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Essay on Dicom vs Captiva

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DICOM VS Captiva Case Study 1. What are the key business success factors and risks for DICOM and Captiva?
DICOM is a Swiss company that has sales in Europe, Asia, and the United States. They provide services ranging from structured, semi-structured, and unstructured information capture products. DICOM also sells hardware, primarily scanners, through its group sales force. DICOM has differentiated their product offering for the different regions that it operates. And the products that are provided are developed through research and development and also acquisitions. This allows DICOM to provide a diverse set of products that can cover many markets and many different users. DICOM operates in the U.S. under Kofax capture software that …show more content…

But like DICOM, Captiva has business risks that they need to be aware of in their industry. Captiva has 80% of their sales in the United and States and cannot hedge their risks if a crisis develops in that country. Captiva has a large amount of revenues coming from resellers and a drop in this segment could lose the company millions. 2. Do the financial statements for the two firms enable you to compare their performance? If not, what changes need to be made to ensure comparability?
The financial statements are for two different governmental requirements from two different countries. DICOM operates under the European system of IFRS and Captiva operates under GAAP. With this said, just looking at the financial statements makes it extremely difficult to determine performance. To be able to make a comparison between the two companies easier, their needs to be a reconciliation of the two different accounting systems. IFRS and GAAP need to be put together to form one individual accounting entity. What exactly need to be changed are the standards. When looking at the balance sheet, you are able to see just how different the systems operate. In GAAP, cash is the first line, but in IFRS Fixed assets are the first line. Changing to a consolidated system would allow for the best way to make an accurate comparison between two firms in different geographical regions. 3. What financial ratios would you use to judge performance of

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