Astral Records Ltd., North America: Some Financial Concerns
9 Pages Posted: 21 Oct 2008
A new CEO from outside the firm takes over following the sudden death of the former CEO. Included in the new CEO's inbox are pressing decisions concerning (1) the firm's financing needs, (2) capital equipment, and (3) a general assessment of the firm's financial performance. The task for the student is to analyze these issues and recommend action.
ASTRAL RECORDS LTD., NORTH AMERICA:
SOME FINANCIAL CONCERNS
On August 24, 1993, her first day as chief executive officer (CEO) of Astral Records Ltd., North America (Astral NA), Sarah Conner confronted a host of management problems at the company. One week earlier, Astral NA's president and CEO had been killed in a tragic accident. Soon thereafter, Conner was appointed to fill the position immediately. Several issues in her in-box that first day were financial in nature, either requiring a financial decision, or with outcomes that would have major financial implications for the firm. That evening, Conner asked to meet with her assistant, Louis Tang, to begin addressing the most prominent issues.
Astral Records and the Compact-Disk Manufacturing Industry
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Keywords: capital budgeting, cost, financial analysis, forecasting, valuation
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