Strategy:

As a management accountant in a small real estate services firm, you have become aware of a strategic initiative in your firm to promote its services to a new class of customers. Currently, most of your firms customers lease space in large office buildings where they might occupy three or more floors of the building. Your firm provides maintenance, security, and cleaning services for the office space leased by these customers. The strategic initiative you have discovered is to seek out smaller firms that occupy as small a space as a few thousand square feet. You know that most of these smaller firms are now serviced in a haphazard manner, with part-time help for which turnover is very high; some of the smaller office buildings might not employ security of any kind. You expect that the demand for your companys services among firms of this smaller size will be good, but you are worried about the profitability of these new customers. In fact, although you cannot prove it with hard numbers, you are sure that this new strategy will cause big losses for your firm. You have not been consulted about this new strategy by the firms owners because you are not viewed as part of the management decision making team. You would like very much, however, to be more involved in the companys strategy development and decision making.

Required:

What should you do or say about this new strategic initiative?