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Using the Ashridge Parenting Matrix (Goold and Campbell), Match the Following

Question 7

Matching

Using the Ashridge Parenting Matrix (Goold and Campbell), match the following terms to the most appropriate explanations of how subsidiary businesses might fit with the parent organisation.

Premises:

Responses:

Alien Business

The parent has little understanding of the subsidiary business and there is little or no opportunity to add value to the subsidiary.

Value Trap Business

The parent has a clear understanding of the subsidiary business but there is little need (or opportunity) for the parent to add value to the subsidiary.

Heartland Business

There is a clear opportunity for the parent to add value but the parent lacks understanding of the subsidiary.

Ballast Business

The parent understands the subsidiary well and can continue to add value.

Premises:

Alien Business

Value Trap Business

Heartland Business

Ballast Business

Responses:

The parent has little understanding of the subsidiary business and there is little or no opportunity to add value to the subsidiary.

The parent has a clear understanding of the subsidiary business but there is little need (or opportunity) for the parent to add value to the subsidiary.

There is a clear opportunity for the parent to add value but the parent lacks understanding of the subsidiary.

The parent understands the subsidiary well and can continue to add value.

Correct Answer:

Premises:

Responses:

Alien Business

Value Trap Business

Heartland Business

Ballast Business