Written Implementation Plan (1) 2[1]

8/2/2019 Written Implementation Plan (1) 2[1]

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Prepared By:Tyree Alexander, Darius Blakeney, Alex Esquilin, Cleve Godfrey,

Jonathan Howard, Clarence Jefferson, Stephen Sawney Jr.,Vincent Springer & Tony Reynolds

Written Implementation Plan

T h e C a r d i n a l M a n a g e m e n t G r o u p

8 3 0 W e s t v i e w D r i v e S W A t l a n t a , G e o r g i a ( 4 0 4 ) C M G - P L A N X e r o x T e a m @ C M G . c o

Client: Xerox Corporation


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Table of Contents

Introduction ............................................................................................................... 3

Summary of Strategic Issue ......................................................................................... 4

Current Reality Tree .................................................................................................... 5

Decision Analysis ........................................................................................................ 6Step 1: Define the Decision Statement ............................................................................................................. 6Step 2: Establish Objectives .................................................................................................................................. 6Step 3: Value Objectives ......................................................................................................................................... 7Step 4: Generate Alternatives .............................................................................................................................. 7Step 5: Compare and Choose ............................................................................................................................... 8Satisfaction Scales .................................................................................................................................................... 9

Functional Analysis ................................................................................................... 10Marketing .................................................................................................................................................................. 10Human Resources .................................................................................................................................................. 10

Implementation Plan ................................................................................................ 11Overview ................................................................................................................................................................... 11Step 1: Formulate the Plan Statement .......................................................................................................... 11Step 2: Identify Plan Objectives ....................................................................................................................... 11Step 3: Identify Plan Components & Sub plans ......................................................................................... 12Step 4: Schedule Events & Times .................................................................................................................... 14

Events & Times Worksheet .................................................................................................................................... 14Step 5: Perform Objectives Test ...................................................................................................................... 15

Budget Objective Test .............................................................................................................................................. 15Time Objective Test ................................................................................................................................................... 15Human Resources Objective Test ........................................................................................................................ 16

Potential Problem Analysis ....................................................................................... 16Step 1: Define the Potential Problem Statement ...................................................................................... 16Step 2: Identify Potential Problems ............................................................................................................... 17Step 3: Identify Likely Causes ........................................................................................................................... 18Step 4: Develop Preventive Actions ............................................................................................................... 18Step 5: Develop Contingent Actions ............................................................................................................... 20Potential Problems ................................................................................................................................................ 22

A. Additional cutbacks/subtractions from R&D ......................................................................................... 22B. Brand Confusion .................................................................................................................................................... 23C. Change in EPA regulation ................................................................................................................................. 24D. Economic Recession ............................................................................................................................................. 24

Summary .................................................................................................................. 26


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Introduction

Cardinal Management Group (CMG) consists of the leading and most experiencedconsultants that this nation has to offer. At CMG, our mission is to develop and

provide innovative solutions that propel our clients in a new direction. The purpose

of our implementation plan is to identify and extract, or create green business

processes that will allow Xerox to become the leader in document and printing

waste management services by year-end 2015; in effort to offset the profitability in

the technology service sector and increase profitability. Using our top of the line

resources, in addition to our superior talent of our executives, we will offer the best

solutions and results to tackle strategic issues. We treat all components of this

implementation plan as confidential. Any all information, identified issues,

documents will be kept confidential and will not be discussed by any individual who

is not authorized to view the following information.


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Summary of Strategic Issue

Xerox Corporation has been a place of technological creativity and bold ideas. The

inventions it has spawned, from Ethernet networking to laser printing and the

graphical user interface (GUI), have led to myriad technologies that allow us to use

computers in ways that we take for granted today. Xerox is most well known for its

printing products and services, however the company struggles to ensure that the

public is aware of the numerous other services that the company offers. Xerox is

faced with the challenge of ensuring that their brand is indicative of all the products

& services that they offer.

Xerox has served as the birthplace for many technological innovations, however by

underestimating the worth of their inventions, Xerox has allowed other companies

to capitalize on their research and development investments. While they may have

cultivated a technology first culture, they have also often been to market last.

