Develop a five-year strategic plan with cost estimates and a time line. It should be 5-7 double-spaced, typed (12 point) pages plus exhibits. Your plan should include/address the following points:...

CASE STUDY ON MENSA INC.
CASE STUDY ON MENSA INC.

STRATEGIC PLAN

MENSA INCORPORATION
July 8, 2014
Authored by:

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ANSWER TO QUESTION 1
In the year 1990 the company Mensa, INC has under taken a lot of renovation in the
portfolios of business and the investments of the company. The company decided and sold
off its units and assets that were non-performing and the non-profitable. The following sales
generated revenue of about $450 million which was less than their original targets. The
revenue or the capital which was generated were reinvested in the main business of the
company which included the following sectors –
1. Energy
2. Financial services
3. Forest products and
4. Packaging.
In the different sectors which the company operates have a mixed review in the market and
its performances and is yet to settle firmly in the market. Of all the sectors in the market some
of the sectors are flourishing and promising a good future and some of the sectors are not
much promising and have developed very little hope from the same. There are several
problems which are discussed in brief.
Financial services:
The financial condition of the company has improved and is well positioned in the market,
although not competing yet with the giant members in the market but getting their view
through in order to capture a decent market share. The company is at a state to make a
decision for the understanding that whether it shall be satisfied with the current achievements
and the position of shall move forward for further investments and taking higher risk in the
market so as to compete the other big players in the market. The current investment of the
company Mensa in the capital is more than that of their competitors as per dollars. This can

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be totally resolved if the investment is increased and the sales of the company increases. The
above mentioned decision shall also lead a threat which would be from the bigger
competitors and major companies who are capable enough and may also make an attempt to
remove the competition from the market hence Mensa has to take a wise and important
decision as it may benefit them or on the other hand may also harm the business.
Energy:
Easy gas energy is which has been bought by Mensa in the energy sector initiative, the
company is well sound and is involved in the business detailing of exploration, development
and the production of oil and gas.EasygasEnergy Company is the first largest supplier of
natural gas in Florida and the investment of Mensa is a profitable investment which had very
low risk or almost no risk. Allied corporations help in 2006 helped Mensa to acquire Suppan
Energy corp. which helped the company for better exploration efforts and hence which the
company invested $400 million in the same year for expansion and exploration. (API ORG)
The company at that moment was not in a position and had not strong capital in order
to make such expense or investment in the exploration project as its competitors. The current
decision may result in closing or heavy loss in their sector which shall not be able to handle
by the company and the risk is too high. Hence the decision was very crucial and had to put a
stop in the investment of exploration and development and the further more investments in
the near future were futile. Even if the amount was taken by Mensa the company had no
capability in order to compete with the other companies in the sector.

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Packaging:
There always has to be transforming in business and a change required so as to attract the
customers, the company had adopted some new approaches in the packaging sector so as to
attract more consumers and to cater the need of the consumer, and had also closed down
some of their non profitable units. The call of closing down the units did not help the
company much and was not found to be a feasible decision as the market of packaging is a
oligopolistic market and Mensa had a great advantage over their goodwill and reliability as
compared to their competitors and which can be easily attained over time.
The approach of having a direct contract with the customers is understandable but the
consumers have a great bargaining power as they have their free rights and the needs of the
consumers are high and their expectations are always increasing with the increase and growth
of the latest technologies and with no increase in the price of the product so the venture need
lot of capital investment. In accordance to the discussion the venture is not much promising
in future hence the decision is to continue with the business or scrap it and increase the
capital of the company.
Forest Products:
Mensa is the sixth largest producer of Timber in the United States, and also produces
bleached folding carton boards. The company also have assets...