Case 6- the Financial Detective

Case 6- The Financial Detective

Curtis Kugler

Walsh University

7-18-12

Problem

The Financial Detective case presents us with varying companies in varying industries. It goes on to illustrate various strategies and management concepts that each practice. To show us an example of this, the case outlines two companies under: Health Products, Beer, Computers, Books and Music, Paper Products, Hardware and Tools, Retailing and Newspapers. After they describe the companies and provide us with what each is doing, they ask us to examine the financial statements and operating data at the end of the case to identify which company is which. Therefore, our problem here is to understand and identify the varying businesses practices with how these practices translate into a company’s financial performance.

Assumptions

First, we must assume that each of the companies described related directly to Exhibit 1 in the back of the case. We also assume that the business practices and management strategies described within each company have taken place during the recent year in which Exhibit 1 calculated these figures.

Alternatives

As far as alternatives are concerned, there is no real presence of alternatives within this case. This is because we are simply asked to match two companies up with their respective financial performance and operating data. The only alternative that exists here is switching the company with given financial data. However, if you look at in terms of the concepts applied in this case, we can dive into many differing business practices and strategies. In this case, we examine whether companies have a heavy online presence vs. retail store presence, rely on brand development and value, offer a simple or diverse product line, operations are centralized vs. decentralized or whether the company prefers to lease vs. purchase property.

Recommendation and Action

After studying the company’s description and...