Based on the case study – Compsis at a Crossroads, write an essay to answer the following

questions:

Introduction:

Compsis is a Brazilian engineering company that specializes in automation and control systems
for transportation and industrial applications. The company’s strategic choices are centered
around three main pillars: innovation, customer focus, and internationalization. This essay will
discuss the objectives and goals of Compsis, evaluate their success, critically analyze the
business problems Compsis experienced, identify solutions to the problems, analyze the business
opportunities of Compsis, and recommend the most suitable option for expansion.

Discuss the objectives and goals of Compsis and evaluate whether they were successful.

Objectives and Goals:

Compsis’ primary objective is to become a global leader in automation and control systems. The
company’s goals are to expand its international presence, increase revenue, and maintain
profitability. Compsis has been successful in achieving its objectives and goals in recent years.
The company has expanded its international presence by establishing a presence in several
countries, including the United States, Canada, and Australia. Compsis has also increased its
revenue and maintained profitability, with steady revenue growth over the past several years.

Critically analyze the business problems Compsis experienced.

Business Problems:

Despite its success, Compsis has faced several business problems. One of the main problems the
company faced was a lack of coordination between its different business units. This lack of
coordination led to inefficiencies and duplication of efforts. Another problem was the company’s
overreliance on a few key clients, which made the company vulnerable to changes in the market.
Finally, Compsis faced the challenge of competing with larger, more established companies in
the global market.
Identify solutions to the problems. Identify and evaluate the merits and downsides of each
potential solution in brief.

Solutions:

To address the lack of coordination between its business units, Compsis could implement a more
centralized organizational structure. This would involve consolidating its various business units
under a single management team, which would help to streamline operations and reduce
duplication of efforts. However, this solution could also lead to slower decision-making and
reduced flexibility.

To address the problem of overreliance on a few key clients, Compsis could diversify its client
base by expanding into new markets and industries. This would help to reduce the company’s
dependence on a few key clients and make it more resilient to changes in the market. However,
expanding into new markets and industries can be costly and risky.

To address the challenge of competing with larger, more established companies, Compsis could
focus on innovation and differentiation. By developing cutting-edge solutions and offering
unique value propositions, Compsis could differentiate itself from its competitors and attract new
clients. However, investing in innovation can be costly and time-consuming, with no guarantee
of success.

Analyze the business opportunities of Compsis.

Business Opportunities:

Compsis has several business opportunities that it could pursue. One opportunity is to expand its
presence in existing markets, such as the United States and Canada, by developing new
partnerships and growing its client base. Another opportunity is to expand into new markets,
such as Europe or Asia, which could offer significant growth potential. Finally, Compsis could
focus on developing new products and services that address emerging trends in the industry, such
as the increasing demand for sustainability and renewable energy.

Recommend the most suitable option available for expansion and provide the rationale for
the selected option.

Recommendation:
Based on the analysis of Compsis’ business problems and opportunities, the most suitable option
for expansion is to focus on developing new products and services that address emerging trends
in the industry. This would enable Compsis to differentiate itself from its competitors and attract
new clients. Additionally, this option would allow the company to leverage its existing expertise
and resources while also positioning itself for future growth. However, it is important for
Compsis to carefully evaluate the market demand and competitive landscape before investing in
new product

Reference

Lehrich, J.M., Paredes, J.P., & Ravikumar, R. (2009, December 15). Compsis at a Crossroads.
MITSloan Management. https://my.uopeople.edu/pluginfile.php/1685654/mod_page/content/8/
CompsisCrossroads.pdf