Mebel Doran And Firm The case solution
Reputation Stake
Apparently due to a failure of internal compliance, the acquisition of Power-Tie by Knox Corporation was compromised. Damaging the reputation and determination of Mebel Doran & Co financial providers ‘Mebel Doran & Co’ was a well-known company and had created a stable position in the market. Due to the error of its internal control process, the reputation of Mebel Doran & Co is affected; which has led to the breakdown of new and old customer relationships. Reputation is one of the most important forces at Mebel Doran & Co, affected by its compliance process.
Debt Problem
Payment to customers increased to 107.41 percent, indicating that Mebel Doran &Co's reputation had plummeted and made it the lowest investment banking company. On the other hand, the increase in customer obligations has reflected the alarming situation of Mebel Doran & Co and could be detrimental to the company's future.
Mebel Doran & Co is facing a debt crisis. The increase in debt increased its annual interest rate by a significant increase in 1984. The increase in gearing rate was only 2.58% which suggested that the firm had.
Ethical Issue
In 1986 a representative of Mebel Doran’s M&A had approached Knox with the idea of acquiring Dover, Delaware-based Power Tie Corporation. Mebel Doran’s staff had been collaborating with Knox in arranging bridge financing for the proposed tender offer, even though had not revealed the name of potential target to the commercial bankers.
In talking with an M&A vice president and two young associates who had been directly assigned the project, he learned that in their efforts to engineer viable tender offer proposal. Mr. Hegarty went down to the offices of risk arbitrage group to speak with the partner in charge of units as well as with traders with whom the M&A specialist had consulted. Mebel Doran’s risk arbitrage activity was a profit center of long standards within the firm.
As a result of this, Mebel& Doran gains nothing but lose their reputation. Not only Knox losing their confident but other firms are also feeling hesitation.
VRIO Analysis of Mebel, Doran & Co.
VRIO stands for – Value of the resource that Official Doran possess, Individuality of those resources, Imitation Risk that rivals-show, and firm's-capability of the Doran.
| Resources | Worth | Rare | Imitation | firm | Competitive Advantage |
| Acquisition of Key Materials for Effective Use | Yes | Yes, as some of our competitors have to contend with strong market positions | It can be imitated by competitors | Yes | Providing Sustainable Competitive Profit |
| Opportunities in the E-Commerce space use the Power of Present IT | Yes, e-commerce space is growing faster and stronger we can take advantage of the opportunities | No, most of the competitors have invested in IT to fill the void | AI and inhouse analytics can be difficult to emulate | It's just the beginning of an organization | Over time it can provide the benefit of sustainable competition |
| Intellectual Property Rights, Copyrights, and Trademarks | Yes, they are extremely valuable especially to thwart competition | Yes, IPR and other rights are rare and competition can't copy | Risk of imitation is low but given the margins in the industry disruption chances are high | So far the firm has not utilized the full extent of its IPR & other properties | Providing Strong Competitive Advantage |
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