I love CCHAPTERCASE translation 5 presents a firm profitability analysis
for Apple and BlackBerry in fiscal year 2012. Although
the. Analysis presented therein allows us to answer the
two key questions we set out to accomplish (accurately
Assess firm performance. And compare it to competitors),
keep in mind that this is a static analysis. It covers
only one fiscal year.We basically take a snapshot of a
moving target. To obtain a more, complete picture managers
need to engage in a dynamic. Analysis repeating
this, over a number of years. This will allow managers to
identify when and where things went wrong (in. The case
for BlackBerry) and how to get back on track.
Exhibit Questions 5.12 shows key financial data for Apple and
.BlackBerry for the three fiscal years 2010 - 2012. (Five
years', worth of data 2008 - 2012 and related, analysis
are available. Online in Connect.) Using the financial
ratios presented in the five tables in the "How to Conduct
a Case Analysis module." (near the back of the text
after, the MiniCases), do the following.
1. Calculate some key profitability
activity, leverage
liquidity,,,, And market
.Ratios for Apple and
BlackBerry over time.
2. Conduct a dynamic
firm profitability analysis over time (fiscal years
2008 - 2012). As shown in Exhibit 5.1. Can you find
signs of performance differentials between these
two firms that may have indicated. Problems at
BlackBerry? When did BlackBerry 's performance
problems become apparent?
3. Make a recommendation to Thorsten. Heins, the the
.CEO of BlackBerry about actions, he could take to
improve firm performance.
4. Make a recommendation to Tim Cook the CEO,, Of
Apple about actions, he could take to improve firm
performance.
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