A Five Year Strategic Plan for Mensa Inc.

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A 5 year strategic plan for Mensa Inc. should be dynamic and focus on ensuring that the present situation where in multiple sectors and businesses are involved. Re investing and formulating a stronger BCG matrix with divestiture from loss making units becomes extremely essential. The BCG matrix is a matrix that is used for the purpose of strategy formulation of a firm, but it is a four cell matrix. It is used to measure the position of a firm in relation to its relative market share as well as its market growth. Based on this the situation where in all of the given four divisions of the firm are at different levels of performance can be evaluated in order to formulate a 5 year strategy plan. This can help in the creation of a portfolio where in returns are optimized by re investing in growth oriented sectors and divesting out of the sectors that are saturated and loss making for the firm. Major issues facing the company and Analysis The major issues facing the company comprises of there being multiple businesses with different demands. There are separate levels of performance and success as well as growth chances for each of the sector and the firm needs to tackle with issues in each of these divisions (Dube, J.P., 2004). The BCG matrix is also a matrix that is used for the purpose of strategy formulation of a firm, but it is a four cell matrix. It is used to measure the position of a firm in relation to its relative market share as well as its market growth. In case of these two being high a firm is classified as a star. In case of these being low they are classified as dogs. In case of only a high market growth it is rated as a cash cow and in case of only a high market share it is rated as a question mark. Based on this t... ... middle of paper ... ...between these segments was weakening the business portfolio and also hampering the formation of a single strategy for the whole business. But divesture of three out of four divisions leads to a very small portfolio which leads to chances of high risks as well. The process of restructuring and forming a better portfolio would provide the firm with a lot many opportunities including exploring newer and more compatible product lines and segments, thus increasing its opportunities to earn better revenues with efficient management. Conclusion To conclude, these issues are holding back the firm from being able to sustain profitability to a great extent. If these are resolved, then it can help the firm to form an overall profitability as each of its subsidiaries will contribute to be profitable by functioning only in the packaging sector or exploring new markets.

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