Answer To: Value chain analysis, risk and stakehoder review for Office Depot/Office Max current situation....
Sudipta answered on Mar 17 2021
Stakeholder analysis
Office Depot has a number of individualstakeholders along with corporate stakeholders. Individual stakeholder acquires 9.02% stake of the company. Here, an individual stakeholder is nothing but customers, supplier, and employees of the firm. Chief executive officer, the board of directors and managingdirector of Office Depot is included under employees of the firm. On the other side, 90.98% of the total stake is holding by corporate stakeholders. Majority of stakes holder by corporate, therefore, financial risks comparatively lesser. Total 304 corporatestakeholders are there, those are holding approximately 492,180,819 shares. Value of that wide range of share has amounted to $ 1,619,274,895.
Out of 90.98% corporate holdings, Blackrock incorporation and dimensional fund advisors LP are holding 16.25% and 9.49% respectively. On the other side, third major stakeholder is Vanguard group incorporation, holding 9.24% stake of Office Depot. Lastly, ‘Hotchkis & Wiley capital management’ and ‘Fairpointe Capital LLC’ is holding 7.78% and 5.62% respectively. Remaining 299 organizations out of 304 organizations are holding 42.6% stakes of Office Deport.
Financial analysis
While looking at thefinancial aspect of the company it isfound,thecompany has generated revenue of $ 10,240 million during the year 2017. Similarly, the company has generated $ 11,015 million during the year 2018. Revenue amount generated during the year 2018 was significantly higher than its previous year. After deducting cost of revenue, net income of the firm during theyear 2017 was $ 181 million. However, during the year 2018 the company earned $ 104 million net income, which is significantly lower than its previous year despite generating high amount in terms of its revenue. While looking at the balance sheet of Office Depot, it is found that the company has earned maintained $ 622 million in cash and cash equivalent during the year 2017. During the year 2018, Office Depot has maintained a cash and cash equivalent amounted to $ 658 million. Amount of total current asset was $ 2,871 million and $ 2,683 million for the year 2017 and 2018. The balance sheet of Office Depot also has identified that...