BUS499 MOD 1 CA Essay Example | Topics and Well Written Essays - 750 words

BUS499 MOD 1 CA - Essay Example The new management also planned to convert the organization’s 30 percent of the incremental revenue to operating profit. The company’s third goal was to double its earnings per share. On the basis of which agencies were making money for the company and which were not, the company categorized its business units into three categories namely ‘lead, drive, and prosper’ (Melter). Each agency category has been assigned with different strategic charges. The business units that had less than 50 employees and were less likely to become a gigantic agency ever were categorized as prospers. The company’s most business units fell under the prosper category. Since prosper units were not expected to attain a tremendous growth rate, the strategy chosen for this type of business unit was to achieve high profit margins. The business units that had 50-150 employees were categorized as drive agencies which were assigned with the goal of maintaining or gradually improving their revenue base in addition to expanding their margins. Finally, the largest business units like New York, UK, and China were given the lead agency status. Since lead agencies were expected to achieve rapid growth and to allocate lion’s share of the investment, the company management paid particular attention to this type of business agency. The strategy specifically created for lead agencies was to develop ‘permanently infatuated clients’ and to particularly focus on large revenue earning clients. In addition, the organization also developed several strategies that greatly related to a customer perspective. One of those strategies was to create ‘big fabulous ideas’ or BFIs that are able to â€Å"transform the businesses, brands, and reputations† of the clients (Melter). For this, the organization stated the need of an ideal environment and inspirational leadership in every unit. The firm’s key strategy was to