Case
Strategic Issues
GR Hotels (Sample
Case Examination)
Operational Issues
Concepts/Tools Examined
CCA Analysis
New product profit analysis
Net present value analysis
GAAP rules relating to external
reporting
HR issues relating to implementing
performance evaluation and
incentive compensation systems
Financing requirements
AR
Operational inefficiencies (e.g.,
bottlenecks, backlogs, overtime, ISO
certification, dockets, inventory mgmt,
late deliveries, lack of printing
capacity, managing capacity, lack of
space for equipt)
IT issues (software for job tracking,
scheduling)
Too few customers/narrow industry
scope
Internal control and ethical issues
Risk mgmt issues: fuel costs, market
pricies, growing interest in digital
printing
Ratio analysis
NPV of improving or replacing
arena
Calculating capital gains
Appropriate accounting for signing
bonuses
Decision and profitability analysis
(relevant revenues, costs CM, cash
flows)
Uncertainty/sensitivity analysis (calc
and comp incremental CM under to
ticket pricing scenarios)
Relevant costing
Capacity
Calc financing requiring
Consideration and calculation of
capacity constraints
Financial ratios and trend analysis
Bank constraint calculation (3:1)
Calculate profitability of profit
centers
Profitability analysis & performance
indicators (relevant revenues, costs,
CM, opp costs, cash flows, B/E, NI,
EBIT)
Capital budgeting
Capacity analysis
Valuation using reasonable method
(e.g., capitalization of future
earnings, net asset value)
Financial forecase for > 1 year
Calc financing required
Case
Strategic Issues
Operational Issues
Precision Timing
(October 2003 Case
Examination)
Concepts/Tools Examined