Chuck is a newly recruited CEO of a startup. He makes a presentation to the investor and they commit verbally to provide $16 million funding, impressed by the numbers in the presentation. However Chuck is informed by his Betty that the numbers are exaggerated. From his further research on this, he understood that she was correct and there was remote possibility of achieving the numbers projected. But the renewal income figure which impressed the clients most was totally incorrect. Chuck is in a dilemma how to proceed further. Characters in the case: Chuck Campbell, Betty Mars, investors, a member of the management team are the characters mentioned in this case. Adequate information: Chuck is a newly recruited CEO of the startup. The investors had verbally committed to $16 million funding impressed by the renewal income. To determine: If Chuck should go ahead with the deal and then inform later that it was the absence of the controller and because Chuck was still new to this job and did not have the required time to analyze the numbers which caused the problem.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 2ED

Summary Introduction

Case summary:

Chuck is a newly recruited CEO of a startup. He makes a presentation to the investor and they commit verbally to provide $16 million funding, impressed by the numbers in the presentation. However Chuck is informed by his Betty that the numbers are exaggerated. From his further research on this, he understood that she was correct and there was remote possibility of achieving the numbers projected. But the renewal income figure which impressed the clients most was totally incorrect. Chuck is in a dilemma how to proceed further.

Characters in the case:

Chuck Campbell, Betty Mars, investors, a member of the management team are the characters mentioned in this case.

Adequate information:

Chuck is a newly recruited CEO of the startup. The investors had verbally committed to $16 million funding impressed by the renewal income.

To determine:

If Chuck should go ahead with the deal and then inform later that it was the absence of the controller and because Chuck was still new to this job and did not have the required time to analyze the numbers which caused the problem.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Describe the difference between a strategic plan and an operational plan.

Compare and contrast each of the mission statements against what makes a good 'mission statement' TARGET To help all families discover the joy of everyday life. That’s our purpose. Our mission. The promise of surprises, fun, ease and inspiration at every turn, no matter when, where or how you shop. That quest to bring joy is at the center of every business decision we make. It gets our teams excited to come to work each day. And we bring it to life in so many ways. Come on in and take a look around. ALBERsons At Albertsons Companies, we are committed to running a business that makes a positive difference in our communities and planet. Our Recipe for Change is our bold vision for the future that leans into our company’s strengths and long-term strategies to drive change. CHIPOTLE Chipotle was born of the radical belief that there is a connection between how food is raised and prepared, and how it tastes. Real is better. Better for You, Better for People, Better for Our…

How can managers/leaders of today encourage employee participation in the decision-making process?