Spawned by a 10-year study of 2,000 firms conducted at Bain & Company, a global consultancy specializing in business strategy, Profit from the Core is based on the fundamental but oft-ignored maxim that prolonged corporate growth is most profitably achieved by concentrating on a single core business. To help companies identify this true essence, narrow their focus accordingly, and move forward in a manner that builds upon existing structure, Bain director Chris Zook and former Bain director James Allen present "a set of practical and proven principles, diagnostic tests, and questions for management teams to use as tools for reexamining or revising their strategies in search of the next wave of profitable growth." Bolstering their argument with real-world examples--including companies such as Disney, which succeeded by taking this approach, and Bausch & Lomb, which faltered by eschewing it--the authors show how to effectively uncover true corporate strengths, elevate them to realize their potential, identify related new businesses that could be successfully added, and even completely redefine a core when confronted with factors forcing such action. (For example: they offer a step-by-step method for mapping "adjacent opportunities" that may prove complementary, ranking them according to potential, and developing strategies to further evaluate and ultimately implement them.) The result is recommended for anyone tired of the management theory du jour who seeks a proven way to propel their company into the future. --Howard Rothman
This is an indispensable strategic guide for leaders in all industries based on a ten-year study of 2,000 companies. It gives a rigorous analysis of what drives successful growth strategies, consisting of specific company examples, financial performance histories, industry case studies, interviews with CEOs, etc. It identifies enduring and often counterintuitive lessons on achieving profitable growth over the long haul. It makes compelling case that it's the core business that provides the value and builds market power. It has a thorough examination of what differentiates sustained value creators. It is an authoritative text written by respected leaders of Bain's worldwide strategy practice.