When to Pass on a Great Business Opportunity

http://blogs.hbr.org/2014/05/when-to-pass-on-a-great-business-opportunity/

 

 

One of your better managers comes to you with the idea of setting up an internet bank. Some experts will say that you should invest in a portfolio of new ventures as part of what McKinsey calls the third horizon. Using this logic, both Prudential and Mannesmann should have a go. Other experts will argue the opposite: stick to your existing strategy, dont let yourself be distracted, and beware of becoming over-diversified. Whos right?

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