These weaknesses and failures on Xeroxs behalf, coupled with the dying interest

and diminishing need for large printing services, have lead to the a steady decline in

the profitably of Xeroxs technology division. Reclaiming those profits requires that

Xerox remain aware of their detrimental behaviors and business decisions as well asemerging trends in their industry.

The Cardinal Management Group has analyzed the behavior of The Xerox

Corporation since just prior to the economic downturn of 2008. We have studied

each segment of the company, respective segment performance, and how particular

segment performances have affected the business collectively. Now, we arrive at

the ever-pressing question, Where do we go from here? In preparation to answer

that question for our client, Xerox, Cardinal Management Group strategically

diagnosed an issue, decided which business functions should be addressed, and

developed objectives to tackle the issue. This document serves to record the plan

that we devised to meet those objectives and extirpate the strategic issue.


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Current Reality Tree


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Decision Analysis

Decision Analysis is a tool that is used in the area of Planned Future Change. Thereare five conceptual steps of the process. First, one must define the DecisionStatement. Second, objectives must be established. Third, those objectives must be

valued. Fourth, alternatives to those objectives must be generated. Finally, one mustcompare and choose the best alternative(s).

Step 1: Define the Decision Statement

The first and most important step of the Decision Analysis is the Decision Statement.This statement is the foundation of the entire process so it must be accurate,descriptive, and strong because a problem half identified is a problem half solved.The Decision Statement ultimately defines and controls every subsequent step in

the Decision Analysis process.

Cardinal Management Groups Decision Statement is to Determine the optimalsolution to offset the declining profitability issue in the Technology segment. CMG

chose this statement because it clearly states the foundation of the process.

Step 2: Establish Objectives

Objectives were established in order to control the selection of the alternative. An

objective is a specific, singular description of a desired result or output to beachieved or avoided, or a desired resource or input to be used or avoided. CardinalManagement Groups objectives were as follows:

Maximize the output in the Technology sector Maximize the output in the Services sector Maximize the ability to serve emerging markets Maximize the ability to retain quality people Maximize the ability to produce innovative products/services Maximize the ability to use people effectively Minimize the brand confusion


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Step 3: Value Objectives

After these objectives were established they were valued. Objectives are valuedbecause some are believed to have a stronger influence than others even thoughthey all have an influence on the outcome of the decision. The value of the objective

shows the relative importance. CMG decided that any objective under the value offive would not be chosen because of relative importance. The scale ranged from oneto ten with ten being the highest value possible. CMG decided that maximizing theoutput in the Technology and Services sectors were the highest value at ten. Thesewere chosen because the two sectors account for the bulk of Xeroxs revenues.

Maximize the output in the Technology sector (10) Maximize the output in the Services sector (10)

Next, CMG decided that maximizing the ability to serve emerging markets was thenext highest value at nine because serving new market is how new revenues flow

into the company.

Maximize the ability to serve emerging markets (9)CMG decided that retaining quality people was important due to the fact that Xeroxwill need to retain highly qualified employees throughout this process because acompany is only as good as its employees. This objective was valued at eight.

Maximize the ability to retain quality people (8)CMG decided that producing innovative products and services was important due to

the fact that Xerox is a company that at its core values innovation. Continuing tovalue innovation and promote it is essential to the companys success.

This objective was valued at seven.Finally, CMG decided that using people effectively and minimizing brand confusionwere valued at six because its important to properly use employees, and

minimizing brand confusion could lead to greater market share.

Maximize the ability to use people effectively (6) Minimize the brand confusion (6)

Step 4: Generate Alternatives

Cardinal Management Group generated alternatives to these objectives but the onewe chose to focus on is the development of a go green consulting unit to help offset

the profitability decline in the Technology sector. We used the values to help us take


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advantage of the relative and comparative powers of numbers. Satisfaction scaleswere created to determine how each alternative satisfied an objective.

Step 5: Compare and Choose

The chart below shows each objective with a weight. The chart also includes thealternatives for the objectives with satisfaction values and total weights to expressthe degree to which the alternatives satisfied the objectives expressed by a totalscore followed by a satisfaction scale.

Decision Statement: Determine the optimal solution to offset the declining

profitability issue in the Technology business segment.

