INTERNAL ENVIRONMENT

ANALYSIS
INDIGO AIRLINE

 When IndiGo, India's largest airline by passengers

carried, reported a profit of Rs 787 crore in the
2013 financial year, it stunned many when most of
the carriers are struggling to cloak profits. This
was IndiGo's fifth straight year of profit, while the
industry lost Rs 46,000 crore in the five-year
period.
 The 2012 – 2013 year also happened to be the
worst in recent years for Indian aviation industry
due to a steep increase in fuel prices and
weakening rupee. During the year, Kingfisher
Airlines shut shop and IndiGo's competitors
made collective losses of more than $1 billion.
 What is the secret of IndiGo's continued profits?
It makes most of its money from sale-and-
leaseback transactions. Under this transaction,
operators sell newly acquired aircraft to leasing
companies and in a parallel transaction lease the
same aircraft.
 The price at which the aircraft is sold to a leasing
company is usually higher than the price paid to
aircraft makers like Boeing or Airbus. Probably
that is why its borrowings are much lower than
rival airlines. Ghosh, CEO of IndiGo revealed that
the customers are rewarding his airline for
focusing on a product that is basic, simple, even
boring.
 True, Ghosh and management team run an
innovative and nimble airline. A reputation
for punctuality has helped IndiGo, a no-frills
airline i.e. low cost carrier (LCC), charge
more than full-service competitors like Jet
Airways and Air India on many routes.
 Fares actually rose by more than 20% during
the year, belying its claim of offering low
fares. IndiGo has introduced an airport
lounge service, again unusual for a LCC.
 This might sound simple but, as most
aviation experts will tell you, it is difficult to
implement on the ground. The strategy is to
ensure that the aircraft don't stay grounded
for too long because they make money only
when they are in air.
 That is why IndiGo has signed up "power by
hour" agreements with vendors under which
it pays for every hour the aircraft flies; in
return, the vendors provide full spares and
replacements whenever they are required.
 Ghosh and his team took a calculated gamble: they followed
a contrarian strategy last year amidst the slowdown and
hiked capacity and introduced new flights in order to get
more passengers. The airline raised its capacity by over 39
per cent, even while the total industry capacity fell by 4 per
cent. On top of that, IndiGo did some smart route planning
that helped it gain market share and also contain costs.
 To explain in simple terms, Indigo has a fleet of 70 aircraft,
yet it flies to only 29 domestic and four international
destinations. In contrast, SpiceJet has 56 planes but it flies to
45 domestic and 10 international destinations.
 Thus, IndiGo's strategy is to provide more capacity on select
routes, rather than spread itself thinly over several routes.
The combination of operational performance and financial
engineering has amplified IndiGo's performance.
 The competitive advantage of IndiGo
Airlines comes from efficiency, deft
planning and its unique sale-and-leaseback
transactions. IndiGo is more reliable
because a greater proportion of its flights
arrive on time, which enables them to
charge more than its competitors. The
other building block is innovation.
 Internal environment analysis has two
components:
 Identification and assessment of a firm’s
competitive advantages and core
competences.
 Assessment of an organization’s strengths
and weaknesses in different functional
areas.
Approaches to Internal
Environment Analysis
Resource based view
An investigation of strengths and weaknesses by focusing on
factors that are specific to an organization

Comparative Analysis
Approaches to Internal
Environment Analysis An investigation of strengths and weaknesses of an
firm in comparison with its competitors.

