Case 1: Game Enough
What do you think are the main reasons behind the firm’s demise? Can it do anything about the situation? Explain.
The key reason behind the downfall of the firm was found to be global economic recession. The late worldwide monetary crisis has brought on interruptions and great unpredictability in worldwide money related markets and expanded rates of default and insolvency, and has affected levels of buyer spending. These macroeconomic advancements have contrarily influenced and may keep on affecting our business, working results, or money related condition in various ways. For instance, present or potential clients may postpone or diminish going through with us, may experience issues paying us, or may defer paying us for beforehand obtained items and administrations. This may likewise oblige us to expand our terrible obligation save and may influence how we perceive accounts receivables. At long last, if the managing an account framework or the money related markets keep on deteriorating or stay unpredictable, our speculation portfolio might be affected and the qualities and liquidity of our ventures could be defiantly influenced.
The Chief Executive accuses an overall financial subsidence and contends that it is basically an instance of ‘weathering the tempest’. A leaner association, he contends, will be better ready to leave the retreat fitter and ready to exploit the recuperation that will eventually occur. The Chairman, then again, is less persuaded with this contention and feels that there are issues in the business all in all. He is affected in his perspective by the sentiments of a few of the non-official executives of the Board who have more extensive experience of what happens in other industries.
In order to tackle with the situation, the executives should not perceive that their organization is in distress. On the other hand, the key measure they can do to prevent the crisis is that they can periodically review their business plans. They could focus on returns on cash which would enable them to bring the business back to the element of success. The foremost measure that executives could do is finding and retaining the most talented people in the organization.