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Annual Report Questions for Management

I need help in deriving three financial questions that a manager might ask, regarding the link below (annual report from 2011 for Capital Blue Cross).

Link:
https://www.capbluecross.com/Visitors/AnnualReport/

Solution Preview

When we look at the 2011 annual report, we could easily extract several areas for financial questions from a managerial standpoint. Let's look at three specific questions that we can use for discussion purposes.

1. Over the last two years, the company has completely restructured their vision and strategy to be more inline with the company's overall purposes. If the initiatives do not continue as effectively as planned, will the company continue to sustain itself in a profitable way? Many times, companies begin initiatives that are not free from downfalls. This is one of the most fundamental problems with any type of reorganization or restructuring. One problem then becomes another problem, and it begins to send the company into a downward financial spiral. Healthcare is a very volatile industry, particularly due to economic conditions. One major wrong move from the company, that is based entirely on a strategy, can have devastating financial effects. Even though the company claims to have an advantage in its plan designs, no healthcare company can really have a strategy that is adequate for the entire market, and this is where there is a direct financial concern. If the company's new strategy does not ...

Solution Summary

This solution provides a detailed explanation of questions a manager might ask regarding the annual 2011 report for Capital Blue Cross. An in-depth discussion for each question that management should ask is presented.

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