Tag (SQ): Security

 You are the Chief Operations Officer and a member of the board of directors of Sunrise Enterprises, a reputable firm that has operations across multiple regions in West Africa. The board is currently deliberating on a strategy to decentralize the administrative function in order to promote flexibility in administration across all the operational areas of the company. You feel strongly that this move will be detrimental to the prospects of the company and has therefore spoken against it. The Chairman of the board has, therefore, asked you to submit a short memo to argue out your position.

Required:
(a) In a memo to the Chairman of the board, explain THREE reasons why you believe your company should maintain the current centralized administrative department.                                                                                                                                                                      (b) One of the important tasks in the formulation of corporate strategy is stakeholders’ analysis.

Required:
Explain the term stakeholders and identify TWO groupings of stakeholders.

(c) A new entrant into an industry will bring extra capacity and more competition and so could, in turn drive down profits. The strength of the threat posed by new entrants is likely to vary from one industry to another and depends on the strength of the barriers to entry and the likely response of existing competitors to the new entrant.

Required:
Identify and explain FIVE determinants of barriers to entry to new entrants into an industry.