1.

What three types of information provided by Case Study 2 are most important and influential in your

conclusions and recommendations?

In any business case study, the fist and foremost thing that I would find to be the most influential in developing a

conclusion and recommendations is their financial statement, Stock data and balance sheet. As per the case

study written by Anupam Mehta, he has provided a sufficient amount of financial information for five years that

would help in analysing the volatility, liquidity and expenses made by them.

Second factor that really heighted for me, was a consolidated analysis in terms of numbers and percentages of

the increase and decrease of expenses sale and dept. throughout the course from 2008-13. This information

gave a slight insight on the working of the company and what perspective they thought while dealing with the

situation they are currently in.

Third most influential factor in the case study was the current market situation analysis of the apparel industry at

that time. This information not only provided me with the financial state of the industry but also a glimpse of the

market trends and how others sustained in the current scenario.

2. What critical information is missing that would help you be more insightful and impactful in your

conclusions and recommendations?

As the American apparel industry was drowning in debt, according to me a detailed information of their debt

services would debt to equity ratio would have been the most influential, they do mention that they were able to

reduce their debt amount from $86 million to $39millon but how were their servicing that debt was missing. Along

with this as they took their loans on a hefty interest rate, what were the strategies/ the numbers they worked out

that led them to take up that loan and to make them believe that they could repay it.

Second factor that I think was missing was each store operating cost with the income generation of the most

volatile stores. This would help in analysing which of their stores could they have sold to generate more revenue

and to cover up their debt. Furthermore, as mentioned by an investor that the company was undervalued so

probably a detailed company valuation report would give us insights in to the working of the company.

Last factor that I thought was missing was their per unit cost and how their unit, cost of goods sales were

covering up the debt. Apparel industries have their unit cost prices with respect to their company’s operating

expenses and their analysis of the units of goods sold a mark-up percentage. This percentage would give

insights on their merchandise prices, units of goods sold that could be equated with the operating expense to

analyse their right price for their goods

3. Of the information that is not available, what information would be of the highest priority to obtain, and

how might you obtain it if this were a real situation?