Select the best strategic goal for Wirecard.
A Do business in at least 10 new countries.
B Acquire 5 new Asian financial technical firms by June, 2030.
C Increase sales by 5% and ROI by 10% in the next year.
D Improve our reputation on the German stock market.
The correct answer and explanation is :
The correct answer is C: Increase sales by 5% and ROI by 10% in the next year.
Explanation:
Wirecard, a payment processing company that was based in Germany, faced significant operational challenges that led to its collapse in 2020 due to accounting scandals and allegations of fraud. When setting strategic goals, a company must focus on measurable, time-bound, and realistic objectives that directly contribute to its growth, profitability, and long-term sustainability.
Option C: Increase sales by 5% and ROI by 10% in the next year is the most appropriate strategic goal for a company like Wirecard. This option is clear, actionable, and has a concrete, measurable target within a relatively short timeframe. Focusing on increasing sales by 5% and improving the return on investment (ROI) by 10% are immediate financial performance indicators that show a company’s drive to strengthen its position in the market. Achieving higher sales and improved ROI would demonstrate that Wirecard is succeeding in increasing its market share, improving its operational efficiency, and delivering better returns to shareholders. It also reflects the company’s ability to recover from potential setbacks or improve its competitive standing in the payment processing industry.
Other options:
- Option A: Do business in at least 10 new countries could be a good goal for expansion, but it might be too ambitious for a company facing financial difficulties. Expanding into new countries requires significant investment in market research, regulatory compliance, and infrastructure. Given Wirecard’s issues, this would be an overly aggressive and risky goal in the short term.
- Option B: Acquire 5 new Asian financial technical firms by June, 2030 focuses on acquisitions, which could be a strategic goal for growth. However, acquisitions often involve significant risks, especially if a company is already dealing with financial instability, as Wirecard did.
- Option D: Improve our reputation on the German stock market is an important goal, but it lacks the specificity and measurable targets of Option C. Reputation improvement is essential, but it is often an indirect outcome of meeting concrete financial and operational goals.
In summary, Option C focuses on immediate, measurable improvements to Wirecard’s financial health, which would help rebuild the company’s credibility and profitability.