The CEO has the draft 2008 financial statements for Strong Tie, a manufacturer of structural connectors used in the construction industry. He began the company’s performance into question when he compared to previous years. How were holding profits in the face of intense price competition in the industry? Attempt was made to reduce costs through increased automation pays off? Where are the current problems in the U.S. housing market continues to reduce the demand for connections? How would lenders rea … Read more »

The CEO has the draft 2008 financial statements for Strong Tie, a manufacturer of structural connectors used in the construction industry. He began the company’s performance into question when he compared to previous years. How were holding profits in the face of intense price competition in the industry? Attempt was made to reduce costs through increased automation pays off? Where are the current problems in the U.S. housing market continues to reduce the demand for connections? How would lenders respond to this poor performance? Was the financing of the company at risk? After discussing the matter at length with Strong Tie CFO, it was decided that an outside consultant should be hired an independent analysis of the company’s recent performance and offer to provide suggestions for future measures.
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Dan Thompson
Source: Ivey Publishing
5 pages.
Release Date: 3 February 2012. Prod #: W11712-PDF-ENG
Strong Tie Ltd. HBR case solution