Text Case Study
Read the case study from the e-text, Principles of Managerial Finance, (11th ed. )by Gitman, Assessing the Goal of Sports Products, Inc. located at the end of Chapter One. Prepare a 700 words in which you respond to the questions at the end of the case.
APA format/at least 2 references
Sports Products, Inc.
Management, Jensen argued, "should act exclusively to maximize the long-run market value of economic enterprises" (Hsieh, 2007, p. 497). This means that Sports Products, Inc.'s management, in decision making, should always favor the decision that maximizes shareholder wealth rather than the decision which results to higher profit. In other words, shareholder wealth maximization "provides the basis for decision rules which determine corporate behaviour, e.g., if there is no capital rationing, select all positive net present value projects" (Poitras, 1994, p. 125). Shareholder wealth maximization as the main objective of financial management was developed from the maximization of the expected utility of the wealth of shareholders.
The maximization of the expected utility of the wealth of shareholders was the reason why shareholder invested in the equity of a corporation. A corporation is built primarily for the benefits of shareholders and not for the benefits of the corporation's management.
Listening in on the conversations of Loren Seguara and Dale Johnson, both employees of Sports Products, Inc., it would seem that the company has an agency problem. First, an agency problem ...
The goal of sports products, inc. in managerial finance is discussed.
Wal Mart Case SWOT Analysis
Brief review of the company's history including significant events that shaped the development and growth of the company.
Situation Analysis including
a. general environmental analysis focused on the six segments of the general environment. To help predict the segments that will have the most influence on Wal mart over the next few years and why.
b. Industry analysis with Porter's 5 forces model to analyze the industry. What factors create attractiveness for firms to compete.
c. Competitor Analysis - Analyze primary competitors for Wal mart identifying current strategies, vision, mission, capabilities, core competencies, and a competitive response profile.
d. Internal Analysis - Assess Wal Mart's strengths and weaknesses through a value-chain
Strategy Formulation Identify the strategic alternatives available to Wal Mart (business or corporate level strategies) Alternatives should be feasible and support the organization and how they take advantage of the environmental opportunities and protects against environmental threats.
Strategic Alternative Implementation select a strategic alternative the will help Wal mart and identify the challenges to implementation. Recommend how to implement the strategy including structural changes, controls, or incentives that must be added for success.View Full Posting Details