Case Analysis Assessing the Goal of Sports Products, Inc.

Case Analysis: Assessing the Goal of Sports Products, Inc. Submitted by: Group 1 Acebedo, Gladys Bandiola, Penuel Bautista, Jherwienne Cruz, Abbie Inojales, Geraldine Miguel, Gen Pili, Lian Reyes, Alyssa Susaya, Jennylyn Tondo, Elma Submitted to: Prof. Jenely P. Sabio-Almirol December 5, 2011 a. What should the management of Sports Products Inc. pursue as its overriding goal? Why? The management of Sports Products Inc. should pursue maximization of shareholders’ wealth as its paramount goal. As far as we know, the stockholders are the owners of the firm and the ones bearing the most risk in running it. In line with this, the board of directors and/or the management is†¦show more content†¦Such decisions may affect the company’s profitability today but judging from the fact that high risk means low stock price and vice-versa, high return waits in the future. [2] d. Does the firm appear to have an effective corporate governance structure? Explain any shortcomings. The firm doesn’t appear to have an effective corporate governance structure. An effective corporate governance regime includes prosecution for individuals who conduct unethical or illegal acts in the name of the enterprise [4]. Why so that there were no discussions in regards to the person/s responsible for dumping pollutants in the adjacent stream? Wasn’t the disposal unethical enough to violate the name of the enterprise? The management’s failure to recognize that such action ruins the reputation of the company is ineffective itself. The most important shortcoming of the firm is the management or the managers who failed to amend the paramount goal of the company. Yes, it is reasonable to focus on profit maximization for the first few years of the business but keeping that as overruling per se for 20years isn’t healthy at all. The shareholders are the true owners of the business and the ones bearing the most risks, let alone being the principals who are the residual claimants. Maximizing shareholders’ wealth should always be one of the top priorities for not only their resources run the business but the means concerning theShow MoreRelatedChirality in Chemical Reactions Essay1169 Words   |  5 PagesFinance – 419 Scrap #29 Principles of Managerial Finance, by Lawrence J. Gitman. Published by Addison Wesley. Copyright  © 2006 by Pearson Education, Inc. Individual Assignment 1: Assignments from the Readings    †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Resource: Principles of Managerial Finance †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Prepare responses to the following problems from the text:    o  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Problems P5-3, P5-4, and P5-13 (Ch. 5) o  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Problem P10-4Read MoreFinance 419 Assignment for Week Two Individual Assignment.2005 Words   |  9 Pages X would be the preferred investment because the return on investment is two times greater than the risk and per Gitman (2009) â€Å"most manager are risk-averse.† P5–4 Risk analysis Solar Designs is considering an investment in an expanded product line. Two possible types of expansion are being considered. After investigating the possible outcomes, the company made the estimates shown in the following table: Read MoreDr. Pepper Snapple Group Inc. Energy Beverages1768 Words   |  8 PagesWhich growth strategy (market development, product development, diversification and market penetration) did they follow to improve their product portfolio sales? Reviewing Dr. Pepper Snapple Group Inc. case and assessing the situation to dr. Michael Porter generic strategies of achieving and maintaining  competitive advantage, we may see that the company mostly was following the differentiation strategy as it is offering differentiated products from its competitors in many terms includingRead MoreStrategic Analysis of Nike8813 Words   |  36 Pages------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- STRATEGIC ANALYSIS OF ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Read MoreMeasuring Exposure to Exchange Rate Fluctuations9007 Words   |  37 PagesChapter 10 Measuring Exposure to Exchange Rate Fluctuations Lecture Outline Is Exchange Rate Risk Relevant? Transaction Exposure Estimating â€Å"Net† Cash Flows in Each Currency Measuring the Potential Impact of the Currency Exposure Assessing Transaction Exposure Based on Value-at-Risk Economic Exposure Economic Exposure to Local Currency Appreciation Economic Exposure to Local Currency Depreciation Economic Exposure of Domestic Firms Measuring Economic Exposure Translation Exposure Does TranslationRead MoreRelationship of Selected Anthropometric Measurement with the Performance of Basketball Players of Faridabad District (Haryana)2384 Words   |  10 Pagesbasketball national level players of Faridabad District (Haryana state) were selected as subject for the purpose of this study. Present study exhibited the insignificant relationship with field goal speed test (basketball playing ability) and with throw for accuracy at the chosen level but the value of product moment correlation is quite higher which may be understood that the size of body may contribute to basketball playing ability when combined with other variables. Finding of study show the insignificantRead MoreFinancial Analysis7553 Words   |  31 PagesAn analysis was conducted on the financial statements of Custom Snowboards, Inc. for consideration of a 5-year-loan with our institution. Financial statement line items, risk assessments, and ratios were all examined with pertinent items that need to be considered are included in this report, and if granted the loan, can track the progress of the company’s ability to repay the loan. The financial statement line items of Custom Snowboards, Inc. were analyzed focusing on areas that were influentialRead MoreStrategic Fit5061 Words   |  21 Pagesâ€Æ' Executive Summary Founded in the early 1960’s, Nike formerly known as Blue Ribbon Sport grew into one of the world’s most recognised brand. A leader in the field of sport clothing and footwear, Nike has always been one that encouraged innovation, creativity and growth. Outsourcing of its manufacturing processes, created an opportunity for Nike to realign itself and focus on its core competencies, doing what they do best research, development and advertise. By mid 1990’s the company began fightingRead MoreA Consultancy Report Prepared for Anthony’s Orchard6106 Words   |  25 Pages.......................................................................3 FINANCIAL ANALYSIS.........................................................................................................5 ANALYSIS OF THE INVESTMENT†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...............................................................9 DEVELOPING A BALANCED SCORECARD........................................................................12 ASSESSING BENCHMARKING EFFORTS†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14 SUMMARY ...........................Read MoreFinance Case Study2989 Words   |  12 PagesCase Studies in Finance: Managing for Corporate Value Creation Fourth Edition July, 2002 Robert F. Bruner Distinguished Professor of Business Administration Darden Graduate School of Business Administration University of Virginia Post Office Box 6550 Charlottesville, Virginia 22906 Email: brunerr@virginia.edu Web site: http://faculty.darden.edu/brunerb/ ABSTRACT: This book presents 46 case studies in finance, targeted toward upper-level undergraduates and introductory and intermediate-level MBA