Objectives WT

Alternatives

A B C D E F

SC WTSCSC WTSC

SC WTSCSC WTSC

SC WTSCSC WTSC

Maximize

Output (Tech)10 10 100 10 100 3 30 10 100 6 60 0 0

Maximize

Output

(Services)10 3 30 0 0 10 100 4 40 3 30 10 100

Emerging

Markets9 8 72 9 81 10 90 10 90 9 81 6 54

Retain Quality

People

8 5 40 2 16 5 40 5 40 5 40 5 40

Maximize

Innovation7 10 70 0 0 6 42 10 70 9 63 4 28

Effective People6 1 6 8 48 7 42 7 42 7 42 5 30

Brand

Confusion6 5 30 0 0 10 60 6 36 0 0 5 30

Total Weighted

Score 348 245 404 418 316 282

To offset the profitability decline in the Technology segment by developing a

go green consulting unit.

Legend: Alternatives

A B C D E F

Innovative 3-Dprinting

Transition to thepersonal printer

market

Develop a gogreen consulting

unit

Increase theR & D budget

Transition to allnew non printing

products

Go international


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Satisfaction Scales


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Functional Analysis

Marketing

CMG chose Marketing as a critical function of Xerox that will be needed to helpimplement our planned future change. As mentioned in the strategic issue, manypeople do not attribute all the benefits of Xeroxs research & development

investments back to Xerox. Additionally, many do not associate the brand with itswide spectrum of products and services. In order for our recommendation ofconstructing a go green consulting unit to be properly implemented, the marketing

department must be involved. A critical analysis needed is known as Brand Recall.Brand Recall is the extent to which a brand name is recalled as a member of a brand,product or service class. Common market research usage is that pure brand recallrequires "unaided recall". In terms of brand exposure, companies want to look forhigh levels of unaided recall in relation to their competitors. The first recalled brand

name (often called "top of mind") has a distinct competitive advantage in brandspace, as it has the first chance of evaluation for purchase. Xerox has excelled inachieving Brand Recall in the printing industry, however the same must be achievedin the services industry as well as other areas of the technology industry.Consistently testing for Brand Recall levels in their consumer base throughout theimplementation process of the go green consulting unit will ensure that all work

and achievements accomplished by the go green unit will be attributed to Xerox.

Human Resources

CMG chose human resources as a critical function of Xerox that will be needed tohelp implement our planned future change. CMG has decided that the best course ofaction to address the decline in profitability in the technology sector was tocontinue in the path of offering services. Our recommendation is to develop aconsulting unit that instructs companies, organizations and governments on howbest to have environmentally sustainable practices. In order for this unit to besuccessful it is imperative that Xerox uses some of its staff to help introduce the newdivision as well as hire new employees that will have a focus on creating ideas onhow various entities can create environmentally safe practices or procedures. Acritical analysis needed in the HR department is conducting a job analysis. Byconducting a job analysis Xerox can help identify positions that need to be filled as

well as the functions that are going to be performed by the various jobs. Within thejob analysis it is important to recognize the core competencies that are needed forthe job to ensure that job will be performed effectively. A job analysis will helpXerox human resources department do a systematic study of the tasks, duties andresponsibilities of an administered job and the knowledge, skills and abilitiesneeded to perform the job. Conducting interviews can do this analysis,questionnaires and using computer based programs as part of the process forgathering information. CMG recommends that Xerox take a look at the


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Environmental Protection Agency to get an adequate description of the efforts thatare being done to sustain and restore the environment. As consultants the newdivision will advise companies, organizations and governments on how best tosustain the environment. The human resource department will be needed to helpmake sure that the right people are being put in the best positions to help make thenew go green consulting unit both effective and profitable.

Implementation Plan

Overview

An Implementation plan is a management tool for a specific policy measure, orpackage of measures, designed to assist agencies to manage and monitorimplementation effectively. Implementation plans are intended to be scalable andflexible; reflecting the degree of urgency, innovation, complexity and/or sensitivityassociated with the particular policy measure.

