Long-term Business Planning - Case Study of Banneker Industries

The factors that limit the capacity of the organization to achieve its objectives are:

a.) Being overly dependent on one customer, b.) Cheryl's unwillingness to obtain additional capital from the sale of shares, c.) Cheryl's indecision as to whether to join forces with the WIBS group or to go it alone.

The problem in the case study is – how to insure and ensure the success of the organization in the future. Cheryl has taken it from a small organization that hired only a small number of people to a large international organization. Cheryl is proud of her progress with the company but she is not satisfied with the current position. She wants to expand the company to be larger than it already is. In her quest to do this, however, she is faced with the problems and concerns that are highlighted above.

Also, the fact that her main source of revenue comes from one customer puts her business at a lot of risk. Should anything happen to this customer, the company could find itself in serious financial difficulties. This customer could close down due to one reason or another of find another client to do the work. This would derive Banneker Industries over 60% of their main source of revenue. This could spell big trouble for the company whose only option may be to close down or go under receivership. This is something that Cheryl should address immediately and find other ways in which she can get more customers for the company and reduce her reliance on the one customer who provides the company with most of the work.

One of the biggest sub-problems in this context is the economic downturn that America has been facing in the past couple of years. This problem may have had an impact on the willingness and ability of other companies to outsource their supply management work to Banneker