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.
Recently, the market is on an uptake with its improving stocks & bonds. The light in a year-plus-long tunnel is bringing both hope and realization. The market improvement is also shedding a truth on a troubling facet of the economy, the 401(K). The realization Stephen Gandel, of “Time Magazine”, has highlighted in his article “Why It’s Time to Retire the 401(k)” focuses on the sad truth that 401(K) is not effective and thus can not be relied on. 401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success.
I thought it would be good for me to play the part of the potential employee because I wanted to get a better idea of the importance of bargaining as employee and the issues that may arise, positive and negative. Our first couple chapters in our book, Essentials of Negotiation, Fifth Edition, are based on the multiple types of negotiations used in different situations, for this assignment I wanted a positive negotiation ending for Joe Tech and Robust Routers. Joe is a young adult beginning his career based on his educational background, completed his MBA, and has worked the past few months with Robust Routers as an intern; it was a positive experience on both sides. Therefore, they have decided to extend an offer to Joe, but the position isn’t what he desired and salary, geographical location are all up in the air for him. He has a couple factors to take in consideration about this job - pros and cons.
Tanglewood: Case One Dear Mr. Perrone, after reviewing your company history, values and philosophy I feel confident that I can help you design a better functioning staffing department. Acquire vs. develop talent I believe that since two middle class everyday individuals founded Tanglewood, it is within their philosophy to develop talent within to promote ideas from their own employees and make them feel empowered. As part of my research of your company I found that it is company culture to allow all employees to give their input and suggestions, therefore in order to promote participation employees need to feel that their efforts will result in promotions. Hire yourself vs. outsource When I first began researching your company and
Be relentlessly clear. All good writing instruction repeats this refrain: Show, don’t tell. In other words, illustrate your points with specifics. Example: You want to say someone in your company is a bad boss. Rather than making that general statement, say something like, “He got a promotion based on his assistant’s detailed reports, but then—despite the company’s record profits—denied that assistant even routine cost-of-living raises.” 6.
Next instead of promoting from within, they searched for new blood and hired former Barney’s CEO Allen Questrom. Penney went on to sell one it’s direct marketing unit to raise capital to reduce debt. They restructured the company to focus on its struggling department stores, cutting employees and closing down many stores. By September 29, 2003, the culmination of CalPERS active investment in Penney, JC Penney seemed to right the ship and was able to streamline operations to be more efficient and profitable. Chronology of Events 2/22/00: CalPERS identifies 10 underperforming companies that will serve as their primary focus for corporate governance activism for the 2000 proxy season.
E. opportunities and threats. Answer Key: C Question 2 of 10 10.0/ 10.0 Points Fernando had taken on a turn-around assignment for his business unit. It was in a high-growth market, but not doing well compared to competitors. He knew it would require a lot of resources and a lot of attention. Then he found out that his company had hired consultants to conduct a BCG portfolio analysis.
I do not consider him being the master mind of all the dishonest moves but he hired the people to do it for him. He was aware of everything that went on in almost every deal. Jeff Skilling the then Chief Operating Officer (COO) particularly contributed to the whole mess with a very creative idea. Looking for a way to profit at all cost, he came up with the idea of Mark to Market accounting. While the accounting was marked to market, it wasn’t being handle the traditional fashion way with trading prices dictating its value.
Without customers, there is no business and this will hurt this large company in the long-term. Not only is it right for the company to give more consideration to their employee’s desires but it will also contribute to the bottom line. Their customer will know the value of their company and employees will be more productive in what they do and proud of who they work for. Wal-Mart makes an average of $245 billion in revenues; therefore they have the resources to treat employees fairly. It is important for their corporation to take care of their workers and have a reputation of treating them fairly, which is important to the customers.
These companies were fully well-versed with the company. The third sensible choice by Papa was to consult his board to get an idea of the pre- money valuation and adopting it in a sensible and cordial fashion. Given, Papa made a few blunders too. To begin with, he was unable to time tany worse than when he chose - when the market had plunged with not many people interested in funding technology enterprises or any enterprises. To follow up, I thought he did not value his own company so much - he reduced his pre-money valuation from $90 million to $60 million to $25 million that made investors wary of his confidence in his own firm.