earnings management harvard case study

• Browse All Articles
• Newsletter Sign-Up

EarningsManagement →

No results found in working knowledge.

• Were any results found in one of the other content buckets on the left?
• Try removing some search filters.
• Use different search filters.

• Contributors

SEC Cracks Down on Earnings Management

Neil Whoriskey  is partner at Cleary Gottlieb Steen & Hamilton LLP. This post is based on a Cleary Gottlieb memorandum by Mr. Whoriskey.

The SEC is taking renewed aim at earnings management, and this time it’s not just improper revenue recognition.

Both in its recent enforcement order against Marvell Technology Group—imposing s $5.5 million fine and a cease-and-desist order—and in its on-going action against Under Armour, [1] the SEC has focused on what, anecdotally, is not a terribly uncommon practice—accelerating (or “pulling in”) sales from a future quarter to the present in order to “close the gap between actual and forecasted revenue.” [2] In both cases, the schemes consisted of offering various incentives, such as “price rebates, discounted prices, free products, and extended payment terms” [3] to entice customers to accept products in the current quarter that they would not need until the next. In an environment of declining sales, these inorganic efforts to meet earnings numbers allegedly misled the market about the direction of the business.

Lest anyone think the SEC’s focus on “pulling in” revenues is an issue of limited relevance, note that approximately 27% of US public companies provide quarterly guidance, and evidence of widespread earnings management is not merely anecdotal. A broad survey by McKinsey reveals that, when facing a quarterly earnings miss, 61% of companies without a self-identified long-term culture [4] would take some action to close the gap between guided and actual earnings, with 47% opting to “pull-in” sales. 71% of those companies would decrease discretionary spending (e.g., spending on R&D or advertising), 55% would delay starting a new project, even if some value would be sacrificed, and 34% would delay taking an accounting charge. [5] The use of any of these techniques, if resulting in the obfuscation of a “known trend or uncertainty . . . that may have an unfavorable impact on net sales or revenues or income from continuing operations,” [6] would presumably be equally objectionable to the SEC.

And the SEC’s current focus on “pulling in” sales revenues (as opposed to other earnings management techniques) is understandable. In the two cases noted above, “pulling in” revenues succeeded only in delaying the bad news and in creating a more spectacular market disappointment when, a few quarters into the scheme, there were no more future sales to cannibalize. Decreasing discretionary spending might seem a more sustainable tactic—cutting advertising or, even better, R&D, is presumably much less likely to bite heavily into actual sales in the next quarter’s earnings (and this may account for its relative popularity (71%!) among earnings management practitioners). But the benefit is only that the securities law violation is less obvious in the near term, and the technique less likely to snowball as quickly to disaster if sales really are in decline. Regardless of the immediacy of the effect, however, all of these techniques inherently mislead investors about earnings stability and growth when unaccompanied by forthright disclosure about how the earnings numbers were achieved.

Accordingly, for those companies that are still providing earnings guidance, it would be prudent to make sure that your disclosure committee is having frank and frequent discussions with management about exactly what, if any, earnings management tools are being used, whether these tools fit squarely within the company’s revenue recognition policies, whether the company’s auditors are aware of the scope and persistence of these practices, and, most importantly, whether the use of the tools is, intentionally or not, masking a trend of declining sales, a declining market share, declining margins, or other significant uncertainties.

Of course, these companies could also reconsider earnings guidance altogether. The justification for guidance is that keeping the trading markets informed of earnings on a more current basis provides more immediately actionable data to the market, leading to better intra-quarter price discovery and less volatility. But if a company—worried about a market overreaction to a quarterly earnings miss—finds itself “pulling in” sales or cutting discretionary spending to hit earnings guidance, it has ceased to provide good information to the market. The prevalence of these practices may point to the inherent difficulty of communicating anything more nuanced than an earnings number to the trading market, but this difficulty only underlines the importance of reducing the market’s singular reliance on that simple quarterly number to drive valuations.

