Case Study : Mensa Inc.

IV. Business Model and Strategic Plan Part III: Assumptions, Risk and Change Management Plan; Summary of Strategic Objectives; Balanced Score Card and its impact on stakeholders; the Communication Plan…………………..…………..15

This communication process had a rocky start. Built originally on a time-expense model, partnerships between divisions were strained due to conflicts over time and resource allocations. The company ultimately placed the head of P&C as the new leader of IS. This helped create a user orientation within IS and established good relationships with other divisions.

* Variable costs: Assumed from exhibit 6. It will increase the same 8% as the variable revenue.

Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit

2. New bank credit facility, 600 million cash on hand to take advantage of opportunities that may arise

The goal is to generate an income of $40,000 per year, starting sometime in the second year of operation, as wells as profit that is at least 2% of sales.

This document compares and contrasts three future views on timber supply in the southern region of the US as projected by three third-party forecasting service providers – Forest Economic Advisors (FEA), Resource Information Systems Inc. (RISI), and Forisk. All three forecasts lean heavily on data from the Forest Inventory and Analysis (FIA) National Program and Resource Planning Assessments (RPAs) in their projections. In addition, Forisk explicitly breaks down softwood growing stock inventory into pulp, CNS, and sawtimber inventories whereas FEA and RISI are explicit only about sawtimeber and overall softwood growing stock inventories. This further complicates the comparison among the three providers but allows us to gain some insights on the relative shares of the three above components of timber inventory in the South as projected by Forisk.

The second task that needed to be finished was to forecast the income statement and the balance sheet for the next two years. We grew sales at a 15% rate, which is the stated rate from Koh. Also, in forecasting the balance sheet, we only showed debt financing for the capital expenditure of the DVD manufacturing equipment, which was the requested structure. Other relevant facts and assumptions for preparing the financial forecast are stated below-

Reduce investment in net fixed assets. Horniman already seems to be operating efficiently. NFA turnover has increased strongly over the past year; in fact, there is valid concern that capital expenditures are going to need to increase going forward.

This business has strong position in some segments; the demand for oil and gas would be increased by next years, annual prices for oil and gas will also increase. The consultant felt that demand and supply picture is increasing and would be favorable for those firms that had developed the business earlier. However, according to the consultant, it would not be favorable to invest more in exploration and production, so Mensa should expand this business through intensification strategy. As the production would peak from 2002 to 2010, they advised that their existing reserves and the land they own would only increase in value over time, even though Mensa could never grow to be competitive within this industry due to the size of their existing competitors. The Florida pipeline in this sector is a significant tool for improvement in profits, as the cash flow for this business was estimated to increase $100million to $300million in year 5. For exploration and production division, if divestment strategy is followed then the division could be sold for $1,560,000,000 at present and it will be increased up to $2,000,000,000 within 5 to 6 years. The profits would be increased by 8-10%, with a focus on building supplies of both oil and gas.

Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive advantage and long term survival?

For sales from 2001 to 2002, we are projecting a 13% increase because we want to base the same revenue growth as the previous fiscal year. It will take some time for the company to do better like

Further to the aforesaid points, the greater percentage of revenue was derived from the sale of

To begin, forest based industrialization is based on forest resources that are used to stimulate economic growth and development. One of the products that have been most important to human economies has always been wood. Wood is durable, light weight, easily worked, waterproof, and a good fiber source. Wood is used in almost every aspect of our lives, for building materials, living, and just surviving. We need wood to build our homes to live in and buildings in which we work and spend the other resource that comes from trees “money”. Studies show that 70% of the products that we use a day are made of some kind of wood. If we were to look around our homes and count all the items that are made of wood we would probably find that 60 percent are made of wood. Without wood humans and other species would never be able to survive.

on expense control. Finally, company executives reiterated their long-term revenue-growth targets of 8% to 10% and earnings-growth targets of above 15%.