Mensa Strategy
A five-year strategic plan
Mensa has been engaged with the various businesses, which include; packaging, forest products, energy and financial services businesses. There is a lot of change on multiple levels of the company which is necessary for Mensa to achieve profitability. This strategic plan will provide the correct direction to the business to achieve this goal. Mensa will need to implement a variety of different techniques in order to become a successful growing business. Without the changes outlined in this strategic plan, the company faces significant financial distress.
Mensa’s Financial Services Business This business provides insurance, mortgage loan, real state financial services and consultancy services to its customers. It was not a huge business but the management had done a good job with cash flow and profitability for the size of the business. They had proven their know how by selecting target markets and avoiding any serious head-to-head competition with competitors, this helped in creating a bright outlook for this section of Mensa’s business. Therefore, it will be better for the firm to expand this business. I recommend increasing the size of the operation. In order to be able to increase the sales and returns within this sector, there needs to be capital investment. I agree with the outlook, the firm should invest $250,000,000 initially and could increase it to $300,000,000 in the following 5-7 years, with a decrease to $100,000,000 a year at that time. This will generate $200 million to $300 million for the business, at the end of the investment period. Although this will be a lot of upfront investment, the huge increase in profitability will be worth the money spent. Increasing the size of this sector of the business is a good move for the company, which will provide them with a significant amount of returns.
Mensa’s Energy Business Mensa energy division deals with the exploration, development and production of the oil and
Mensa has been engaged with the various businesses, which include; packaging, forest products, energy and financial services businesses. There is a lot of change on multiple levels of the company which is necessary for Mensa to achieve profitability. This strategic plan will provide the correct direction to the business to achieve this goal. Mensa will need to implement a variety of different techniques in order to become a successful growing business. Without the changes outlined in this strategic plan, the company faces significant financial distress.
Mensa’s Financial Services Business This business provides insurance, mortgage loan, real state financial services and consultancy services to its customers. It was not a huge business but the management had done a good job with cash flow and profitability for the size of the business. They had proven their know how by selecting target markets and avoiding any serious head-to-head competition with competitors, this helped in creating a bright outlook for this section of Mensa’s business. Therefore, it will be better for the firm to expand this business. I recommend increasing the size of the operation. In order to be able to increase the sales and returns within this sector, there needs to be capital investment. I agree with the outlook, the firm should invest $250,000,000 initially and could increase it to $300,000,000 in the following 5-7 years, with a decrease to $100,000,000 a year at that time. This will generate $200 million to $300 million for the business, at the end of the investment period. Although this will be a lot of upfront investment, the huge increase in profitability will be worth the money spent. Increasing the size of this sector of the business is a good move for the company, which will provide them with a significant amount of returns.
Mensa’s Energy Business Mensa energy division deals with the exploration, development and production of the oil and