1 Wall Street Journal, November 14, 2019, “Inside Under Armour’s Sales Scramble: ‘Pulling Forward Every Quarter’” (go back)

2 SEC Press Release, SEC Charges Silicon Valley-Based Issuer with Misleading Disclosure Violations (September 16, 2019) at https://www.sec.gov/news/press-release/2019-175 (“According to the SEC’s order, Marvell orchestrated a scheme to accelerate, or “pull-in,” sales to the current quarter that had been scheduled for future quarters. As stated in the order, the purpose of the pull-in sales, which took place during the fourth quarter of 2015 and first quarter of 2016, was to close the gap between actual and forecasted revenue and to meet publicly-issued revenue guidance.”). (go back)

3 SEC Cease and Desist Order in the Matter of Marvell Technology Group, Ltd. (September 16, 2019), p. 4. (go back)

4 Only 37% of the survey’s respondents self-identified as working at a long-term oriented company. (go back)

5 Barton, Bailey and Zoffer, Rising to the Challenge of Short-Termism, p.8. (go back)

6 Regulation S-K, Item 303. (go back)

Supported By:

Subscribe or Follow

Program on corporate governance advisory board.

• William Ackman
• Peter Atkins
• Kerry E. Berchem
• Richard Brand
• Daniel Burch
• Arthur B. Crozier
• Renata J. Ferrari
• John Finley
• Carolyn Frantz
• Andrew Freedman
• Byron Georgiou
• Joseph Hall
• Jason M. Halper
• David Millstone
• Theodore Mirvis
• Maria Moats
• Erika Moore
• Morton Pierce
• Philip Richter
• Marc Trevino
• Steven J. Williams
• Daniel Wolf

HLS Faculty & Senior Fellows

• Lucian Bebchuk
• Robert Clark
• John Coates
• Stephen M. Davis
• Allen Ferrell
• Jesse Fried
• Oliver Hart
• Howell Jackson
• Kobi Kastiel
• Reinier Kraakman
• Mark Ramseyer
• Robert Sitkoff
• Holger Spamann
• Leo E. Strine, Jr.
• Guhan Subramanian
• Roberto Tallarita

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

A Better Way to Assess Managerial Performance

• Mihir A. Desai,
• Scott Mayfield

Total shareholder return (TSR) has become the definitive metric for gauging performance. Unlike accounting measures such as revenue growth or earnings per share that reflect the past, TSR is based on share price and thus captures investor expectations of what will happen in the future, which is its chief attraction.

The problem is that TSR conflates performance associated with strategy and operations with that arising from cash distributions (dividends and buybacks). In this article, the authors discuss the distortions embedded in TSR and propose a new metric, core operating shareholder returns, that emphasizes operational performance. It also provides a comprehensive assessment of the buyback revolution—and the verdict is quite damning.

A new measure gets past the distortions of total shareholder return and puts buybacks into perspective.

Idea in Brief

The problem.

Total shareholder return (TSR) has become the definitive metric for assessing company performance. But it conflates performance associated with operations and strategy with that arising from cash distributions.

A Better Measure

A new measure for assessing performance, core operating shareholder return (COSR), emphasizes value created through operations and does not penalize or reward managers for their dividend and buyback decisions.

The adoption of COSR promises to bring about an increased emphasis on operational performance, a decreased reliance on financial engineering and cash distributions, and a more credible compensation process.

Total shareholder return (TSR) has become the definitive performance metric for public companies. As executive compensation has shifted over the past two decades away from grants of stock and options that vest with time to grants that vest with performance, TSR has become a critical element of governance and compensation and, therefore, of how firms are managed. TSR is sold as a neutral, market-based measure that captures value creation and can’t be manipulated by managers using accounting maneuvers. Are those claims justified?

