Sports Products Essay

1249 Words Sep 12th, 2010 5 Pages
Assessing the Goal of Sports Products, Inc. Lance Langdon University of Phoenix FIN/419 J. Jesse Conques, Facilitator March 15, 2009
Sports Products Inc. is an important manufacturer of boating gear and accessories. The textbook case under consideration centers on the clerical assistant - Loren Seguara employed by the company’s accounting department. Another personality in the case is Mr. Dale Johnson employed in the company’s shipping department in the position of packager. The dilemma in the case concerns the complaints of Dale and Loren’s discussion during their lunch break concerning profits and stock dividends. Dale grumbled that even though he was working hard to keep overhead
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Therefore, management of the Sports Products, Inc. should seek a sense of balance in regard to its efforts of maximizing shareholder wealth while simultaneously creating the least potential costs for the public in regard to polluting the environment.
Does the firm appear to have an agency problem? Explain Presuming an agency problem to be in reference to conflicts of interest among stockholders, bondholders, and managers, then it does appear that Sports Products, Inc. faces an agency problem. Agency problems appear to continue between the short term goals of management in order to maximize their enticements and personal profits by ignoring issues which can adversely have an effect on stock price and as a result, shareholder wealth maximization. Management seems to be overlooking concern like the cost of the company’s behavior toward the public like environmental pollution, chiefly in to put aside costs of appropriate disposal of inevitable waste and in thus, harmfully upsetting the stock price of the company. Company retailers or outlets should be contacted in this regard. Company marketing tools could be put to use in order to nurture the loyal customers. Agencies encourage the goods among the consumers and are therefore, considered to be the manufacturers who make the product who reach the consumers by

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