Comprehensive Analysis
An investigation of strengths and weaknesses of an
firm in comparison with its competitors.
RESOURCE BASED VIEW OF
ORGANIZATIONAL ANALYSIS
 Resource based view (RBV) is nothing but
an investigation of strengths and
weaknesses by focusing on factors that
are specific to an organization.
Dictionary of Strategic
capability
 Resources are defined as “the tangible
and intangible assets a firm deploy to
choose and implement its strategies.
 Table 2.1 Types of Resources
Tangible Resources Examples
Financial Ability to generate internal funds and ability to raise
capital.
Physical Location, access to raw materials, access to markets,
production facilities.
Technological Possession of patents, trademarks, copyright and
trade secrets.
Organizational Planning systems, Control systems integrated
information system and integrated supply chain
systems.
Intangible Resources Examples
Human Organizational culture and, managerial talent.
Reputation Reputation as good employer Reputation as a good
socially responsible corporate citizen, Good brand
image, Customer perceptions of good quality
producers
 Capability refers to an organization’s
ability or capacity to deploy or exploit
resources. Capability is functionally based
and resident in functional area.
 When these capabilities are constantly
being changed and reconfigured to make
them more adaptive to an uncertain
environment, they are termed as
dynamic capabilities.
 Table 2.2 Difference between Resources & Capabilities
Resources Capabilities
Tradable Non - tradable
Not specific to organization Specific to organization
Largely explicit Largely implicit
Resources are owned but may not be Combination of resources embedded
embedded with organization. with organization.
Easily copied Difficult to copy
 Competency is cross functional integration
and coordination of capabilities which help
firm to compete in the market place.
 Competencies can be further divided into
threshold and core competencies.
Threshold competencies are capabilities
(mix of activities and processes) needed to
meet customers’ minimum requirements and
therefore to continue to exist.
According to C. K. Prahlad, some Wide spread
competencies are referred as Core
competencies if following three criterion
are met.
 It should be able to provide potential access
to a wide variety of markets.
 It should make a significant contribution to a
perceived customer benefits of the end
product and
 It should be difficult for the competitors to
imitate.

 Canon – Optics, imaging and microprocessor
control.
 Sony – efficiency
 Hondas – Engine and power trains.
 Reliance – Project management, achieving
economies of scale and low cost through
integration.
 Unilever – Brand management and
marketing.
Applying analogy of a Tree to Core competency
Resources
+

-------------------------------------------- CORE COMPETENCY --------------------------------------

Ability to
use or
exploit Capability
resources
+
Ability to Competency
compete
(creates Competitive
Value) advantage
Sustainable
+ competitive
Superior to advantage
Competition (SCA)

+
Sustainability

+
widespread in
the
organization
+
Useful in
multiple
businesses /
markets
The Role of Strategy in
organizational capability
WALT DISNEY

 In the early 1980s, Disney suffered a

series of poor financial years that ended
in a 1984 management shakeup when
Michael Eisner was appointed as CEO.
Four years later, Disney’s sales had
increased from $1.66 billion to $3.75
billion, its net profits had increased more
than five times to $570 million, and its
market capitalization had increased from
$1.8 billion to $10.3 billion.
 What brought about this makeover was
the company’s deliberate attempt to use
its resources and capabilities more
aggressively i.e. Disney’s enormous film
library, its brand name, and its filmmaking
skills, particularly in animation. Under new
leadership, many old Disney classics were
re-released, first in movie theaters and
then on video, earning the company
millions in the process.
 Then Eisner reintroduced the product that had
originally made Disney famous that is the full-
length animated feature films. Putting together its
brand name and in-house animation capabilities,
Disney produced a stream of major box office
hits, such as The Little Mermaid, Beauty and the
Beast, Aladdin, Pocahontas, and The Lion King.
 Disney also launched a cable television channel,
the Disney Channel, to use this library and
capitalize on the company’s brand name. In other
words, Disney’s existing resources and capabilities
shaped its strategies.
 Through his choice of strategies, Eisner also developed new
competencies in different parts of the business. In the
filmmaking vertical of Disney, for example, Eisner created a
new low-cost film division under the Touchstone label, and
the company had a series of low-budget box office hits. It
entered into a long-term agreement with the computer
animation company Pixar (later Disney acquired it in 2004))
to develop a competency in computer-generated animated
films.

 This alliance gave several hits, including Toy Story and Monsters
Incorporated. In sum, Disney’s transformation was based not
only on strategies that took advantage of the company’s
existing resources and capabilities but also on strategies that
built new resources and capabilities, such as competency in
computer-generated animated films.
Dynamic nature of
organizational capability
 Over reliance on core competencies ------
-------------Strategic Myopia.
 Prof. Pankaj Ghemawat observed that
sometimes core competency can act as a
double edge sword. Organization
commits (by investing in resources /
capabilities) itself to the way of doing
business. Then it becomes difficult to
respond to new competition. Some
authors call it as core rigidity.
 Danny Miller -----------Icarus paradox.
 Icarus is a character in Greek mythology
that used a pair of wings, made for him by
his father, to escape from an island where he
was being held prisoner.
 He flew so well that he went higher and
higher, ever closer to the sun, until the heat
of the sun melted the wax that held his
wings together and he Sunk to his death in
the Aegean Sea. The paradox is that his
greatest asset that is his ability to fly, caused
his demise.
 Miller argues that the same paradox applies
to many once successful companies.
According to Miller, many companies
become so overwhelmed by their early
success that they believe more of the same
type of effort is the way to future success.
 As a result, they can become so specialized
and inner-directed that they lose sight of
market realities and the elemental
requirements for achieving a competitive
advantage. Sooner or later, this leads to
failure.
 Example:

 BAJAJ AUTO – MYOPIC VIEW LED TO

EXIT FROM SCOOTER SEGMENT
 Recall your memory to 80s or 90s and reflect
having to evaluate your decision to buy a scooter.
Many would consider no other brand than Bajaj.
For over two decades, Bajaj was the undisputed
leader in the regulated Indian market. Those days,
it was very common for customers to pay
premium to avoid the ten-year waiting list and get
the prized-‘Hamara Bajaj’. However in late 1990s,
Bajaj’s fortunes had overturned and the
sustainable competitive advantage, which it took
for granted, was no longer existent. In 1998,
though India’s market for two-wheelers grew 3%,
unit sales at Bajaj Auto cut down by 6.4%. Bajaj
was losing market share in every segment.
 In scooter segment, where the market contracted by 3%, it
lost a whopping 10.7%; in motorcycles, which grew 16%, Bajaj
gained just 3.4%; while in the moped market fell 0.5%, but
Bajaj’s share chopped by 25.9%. By late 2009, though scooter
sales primarily due to brands owned by Honda and Suzuki
rose by 15% to 891,303 vehicles, Bajaj’s scooter sales had
slumped to a paltry 3,356 units. In early 2010, Bajaj halted
scooter production and made a complete exit from scooter
segment. Though over the past decade, Rahul Bajaj, along
with his son Sanjiv and Rajiv Bajaj has engineered a successful
turnaround reinvented the closely held family firm as a
motorcycle player. But a question largely looms is
 What led Bajaj Auto’s exit from scooters where its competitors
were still enjoying double-digit growth?
 Bajaj Auto maintained its leadership as long
as regulatory market forces prevented other
market players to enter the Indian market.
Soon these barriers faded it caught in its
‘strategic capability trap’.
 A conservative family firm by nature - Bajaj
had invested a very little amount, compared
to its rivals in creating R&D capabilities.
Rather it relied on sourcing technology from
elsewhere than building in-house capability,
which would later become vital to success in
rapidly launching new models.
 Managers trying to develop strategy by identifying
opportunities arising from an understanding of
the environmental forces acting upon the
organization, and adapting resources so as to take
advantage of these is known as strategic fit.
 Hamel and Prahalad defined stretch literally as
"misfit between [a firms’s] resources and [its]
aspirations"
 Some organizations Stretch its meagre resources
and competences which yield new opportunities
or provide competitive advantage.
 Table– Strategic Fit Vs Stretch
Aspects of Stretch Led
Fit led approach
strategy approach
Emphasis External environment Resources
Strategic fit between
Underlying basis of
market opportunities Leverage of resources to
strategy
and organisation‟s improve value for money
resources
Competitive “Correct” positioning Differentiation based on
advantage Differentiation directed competences suited to or
through ... by market need creating market need
Risk reduction Portfolio of products/
Portfolio of competences
through ... businesses
Corporate centre Strategies of divisions
Core competences
invests in ... or subsidiaries
How small players Find and defend a Change the „rules of the
survive ... niche game‟ to leverage its
capability
Tools for getting resource based
view of an organization
 VRIO framework
 Quantitative analysis
 Qualitative analysis
 Value chain analysis
 Table 2.8 APPROACHES TO INTERNAL ENVIRONMENT ANALYSIS
Resource based Comparative Comprehensive
view (Internal Analysis Analysis
Analysis)
VRIO Framework Historical Analysis key factor rating
Value chain analysis Industry Norms Business intelligence
systems
Tools or Quantitative analysis Benchmarks Balance scorecard
methods used  Financial
under each analysis
approach  Non- Financial
analysis
Qualitative financial
analysis
 J Barney - a VRIO framework to decide
whether particular competencies are
sustainable competitive advantage or
not………
 Does it provide customer value which is
superior to competition? (Valuable)
 Does no other competitor possess it? (Rare)
 Is it costly for others to copy? (Imitabilility)
 Is the firm organized to exploit it?
(Organization)
 Table VRIO Framework at a Glance