• Mihir A. Desai is the Mizuho Financial Group Professor of Finance at Harvard Business School and a professor of law at Harvard Law School.
• Mark Egan is an associate professor of finance at Harvard Business School.
• Scott Mayfield is a senior lecturer of finance at Harvard Business School.

Partner Center

Prepare your students to navigate business challenges by immersing them in real-world scenarios.

Transform business education

Bring excitement into your classroom with engaging case discussions and introduce students to the challenge and fun of making important decisions.

Illustrate business concepts

Help students learn by doing with over 50,000+ cases featuring real-world business scenarios spanning across multiple areas of business.

Encourage new ways of thinking

Student build confidence and critical thinking skills while learning to express their ideas and convince others, setting them up for success in the real world.

Explore Different Types of Cases

Find cases that meet your particular needs.

New! Quick Cases

Quickly immerse students in focused and engaging business dilemmas. No student prep time required.

Traditional cases from HBS and 50+ leading business schools.

Multimedia Cases

Cases that keep students engaged with video, audio, and interactive components.

Search Cases in Your Discipline

Select a discipline and start browsing available cases.

• Business & Government Relations
• Business Ethics
• Entrepreneurship
• General Management
• Human Resource Management
• Information Technology
• International Business
• Negotiation
• Operations Management
• Organizational Behavior
• Service Management
• Social Enterprise

Case Teaching Seminar

Register now for our Teaching with Cases Seminar at Harvard Business School, held June 21 - 22 . Learn how to lead case discussions like a pro and earn a certificate from Harvard Business Publishing.

Fundamentals of Case Teaching

Our new, self-paced, online course guides you through the fundamentals for leading successful case discussions at any course level.

Case Companion: Build Students’ Confidence in Case Analysis

Case Companion is an engaging and interactive introduction to case study analysis that is ideal for undergraduates or any student new to learning with cases.

Discover Trending Cases

Stay up to date on cases from leading business schools.

Discover new ideas for your courses

Course Explorer lets you browse learning materials by topic, curated by our editors, partners, and faculty from leading business schools. 

Teach with Cases

Explore resources designed to help you bring the case method into your classroom.

Inspiring Minds Articles on Case Teaching

Insights from leading educators about teaching with the case method.

Book: Teaching with Cases: A Practical Guide

A book featuring practical advice for instructors on managing class discussion to maximize learning.

Webinar: How ChatGPT and Other AI Tools Can Maximize the Learning Potential of Your Case-Based Classes

Register now.

Supplements: Inside the Case

Teaching tips and insights from case authors.

Guide: Teaching Cases Online

A guide for experienced educators who are new to online case teaching.

Educator Training: Selecting Cases to Use in Your Classes

Find the right materials to achieve your learning goals.

Educator Training: Teaching with Cases

Key strategies and practical advice for engaging students using the case method.

Frequently Asked Questions

What support can I offer my students around analyzing cases and preparing for discussion?

Case discussions can be a big departure from the norm for students who are used to lecture-based classes. The Case Analysis Coach is an interactive tutorial on reading and analyzing a case study. The Case Study Handbook covers key skills students need to read, understand, discuss and write about cases. The Case Study Handbook is also available as individual chapters to help your students focus on specific skills.

How can I transfer my in-person case teaching plan to an online environment?

The case method can be used in an online environment without sacrificing its benefits. We have compiled a few resources to help you create transformative online learning experiences with the case method. Learn how HBS brought the case method online in this podcast , gather some quick guidance from the article " How to Teach Any Case Online ", review the Teaching Cases Online Guide for a deep dive, and check out our Teaching Online Resources Page for more insights and inspiration.