An implementation plan clarifies objectives and breaks each strategy intoidentifiable steps, assigns each step to one or more people and suggests deadlinesfor each step. It also includes a detailed listing ofactivities, costs, expecteddifficulties, and schedules that are required to achieve the objectives of the strategicplans. While agencies are expected to exercise judgment, the level of detail in animplementation plan should be sufficient to enable it to effectively manage theimplementation of a plan or policy measure because an implementation plan allowsan agency to chart their progress in reaching goals. Cardinal Management Group hasconstructed what we believe is an effective implementation plan to solve Xeroxspreviously identified strategic issue of the profitability from the office equipment

and technology business is steadily declining. We believe this proposedImplementation plan is detailed enough to effectively guide Xerox toward moreprofitability yet flexible enough to allow for any necessary deviation.

Step 1: Formulate the Plan Statement

A plan statement serves as the focal point of the development of an Implementation.The plan statement that Cardinal Management Group has formulated reads:

Develop the best plan to offset the profitability decline in the technology segment by

creating a Go Green consulting unit.

Step 2: Identify Plan Objectives

The second step of the written implementation plan is identifying plan objectives.Similar to the objectives that are created for the decision analysis, plan objectivesare needed to help guide the plan. These objectives give an overall aspect of the
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implementation plan and how various factors of the plan are used for direction. Planobjectives provide a protocol for the development of the plan. CMG had three planobjectives for the implementation plan. The objectives are based on timing, staffingand budget. Each of these objectives outlines various parts of the implementationplan and identify what Xerox needs to accomplish. The objectives CMG developedare below.

1. Budget should not exceed $10,000,0002. Must be fully implemented by the January 1, 2016 (110th Anniversary)3. 50% of staff must be current Xerox employees

Step 3: Identify Plan Components & Sub plans

Simply defined, plan components are a list of the major decisions that have to bemade, tasks to be undertaken, actions that must happen, and things to beaccomplished, for the overall plan to happen. It is important to remember thatcomplete component lists are nearly impossible to construct, and in fact- if theywere possible the list would be too unwieldy to work with. In order to effectivelycombat the strategic issue and implement a plan that effectively addresses all of itselements.

Sub plans help manage and track responsibilities of all concerned parties dealingwith the implementation plan. The sub plans incrementally lay out the steps of theimplementation plan. Cardinal Management Groups sub plans are listed below.


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Step 4: Schedule Events & Times

After identifying what has to happen, you must then create a time frame for

accomplishments. This is called a Schedule of Events and Times. The time frame that hasbeen completed may be influenced by a fixed deadline date by which the business has

dictated in order for the plan to be successful. Not only can it be influenced by an

absolute deadline date, but a particular time window for the particular event can also

influence it. The last factor in which the Schedule Events and time can be influenced by

is the independent/dependent relationships among the components. For the plan

components of the Cardinal Management Group Schedule Events and Times worksheet,

each may or may not have dependent relationships to the above components. The net

effect is that an overall priority order of attack is developed. The time increments used

can be fixed actual calendar dates or elapsed time.

In the Events-Planned Column for the Schedule Events and Time worksheet this iscomposed of labeled components in which the event needs to be completed by the

designated time. The events-actual column is to record the actual occurrence of these

events along with the explanation of the deviations. This allows Cardinal management

group to see the reality of the time frame and allows the company to make any necessary

changes. This is also great for the purpose of just the companys record.

Events & Times Worksheet


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Step 5: Perform Objectives Test

After formulating the objectives in the implementation plan a question for these

objectives arise. That question is Can they be met? If any of the objectives are inopposition to each other, then this objective should be brought to top management. It

should then be considered whether it should rationally be permitted. If so then the causeof this opposition should be resolved.

Budget Objective Test

Time Objective Test

See Events & Times Worksheet.


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Human Resources Objective Test

Potential Problem Analysis

The team developed a Potential Problem Analysis for the implementation

plan. A potential problem analysis focuses on detecting undesirable UnplannedFuture Change. The goal of potential problem analysis is to prevent these negativechanges from happening. There are 5 steps of potential problem analysis. Each stepin the process is important because they build on the information from the previousstep.

