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Pinnacle Technologies--Middle East
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Pinnacle Technologies, although entirely independent, acts essentially as a subsidiary of U.K.-based Psion Teklogix. Psion Teklogix manufactures wireless data communications 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 thinking of diversifying into related and unrelated software services. The CEO must decide to what degree Pinnacle should diversify from its core business and determine what financial and managerial resources are required for the diversification.