Reference no: EM132955351
When Richard Preston drove into work, a sick feeling of dread gnawed at his stomach. The morning paper had a front-page article on Supreme Corporation, the company where he had been working for the past 18 months. It was more bad news-a ?ery crash that killed a young couple and their two children. The article said that a Supreme-500 tire on the crashed vehicle had failed. The journalist rehashed details from four other recent accidents involving Supreme tires. It raised questions about the quality of Supreme-500 tires, the same model that was manufactured at the plant where Richard worked. Now customers were afraid to buy Supreme tires. Another article in the business section told of shareholders who were irate over a 50 percent drop in the value of the company's stock over the past two months. Rumors of layoffs and cost-cutting were circulating among Richard's co-workers. Two of Supreme's biggest customers were threatening to tear up their contracts to put the company's tires on 30 percent of their vehicles manufactured in North America and Europe.
Supreme Corporation had been in business for more than 50 years and had grown from a single plant in Detroit to a multinational company. Richard had joined Supreme's internship program at the company's ?agship plant right after completing his MBA. He had enjoyed his stints in production, purchasing, and ?nance. Sometimes, at lunch, he would hang out at the company's test track, watching the drivers and researchers from the lab. Richard loved working for Supreme-he loved the people, he loved the products, he loved the pioneering atmosphere.
How could things have gone so terribly wrong?
Problem 1: What are STC's key operational risks? How would you address them?
Problem 2: What are STC's key credit risks? How would you address them?
Problem 3: What are STC's key financial risks? How would you address them?
Problem 4: What other risks does STC have? How would you address them?
Problem 5: What tools has STC used to manage it's risks?
Problem 6: What course of action should Richard Preston initiate today? Why?
Problem 7: What actions led the company to be in this position today?
Problem 8: Any other key points not addressed above?
|
Draft a risk management in the workplace
: Draft a Risk Management in the workplace, office, business, or accounting context/setting. NO PLAGIA.
|
|
Caterpillar book debt-to-value ratio
: In 2018, Caterpillar Inc. had about 592 million shares outstanding. Their book value was $36.0 per share, and the market price was $153.30 per share.
|
|
Discuss the impact of the seasonal variations
: Discuss the impact of the seasonal variations in the delivery business for forecasting the firm's financing requirements
|
|
What is the investment turnover for the year
: For Miosa shop, the profit is $250 000, the sales are $5 400 000, and the invested capital is $600 000, what is the investment turnover for the year
|
|
What are stc key operational risks
: What are STC's key operational risks? How would you address them? When Richard Preston drove into work, a sick feeling of dread gnawed at his stomach.
|
|
Make a balance score card for tesco company
: Make a balance score card for TESCO company and explain it
|
|
How much cash should january receive
: How much cash should January receive? Partners January and June are personally insolvent. The percentages in parenthesis are their profit and loss ratio.
|
|
What is the value of Teldar to Gekko Properties
: The risk-free rate is 6.00%, and the market risk premium is 5.70%. What is the value of Teldar to Gekko Properties? Do not round intermediate calculations
|
|
How much can have to withdraw each year
: You will make 3 equal withdrawals over the next three years. Assuming your account earns 5% interest, how much can you have to withdraw each year?
|