Detective Solution

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The Financial Detective, 2005 proportion Financial characteristics of companies vary for many reasons. The two most promi_ nent drivers are industry economics and firm sfategy. Each industry has a financial norm around which companies within the industry tend to operate. An airline, for example, wourd naturary be expected to have a high of fixed assets (airplanes), manufacturer would be expected to have a lower gross margin than a pharmaceutical manufacturer because commodities such as steel are subjeci to strong price competition, while highly differentiated producrs like patenred drugs enjoy mrich more pricing freedom ' Because of unique economic features of each industiy, uurrug" financial statements will vary from one…show more content…
This company outsources most of its brewing activity. The firm is financially conservative, and has recently undergone a major cost-savings initiative to counterbalance the recent surge in packaging and freight costs. Computers E and F sell computers and related equipment. One company focuses exclusively on mail-order sales of built-to-order PCs, including desktops, laptops, notebooks, servers, workstations, printers, and handheld devices. The company is an assembler of PC components manufactured by its suppliers. The company allows its customers to design, price, and purchase through its Web site. The other company sells a highly differentiable line of computers, consumeroriented electronic devices, and a variety of proprietary software products. Led by its charismatic founder, the company has begun to recover from a dramatic decline in its market share. The firm has an aggressive retail strategy intended to drive traffic through its stores and to expand its installed base of customers by showcasing its products in a user-friendly retail atmosphere. Companies Books and Music The book and music retailers are companies G and H. One focuses on selling primarily to customers through a vast retail-store presence. The company is the leader in traditional book retailing, which it fosters through its "community store" concept Case 6 The Financial Detective, 2005 and regular discount policy. The firm also maintains an online
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