Question

You have been selected as the consultant to develop a business plan for Durango Manufacturing Company, which is a start-up, medium-sized public manufacturing company. The CEO has a background in manufacturing and is well versed in supply chain management. However, the CEO has limited experience in financial management and creating value for the various stakeholder groups. Your business plan must include a five (5) year strategy to increase revenues by 10% and a recommendation for creating an organizational structure to comply with SOX mandates for strong corporate governance over the internal controls. Your business plan must also include prescriptions for creating an ethical environment. Your recommendation must be approved by the Board of Directors before the company can begin its operations.

How could Durango create an organization structure that would increase oversight over internal controls by complying with SOX?

Answer 1

Executive Summary

Ways to Increase revenue

• To understand the Target audience and focus on revenue based on that
• To Involve in manufacturing multiple products rather than single
• To focus on satisfying customers by understanding the needs
• Increase the Transaction per customer.

Creating an Ethical Environment:

• Train the employees ethically
• Offer sessions on creating ethical environment
• Explain the right /wrong clearly in making decisions
• Company's vision and mission statement to be ethically aligned