Crazy Eddie

1749 Words May 16th, 2014 7 Pages
Crazy Eddie

Tables of Contents

Issues…………………………………………………………………………………………………………….III-V

Facts..…………………………………………………………………………………………………………….VI-IX

Analysis…………………………………………………………………………………………………………X

Recommendations………………….…………………………………………………..………………….XI

References.…………………………………………………………………………………………………….XII

Issue

1) Red flags were the increase on short-term investment receivables why would an electronic company have short-term investments in the first place. Increase of prepaid inventory in 1987 should be alarm nearly double from 1986. The company gross profit margin was stable of around 13%-16% average there was no need to increase
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The cons are the negative light and question the independence of the audit firm. The person may have extensive knowledge how to deceive and commit unethical transactions without his former employer knowing.

Facts

Eddie was born in 1947 into a large close Syrian family. and dropped out of high school at the age of 16 years old and peddled television in Brooklyn neighborhood. By 1969 Antar and one of his cousins have funds to open consumer electronic store called Crazy Eddie. Crazy Eddie was nickname given to Antar through his behavior towards customers, vendors, and subordinates. For example Antar would block the exit door even locking door until the individual agreed to buy something anything
Antar distinctive trait was the inability to trust anyone outside his big family circle and mostly relatives hold company positions in all capacity.

Crazy Eddie was know for marketing advertising antics in 1972 Antar hired radio personality know as Dr. Jerry as Crazy Eddie’s advertising spokesman. Discounting policy was the theme to the campaigns promising to refund the difference of the selling price and lower retail price with the 30 days of purchase.

In the early 1980’s electron industry exploded lead to increasing growth to Crazy Eddie by 1987 the company product sales were the following

Antar encourage to upsell the customer and to purchase extended warranty as the electronic was already insured by the manufacturer lead to high

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