Step 1: Define the Potential Problem Statement

The first step in Potential Problem is to define the Potential ProblemStatement. This step identifies possible future changes and will be derived from thePlan Statement from the Implementation Plan. The most efficient way to express thestatement is to add the phrase: What could go wrong with to the beginning of thestatement. A correctly worded statement allows you to move on to the next step.The problem statement the team created was what can go wrong with developingthe best plan to offset the decline in the technology segment by creating a Go Greenconsulting unit?


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Step 2: Identify Potential Problems

This step required the team to uncover the potential problems that can affectthe Implementation Plan negatively. The team had several brainstorming meetingswhere the team developed a list of potential problems. The approach used to in thebrainstorming meetings was to create an overall view of the fundamentals thatbring about what is to be accomplished in the Implementation Plan. The teamresponding to questions like created the overall view: What unneeded, undesirablefunctions or outputs accompany these? and what unneeded, undesirable inputs or

environment accompany these? The team was able to develop a list of events that

constituted a failure to meet the desired element. These were the potentialproblems. The list of potential problems was lengthy so it was necessary to cut thelist down to the most important ones to be pursued. This process is completed byassessing the probability (P) of the potential problem and the seriousness (S) of theproblem occurring. Ratings of high (H), medium (M), or low (L) were used todesignate the probability and seriousness of the potential problems. Potentialproblems with probability and seriousness ratings of low were cut from the list.These problems were not worth pursuing. These problems were noted as notserious by a check in the Accept Risk (AR) column. The Accept Risk column says

that the risk should be accepted on these problems because it is not serious enoughto worry about. Below is a chart with the potential problems developed by CMG. Theproblems where risk was accepted represented problems that all firms face whencreating something new. CMG is confident that Xerox is well-equipped deal with thepotential problems where risk was accepted.


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Step 3: Identify Likely Causes

The real payoff from the Potential Problem Analysis is to detect the likely causes ofthe potential problems and prevent them from happening. Likely causes only needto be assessed on their probability of happening or causing the potential problem.

Likely causes by themselves are of no help and have no seriousness. The seriousnesscomes from the probability they produce. Below are Likely Causes Worksheets thatshow the likely causes developed by CMG.

Step 4: Develop Preventive Actions


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Step 4: Develop Preventive Actions

The main goal of Potential Problem Analysis is to make sure that nothing goeswrong in the course of the implementation plan. The best way to make sure nothinggoes wrong is to minimize the probability of any potential problems happening and,

mostly to prevent the likely causes with unacceptable risk from happening. Thisprocess was completed by developing preventive actions that reduced the residualprobabilities (RP) of likely causes to low. Residual probability is the probability ofthe problem occurring after the preventive action has been taken. Once thepreventive actions are created, the team responsible for carrying them out is to bedetermined. This step was crucial to CMG because creating preventive actions is astep where many plans fail. The main reason for the failure in this step is thethought that nothing can go wrong with the plan. A list of preventive actions wouldbe developed, but never carried out. It is important for Xerox to carry out thepreventive actions because once the problem occurs there is nothing that can bedone and the preventive actions are of no value. Below are Action Worksheets that

link the likely causes to preventive actions.


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Step 5: Develop Contingent Actions

The last challenge of Potential Problem Analysis was to determine contingentactions for the possibility that the potential problems still occur. This step is alsocrucial because once this step has been reached; the medium and high probabilities

of potential problems should have preventive actions that cause the residualprobabilities to be low. The residual probabilities can be low but there is no way toguarantee that the problem cannot occur. The two components of completing thisstep are to determine the contingent action itself, and develop triggers. The teamdeveloped a proactive and a reactive trigger each contingent action. The proactivetrigger allows for the client to monitor the situation and implement the actionbefore it occurs. The reactive trigger lets the client know that the action is occurringand the contingent action needs to be implemented. It is important to note that the


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contingent actions developed do not have any value unless they are implementedright when the problem occurs. This means that it is was very important for theteam to develop concrete triggers for the client as well as note the individual who isresponsible for monitoring each situation.


