Discussion- At a Crossroad - Strat Man
As a CEO of a low tech, high volume, low margin industrial cleaning supplies (chemicals) business, you are at a crossroads in the company's ability to grow and remain profitable. Currently that company designs its own products in house but employ third party manufacturing, warehousing, logistics, and distribution foryour products.
You have numerous but small competitors that are fully integrated and have solid value chains. Your entire market base is located in the Mid-West of the United States. You are evaluating expansion opportunities into the rest of the United States and possibly into Canada and Mexico where the latter countries have currently no competition in our core product mix.
Use the information found in Chapter 6 of the text and decide if the company is ready to expand and what expansion strategy model they should use? Remember that margins are low and they cannot be compromised with hurting the company's finances?
Reference:
Chapter 6
Title: Crafting & Executing Strategy: The Quest for Competitive Advantage
Author: Thompson, Peteraf, Gamble, & Strickland
Publisher: McGraw Hill Irvin
Ed/Year: 21st Edition; 2018
ISBN-13: 9781259899645
Discussion - The Big Bath -
Managerial Acct
This week's Discussion comes from your text, Chapter 7 on page 264. Read the background for the "Performance Incentives and Goals" and utilize the internet to research the term "Performance BasedPay".
After reviewing your Internet results prepare several discussion points that focus:
• The name of the company.
• Do they appear to reward their CEO in an excessive manner for the performance based on last year's results?
• Do you feel that the majority of executives in the United States are over compensated and if so why do you feel this way?
Reference:
Chapter 7
Text: Managerial Accounting
Author: Crosson and Needles
Publisher: South-Western; Cengage Learning
Ed/Year: 10th Edition; 2014
ISBN: 978-1-133-94059-3.