The initial venture of an enterprise is the core business, as bakery products are for Sara Lee. Many firms start out competing in one product-market. This strategy offers the advantage of specialization but also the risks of being dependent on one set of customer needs. As the corporation grows and prospers, management often decides to move into other product and market areas, as shown in Exhibit 2-7. For example, Sara Lee expanded into underwear, leisure wear, and Coach Leather goods. Reducing dependence on the core business is a major factor in corporate development. Of course, financial resources are necessary to expand into related or new areas. Sara Lee's food business generates the cash needed to expand into other consumer goods lines