Executive Summary : Astrigo Holding

1752 Words May 31st, 2016 8 Pages
Executive Summary
Astrigo Holding is a public company that owns its own home-improvements stores. According to the Investopedia, a holding company is “a parent corporation, that owns enough voting stock in another company to control its own policy and management. Although the holding company does not manage the day-to-day operations of the companies it controls, the owners should still understand how these subsidiaries operate to evaluate the businesses’ performance and prospects on an ongoing basis”(“Holing Company”). This means Astrigo does not produce goods or services itself, instead, Astrigo should evaluate the home-improvements stores’ performance because Astrigo is directly responsible for its investors’ benefit. Astrigo is famous for providing the high quality of products with best prices. It also has a good reputation through offering the best customer service. However, Astrigo recently faces a problem: Astrigo had missed its earning estimate by 20 cents a share and profits had dropped by double digits. Moreover, despite aggressive promotions and price cuts, the Astrigo home-improvements stores were losing sales to cheaper retailers with far worse customer service. CEO of Astrigo Holdings, believes that the only way to improve Astrigo’s current situation is to cut 10% of its workforce, but some members of the executive committees also hold opinions that maintain employee morale is important as great customer service begins with talented, innovative team members.

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