ONE PAGE FINANCIAL ANALYSIS NEEDED FOR CALCULATIONS COMPLETED ON ORDER NO: 114467
ASSIGNMENT: Your
recommendations should be specific and be clearly supported by your analysis of
the company’s financial situation. ONE PAGE (a) an analysis of the company’s financial
statements and/or pro-forma financial projections.
It is September 1, 2020, and the Board of Directors of
Mattel Incorporated has employed you as a consultant to assess and improve the
company’s overall situation during the COVID-19 Pandemic and recommend a set of
specific, measurable and rapid actions for the company to take to (a) survive
the global COVID-19 Pandemic and (b) quickly restore the company to healthy
sales growth and profitability.
Mattel continues to languish with sales declines and
earnings losses, particularly in the wake of the COVID-19 pandemic. Please
prepare a report to Mattel’s board of directors that makes a list of action
recommendations that the company needs to follow into order to restore the
company to healthy sales growth and positive earnings by no later than the end
of Fiscal 2021.
Writing in July 2020, Mattel Chief Executive Officer Ynon
Kreiz, had the following to say about the company’s performance: We entered the
second quarter (Fiscal 2020) with extensive retail closures and distribution
challenges and had to absorb a full quarter of COVID-19 impact, but we
demonstrated our execution capabilities and the resilience of our brands. While
revenues were down, they exceeded our expectations in a number of areas. While
understanding of the global pandemic, however, investors have grown
increasingly restless with what they regard as a slow turnaround of the
company’s fortunes and an inability to compete effectively against Hasbro, the
company’s closest competitor.
Your assignment as the company’s consultant is to (a) take
immediate corrective actions to navigate the company through the COVID-19
pandemic, and (b) position the company for a strong recovery in sales and
earnings in fiscal 2021.