Source: - J. Barney, 2002, Gaining and Sustaining Competitive Advantage, 2nd

ed. (p. 173), Upper Saddle River, NJ: Prentice Hall
Quantitative Analysis
 Quantitative Financial Analysis
 Type of Ratio Meaning and role of
ratio
 Profitability Ratios Provide information regarding a firm’s
overall economic performance.
 Liquidity Ratios Assess a firm’s capacity to meet its
short
term financial obligations
 Leverage Ratios Indicate a firm’s financial risk that is the
relative proposition of its debt to its
equity.
 Activity Ratios Firm’s efficient or inefficient use of its
 resources.
Quantitative non financial analysis -
 number of patents;
 new product development;
 customer complaints;
 employees turnover,
 customer satisfaction,
 Confidence index,
 Rate of advertising recall,
 Cycle time of production,
 Service call rates,
 Number of awards,
 employee turnover,
 absenteeism,
 market ranking, etc.
Qualitative Analysis
 Human resources, organizational culture
VALUE CHAIN ANALYSIS-- Value
Creation Process
Figure 2.7 Value Equation
The Industry Value Chain

Fig 2.8 Manufactured product value chain

The Generic / Corporate Value
Chain
 Corporate value chain computes &
analyzes value from a firm’s perspective.
The corporate value chain displays value
activities and margins.Value activities are
building blocks by which firm creates
value through its products for customers.
These building blocks are responsible for
a firm’s profit margins.
 Profit Margin = Total value – Collective
cost of performing the value activities
 Table 2.6 Value Chain Primary activities at a Glance
Primary Role of Activities Likely Processes, Sub-
Activities activities
Inbound Logistics Activities associated with receipt, Material handling,
storage and distribution of raw warehousing, inventory
materials and inputs of product Control and vehicle
production. scheduling.
Operations Activities associated with Machining, packing,
transformation of raw materials and assembling, machine
inputs into final product. maintenance, quality
check and testing.
Outbound Activities associated with distributing Finished product
Logistics products so that it will reach the final warehousing, order
buyer. processing and, finished
goods transportation.
Marketing & Sales Activities associated with attracting Advertising, sales
buyers, creating convenience to promotion, sales people
purchase products. efforts, channel selection,
and pricing.
Service Activities associated with providing Installation, repair,
services and maintaining or training, spare part
enhancing the value of product supply, and product
adjustments.
Fig 2.11 When to outsource value chain activities?
COMPARATIVE ANALYSIS
 Historical Analysis
 Industry Norms
 Benchmarking
 A benchmark is a reference point for taking
measure against. Benchmarking process is
aimed at finding and striving to match the
best practices within and outside the
industry to which organization belong.
 Benchmarking is an analytical tool used to
decide whether a firm’s value chain activities
are competitive compared to rivals and thus
favorable to winning in the marketplace.
 Historical benchmarking -
 Industry/sector benchmarking -.
 Best-in-class benchmarking

 But in practice all three comparisons

are used simultaneously.
COMPREHENSIVE ANALYSIS

 Key factor ratings - It is comprehensive

method and used association with
financial analysis mainly.
 In this method organizational factors are
rated by asking set of questions prepared
in such fashion to cover entire
organizational facets. Answers to these
questions will offer comprehensive
picture of organization’s capability.
 Business intelligence (BI) systems –
 Howard Dresner of Gartner Group in 1989.

 BI is broad category of applications and

technologies for gathering, storing, analyzing and
providing access to help enterprise users make
better business decisions.
 It employees various methods like Decision
Support System, Query & Reporting, Online
analytical processing, statistical analysis,
forecasting & data mining.
 BI can help in organizational appraisal by using
automation and information technologies.
Kaplan and Norton's organizational
performance management tool

 Balanced scorecard – (Robert S.

