Businesses are classified as ‘heartland businesses’ where the
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. By locating stakeholders on the map their relative power can be assessed and decisions can be made whether to keep them informed. However, the selection uses more criteria than the BCG matrix. Stakeholders falling in the quadrant for high interest and high power, such as shareholders or lending bankers [...]
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