Setting: You’re a junior accountant for a steel manufacturing firm in West Virgi

Question

Setting: You’re a junior accountant for a steel manufacturing firm in West Virginia, with $3 billion in revenues in 2016. You’re sitting in a budget meeting as the assistant to the CFO. The meeting is with the executive budget committee for your employer. During the meeting a Vice President of International Sales states a question. “Why are we spending $75 million on technology and IT security? We’re not selling on the internet and our customers are just auto manufacturers and industrial parts.   Couldn’t we cut back? Are we really at risk here in West Virginia? Honestly, what could happen?” The CFO pauses and asks that we address this issue in Friday’s meeting.

Question: The CFO asks you to draft a memo addressing the VP’s question. You may use any resources to support your response.

Explanation / Answer

we spending $75 million on technology and IT security due to following reasons:

1) Technology is something that will keep our moving in the future and with latest technology we can grow in the market. So we need to invest more and more in the new technology and try to invent and develop something new with the help of latest technology.

2) With technology investment we can setup our own innovation center we can work on developing something new with latest technology that will help us to become the market leaders.

3) IT security is one more area where we need to invest more because today is the world of computers and computers security is one of the major concern now a days, so we need to take care of our IT equipments as well as our computer networks and make them protected from the hackers as well as from intruders.

4) With more investment in IT security, we can develop more protected intra network that will be safe from the hackers and we can also able to information flow electronically with out any security threads.

Due to above given reasons, we need to invest more and more in these two, because without them its not easy to be ahead in market.

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