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January 31st, 2010

The final category is ‘alien businesses’ which afford

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The final category is ‘alien businesses’ which afford little opportunity to add value and should [...] The PIMs database contains information on some 2,000 companies about 87 variables identified as economic success factors. Businesses are classified as ‘heartland businesses’ where the parent can add value easily, ‘ballast businesses’ are those well understood by the parent but the parent is unable to exploit, ‘value trap businesses’ are those which afford opportunities to add value but the strategic fit may not be perfect. The model uses a quadrant which plots level of interest against the power that the stakeholders wield.
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