Mensa Situational Analysis

1432 Words 6 Pages
Mensa Situational Analysis:
Mensa Inc. 5 year business strategic plan will comprise of numerous reconstruction efforts in order to address the major strategic management issues faced by the company. The company has issues with the development of numerous poorly executed strategic plans with high operating cost, poor resource management, and the inability to gain adequate financial control. The packaging sector was once the cash cow for Mensa, but the lack of competitors in the industry and growing pressure from customers resulted in a negative competitive position. Mensa once invested in numerous businesses (communication, appliances, etc.) but sold off many due to poor human resources and financial issues. The company underestimated the value
…show more content…
The businesses have different demand and growth rates and some will lag behind in long-term revenue. The company will be challenged in areas such as research and development, production and finances, in order to achieve sustained profitability for the next five years. In the future, some of the businesses will be faced with the challenge of expansion and competition/rivalry from larger competitors and industry giants. The goal for long term profitability might result in Mensa divesture of some sectors(investing in other production lines, projects or increasing capacity), but the decision might cause an adverse effect on other sectors. We will examine each business to obtain a full outlook on its potential, issues and concerns and how this will impact the 5 year strategic …show more content…
The company has a large portfolio and lack of coordination among all segments; this diminish the effectiveness of the company to maximize profit. Economic recessions, political situations and policy changes might present problems for the company. The uncertainties of operating in the global environment is not easy for companies and it has unique cultural challenges. Furthermore, with the divesture of two of four sectors, the company will be put at a larger risk with a smaller portfolio. Due to all the sectors not having profitable income levels, it hampers the company portfolio and does not make it easy for the company reformation. Some of the sectors should be sold as soon as possible to maintain the maximum

Related Documents