Strategic Management

STRATEGIC MANAGEMENT

INSTRUCTIONS: 2-4 PAGES LONG; TYPED – DOUBLE SPACED, 12 PT MAX, 1” MARGINS MAX. PLEASE REMEMBER THAT GOOD GRAMMAR AND SPELLING ARE EXPECTED. ALSO, YOUR ANSWERS SHOULD BE WELL ORGANIZED AND CONTAINS SPECIFICS BASED ON THE CONCEPTS AND ANALYSES WE HAVE STUDIED.

You are the new CEO of a single-entity business that provides financial services to the insurance industry. The previous CEO left the organization “under a cloud” – nothing was ever proved, and he received the “normal” severance package.

Your early perception of the organization indicates there may have been some ethics problems in upper management. It appears no laws were broken, but it may be that some older employees did not receive expected and /or promised raises in pay. It is difficult to know this for sure because the company’s Performance Evaluation system has never been formalized.

The apparent ethics problems at the top have left many employees with an uneasy feeling. It has also resulted in an attitude on the part of many that retribution will be swift if an employee reports an ethics-related problem to management. It has been noticed that absenteeism has increased over the past 9 months. Also, employee turnover appears to be on the rise.

As CEO, what plans will you make and what actions will you take to overcome the apparent problems so a new strategic plan can be successfully implemented? This plan includes the introduction of a major new product. Also include the steps you should take to introduce the new strategic plan to the employees.