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From this period, Campbell diversified its products and posted billion dollars sale but small profits. The most important development, however, was due to its borrowings from investors, the company gradually became subject to the decision and pressures of stockholders. The most important of which include the managements protracted legal battles with investors. This dimension to Campbell’s existence has resulted to the adoption of management teams that were desperate to improve Campbell’s positive net margins because it affects the stock price. This the reason why it has pulled all the stops in order to generate the positive earnings that Wall Street demands to the point that illegitimate policies were adopted. Cases in point were the improper accounting, trade loading, among other policies.
1. Identify legitimate business practices that corporate executives can use for the primary purpose of manipulating or “managing” their company’s reported operating results. Are such practices ethical? Defend your answer.
Examples of legitimate business practices that corporate executives can use in order to manipulate their organization’s operating results include: trade loading or the use of excessive price concessions in order for consumers to buy more products thereby propping up the reported revenues or profits for a specific period; and, converting given period-ending discounts as selling, general and administrative expenses instead of treating them as reductions of gross revenues. Another legitimate gimmick that organizations could legitimately use to smooth out its earnings and manipulate its operation reports is by putting excessive reserves on its balance sheet (i.e. for bad debts or defective merchandise) in one quarter, in effect, lowering earnings below what they otherwise would have been, and then reversing the process in another quarter, which would result to the conversion of some of the excess reserves into profit
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Cody et al. (2007) state that legally, a limited liability company is set separate from its owners, and is regarded as a person with own rights and obligations. In case of a problem, the company is taken to a court of law but not the owners of the company.
Also, the signed contract gave Campbell soup the privilege to refuse spoilt carrots and to dictate the buyer of the pieces that he would not buy. The Wentzes refused to perform under the contract and Campbell filed a court to seek remedy for the breach of contract.
There are two types of diversification depending on whether there is any relationship between new and old business of the company .The reason that companies are diversified is the search for synergies or a reduction in the overall business risk. Diversification is one of four marketing strategies defined in the Ansoff matrix.
It allows the enterprise to spare costs on new customers search and new markets winning strategies development. Besides it, the stable cooperation with a reliable customer allows to simplify the supply chain management (the product, information and finance flows) and minimize the possible chain uncertainties like canceled orders, wrong forecasts or late deliveries .
It has been well acknowledged by the corporate community that companies that seriously take care of CSR are more likely to sustain than those who do not. CSR means and includes all the efforts that a firm takes in identifying the social, economic and environmental problems of a society in which it operates and finding solutions to those problems in such a way that they are firm's problems too.
Momentarily speechless, you struggle to find words that are worthy of description, but falling short you simply gaze at the 1971 Chevrolet El Camino ("1971 El Camino"). The beauty of her solid black panel is highlighted by the addition of contrasting chrome wheels.
This essay analyzes Marcel Duchamp and his influence on the contemporary art. He associated with various art movements like Surrealism, Dadaism and Fauvism but never identified himself with any of those. His art works are of a huge range and comprise of more than just paintings. He was interested in ideas, not merely in visual products.
Even though it is claimed in the market place that every person has a freedom of choice, the concern on this paper is whether in reality this freedom is exercised or customer’s tastes are subject to marketer’s strategies. Marketers are tactful in identifying the products features that are most likely to attract the client.
This paper analyzes the artworks of Andy Warhol and Vincent Van Gogh. Vincent van Gogh was a Dutch and post-impressionist artist, who extended his ideas from the principles of impressionism and created his own manner of “brilliant colors and thick, swirling brushstrokes. His artworks were also an evidence to the impact made by Jean-Francois Millet.
In order to manage their revenues and earnings, they offered steep discounts that they recorded as SG&A expenses so as to maintain reasonable gross profit margins. The company also recorded large sales volumes that were not
1 Pages(250 words)Case Study
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