Considerations to learn about essay emphatic purchase Enager Industries Inc hbr case study help in exactly the same way, training case studies became increasingly more well-liked in science training.
Case Study Essay introduction. This company is comprised of three main divisions that are all considered to be independent from one another. The first and oldest division of the company is the Consumer Products Division which designs, manufactures, and markets a variety of kitchenware.
The Industrial Products Division focuses its efforts on creating machinery that is uniquely and specifically designed in a job shop environment. The Professional Services Division adds a different aspect to the company in comparison to the other two product-based divisions.
Professional Services provide a variety of planning and consulting services including: There are only a few corporate level managers and general staff available to carry on the varying degrees of operation between all divisions. Strategy Enager has experienced rapid growth in its early stages, which has contributed towards its current success.
We will write a custom essay sample on Enager Industry Case analysis in enager industries inc. In the eyes of Henry Hubbard, the Chief Financial Officer, gross return on assets for Enager should be reaching levels of above 12 percent for all divisions of the company.
In the company changed the objectives and performance evaluations of each division from profit centers to investment centers. A large portion of the net income in was earned in cash and that fact is supported by the quality of income ratio of 1. The heavy increase in debt financing can be seen in the income statement for Enager Industries Inc.
It is to note that a thorough examination can be done if statement of cash flows were performed for each division, since the top management would like to see which division did not perform as well as others as company-wide ROA dropped year-to-year.
Statement of cash flow by division can provide a better analysis to study which division performed well in terms of operations, and which division made poor judgments in their investments. However, if the economy or the industry were to ever tumble, Enager Industries Inc.
One could also argue that the increase was due to the company not able to sell its budgeted inventory in This suggests that the additional assets did not generate as much income as originally forecasted.
This signifies the high interest rate levels, when compared to average interest rates infor Enager Industries Inc. This is relevant when counting the fact that there were substantial acquisitions in capital expenditures as aforementioned.
The gross margin saw a positive increase year-to-year, since the cost of goods sold increased by a lesser percentage 3. In all, the net income rose by As a result, this company saw many of its ratios increased but only slightly. However, return on assets and gross return on assets were also highlighted that saw decreases.
There are several issues with the current management control systems that need to be carefully analyzed; and alternative solutions for each ones respectively. Therefore, any project with a return on investment greater than cost of capital should be accepted. Economic Value Added EVA is a reliable measurement that also leads to better goal congruence because EVA specific to a division is not very comparable across divisions; the managers will then be able to focus more on operating efficiencies.
Identical performance measurement and target for all divisions Each of the divisions performs different business activities as well as risks. Therefore, they should also be evaluated with different standards. For example, because Industrial Products division experience more risk than Consumer Products division depending heavily on each individual project undertaken, a higher ROI should be required to approve projects.
This will allowdivisional managers to focus more on operation and less about tax and debt management. On the other hand, the professional service division carries significantly fewer assets to be included in the ROA calculation. Their assets are mostly intangible assets in the forms human capital and resources.
For this reason, the performance measurement based on ROA does not effectively describe its actual performance. As well, using ROA for the Professional Services division tends to exaggerate and inflate the actual performance, when also compared to other divisions.Case Enager Industries, Inc.
Case Background Enager Industries, Inc.
was a relatively young company whom manufactured and produced products/services within three divisions- Consumer Products, Industrial Products and Professional5/5(1). Enager Industries Case Solution, This Case is about FINANCIAL ANALYSIS, FINANCIAL MANAGEMENT PUBLICATION DATE: June 01, PRODUCT #: TCGHCB-ENG A middle manager has an appealing ne.
Case Enager Industries, Inc. 1. Why was McNeil’s new product proposal rejected? Should it have been? Explain.5/5(7). Enager Industries Harvard Case Solution & Analysis. Enager Industries Case Solution.
Middle manager has an attractive new product offering, which is expected to make a lot of money. However, senior management rejected it.
Students should review the proposal and determine if it is as good as they are, and, if so, to determine how to present it. Case Background. Enager Industries, Inc. was a relatively young company whom manufactured and produced. products/services within three divisions- Consumer Products, Industrial Products and Professional.
Services. Consumer Products, the oldest among the three divisions in Enager, designed, manufactured and. marketed a line of houseware items.5/5(1). Case Enager Industries, Inc Case Background Enager Industries, Inc.
was a relatively young company whom manufactured and produced products/services within three divisions- Consumer Products, Industrial Products and Professional Services.