Strategic implications of the accounting data


Activity: Lille Tissages case.

Guidelines:

The background - or context - of the case is very important to understand the strategic implications of the accounting data, and to make appropriate management decisions. For example, if you determined that a company needed more cash, your decision about the source to use for that funding would be very different if the company were a small startup company than if the company were Coca-Cola. So as you answer the background questions for this and future cases, focus on those facts that are most relevant to the kinds of decisions that the company needs to make in the case.

In responding to these questions, you want to consider all of the analysis that you have done in the Lille Tissages case, including ICE 1 and ICE 2.

Question 1. What's Lille Tissages' business and competitive situation?

Question 2. What's been happening to Lille Tissages' market share? Why?

Question 3. Why aren't the competitors at FF 20? If you are Lille Tissages, what can you do to get the competitors to FF 20?

Please use the case “Lille Tissages S.A.” (Harvard Business School case, no. 9-198-005).

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Accounting Basics: Strategic implications of the accounting data
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