Crisis Managment

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CRISIS MANAGMENT

Module 4 : Case study

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1. Table des matières

I.        Financial situation analysis        2

✓        Company A        2

✓        Company B        3

✓        Company C        4

✓        Company D        5

II.        Model of Maczynska        6

✓        Company A        6

✓        Company B        7

✓        Company C        7

✓        Company D        8

III.        Model of Gajdka and Stos        9

✓        Company A        9

✓        Company B        10

✓        Company C        10

✓        Company D        11

IV.        Bankruptcy        11

1. Financial situation analysis

• Company A

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 We will focus on the cash flow streams analysis. Company A on 2001 were in a risky situation and spent bank loan on Investment. On 2002, Company A suffered from temporary troubles due to problems in the operation sphere. In order to overcome troubles, the company support itself using external source of funding. On 2003, Company A suffered from serious financial troubles. It maintains financial liquidity through sales of assets. This situation can cause bankruptcy in the near future.

• Company B

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We will focus on the cash flow streams analysis. On 2001 and 2002, Company B was in a good situation. Indeed, Company B were a profitable company and allocate surplus from operational activities to finance it investment and to settle liabilities. On 2003, Company B didn’t generate a proper level of cash flow from operating activities to cover it financial expenses. It had to start to sell fixed assets in order to get free financial means.

• Company C

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We will focus on the cash flow streams analysis. On 2001, Company C suffered from serious financial troubles. It maintained financial liquidity thought sales of assets. This situation could cause bankruptcy in the near future. On 2002, Company C was in a good situation. Indeed, Company C were a profitable company and allocate surplus from operational activities to finance it investment and to settle liabilities. It was able to overcome troubles that the company faced on 2001. On 2003, Company C didn’t generate a proper level of cash flow from operating activities to cover it financial expenses. It had to start to sell fixed assets in order to get free financial means

• Company D

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We will focus on the cash flow streams analysis. On 2001, Company D didn’t generate a proper level of cash flow from operating activities to cover it financial expenses. It had to start to sell fixed assets in order to get free financial means. On 2001, Company D suffered from serious financial troubles. It maintained financial liquidity thought sales of assets. This situation could cause bankruptcy in the near future. On 2003, Company D was in a good situation. Indeed, Company D were a profitable company and allocate surplus from operational activities to finance it investment and to settle liabilities. It was able to overcome troubles that the company faced on 2002.

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