Unformatted text preview: Once a company has defined its SBUs, management hast to decide how the budget needs to be allocated. Each SBU must be therefore evaluated to its value, which is based on potential growth opportunities. A review of opportunities for improving existing businesses can be performed within the framework of the Ansoff's product-market expansion grid. Based on current products and markets, a company must assess whether it could gain a higher market share (market penetration) or needs to explore new markets (market development) for the current products. New markets refer to new customer segments or international markets, for example. The second consideration focuses on new products and whether they can be offered in the existing markets (product development) or need (can) be offered to new markets (as well). Especially other country markets often require a minimum degree of product adjustments to the local context (language, legal issues etc.)....
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This note was uploaded on 08/29/2011 for the course ECON 530 taught by Professor Smith during the Spring '11 term at Berklee.
- Spring '11