The first three quarters for the team was a financial loss based on the company’s inability to generate revenue through sale of its computers. In the second quarter the team developed two brands of computers that were not recommended for sale. The company’s poor internal operating directives gave way to the development of two brands of computers that the market was unwilling to accept, combined with a weak market image and weak distribution network. It was very clear to the team that in order to turn the company into a profitable entity the team needed to evaluate the company’s resources and by so doing conducted an extensive internal analysis. The team looked at the company’s tangible and intangible resources.
John majors government came into office after the downfall of Margret Thatcher, which ultimately created divisions within the party. Not only did the party suffer from the internal conflict but also faced the problems of the recession after the ‘Lawson boom’. In order to stabilise the economy he joined the ERM getting a good deal but ultimately resulting in ‘black Wednesday’ causing Major to raise interest rates to 15%. This was political suicide and he soon lost the support of the press we had once relied so much on to get re-elected in 1992. The housing market also plummeted leading to negative equity, which the majority of the working class could not afford resulting in the repossession of their houses combined with the drastic increase in unemployment Britain was in a mess.
CRITICAL ISSUES * lack of smart and strong decision making because of owner and CEO’s different perspectives/priorities * sales have increased, but profitability have decreased * ineffective management of A/P and A/R have made the company insolvent * may lose loans because bank requires current ratio of 1.25 SITUATION ANALYSIS The major decisions for the company are taken by the owner rather than the CEO. The owner lacks business sense and his decisions are based on emotional feelings, not for the benefit of the company. The owner is not willing to outsource operations and wages are above industry average. From 2001 to 2005 sales have increased by 186%; whereas, COGS and selling and admin has increased by 199% and 166% respectively. High operating expenses and ineffective management of A/R have led the company to insolvency by demonstrating a quick ratio of 0.38.
They explained this by saying that prices of solar panels were dropping fast and production was too costly. Solyndra’s demise was finally brought about by competition from Chinese manufacturers by august 30th when the management did not agree on putting in more capital therefore leaving Solyndra unable to finance its operations Legal and Ethical Issues
Not only did Feuerstein fail to see how much he was paying out his employee’s while the plant was not functioning but the company failed to anticipate the changing market for Malden Mills’ signature Polartec fleece. After years of fast growth, outdoor-goods sale slowed as hikers and other enthusiasts decided their closets already contained enough gear. In addition, as Feuerstein focused on bringing workers back into the new plant, he and top managers neglected the threat of inexpensive fleece imported from Asia and elsewhere that generally sold for half as much as Malden’s products. Finally, there was a downturn in the British market, where foot-and-mouth disease stalled purchases of fleece outerwear for hiking in rural areas [ (Kerber, 2007) ]. The decision to pay employee’s did benefit his business in that he was
But, the company still has a problem because it is not generating enough cash to sustain its operations. c) Judging from its balance sheet, D’LEON is not paying its suppliers on time because the accounts payable increased by 260% while sales only increased by 76% However, the company could: * Risk of insolvency (the sales increased only by 76%) * Lose its credibility and deteriorate its reputation in the supply chain. * Suppliers can decide to cut off trade with D’LEON. * Negative effect on the vitality of the company and its capacity to develop and invest. * Risk of credit management and debt recovery (Bankruptcy) d) The NOPAT (08) is
“Every technology company had been affected by September 11, 2001; the slowing economy; and the potential threat of war with Iraq.” (Managing Organizational Change, Chipping Away at Intel pg 84.) And the fact that a rival company developed the Athlon processor chip, which turned out to be faster than Intel’s Pentium III chip did not help matters. Internally Intel had production delays and setbacks to name a few. Intel
Additionally, as internet shopping started to take a larger piece of the consumer ‘pie,’ Wal-Mart could not keep the pace of its direct opponents. Internet-based companies such as Amazon, offered competitive prices, quick delivery, and a user-friendly experience, making it difficult for even Wal-Mart to keep pace. Internet sales within Wal-Mart were too low to compete with internet-based companies, perhaps due to the company not budgeting enough to improve this branch of the company. They was focusing efforts on what they knew best: in-store sales and competitive prices, but these strategic decisions have proven not to be enough to give the company a competitive advantage in this changing consumer-satisfaction environment. Wal-Mart’s focus was on in-store
Around August of 2007, banks become afraid to loan money out due to the fact that they did not want to suffer from losing money yet again. “This led to the $700 billion bailout, and bankruptcies or government nationalization of Bear Stearns, AIG, Fannie Mae, Freddie Mac, IndyMac Bank, and Washington Mutual. By December 2008, employment was declining faster than in the 2001 recession.”(useconomy.com). With so many foreclosures on houses, many americans were either homeless, or had bought a cheap apartment to keep them from being homeless. Because of the recession, and bad economic, many Americans have no jobs, and barely have a house.
With great consumption came poor behaviors and Stella Artois completely lost its identity and product position in the market with such negative associations. Stella Artois’ reputation was primarily built the ‘expensive’ Euro tastes for more refined expensive products and then their discounted pricing completely diluted the brand and departed from the brand mantra (Kotler & Keller, 2012, p.286). They failed to deliver on the brand promise! With the brand being decimated by its failure to deliver on its original promise, their marketing team needed to develop new strategies and attempt to reimage the brand in a manner in which they could once again deliver on their promise. Reimaging and Revitalizing the Brand Stella Artois,