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Box Inc Case

Decent Essays

The Box Inc., where we think

Term Project: The Box Inc™

University of the West Indies, Cave Hill Campus Lauriston Streekes

Lecturer: Dr. Justin Robinson Date: 4 August, 2011

The Box Inc., where we think

2 August, 2011

MEMORANDUM
TO: Board of Directors FROM: CEO SUBJECT: Performance Report (Q1 to Q12)

The Box Inc. was established eleven quarters ago to bring a high quality product to the marketplace, filing a void for boxes made out of 100% recycled material. From the outset the aim of the organization was to maximize shareholder wealth and mould the company into a leading manufacturer of packaging material. Having been selected to lead that task, I was honored at the confidence placed in me to guide this new and energetic …show more content…

As such, the management team feels confident of its ability to repay the loan requirements, also taking into consideration the additional revenue forecasted from the increased unit sales as a consequence of increased machine and plant capacity.

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The Box Inc., where we think

Forecast Management will also be implemented from Q13 onwards. This would comprise a special unit within the Strategic Planning Division which will closely monitor and analyze the forecasts and trends as it pertains to unit production and price elasticity of demand. While there are many ratios used to analyze and gauge a firm’s performance, The Box Inc. chose five ratios/data points which shall be used as a baseline to the organization’s overall performance. These ratios/data points were chosen as they were seen to give a good indication to how the firm is maintaining its goals of a balance between profits, debt management and shareholder value. The ratios in the table below will be used as a guideline to assist in the organization’s future operations. In order for an organization to progress, it is important to look back at its past performance, see what was done right, what was done wrong and what could be improved. The matrix below, patented by the firm as “The Box Inc.

Performance Metrics Ratio-Analysis

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