You have recently been appointed the finance manager for a small/medium engineering company that makes components for the shipping industry. The company experienced rapid growth in turnover and profits from 1990 – 1998, but since then its profits and turnover haves lumped. It has relied on a loyal but slowly contracting client base and has never concerned itself with exploring new markets of products. The company's management spends most of its time on day to day operational issues with limited consideration given to the analysis of strategic issues.

Required:

Prepare a memo to the Managing Director covering the following issues:

(a)A discussion of the concentration on operational matters to the exclusion of strategic planning and management.

(b)An explanation of the potential benefits of a Management Information System encompassing both operational and strategic information.

(c)The changes in attitude and approach that will be required if strategic management is to be implemented.

Answer rating: 100% (QA)

Dear Managing Director I am writing to you to discuss the importance of strategic planning and manag... View the full answer