It's not about wood though. The specific examples he gave of new business areas were new product lines. Medicinal equipment etc. Narrowing a business portfolio means getting rid of product lines.Griffolion said:There's a few companies doing that these days, Google being one of them. Putting more wood behind less arrows makes sure what products they do put out are up to scratch.BrotherRool said:He needs to find new business areas and narrow their business portfolio?
I can slightly see where you are coming from, but I really think it's far more likely to be business speak than any actual business strategy. If you think about it 'finding new business and getting rid of business that don't make a profit' is pretty much default. He's just picked the two things investors are worried about - company going stale and being left behind - company getting too large and collapsing under own weight - and said something nice and clever sounding that promises both things to them, never mind that they're pretty much contradictory.
I don't mind, it's the sensible thing to do. If you're taking over as CEO it's really really foolhardy to imagine you can suddenly just take the company in a new direction, and since you were pretty darn high up in the company beforehand, the chances are the company is kinda going in the direction you want anyway. The sensible thing is to take time building up authority and being comfortable in your position and gradually change the bits that aren't in line with what you feel. But you can't say that because it makes your appointment as CEO seem worthless.
I don't think it's particularly different from a Headteacher telling you that you were his best year ever and he's looking forward to hearing what you do in the future, or a new manager to a football club telling the fans that he's going to solve the budget problem and turn the team around and make them great again.
Maybe he's serious and we'll see a radical reduction in old products. If so I hope you'll forgive me for my presumption