Prepare a memo to management that answer the following questions:
Analyze the key success factors necessary for competing in the smartphone industry and BlackBerry's business execution with reference to Z and Q not contributing to the expected turnaround of the company's poor hardware sales.
Going forward, how can BlackBerry compete with companies such as Apple, Samsung and Google?
Is an impairment charge necessary for BlackBerry? Why?
Assume an adjustment is necessary what is the magnitude of the required adjustment? SHOW YOUR CALCULATIONS!
What does Caldwell mean when he refers to the required impairment charge being a hypothetical accounting charge? Do you agree with this statement?
What is the effect of the adjustment in inventory valuation on BlackBerry's balance sheet, income statement and cash flow statement?
What impact will the adjustment in inventory valuation have on the company's earnings per share and other key financial ratios?
What is the overall health of Blackberry given the adjustments?
What is the benefit to being listed on both the Toronto Stock Exchange TSX and National Association of Securities Dealers Automatic Quotations NASDAQ Does this place an additional burden on management and the financial reporting function? What is the impact of IFRS?
Your memo should be in good form and must answer all of the questions above. You should provide sufficient support for your answers.
This case is designed to be worked on in a group. Your instructor will assign the groups. Working in groups on this project will provide the opportunity to share ideas and expertise. Each group member is expected to complete all portions of the case. One member, however, should take the primary role as team leader and this should vary by week. This person is responsible for coordinating the timely completion of the project. Another group member will be responsible for focusing on the strategic questions; one will focus on the computational questions; and another will be responsible for research. It is expected that your group will alternate these responsibilities throughout the course. Identify who holds each position for each case each week.
The team leader will also complete the following reflection exercise: Week Group Leader Reflection.
