You have recently joined ABC Security Services the role of Head of Strategy and the CEO has asked you to develop a 5-year vision for the business. ABC Security Services is a provider of Manned Guarding solutions in US operating primarily in Exhibitions, Commercial and freezone Sectors. The company was set-up in 2013 and has seen reasonable growth, with an expected turnover in 2021 of $50m, with an operational workforce of circa 500 guards and supervisory staff and circa 50 support staff, however, in a competitive market, the business has struggled to maintain reasonable net profit levels, with 2020 being the first year a modest profit was returned, 2021 is expected to deliver 1.9% net margin.

The company is split into 3 Operating Units, A, B and C. A accounts for circa 50% of the company turnover, B circa 35% with the remainder from C. There is a Head of Operations responsible for all operations, but the 3 operating units have their own General Manager reporting to the Head of Operations, with their own regional offices, control rooms and support staff which includes administrative support, sales etc.

There are 5 support functions that support the operating units as below:

• Finance
• Human Resources
• Procurement
• HSEQ
• Information Technology

Whilst these support functions centrally from the head office, finance, procurement and HSEQ personnel are also employed directly in the operating units by the General Managers as they feel they need control of these functions within their operating units. Each of the businesses support functions, foster their own unique organizational culture, driven by the heads of department whilst further sub-cultures have developed within the operating units. Lateral communication across the support functions/business units is rare, lessening the effectiveness of business-wide initiatives.

The CEO, who founded the company wants to retire in 2032 and wants to drive major expansion into the business during this time, ready to sell the business before retirement. To maximise the potential value in the business, the CEO wants you to develop a 5-year plan to position the business for growth and increase margin return.

The 2020 financial results and the 2021 latest forecast for the business, split by operating unit as detailed below:

Operating Unit	A		B		C		ABC Security Consolidated
($ 000’s)	2020 Actual	2021 Forecast	2020 Actual	2021 Forecast	2020 Actual	2021 Forecast	2020 Actual	2021 Forecast
Turnover	22,500	25,200	17,100	17,400	3,500	7,300	43,100	49,900
Direct Costs	19,900	22,100	14,400	14,850	3,000	6,200	37,300	43,150
Gross Profit	2,600	3,100	2,700	2,550	500	1,100	5,800	6,750
Gross Margin	11.56%	12.30%	15.79%	14.66%	14.29%	15.07%	13.46%	13.53%
Operating OH	1,100	1,150	1,800	1,600	400	600	3,300	3,350
Operating OH %	4.89%	4.56%	10.53%	9.20%	11.43%	8.22%	7.66%	6.71%
Operating Profit	1,500	1,950	900	950	100	500	2,500	3,400
Operating Margin	6.67%	7.74%	5.26%	5.46%	2.86%	6.85%	5.80%	6.81%
Corporate OH	1,250	1,250	900	900	300	300	2,450	2,450
Corporate OH %	5.56%	4.96%	5.26%	5.17%	8.57%	4.11%	5.68%	4.91%
Net Profit	250	700	0	50	(200)	200	50	950
Net Margin	1.11%	2.78%	0.00%	0.29%	(5.71%)	2.74%	0.12%	1.90%

• The Operating OH includes the direct OH expenses within the operating unit, including the General Manager, support staff, sales teams, offices, trade licenses etc
• The Corporate OH includes the CEOs office, Head of Operations, central support functions staff, the head office, external consultants and marketing/legal support.

You are required to prepare a 5-year business plan for the ABC Security Services and present it to the CEO and the Board. The presentation should be no more than 25 minutes,

The business plan should focus on the business itself and not the wider market/competition etc. The expected deliverables include (but not limited to):

• Your assessment of the business based on the information you have
• A strategic roadmap for the business
• Any proposed changes to structure and responsibilities
• Proposed initiatives you believe should be delivered to set the business up for success
• Qualitative and Quantitative measures to be used to analyze the business