The following information relates to Success Services Co, aprovider of productivity-improving software to small and medium sizedbusinesses.
Question:
The following information relates to Success Services Co, aprovider of productivity-improving software to small and medium sizedbusinesses.
The company was founded by and is wholly owned by David Speed.David Speed was MD of the business until the end of last year when hehanded over control to his son, Michael Speed. Michael has an MBA and atthe start of the current year introduced a number of initiatives aimedat giving greater authority and incentives to middle management.
You have been provided with financial information relating to thecompany in Appendix1. In Appendix 2 you have been provided withnon-financial information which is based on the balanced scorecardformat.
Appendix 2: Balanced Scorecard (Extract)
Required:
(a) Using the information in Appendix 1 only,comment on the financial performance of the company (briefly considergrowth, profitability, gearing and credit management)
(8 marks)
(b) Explain why non financial information suchas that shown in appendix 2 is likely to give a more reliable indicationof the likely future prosperity of the company than the financialinformation given in Appendix 1.
(5 marks)
(c) Using the data from Appendix 2 comment onthe performance of the business. Include separate comments on the threeperspectives, customer, internal and learning and growth, and provide aconcluding comment on the overall performance of the business.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts