Key Topics: Strategic management, financial analysis, risk assessment, corporate governance, and operational efficiency.

Models Covered: Cash flow projection, probability-weighted scenario analysis, cost structure analysis.

Description: This case study examines the challenges faced by DCS, a publicly listed company involved in manufacturing data communications components and providing IT network management services. The case requires an evaluation of strategic options: whether to re-align business focus towards the high-value IT management services or continue with its high-volume, low-margin component manufacturing. It involves an analysis of the financial implications, potential cost savings, and risks associated with each option, alongside assessing the impact of market saturation, carbon tax implications, and increasing competition. Additionally, corporate governance practices and the role of a centralized management structure are explored.