Case 2 examines what can happen when attention to detail in managing a business is not a priority....

Question

Case 2 examines what can happen when attention to detail in managing a business is not a priority. We will look at the situation of a specific company, Koala Fun, to determine what has caused the issues the company faces, as well as what might be done to turn the company around. As you review the case, imagine you were in the owner’s position: What would be your decision-making process, and what information would you need to make your decisions?First, review the Koala Fun case (Case 2) in your textbook, as well as your responses to the case study review in Module Three, and then explain your answers to the quiz questions. In addition, address the following in your journal entry:

Risks: Describe the risks that Koala Fun faced as a company.
Management: In what ways was Koala Fun not being managed to obtain optimum performance from its assets? Explain.
Decisions: How does this case demonstrate the importance of analyzing financial data when making financial decisions?
Recommendations: What recommendations regarding risk and profitability would you make to Koala Fun’s owners to improve their company? Briefly describe your recommendations.

Support your answers by referencing the case and providing information, including the financial ratios you calculated when you first worked on this case in Module Three.

Monika · Accepted Answer

Title page                                                                                                 
         
             Running head     : To determine the various issues faced by Koala Fun
TABLE OF CONTENTS
	SR. NO.
	Particulars
	Page no.
	1. 
	Describe the risks that Koala Fun faced as a company.
	1
	2. 
	In what ways was Koala Fun not being managed to obtain optimum performance from its assets?
	1
	3. 
	How does this case demonstrate the importance of analyzing financial data when making financial decision
	2
	4. 
	What recommendations regarding risk and profitability would you make to Koala Fun’s owners to improve their company?
	3
                                                                                                                                               1
Risks that Koala Fun faced and the ways by which Koala Fun was not being managed to obtain optimum performance from its assets
The main risk that Koala Fun faced is risk of changing demand for product. Due to technological advancement, demand for new product increases and failure to meet such demand may lead to failure of business. If the business will not be able to meet customer's demand, customer will switch to other competitors. Thus in order to meet huge demand of product, large amount of working capital is to be tied in maintaining inventory levels.

Case 2 examines what can happen when attention to detail in managing a business is not a priority. We will look at the situation of a specific company, Koala Fun, to determine what has caused the...

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