Case Analysis : Hanjin Shipping Co.

Looking at the company's financials it seems to be the company has too much in long-term loans. Ganong's total debt to net worth ratio is 4.9 where the industry median is 0.6. The business need to bring the number closer to the industry median to compete. As well they currently have to most cash on hand in the last three years but the least amount of current assets. This being said their chances of getting money now is harder than before. They have always had trouble receiving money from clients with having a day's receivable at 61 days and the industry median for this statistic is 21 days. For the company to have more success and cash available to pay debt or invest in projects the company need to strengthen up there receivables department. Right not the company is not competing in the industry enough. Ganong is behind the competitors benchmark in every category shown in the case. Ganong seems to be a leading competitor for its Valentine's day chocolates in a heart-shaped box with 30% market, but are the fringe players in other product lines.

Many companies in the United States are struggling to survive. These companies are experiencing significant decreases in revenue, reduced assets, and increases in liabilities. Companies that already filed, or are at-risk for filing bankruptcy are struggling with keeping up with their competitors, causing the companies to lose their value. When a company files for bankruptcy, the company no longer gets to make the business decisions. The bankruptcy courts begin to make the decisions for the companies in efforts to restore the businesses. If the company is unable to revive itself from bankruptcy status, the company goes out of business. If this occurs, the company must sell everything it owns in order to compensate its shareholders and repay

The objective of this case is to understand the importance of crisis management. This case is intended to make the reader consider not only financial implications at the time of the event but the effects on the long term strategies of the organization. Also, the case urges participants to think about the consequences not only on the customer but on those within the organization as well.

Growing organization move through 5 phases of development, each of which contains a relatively calm period of growth that ends with a management crisis. Each developmental phase is strongly influenced by the previous one. Thus by knowing an organization’s development history it is possible to be more prepared for the next developmental crisis. These crises can be used in order to achieve future growth.

Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)

It has been a serious process for many organizations to raise capital which automatically has business and financial risks involved.

In relation to the withdrawal of the Luon pants from the market in March 2013, this was owing that the pants were viewed as being over transparent by many (thehollywoodgossip, 2013). In May 2013, the lawsuits that were filed against the company regarding the renuneration increase of top managers and the accusation about hiding information concerning defected goods in order to rise stock prices – were cause for concern (Huang, 2014, p.7). This is because the lawsuits were filed by investors (Huang, 2014, p.7). In June 2013,

As a manufacture of private label personal care products, Hansson Private Label, Inc. has a considerable amount (28%) of market share in its specific industry. However, private labels as a whole constitute less than 19% in the entire personal care industry. Therefore, growth of HPL depends on the growth of the industry and more importantly the growth of private label component within the industry. In terms of the personal care industry, market growth will not improve significantly in the future. As proven in the past four years, unit volumes in the industry increases less than 1% in each year and the dollar sales growth was only driven by modest price increases. Therefore, the opportunity for private labels

later in the project life. With a NPV of less than -$810,000, Scenario 6 is the project with the

On September 10, 2008, Lehman Brothers announced the lowest decline as the shares dropped to 45%. It left the market value at $5.4 billion after the Korea Development Bank rejected to make an investment deal that could rescue Lehman. The company would seek capital from other investors in order to recover their financial situation. These efforts faltered and the situation grew more severe, even after the US government had already saved the Bear Stearns and Fannie Mae and Freddie Mac. Though it is less likely that the US government will keep Lehman's bailout, there should be a resolution from the Federal Reserve System to bolster Lehman’s finance so as to prevent the US economic declination.

“Ultimately, market participants themselves must address the fundamental sources of financial strains – through deleveraging, raising new capital and improving risk management.”1 – Ben Bernanke

Regression analysis seems to be extremely useful in determining financial distress and the bankruptcy of firms. In fact, in a particular study conducted by Bredart in 2014, it was presented that regression analysis was able to show an 84% prediction accuracy rate in determining bankruptcy of 870 firms between the years of 2000 and 2012 (Bredart, 2014). The independent variables used in Bredart study included profitability (net income/total assets), liquidity (current assets/current liabilities), and solvency (equity/total assets) while the dependent variable included financial distress.

Conclusion: This paper is intended to give clarity on the depths of small businesses, how they plan to succeed and get through possible adversity. The surviving mechanism it takes to maintain in a world where large businesses are expected to exist longer than small business.

In the cases analyzed, we might infer that during a period of economic difficulties companies had gone through deep discontinuity. As such, this determined the need for a turnaround to realign the companies’ strategies with the external and internal environment. These changes impacted the four companies analyzed previously.

This work aims at studying the effect of financial distress on operating cash flows of corporations. The interest in the area of financial distress has increased due to considerable number of corporate failures around the globe in recent years especially since the early 1990s. Notable failures include Global Crossing, Enron, Adelphia, Worldcom, HH Insurance, One Tel, and Ansert Airlines in 2001, and most recently FIN Corp in 2007.