Case on Internal and External Scanning After ten years of struggle, a company manufacturing radio sets and computers,

surfaced in 1982-83 to make a profit of Rs. 641akhs and then Rs. 1.14 crores in 198384, but again slipped back to Rs. 1.10 crores loss in the accounting period that followed. It is reported that the companys radio division was unlikely ever to pay its way, its computers failed to make a splash, and its earlier efforts to diversify were yet to bear fruit. According to a high-level executive, the company concentrated on manufacturing when it needed a marketing orientation. When a new CEO was appointed, his remedy for revival was to divisionalise the organization, introduce more accountability and diversify into cable TV and other areas.

What could possibly have gone wrong with the implementation of the companys strategy? Comment on the measures of revival suggested by the new CEO. If you were the CEO what steps would you take?