Strategic Management
Strategic Management
4th Edition
ISBN: 9781259927621
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Chapter MC, Problem 21.4DQ
Summary Introduction

Case summary:

Company H is one of the largest technology companies in the world. Started in 2010, company H is one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers and computer hardware. The case explains the problems in company H board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, CEO of company H, started secret surveillance on board of member and found the person who leaked the information. This issue led to the outbreak of a bigger problem which led to the resignation of one of the members of the board and termination of person D.

The company then selected Person H as the new CEO under whom the company grew financially strong but Person H was filed a lawsuit by Person JF, who worked as a hostess at company H sponsored events which made him resign. Next, the company appointed Person LA as CEO who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP and more problem aroused when an outside firm proposed Person AP as CEO which later led to step down of Person RL as chair of company H board. Person MW, led the company as CEO and divided the business into hardware and another enterprise which performed decently in 2017.

To discuss: The general lessons in terms of corporate governance and business ethics that could be drawn from company H.

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Question 2 The selected financial statements data of NGX Ltd. for the years ended 31 December 20x4 and 20x5 are as follows NGX Ltd. Trial Balances as of 31 December Cash Trade Debtors Closing stock Equipment (net) Trade Creditors Long term debt Capital Sales Cost of goods sold (COGS) Depreciation Salary expenses Tax Year 20x4 ($m) 1,000 500 Year 20x5 ($m) 4,000 3,000 1,400 100 50 REQUIRED: a) Calculate (to 2 decimal places) the following ratios for the company in year 20x4 and 20x5. i. Net profit ratio ii. Gross profit ratio iii. Current ratio iv. Quick ratio V. Debtors ratio vi. Creditors ratio vii. Stock turnover ratio viii. Gearing ratio b) Comment on the profitability, efficiency, and short term liquidity of NGX Ltd.
Give thorough answers by including an answer to the question "Why?", even when it is not asked. In other words, imagine the person who is going to read your answer knows nothing about you, so justify your answer more than you need to with examples from your past experiences in work, academics. Brag!  Question: What obstacles have you overcome to get where you are today, both professionally andpersonally, and what essential lessons have you learned from some of your mistakes? Context: I'm a senior majoring in Business Management at University.
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Chapter MC Solutions

Strategic Management

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