Turned profit-started to rack up significant losses

Assignment Help Operation Management
Reference no: EM131713353

Banana Computers, Inc., a quickly growing start-up founded roughly 10 years ago by a few friends, had a gaming software division that never turned a profit and started to rack up significant losses. For instance, in the final two quarters of 2010 it lost $10 million and $18.5 million, respectively. Banana's board is considering selling the division, which it thinks has a value of at most $400 million. E-Gaming & Arts Co. ("EGA") has proffered the highest bid as of June 2011, despite that the division had been generally known to be up for bid since December 2009. EGA's bid was $300 million. As a result, Banana's board must decide whether to sell the division to EGA for that price.

1) The Banana board voted to sell the division to EGA for $300 million. A year and a half after the sale, the assets that were part of the division Banana sold to EGA are generating a $200 million in annualized profit for EGA and were recently valued at around $1 billion. Des Gruntled, a shareholder of Banana, on behalf of the corporation, recently sued the board of directors, claiming the board sold the division for too little money. What steps did the board need to be sure to take prior to selling the division to EGA to ensure that it will prevail in the lawsuit by Des?

Reference no: EM131713353

Questions Cloud

Master production schedule and their significance : Explain the four-time fences in the Master Production Schedule and their significance.
Complete a comparative swot analysis for netflix : Complete a Comparative SWOT ANALYSIS for your company: Strengths, Weaknesses, Opportunities and Threats
Analyze the rationale of executives in cases : Analyze the rationale of executives in cases when their compensation package is outwardly perceived as excessive.
Discuss the same individual to conduct all the interviews : When using in-depth interviews as a method of collecting qualitative data, is it critical to use the same individual to conduct all the interviews
Turned profit-started to rack up significant losses : quickly growing start-up founded roughly 10 years ago by few friends had gaming software division that never turned profit-started to rack up significant losses
Write out the results of the investigation : Find a high profile case (specific) that involves a criminal organization and public corruption within the government, within the last twenty years.
Find percentage of cash revenues client receives : Assume that you work for Able, Bold, and Cowing as an auditor, and you are auditing Texas Pizza, a chain located in and around Brownsville, Texas.
What risks are associated with climate change at exxon mobil : What risks are associated with climate change at Exxon Mobil? How does Exxon mitigate this risk? Try to find some links to different articles.
Define the context of change management theory : Discuss what the company in this scenario may be doing wrong in the context of change management theory

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd