Case Study : Mensa Inc.

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Mensa Inc. has restructured its corporation into four main business segments consisting of packaging, forest produces, insurance, and energy. After all the transitioning and asset sales, as of 2008 the company is under the decision to wither keep or shut down particular segments within the company. Some of the segments will be more costly to upkeep in the long run. One of the major issues facing the company in the future lies in trying to keep a dying segment afloat. Major decisions need to be made in regards to which segments should they focus on and which segments should be sold off completely. In this analysis, I will recommend certain actions Mensa should taking going forward from 2008 to become more profitable and to meet their goals. Recommendations for Mensa Company 1. Invest heavily in the financial sector because of its low capital need and strong positive cash flows. (See Exhibit 2B) 2. Increase revenues for the financial segments by 15% each – (See Exhibit 2.A for revenue projections) 3. Continue operating in the packaging segment for the next five years, then sell the packaging segment once cash flow enters zero. (See Exhibit 3 for cash flow analysis) 4. Discontinue investing in the exploration and production and sell after 5 years while continuing to invest in the Florida pipeline for the long run. 5. Discontinue the forest product segment today because of the high cost and negative net present value (See Exhibit 5 for details) In the Financial Service

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