Kaplan & David P. Norton)
 Balanced scorecard also highlights
strengths and weaknesses of an
organization from four perspectives.
 It removes bias towards financial
performance and built holistic view
towards entire firm.
 The balanced scorecard allows managers
to look at the business from four
important perspectives.
 How do customers see us? (customer
perspective)
 What must we excel at? (internal business
perspective)
 Can we continue to improve and create
value? (innovation and learning
perspective)
 How do we look to shareholders?
(financial perspective)
 Table 2.7 - Measures suggested by balanced scorecard

Perspective Generic Measurements

Financial Return of Capital Employed, Economic value added, Sales

growth, Cash flow

Customer Customer satisfaction, retention, acquisition, profitability,

market share

Internal Includes measurements along the internal value chain for:

business Innovation - measures of how well the company identifies the
process customers‟ future needs.
Operations - measures of quality, cycle time, and costs.
Post sales service - measures for warranty, repair and
treatment of defects and returns.
Learning Includes measurements for:
and growth People - employee retention, training, skills, morale.
Systems - measure of availability of critical real time
information needed for front line employees.
Balance scorecard implementation

A Balanced Scorecard should result in:

 Improved processes
 Motivated/educated employees
 Enhanced information systems
 Monitored progress
 Greater customer satisfaction
 Increased financial usage
 Table 2.8 APPROACHES TO INTERNAL ENVIRONMENT ANALYSIS
Resource based Comparative Comprehensive
view (Internal Analysis Analysis
Analysis)
VRIO Framework Historical Analysis key factor rating
Value chain analysis Industry Norms Business intelligence
systems
Tools or Quantitative analysis Benchmarks Balance scorecard
methods used  Financial
under each analysis
approach  Non- Financial
analysis
Qualitative financial
analysis
PORTFOLIO ANALYSIS
 A business portfolio is a company’s set of
investments, holdings, products, businesses
and brands. Many firms employ business
portfolio analysis as a part of strategic
planning efforts. Business portfolio analysis
is a method of classifying a firm's products /
businesses according to their
relative competitive position and business
growth rate in order to set
the foundations for strong strategic planning.
Boston Consulting Group Matrix (
BCG Matrix)
 The origin of the Boston Matrix lies with
the Boston Consulting Group in the early
1970s. It was devised as a clear and simple
method for helping corporations decide
which parts of their business they should
allocate their available cash to. An
underlying assumption behind Boston
Matrix is market share and market
growth interrelates.
 According to BCG matrix, business units
could be categorized as high or low
according to their industry growth rate
and relative market share. Market Growth
Rate entails the rate with which industry
sales are growing year on year.
 Relative Market Share (RMS) means how
far SBU Sales leads or lags as against its
biggest competitors’ sales. In contrast to
absolute market share, relative market
share works to measure a business
against its single, strongest competitor.
This is a way of measuring a business'
strength in relation to either a company
that is pursuing it or that it is pursuing.
 Table 2.9 Illustration of RMS calculation for Indian Passenger Car Segment
Calculations Relative Market
Name of the (RMS = own absolute share
Market Share* market share divided by
company absolute market share of (in times /
biggest competitor) multiple)
Maruti Suzuki 44.8 RMS = 44.8/20.4 2.20X
Hyundai India 20.4 RMS = 20.4/44.8 0.46 X
Tata Motors 9.7 RMS = 9.7/44.8 0.22 X
GM India 3.5 RMS = 3.5/44.8 0.08 X
Ford India 4.1 RMS = 4.1/44.8 0.09 X
Volkswagen India 3.4 RMS = 3.4/44.8 0.08 X
Toyota Kirloskar 3.7 RMS = 3.7/44.8 0.08 X
Honda 3.7 RMS = 3.7/44.8 0.08 X
M&M 0.8 RMS = 0.8/44.8 0.02 X
*Market share data of FY 2013, Source: - Economic Times
 RMS is real good indicator of business
strength in terms of market share. Except
industry leader RMS range from 0 to 1.
Foe industry leader, RMS is always more
than 1.
 Table 2.10 Interpreting Relative Market share
Relative Market
Interpretation Competitive Position
share (RMS)
Firm’s market share is 10% of leading
0.1 Weak
brand / firm
Firm’s market share is 50% of leading
0.5 Weak to Moderate
brand / firm
Firm’s market share is 75% of leading
0.75 Moderate to strong
brand / firm
Firm’s market share matches with its
1.00 Strong
closest competitor
Firm is market share leader and 50%
1.5 Very Strong
bigger than the nearest rival
Firm is market share leader and it is
way ahead than the nearest competitor.
7.5 Very Strong
Rather firm is 7.5 times bigger (in
terms of sales) than the nearest rival.
Figure 2.12 BCG Matrix
 Cash cows are units with high relative
market share in a slow growth industry.
These business units typically generate cash
in excess of the amount of cash needed to
operate the business.
 They could be "milked" continuously with as
little investment as possible, since such any
investment would be wasted in an industry
with low growth. Rather cash generated
from these business units are invested in
other business units lying in start and
question marks cells.
 Dogs, or more lightly can be called as pets,
are business units with low market share in a
mature, slow-growing industry. These units
barely generate enough cash to maintain the
business's market share. Though achieving a
break-even unit provides the social benefit of
providing jobs and possible synergies that
assist other business units. From an
accounting point of view such a unit is
insignificant, not generating cash for the
company. They depress a profitability of a
company. Dogs should be sold off.
 Question marks (also known as problem
children) are growing rapidly and thus needs large
amounts of cash, but as they have low market
shares they do not produce much cash. The result
is large net cash outflows. A question mark has
the potential to gain market share and become a
star, and in the long run cash cow when the
market growth slows as industry matures. If the
question mark does not succeed, then after
perhaps years of cash consumption it will
deteriorate and move into a dog when the
market growth declines. Question marks must be
analyzed carefully in order to determine whether
they are worthwhile candidates for investment.
 Stars are those business units with a high
market share in a fast-growing industry.
Sustaining the business unit's market
leadership may require extra cash, but this
is worthwhile only if it help business unit
to remain a leader. When growth slows,
and leadership is maintained by stars; they
become cash cows. Else failure to retail
leadership would degenerate them to
dogs due to low relative market share.
Table 2.11 Prescriptions of BCG Growth share Matrix categorisation
Shortcomings of BCG
 The association between market share and profitability is
questionable since increasing market share can be
unprofitable.
 The approach may overemphasize high market growth. Even
there may be opportunity / potential in declining markets.
 The model considers market growth rate to be a given but in
practice the innovative firm may able to grow by expanding
the market size (this phenomenon will be explored further in
Unit 5 under blue ocean strategy).
 BCG matrix classifies businesses as low and high, but
generally businesses can neither both and fitting in moderate
zone. Thus, the true nature of business may not be reflected.
 Growth rate and relative market share are not the only
indicators of profitability. This model neglects other
indicators of profitability.
General Electric Matrix (GE 9 Cell
Model)
 In consulting engagements with General
Electric in the 1970's, McKinsey &
Company developed a nine-cell portfolio
matrix as a tool for screening GE's large
portfolio of strategic business units (SBU).
 Table 2.12 Factors considered for GE 9 Cell matrix

