Your team has been brought in as a consultants to Zynga. The Company is going through significant
Question:
Your team has been brought in as a consultants to Zynga. The Company is going through significant turmoil. With recent layoffs and significant issues with financial performance, there’s a lot of work to be done.
The team’s first task is the following:
i. Would you have sales be a profit center or a cost center? Explain the nature of the P&L if a profit center or cost centers (e.g. would you use a “full” P&L – Revenue-COGS-OpEx or a partial P&L – Revenue – marketing expenses - …)
ii. Would you have finance be a profit center or a cost center? Explain the nature of the P&L if a profit center or cost center (e.g. would you use a “full” P&L – Revenue-COGS-OpEx or a partial P&L –Revenue – marketing expenses - …)
iii. Build a Balance Scorecard for the Finance team at Zynga. Be sure to include what you will measure the team’s success on (Remember: Zynga is in trouble – so be thoughtful in your metrics evaluation given that backdrop).