Mgt Pre Questions Essay example

Decent Essays
1. What are some strategic metrics that movie exhibitors care about that are reported in the case? How does your exhibitor compare to the other exhibitors? The industry average?
Number of theaters by complex size, market leaders, tickets sold and box office gross, average movie ticket price
Changes in interest rates and the availability and cost of capital, the effect of the leverage on its financial condition, prices and availability of operating supplies, cost control procedures on operating results.

2. What metrics does your movie exhibitor report on their web site? Are they similar or different from what is reported in the case?
Concessions, Advertising, Box-office revenues.

Small to mid-size markets, Acquisitions,
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4. How does your company compare to the industry on these dimensions?

Have capability of meeting short-term solvency, but not well on long term solvency.
Even though Carmike could manage its assets efficiently, it did not well as other companies.
Gain more profit than other companies.

We will cover 5 and 6 in class.

5. Which company is better performing? Diagnose the underlying causes of their performance. i. What’s going on in the industry that may explain these firms performance? j. What is controllable by the company? k. What can you identify in the financial statements that provide evidence to help substantiate your explanation?

6. How do the results of your analysis affect the alternatives proposed to resolve the strategic issue?

Explanation for identifying underlying causes of performance:

Now determine the WHY behind their performance. For example if profitability is declining or profits are negative, try to identify why. Look for evidence in the common-size statements that you prepared as well as industry information in the case. The purpose is to link strategic analysis with financial analysis to gain an understanding of why the company is performing the way it is.

Analogy 1: You cannot fix the problem if you do not understand the underlying cause of their poor performance. Treating a sinus infection with Tylenol only relieves the pain, not
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