After 35 years as an academic, I have come to the conclusion that there is a magic in the way Harvard cases are written. Cases go from specific to general, to show students that business situations are amenable to hard headed analysis that then generalize to larger theoretical insights. The students love it! Akshay Rao Professor, General Mills Chair in Marketing at the University of Minnesota

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

Dragon Soup and Earnings Management (A) Case Solution & Answer

Home » Case Study Analysis Solutions » Dragon Soup and Earnings Management (A)

In case (A), Jason Phillips, CFO of a manufacturing company soup, is given the task of maximizing the value of the company twelve months after the case is resolved. Although not wanted to break the rules of law, Jason is interesting to see whether the accounting options and real action can be used to improve the financial situation of the company and increase its perceived value for investors. The case lets you choose from a menu of choices, including decisions on product pricing, inventory levels, receivables, leasing or buying a new machine and the evaluation or sell securities. These are entered in a spreadsheet Excel adjusts the financial projections and accounting information accordingly. In case (B), Ben Kerr, chief investment officer of one of the main competitors of the dragon, considered those developed by Dragon unravel any results management behavior and establish a true value to the company financial statements. Although the case will focus on the financial consequences of the real decisions, a rich debate to consider the ethical angles of the decision process is obtained. In particular, the way in which the results management “should continue and what kinds of behaviors are just going to be defeated by the investors? by Craig J Chapman Source: Kellogg School of Management, Northwestern University 8 pages. Date Posted: April 26, 2011. Prod #: KEL574-PDF-ENG Soup Dragon and revenue management (A) Case Solution

Related Case Solutions:

LOOK FOR A FREE CASE STUDY SOLUTION

• Order Status
• Testimonials
• What Makes Us Different

Dragon Soup and Earnings Management Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Dragon Soup and Earnings Management

Dragon Soup and Earnings Management

Introduction

Rebecca Dunwoody is the present CEO of the Dragon Soup company. Dunwoody is facing the problem of funding and considering maximizing the value of the company at the time of fund raising as investor’s only look at multiples of earnings while evaluating the financial statements. She is seeking to maximize the value of earnings without breaking the laws and procedures set by the Securities and Exchange Commission of USA.

Jason Phillips is the Chief Financial Officer of the business and Rebecca gives this responsibility of earnings management to Jason. Therefore Jason’s main responsibility is to identify those accountings choices and operations that can maximize the perceived investors without breaking legal rules.

Actions to Improve Earnings

It is expected that Jason have certain options available in order to maximize the perceived value with respect to investors but Jason has to make sure that recommended options are according to the three basic principle’s objectives of SEC’s and MD & A which includes explanation of the financial statements for the convenience of investors, increased disclosures of financial statements for the better analysis of financial statements with respect to investors and to provide quality information about company’s earnings and cash flows for better comparison about the performance of the company as compared to the last year’s earnings.

Lease or Buy Decision

It is expected that existing canning machine of the company is not working according to the required standards as it acquired a decade ago, hence there is a need of new canning machine in order to run operations effectively. It is expected that replacement cost of the machine is one million dollars with twenty years useful life. Therefore buying the new machinery on cash would not be a suitable option as company is already facing funding and valuation problem, hence buying such expensive machinery would require greater outlay of cash.

Generating more cash through debt would result in increase in gearing ratio which will put a negative impact on the short-term valuation of the company. As company has the facility to borrow the entire amount with mortgage style repayment with a very low interest rate, therefore leasing is the best available option.

Among operating lease and capital lease, capital lease is more beneficial option as interest rate upon both terms is almost same while capital lease is for greater period as compared to operating lease and it is also providing ownership of the machinery at the end of the lease period with paying very minimum amount...........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Related Case Solutions & Analyses:

Hire us for Originally Written Case Solution/ Analysis

Like us and get updates:.

Harvard Case Solutions

Search Case Solutions

• Accounting Case Solutions
• Auditing Case Studies
• Business Case Studies
• Economics Case Solutions
• Finance Case Studies Analysis
• Harvard Case Study Analysis Solutions
• Human Resource Cases
• Ivey Case Solutions
• Management Case Studies
• Marketing HBS Case Solutions
• Operations Management Case Studies
• Supply Chain Management Cases
• Taxation Case Studies

More From Harvard Case Study Analysis Solutions

• Organic Growth at Wal-Mart
• Assistant Professor Jo Worthington (B)
• Green Valley Medical Center
• Your Social Network over Time
• The NFLs Digital Media Strategy
• Philip McCrea: Once an Entrepreneur... (A)
• Note on Medical Travel

Contact us:

Check Order Status

How Does it Work?