Market / Industry Attractiveness Factors Business strength factors

 Market growth rate  Market share

 Market size  Growth in market share
 Demand variability  Brand equity
 Industry profitability  Distribution channel access
 Industry rivalry  Production capacity
 Global opportunities  Profit margins relative to
 Macro-environmental factors competitors
Figure 2.13
 The first zone contains businesses that are the
best investments. These are units high in market
attractiveness and strong in business strength,
followed by those that are strong in business
strength and medium in market attractiveness,
and those that are medium in business strength
and high in market attractiveness. Management
should pursue investment and growth strategies
for these units. Management should be very
careful in determining the appropriate strategy
for those business units located in any of the
three cells in the diagonal of this matrix.
 The second zone consist of those business units
that have moderate overall attractiveness and
those units that have medium business strength
and market attractiveness, weak business strength
and high market attractiveness, and strong
business strength and low market attractiveness.
These businesses should be managed according
to their relative strengths and the company's
ability to build on those strengths. Importantly,
possible changes in market attractiveness should
be carefully considered.
 Those businesses that fall in the last zone
are low in overall attractiveness; these are
a good investment only if additional
resources can move the business from a
low overall attractiveness position to a
moderate or strong overall attractiveness
position. If not, these businesses should be
considered for deletion or harvest.
 Table 2.13 GE 9 cell Matrix categorisation
Zones Implication Remark
Prioritization is key while allocating
A, B, E (Winners) Invest
financial resources.
Hold (selectively These businesses needs investment
and cautiously but careful analysis is made before
C, F, I - Hold
invest in these taking any investment decision.
businesses)
One should be reluctant to allocate
any resources to these businesses
rather in the long they should be
D, G, H (Losers) Harvest
divested to raise financial resources
which may be handy for other
business units.