Pinnacle Technologies - Middle East

Pinnacle Technologies is an unusual company in that it acts essentially as a subsidiary of U.K.-based Psion Teklogix although it is 100 per cent independent. Psion Teklogix manufacturers wireless data communication devices that are used primarily in inventory management activities performed in warehouses, ports, factories and airports. In the mid 1990s, Psion gave Pinnacle Technologies exclusive Middle Eastern rights to the Teklogix technology and product line. It also assisted in training Pinnacle's development staff, programmers and sales representatives. By 2002, Pinnacle was prospering and was thinking of diversifying into related and unrelated software services. The chief executive officer must decide to what degree Pinnacle should diversify from its core business and determine what financial and managerial resources are required for the diversification. (A 27-minute video is available featuring a discussion with the chief executive officer of Pinnacle, product 7B03M054.)