Mensa Inc. Case Analysis

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Major Issues faced by Mensa, Inc. In the 1990’s, Mensa, Inc. underwent a major restructuring of its business and investment sectors. Most of the units and assets that were not profitable were sold. It had targeted revenue during the period at $700 million, yet only produced $450 million, a $250 million shortfall. The majority of the capital generated was re-invested in the for main business groups which are Financial Services, Energy, Packaging, and Forest Products. At this time, Mensa, Inc. had mixed reviews on its performance in the four groups. In the early 2000’s, Mensa, Inc. purchased Columbus Financial Corporation due to the positive cash flow and profitability of the company. In addition, it added Mensa, Inc. acquired American Life Insurance Company as well as other insurance, mortgage, and mortgage insurance companies. At this time, Mensa, Inc. had insurance underwritings in life, estate, and casualty.…show more content…
in this arena was how to stay competitive in a very competitive industry. Do they want to remain as they are positioned, or do they want to make additional acquisitions in the more competitive sections of the market? If they increase market share and grow, they will be viewed as threats to the major players who would attempt to drive them out of the industry. Currently, they are well positioned with a decent share of the market. In the energy sector, Mensa, Inc. purchased Easy Gas Energy who is involved in exploration, development, and production of oil and gas. It supplies the state of Florida with natural gas and is able to sell gas to the Mexican National Oil Company. Although the company is well positioned, it does not have a substantial cash position needed to undertake expensive exploration projects unlike its competitors. Considering the high risk, does Mensa, Inc. attempt to continue with exploration and development

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