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STRENGHTS WEAKNESS
Supplier of Data Services in theMetropolitan region
Additional revenue source
Subsidiary is not entirely subject toregulations of PSC, especially onrates
Losses from Subsidiary Lowest ROI for shareholders Too much unused available time
Presentation of Financial Reports Employees grievances on their
salary and schedule
OPPORTUNITIES THREATS
Improvement of Marketing forSubsidiary
Partnership with competitors Increase in rates price rates for
subsidiary Improvement of Services
Innovation of competitors More restrictions on rates by PSC
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SIMPLE PLAN STRATEGY RESOURCES TIME
BOUND
Identify cost behavior (e.g.
Variable Cost and Fixed Cost)
How these costs are relevant todecision-making
Hire a Cost Consultant for an
Orientation on identification of
cost behavior
$800.00/to be
done by the
accountant
APRIL
Using the knowledge from the
consultant, present financial
report
Reflect the forecasted income
for the end of 1997 and the
Variable costing. Present this to
management.
Accountant APRIL
Identify the areas for
improvement of the subsidiary
Use SWOT analysis to find out
the weaknesses and threats and
identify strengths and
opportunities that will make up
this problems.
Management MAY
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