ACCA Strategic Professional · Strategic Business Leader · Strategic choices

Brelden Pharma has a successful range of established drugs generating strong cash. Its board wants to explore a radical new gene-therapy approach, but managers fear the new unit will be starved of resources and judged by the standards of the core business. Which approach best reflects the recommended way to manage this innovation challenge?

Brelden should use an ambidextrous approach: set up a separate, protected unit with its own objectives and measures, yet allow access to core resources. This avoids the new venture being crushed by core-business criteria while preserving existing cash generation.

1. ARun the new unit inside the core divisions using existing performance targets
2. BDelay entry until competitors prove the market, then imitate
3. CCreate a separate, ring-fenced unit with its own metrics, while sharing selected core resourcesCorrect
4. DDivest the core portfolio to fund the new venture entirely