(BQ) Part 1 book "Fundamentals of financial management" has contents: An overview of financial management; financial statements, cash flow, and taxes; analysis of financial statements; financial planning and forecasting; risk and rates of return; time value of money,.and other contents. | CHAPTER 1 An Overview of Financial Management SOURCE: Courtesy BEN & JERRY’S HOMEMADE, INC. STRIKING THE RIGHT BALANCE $ BEN & JERRY'S F or many companies, the decision would have been make money. For example, in a recent article in Fortune an easy “yes.” However, Ben & Jerry’s Homemade magazine, Alex Taylor III commented that, “Operating a Inc. has always taken pride in doing things business is tough enough. Once you add social goals to differently. Its profits had been declining, but in 1995 the demands of serving customers, making a profit, and the company was offered an opportunity to sell its returning value to shareholders, you tie yourself up in premium ice cream in the lucrative Japanese market. knots.” However, Ben & Jerry’s turned down the business Ben & Jerry’s financial performance has had its ups because the Japanese firm that would have distributed and downs. While the company’s stock grew by leaps their product had failed to develop a reputation for and bounds through the early 1990s, problems began to promoting social causes! Robert Holland Jr., Ben & arise in 1993. These problems included increased Jerry’s CEO at the time, commented that, “The only competition in the premium ice cream market, along reason to take the opportunity was to make money.” with a leveling off of sales in that market, plus their Clearly, Holland, who resigned from the company in late own inefficiencies and sloppy, haphazard product 1996, thought there was more to running a business development strategy. than just making money. The company’s cofounders, Ben Cohen and Jerry The company lost money for the first time in 1994, and as a result, Ben Cohen stepped down as CEO. Bob Greenfield, opened the first Ben & Jerry’s ice cream shop Holland, a former consultant for McKinsey & Co. with a in 1978 in a vacant Vermont gas station with just reputation as a turnaround specialist, was tapped as $12,000 of capital plus a commitment .
