First Mates Wholesale Boating Supply Company Case Solution
First Mates Wholesale Boating Supply Company was founded in the late 1970s when the Gulf Coast region of the southern United States was booming. It was founded by three charter fishing boat mates. In the beginning, the company focused on selling deep sea fishing equipments and supplies to numerous charter companies that operated within its 150-mile range. The company has a history of providing the equipments at affordable prices and providing the prompt delivery and repair services to its customers. Another service that the company provided to satisfy the customers was its policy no-questions-asked return policy.
The company also serves the lake recreational and fishing market and has made a separate division from the deep sea fishing and boating business. The initial owners of the company cashed out and sold the company to the large investors.
The main focus of the company is to generate attractive and consistent financial returns and it has been able to achieve an increase in the EPS. Moreover, the company wants to keep generating similar pattern of returns in the future.
First Mates Wholesale Boating Supply Company is faced with the issue of missing year-end earnings projections and breaking the 30-year streak of successive earnings has increased. Moreover, the President wants to make sure that the company achieves its targeted EPS through cost cutting and booking revenue and has emailed to all the leaders of business units and Head of Departments to reduce the costs and book the revenues of their units.
The mail forwarded to all the units by the President is insufficient which has put all the responsibility on the units. The President of the company is the leader of the company who performs the tasks, which are aimed at developing the vision and implementing the policies and procedures to make sure that the vision of the company is accomplished.
The President of the company has the responsibility to set the goals, which in the context of FMWBS is to achieve the growth in its EPS annually to continue the tradition. Moreover, to achieve those goals the President needs to create the long and short term strategies, which are surrounded around the marketing of the products and services provided to the consumers and to create the strategies for the research and development of current and new offerings. The President of the company also accesses the staffing needs of the company. Anticipating and planning the events and financial problems is also important for the organization to take swift options in planning new ways and strategies to solve those problems before it gets too late.
The president has the responsibility to review the performance of the company regularly and it is often preferred by the President to conduct face to face meetings with the in-charge of all the units regularly to review the operations, and if the company is meeting its goals that have been set by him.However, in FMWBSC the President has sent the email to the Presidents of the units and asked them to report within a week. In current circumstances, when the company is not able to meet its budgeted targets, the President has the duty to oversee all the processes himself however in FMWBSC he has given all the responsibility to the subordinates and has given them a free hand and they are planning to achieve the goals of the company through all the ethical and unethical ways.
It is the responsibility of the President to make such policies to cut the cost and increase its revenues to meet the budget and help the company to progress and achieve its targets so that the company does not disappoint the investors and all the stakeholders who are affected by the performance of the company.
The President should also encourage his team to work ethically and according to the standards set by the international accounting bodies.However, in FMWBS the President is only focused on achieving the results by hook or crook, which can affect the reputation of the company and can violate the standards which have the ability to turn the company into more difficulties. Moreover, the auditors might even qualify the report of the company, which will affect the shareholders’ trust in the company, which can have more daunting effects on the company than not achieving the budgeted EPS…………………….
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