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Potential Problems

A. Additional cutbacks/subtractions from R&D

A potential problem that Cardinal Management Group (CMG) has located with Xeroxis the cutbacks/ subtractions in the R&D budget to develop the best plan to offsetthe profitability decline in the technology sector by creating a Go Green Consulting

Unit. Likely Causes of this potential problem include: (1) Restricted Cash Flows ofXerox in effort to pay down the level of debt that Xerox currently has, and will incur,


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from enhancing the Go Green consulting unit; (2) Cuts/slashes in the R&D budget

and (3) Xerox incurring a major expense, that company could not effective manageof afford.

In terms of the first Likely Cause of Restricted Cash Flows, CMG has set thisprobability of this likely cause happening at Medium because although this potentialproblem can occur, it would not have a substantial effect that will drastically hinderthe firm. With the second likely cause of Cuts/slashes in the R&D budget, CMG chosethis likely cause because it will take a substantial amount of money to enhance theGo Green Consulting unit; therefore, the company may have to make cutbacks in

terms of the amount of salary that that will be paid to employees, as well as theallocation of new employees to the Go Green Consulting Unit. So CMG has set the

probability of these likely cause at Medium as well because the likelihood of thislikely cause to happen, or even having substantial impact on the firm overallmoderate. Lastly, the final likely cause of Xerox incurring a major expense, CMGchose this likely cause because there is a legitimate chance of Xerox incurring and

major expense that company could not effective manages of afford. CMG rated thislikely cause as Large, because the implementation of a new unit within a companyduring the current unstable economic climate is very risky.

Preventive Actions: Preventative Actions that Xerox could take to supplement thefirst likely cause would be to allocate a fair portion of its retained earnings to theR&D department. In terms of the second likely cause, one way to prevent the likelycause to happen could be analyze profitable and not profitable areas of the business.Additionally, preventative actions that Xerox could take are to use to circumvent thethird likely cause is to use its finance department to run accurate future revenueprojections of Xerox, so that the company can figure out an accurate budget to

enforce for the enhancement of the Go Green Consulting Unit.

B. Brand Confusion

An additional potential problem that Cardinal Management Group (CMG) locatedwith Xerox is the potential inability to rebrand themselves in relation to theircompetitors. Likely Causes of this potential problem include: (1) not being able todrop the misconception of being only a printing company; (2) Inability to fund therebranding initiative.

Probabilities/ Riskiness: In terms of the Likely Causes of not being able to dropthe misconception of being a printing company, CMG has set the probability of thelikely cause to Large. Because Xerox is predominately known as a printing company,and has established such a legitimate brand among both its customers andcompetitors as a printing company, it will be hard to reestablish itself as a companythat not only offers print, but also offers consulting services as well. With thesecond likely cause, of Xeroxs inability to fund its rebranding initiative; CMG has set

the probability of this likely cause at Low. When implementing a new business unitor function into an established company, one must have a substantial amount of


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financial resources. Because Xerox is already allocating a substantial amount ofresources to implementing its Go Green consulting unit, the additional costs

associated with rebranding the company as one that offers consulting services,could be overtly expensive. However, because Xerox is a public company, it has thecapability to access cash from its shareholders by way of issuing more equity in tothe market by way of a follow-on equity offering, or leveraging liquid cash frommiddle-market or bulge-bracket investment banks.

Preventative Actions: Preventative actions that Xerox could take to prevent thefirst likely cause from happening are to develop a campaign that clearly andexplicitly defines Xeroxs brand. By doing this, Xerox would be letting all of their

current, and potential, customers know what type of company they are, despitewhat the many think they are, through the type of services that they offer to thepublic. In terms of circumventing the second likely cause of in Xeroxs potential

inability to fund the rebranding initiative; Xerox could build up its liquidity (cash onits balance sheet) through investing in liquid assets such as money market

securities, callable bonds, and commercial paper. By doing this, Xerox will havedirect access to cash that the company many need to assist in funding therebranding initiative.

