In part, the Valley Systems, computer hardware company that produces high performance firewall system, it was six months after the IPO and trying to make their quarterly earnings. Matt Tucker, Executive Director of the Company, was very concerned about the negative consequences of their lack of numbers (especially so close after the IPO) and assessed the possibility of replacing some of the larger supply in the next quarter with a lower supply in the current quarter to reach its goal of income. Students are asked to identify what they would do in a situation Tucker and discuss the implications of their decisions on the business, investors and employees. Part B shows that Tucker and his team did decide to adjust their delivery to meet their numbers. Now, two quarters later, the company is in the same position, they were almost certain to lose their numbers as a result of low staff morale and high anxiety of investors. Once again, Tucker faced with the question of how best to manage the situation. He believes that the ability to optimize the delivery schedule of products based on a range of products and profits. Students are asked to decide whether this "schedule optimization" strategy is good business or earnings manipulation, and to consider the impact of sales and the overall health of the business. "Hide
by John Morgridge, Mark Leslie, Jocelyn Hornblower, Sara Rosenthal Source: Stanford Graduate School of Business 2 pages. Publication Date: August 19, 2010. Prod. #: E385A-PDF-ENG
Related Case Solutions & Analyses:
Todd Krasnow: From Startup to Corporate and Back
Note on the Banking Industry
Baosteel Group: Governance with Chinese Characteristics
Strategic Planning at Sun Life
Competition Policy in the European Union and the Power of Microsoft
SADAFCO
Carnival Cruise Lines
Bidding for Antamina
GRAY BAR SYNDICATIONS
Digitalization at Siemens
