Essay on Mensa Strategy

1195 WordsAug 27, 20135 Pages
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…show more content…
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. Mensa’s packaging business Mensa’s packaging business had three major markets; Food and Beverage, Specialty Packaging, and International. This sector was economically sensitive, as it was difficult to build any competitive
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