Sarah Chan is the CEO of Eagle Electronics, an established manufacturer of computer peripheral devices. To support her favorite designer's initiative, she has created the Disruptive Initiative unit, an investment model for new product development. However, peripherals division president and Sarah's former co-CEO contender, Jorge Martinez, claims that she is using the cash flow from his unit to fund her venture. Due to this, he expresses that his unit lacks budget for research and development. He then requests for reinvestment since he believes that the company cannot profit without the peripherals division, their main revenue generator. Given these situations, Sarah needs to decide between reinvesting in the core business and focusing on innovative products.

What are the alternative courses of action, consequences and trade-offs?