Allen have provided a fairly simple game plan: Stick to the core. Stick to what you do best while eliminating the waste. The advice is really very simple; it's time to trim the fat, corporate America.

The book provides good insight on how companies need to remain focused on core businesses. Need constant evaluation to remain relevant in the business world.

Great tead

I really had a hard time reading this book. Yes it is not a marketing one and it is strategy but the narrative is quite slow and boring. This is more a lecture book than a strategy hand book for business professionals. The main points and ideas are strong and they make sense but they are quite repetitive. It is also very disappointing that even this book defends the idea of a core, it does not even cite one word of Al Ries’s “Positioning” which is one of the cornerstones of marketing and strategy. I think I did not enjoy this read and would not recommend it. You could just go for “positioning” and grab the main idea from there with much better examples and easiness to read.

This book was really interesting to read. It was easy to understand. I recommend it!

Profit From the Core is without a doubt one of my favorite business books. I rank it alongside Winning Decisions and The Goal. This book is from the perspective of manager's wanting to achieve corporate growth, but the myriad concepts are so powerful they can be adapted to departmental strategies, evaluating corporations, mergers & acquisitions and even to designing one's own career strategy. The updated edition from 2010 includes examples that are relevant in today's post financial meltdown world. No per-requisites should be required. It is a must read for those wanting to improve their business strategy acumen, and useful if you want to exercise your strategic thinking in general.

My review title says it all. The authors had filled the book with plenty of good examples and practical questions that even the most pragmatic executives will find itt helpful. Recommended! p.s. Below please find some of my favorite passages for your reference. The lack of empirical data behind many business "cure-alls" has prompted one Oxford don to proclaim management science a "phony academic subject, a shallow contemporary shibboleth promoting noxious cant. Pg11 Alexander the Great ruled the largest area of the earth ever conquered by a single individual, stretching from Mount Olympus to Mount Everest. Although not everyone's idea of the model CEO, he amassed his kingdom in less than four years, covering more than four thousand miles by foot, and winning 100 percent of his battles - a remarkable record in such a short time. But did he create lasting value? Just a few years after his death, his empire had dissolved and the captured territory slipped away. Alexander's problem was not inadequate initial resources or poor execution. It was the lack of a long term strategy and the inability to exploit and consolidate his extraordinary short term gains throughout the Near East to Nepal, which stretched resources to govern too far beyond the Macedonian core. His sticking point - the failure to anchor in the core business (in his case, governance) and consolidate a rapid expansion - exemplifies the most common problem across all growth strategy. Pg63-4 The ten questions that we believe management teams should periodically ask themselves about their companies and should include at the start of every review of their basic growth strategy. Pg149-50 1. What is the most tightly defined profitable core of our business, and is it gaining or losing strength? 2. What defines the boundaries of the business that we are competing for, and where are those boundaries going to shift in the future? 3. Are there new competitors currently at the fringe of our business that pose potential longer term threats to the core? 4. Are we certain that we are achieving the full strategic and operating potential of our core business, the "hidden value: of the core? 5. What is the full set of potential adjacencies to our core business and possible adjacency moves (single or multiple moves)? Are we looking at these in a planned, logical sequence or piecemeal? 6. What is our point of view on the future of the industry? As a team, do we have consensus? How is this point of view shaping our adjacency strategy and point of arrival? 7. Should major new growth initiatives be pursued inside, next to, or outside the core? How should we decide? 8. Is industry turbulence changing the fundamental source of future competitive advantage? How? Through new models? New segments? New competitors? And what are we monitoring on a regular basis? 9. Are organizational enablers and inhibitors to growth in the right balance for the needed change? 10. What are the guiding strategic principles that should apply consistently to all of our major strategic and operating decisions?

I am a Business Consultant, specialization in Strategy. I found this book a jewel. It includes the Keys for Success in taking Business Decisions, I mean, where to Look for. It brings many questions every Businessman, Executive should respond in order to drive the company in the Right Direction. Finally, it is very well Documented with a lot of studies. I love this Book!!!

Ce livre est très intéressant et à jour.

Base de dados impressionante permitiu análises profundas e que fornecem direcionamento estratégico.

A little heavy on details but invaluable for someone really interested in the topic. Great set of frameworks to think about whether to expand the core (and how) or expand into adjacencies (and how). A great read for CEOs and strategy folks of a late stage company (typically 5yr plus old and atleast 100M plus size)

"What is the most tightly defined profitable core of our business? What is the full set of potential adjancies to our core business? Are organizational enablers and inhibitors to growth in the right balance for the needed change? What are the guiding strategic principles that should apply to all our operating decisions?" Even after 16 years, this book by Chris Zook and James Allen continues to remain influential and raises pertinent questions for management to think about while throwing their hands and money on new business opportunities.

Good