Strategy; Real Estate Services As a management accountant in a small real estate servicesfirm, you have become aware of a strategic initiative in your firm to promote its services to a newclass of customers. Currently, most of your firm’s customers lease space in large office buildingswhere they might occupy three or more floors of the building. Your firm provides maintenance,security, and cleaning services for the office space leased by these customers. The strategic initiative you have discovered is to seek out smaller firms that occupy as small a space as a fewthousand square feet. You know that most of these smaller firms are now serviced in a haphazardmanner, with part-time help for which turnover is very high; some of the smaller office buildingsmight not employ security of any kind. You expect that the demand for your company’s servicesamong firms of this smaller size will be good, but you are worried about the profitability of thesenew customers. In fact, although you cannot prove it with hard numbers, you are sure that this newstrategy will cause big losses for your firm. You have not been consulted about this new strategyby the firm’s owners because you are not viewed as part of the management decision making team.You would like very much, however, to be more involved in the company’s strategy developmentand decision making.Required What should you do or say about this new strategic initiative?
Strategy; Real Estate Services As a management accountant in a small real estate services
firm, you have become aware of a strategic initiative in your firm to promote its services to a new
class of customers. Currently, most of your firm’s customers lease space in large office buildings
where they might occupy three or more floors of the building. Your firm provides maintenance,
security, and cleaning services for the office space leased by these customers. The strategic initiative you have discovered is to seek out smaller firms that occupy as small a space as a few
thousand square feet. You know that most of these smaller firms are now serviced in a haphazard
manner, with part-time help for which turnover is very high; some of the smaller office buildings
might not employ security of any kind. You expect that the demand for your company’s services
among firms of this smaller size will be good, but you are worried about the profitability of these
new customers. In fact, although you cannot prove it with hard numbers, you are sure that this new
strategy will cause big losses for your firm. You have not been consulted about this new strategy
by the firm’s owners because you are not viewed as part of the management decision making team.
You would like very much, however, to be more involved in the company’s strategy development
and decision making.
Required What should you do or say about this new strategic initiative?
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