SWOT

Strengths -Reputation -Financial assets and cash in hand -Held potential firms Weaknesses -Hold too many firms difficult to control and influence decision -Change to new policy take time to implement -Board directors do not have vision care fore their own interest at subsidiaries. Opportunities -internal market invest in other countries -development of technology and IT

SWOT
Threats -Political changes in Belgium -Internal market Porter 5 forces: -Strong competition -High threat of new entrants, customers bargaining power, substitute. -Low threat of supplier. -Economic factors -Unemployment :7.5 % 1977 13.8% 1985 -Inflation 6.65 % 1980 4.86 % 1985 increase operation cost -Social factors low tolerance of uncertainty and risk -Social conflicts between Dutch speaking and French speaking

Strategy
-Acquisition gain market power and diversify -Fail because do not have expertise and experiences to manage noncore business -Diversification risk reduction, tax advantages, sharing activities, economy of scope
-Unsuccessful in electrotechnical -Successful in energy firm

-Restructuring focus available resources on 10 major business form non-ferrous metal firms to become big one 1989 more competitive -Invest in core business -Divest in unsuccessful businesses

Recommendation
-Low tolerance of uncertainty incremental restructuring strategy -Invest more in transport location advantages