Why TheCaseSolutions.com?

Analysis of the DRAGON SOUP AND EARNINGS MANAGEMENT A HBR Case Study

The objective of the case should be focused on. This is doing the DRAGON SOUP AND EARNINGS MANAGEMENT A Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A

An important tool that helps in addressing the central issue of the case and coming up with DRAGON SOUP AND EARNINGS MANAGEMENT A HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the DRAGON SOUP AND EARNINGS MANAGEMENT A Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for DRAGON SOUP AND EARNINGS MANAGEMENT A

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which DRAGON SOUP AND EARNINGS MANAGEMENT A operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the DRAGON SOUP AND EARNINGS MANAGEMENT A case solution.

VRIO Analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A

This is an analysis carried out to know about the internal strengths and capabilities of DRAGON SOUP AND EARNINGS MANAGEMENT A. Under the VRIO analysis, the following steps are carried out:

• The internal resources of DRAGON SOUP AND EARNINGS MANAGEMENT A are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A

The Value chain analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow DRAGON SOUP AND EARNINGS MANAGEMENT A to increase its competitive advantage.

BCG Matrix of DRAGON SOUP AND EARNINGS MANAGEMENT A

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the DRAGON SOUP AND EARNINGS MANAGEMENT A BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of DRAGON SOUP AND EARNINGS MANAGEMENT A

Ansoff Matrix is an important strategic tool to come up with future strategies for DRAGON SOUP AND EARNINGS MANAGEMENT A in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of DRAGON SOUP AND EARNINGS MANAGEMENT A

DRAGON SOUP AND EARNINGS MANAGEMENT A needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

DRAGON SOUP AND EARNINGS MANAGEMENT A Blue Ocean Strategy

The strategies devised and included in the DRAGON SOUP AND EARNINGS MANAGEMENT A case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of DRAGON SOUP AND EARNINGS MANAGEMENT A looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of DRAGON SOUP AND EARNINGS MANAGEMENT A.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into DRAGON SOUP AND EARNINGS MANAGEMENT A Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the DRAGON SOUP AND EARNINGS MANAGEMENT A case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the DRAGON SOUP AND EARNINGS MANAGEMENT A Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and DRAGON SOUP AND EARNINGS MANAGEMENT A case answers should be written down in the DRAGON SOUP AND EARNINGS MANAGEMENT A case memo, clearly identifying which part shows what. The DRAGON SOUP AND EARNINGS MANAGEMENT A case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the DRAGON SOUP AND EARNINGS MANAGEMENT A HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for DRAGON SOUP AND EARNINGS MANAGEMENT A is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of DRAGON SOUP AND EARNINGS MANAGEMENT A Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the DRAGON SOUP AND EARNINGS MANAGEMENT A Harvard case is complete and properly answered.

Recommendations and Action Plan for DRAGON SOUP AND EARNINGS MANAGEMENT A case analysis

For DRAGON SOUP AND EARNINGS MANAGEMENT A, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• DRAGON SOUP AND EARNINGS MANAGEMENT A should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• DRAGON SOUP AND EARNINGS MANAGEMENT A should enhance the value creating activities within its value chain.
• DRAGON SOUP AND EARNINGS MANAGEMENT A should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

Baron, E. (2015). How They Teach the Case Method At Harvard Business School. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/

Bartol. K, & Martin, D. (1998). Management, 3rd edition. Boston: Irwin McGrawHill.

Free Management E-Books. (2013a). PESTLE Analysis. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf

Gupta, A. (2013). Environment & PEST analysis: an approach to the external business environment. International Journal of Modern Social Sciences, 2(1), 34-43.

Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and performance in the BCG matrix—A PIMS-based analysis of industrial product businesses. Academy of Management Journal, 25(3), 510-531.

Hill, C., & Jones, G. (2010). Strategic Management Theory: An Integrated Approach, Ninth Ed. Mason, OH: South-Western, Cengage Learning.

Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

IIBMS. (2015). 7 Effective Steps to Solve Case Study. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/

Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Kulkarni, N. (2018). 8 Tips to Help You Prepare for the Case Method. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method

Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.

Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis? Strategic Change, 7(2), 101-109.

Porter, M. E. (2001). The value chain and competitive advantage. Understanding Business Processes, 50-66.

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance (Vol. 2). New York: Free Press.

Porter, M.E. (1979, March). Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy

Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

Rauch, P. (2007). SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. European Journal of Forest Research, 126(3), 413-420.

Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here .

9413 Students can’t be wrong

PhD Experts

Francois Daniel

It was challenging for me to select a secure service, so I got the help of the friend and chose it. Proper turnaround and free revision. Happy with these outstanding features!

Raffaella Matteo

Either this was the coincidence or something else that I paid a visit to this organization. I am grateful to God, who created this chance through which I obtained 3:92 CGPA!

Mariam Marco

I started to get help from this service during the last two semesters that upgraded the CGPA. Thank the lord because I don’t feel shy now to tell others about the CGPA.

Addison Sebastian

Great help and it would always be on time. This is a truly great site. Thanks!

Calculate the Price

(approx ~ 0.0 page), total price $0, next articles.

• AMAN RESORTS Case Analysis
• JEXTRA NEIGHBOURHOOD STORES IN MALAYSIA Case Analysis
• OLAM INTERNATIONAL SINGAPORE BUILDING A RISK RESILIENT ENTERPRISE Case Analysis
• OLAM INTERNATIONAL MANAGING GROWTH AND BUSINESS RISKS Case Analysis
• THE SOUTHWEST AIRLINES ONE REPORT Case Analysis
• ACCOUNTING FOR THE IPHONE AT APPLE INC. Case Analysis
• NINE DRAGONS PAPER 2009 Case Analysis
• PANTERA COMMUNICATIONS, INC. Case Analysis
• ACCOUNTING FOR CATASTROPHES: BP PLC AND UNION CARBIDE CORPORATION (B) Case Analysis
• BATSON INTERNATIONAL, S.A. (A) Case Analysis

Previous Articles

• THE HOLLOW SCIENCE Case Analysis
• KANEBO LTD. (A) Case Analysis
• TAEQ: PREMIUM LIFESTYLE PRIVATE BRAND Case Analysis
• UFIDA (C) Case Analysis
• THE RISK REWARD FRAMEWORK AT MORGAN STANLEY RESEARCH Case Analysis
• SET THE CONTROLS FOR THE HEART OF TELECOM Case Analysis
• ACCOUNTING FOR CATASTROPHES: BP PLC AND UNION CARBIDE CORPORATION (A) Case Analysis
• KANEBO LTD. (B) Case Analysis
• CATERPILLAR, INC. (A) Case Analysis
• MANAGING IN THE INFORMATION AGE: MULTIPLE COMPANY ENTERPRISE IT Case Analysis

Be a great writer or hire a greater one!

Academic writing has no room for errors and mistakes. If you have BIG dreams to score BIG, think out of the box and hire Case48 with BIG enough reputation.

Our Guarantees

Zero plagiarism, best quality, qualified writers, absolute privacy, timely delivery.

Interesting Fact

Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!

Allow Our Skilled Essay Writers to Proficiently Finish Your Paper.

We are here to help. Chat with us on WhatsApp for any queries.

