Case study finance Example | Topics and Well Written Essays - 1500 words

Finance - Case Study Example The firm provides equipment for performance inclusive of sport balls, socks, timepieces, bats, eyewear, golf clubs, protective equipment among others. Currently, the company is at its declining phase given that in spite of achieving global recognition, their sales are declining, the market share is declining and the profits are not growing. Moreover the share price of the company’s stocks is going down the drain and there are concerns over its investment in mutual fund where the rating of the company is slowly being lowered. In July 2005 a portfolio manager of the company noted that a mutual fund management company was concerned over the write-ups of the groups. As a result the security prices of the firm continued to decline considerably. The company was also noted to be investing much in shares of fortune 500 firms which emphasis on value investment. Whilst the stocks were declining, the North Point Large-cap Fund was doing well as noted from its return of 20.7% while the rating by Standard and Poor went down 10.1%. There were also concerns over the profits remaining constant at US$ 9 billion while the market share in athletic shoes went down to 42% in 2000 from 48% in 1997. Revenue was also adversely affected by the negative impact of the dollar currency. To boost the revenues and growth of the company has to deal with top notch operating performance and establish strategies to boost the sale of athletic shoes in the mid-priced market segment which a segment the company has neglected in the recent times. The company has to also extend its efforts to clothing line business where the under the latest management the firm has performed well. Moreover, on the cost side of the company the company has plans to increase its efforts on control of expenses. The meeting of top executives stressed the importance of having a target of long term increase in revenues of 10% and a 15% growth in earnings. Moreover