C. Change in EPA regulation

Cardinal Management Group has defined another potential problem as being achanging in EPA regulations. This issue has been viewed as a potential problembecause if the regulations implemented by the EPA arent in the favor of the

preservation of earth, it will cause the go green effort to become obsolete. LikelyCauses would include: (1) the government implementing policies that loosen theregulations on the conservation of the earth. (2) Another likely cause would belobbyists working toward persuading government to implement looser policies. (3)The disbandment of the EPA would be a likely cause, but we have chosen to acceptthis risk. CMG decided that this is a serious problem, however, the probability ofthis occurring is low. Preventive Actions: There have been preventive actions putin to place that were created specifically to avoid this potential problem. The firstwould be for Xerox to hire lobbyists to keep current EPA regulations. In addition,CMG wants to create a task force to make sure Xerox is current in all environmentalconservation policies from the EPA. The creation of the task force will also be usedas the contingent action in which a proactive and reactive trigger will be used to

ensure that the residual probabilities are low. A proactive trigger would be to hirelobbyist to advocate for more EPA regulations. The reactive trigger would be to hirelobbyist to lower regulations.

D. Economic Recession

An economic recession is definitely a potential problem because it affectseverybodys financial situation. The probability that this will occur is moderate andthe seriousness of this occurring is high. While there are many causes of an


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economic recession, there are a few that CMG had decided to elaborate on. LikelyCauses: (1) The U.S debt downgrade would be a likely cause of an economicrecession. With the U.S experiencing a downgrade in 2011, there is a chance thatthis could occur again in 2012. (2) Morally hazard investment banking could be a

likely cause of an economic recession. This is a result of businesses having anincentive to take big risks because they know the government will bail them out.While this may be somewhat of a win-win scenario for the business taking the risk,it will most likely affect the economic stability of the U.S. (3) Last but not least, therising of tax rates could definitely play a role in an economic recession. The rising ofU.S tax rates would discourage taxpayers from spending and investing money out offear of an economic recession, not knowing that their actions are contributing to therecession. Preventive Actions: CMG has decided to input a preventive action,which would include having the finance department increase capital requirementsat Xerox. Xerox could also analyze the financial statements of the companies itinvests in to assess the risk of potential investments. The contingent action of thispotential problem would be for Xerox to invest/hold highly liquid assets such as

cash or money market securities. The proactive trigger Xerox should activate wouldbe to have the finance department monitor economic indicators. The reactivetrigger to this potential problem would be the unemployment rate being greaterthan or equal to 9% for 2 consecutive quarters.


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Summary

Strategic Issue: Profitability from the office equipment and technology business issteadily declining

Through our thorough research of the technology and services industry, CardinalManagement Group (CMG) discovered that the industry wide decline in profitabilityof office and technology equipment is a legitimate strategic issue that is affecting theprogressiveness of Xerox. Due to market conditions, demand, and ineffective use ofcost savings, revenues have consistently declined since 2008, which inadvertentlymade various products within the technology industry obsolete. Nonetheless,because of Xeroxs acquisition of Affiliated Computer Services (ACS) in 2008, Xerox

has been able to not only offer technology products to the market, but also services.

Through this dual stream of revenues from technology and services, Xerox was ableto maintain its profitability and relevance to its customers and competitors.Because the acquisition of ACS has added a legitimate amount of value to Xerox, asevident through ACSs contributions to revenues and profits for the last 12 quarters(4 years), CMG has developed a strategy to continuously offset Xeroxs decline inrevenues in the technology sector by shifting Xeroxs focus to the service sector.

This will be accomplished by offering an enhanced and profitable opportunitywithin services through its Go Green initiatives. By implementing a Go Green

consulting services unit to its business, Xerox could monopolize on its current go

green initiatives and add another dimension to its brand. Additionally, the GoGreen Consulting Unit offers a supplemental stream of revenues that will benefit

Xerox in its current and future endeavors. The implementation of the Go Green

consulting unit will, nonetheless, has its risks associated with its execution such as:cut backs in Research & Development, potential changes in EPA regulations, andfluctuations in the economy. However, through preventive actions such aseffectively analyzing profitable and non-profitable areas of the business, creatingtasks forces to ensure EPA awareness, and increasing capital requirements at Xerox,the company could successfully carry forward with the Go Green Consulting

initiatives. We, CMG, firmly suggest that Xerox follow the guidelines set by ourstated Implementation Plan to ensure the future success of Xerox and its future

undertakings.

Written Implementation Plan (1) 2[1]

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