Customer Representative

• Search Search Search …
• Search Search …

Earnings Management Exercise

Subjects Covered Behavioral finance Earnings Efficient markets Financial statements Productivity

by Malcolm P. Baker

Source: Exercises

6 pages. Publication Date: Sep 27, 2006. Prod. #: 207034-PDF-ENG

Earnings Management Exercise Harvard Case Study Solution and HBR and HBS Case Analysis

Related Posts

You may also like

Avon Products

Subjects Covered Diversification Dividends Valuation by Jonathan Tiemann Source: Harvard Business School 9 pages. Publication Date: Mar 14, 1989. Prod. #: 289049-PDF-ENG […]

Merck & Co. Inc.: Addressing Third-World Needs (B)

Subjects Covered Health Management philosophy Management styles Social enterprise Social responsibility by Kirk O. Hanson, Stephen Weiss Source: Business Enterprise Trust 5 […]

Kemps LLC: Introducing Time-Driven ABC

Subjects Covered Activity-based costing Cost systems Customer profitability Customer relationship management Management accounting by Robert S. Kaplan Source: Harvard Business School 10 […]

Yield Curve Basics

Subjects Covered Finance by Francis Warnock 6 pages. Publication Date: Mar 15, 2006. Prod. #: UV0996-PDF-ENG Yield Curve Basics Harvard Case Study […]

Can I Trust You With Other Assignments that aren't Essays?

The best way to complete a presentation speech is with a team of professional writers. They have the experience, the knowledge, and ways to impress your prof. Another assignment you can hire us for is an article review. Evaluating someone's work with a grain of salt cannot be easy, especially if it is your first time doing this. To summarize, article reviews are a challenging task. Good that you've found our paper service and can now drop your worries after placing an order. If reading 100-page-long academic articles and digging into every piece of information doesn't sound like something you'd want to do on a Sunday night, hire our essay writing company to do your research proposal. Are you struggling with understanding your professors' directions when it comes to homework assignments? Hire professional writers with years of experience to earn a better grade and impress your parents. Send us the instructions, and your deadline, and you're good to go. We're sure we have a professional paper writer with the skills to complete practically any assignment for you. We only hire native English speakers with a degree and 3+ years of experience, some are even uni professors.

Charita Davis

We use cookies. By browsing the site, you agree to it. Read more »

Customer Reviews

• Member Login

Emilie Nilsson

Student Feedback on Our Paper Writers

Orders of are accepted for higher levels only (University, Master's, PHD). Please pay attention that your current order level was automatically changed from High School/College to University.

Finished Papers

We are inclined to write as per the instructions given to you along with our understanding and background research related to the given topic. The topic is well-researched first and then the draft is being written.

Customer Reviews

Is essay writing service legal?

Essay writing services are legal if the company has passed a number of necessary checks and is licensed. This area is well developed and regularly monitored by serious services. If a private person offers you his help for a monetary reward, then we would recommend you to refuse his offer. A reliable essay writing service will always include terms of service on their website. The terms of use describe the clauses that customers must agree to before using a product or service. The best online essay services have large groups of authors with diverse backgrounds. They can complete any type of homework or coursework, regardless of field of study, complexity, and urgency.

When you contact the company Essayswriting, the support service immediately explains the terms of cooperation to you. You can control the work of writers at all levels, so you don't have to worry about the result. To be sure of the correctness of the choice, the site contains reviews from those people who have already used the services.

Progressive delivery is highly recommended for your order. This additional service allows tracking the writing process of big orders as the paper will be sent to you for approval in parts/drafts* before the final deadline.

What is more, it guarantees:

• 30 days of free revision;
• A top writer and the best editor;
• A personal order manager.

* You can read more about this service here or please contact our Support team for more details.

It is a special offer that now costs only +15% to your order sum!

Would you like to order Progressive delivery for your paper?

Essay Writing Service

Have a native essay writer do your task from scratch for a student-friendly price of just per page. Free edits and originality reports.

Customer Reviews

Alexander Freeman

• Exploratory

What's the minimum time you need to complete my order?

Finished Papers