Situation and Environment of Presscut and the Market of the Clipping

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Situation and Environment of Presscut and the Market of the Clipping

The names of the organization, individuals, location and financial information for this case analysis have been substituted to preserve the original organization’s desire to be anonymous. Since this is a fictitious company there were no information available for research, all information is based on the case study.Presscut is a business in the area of the "clipping", in the business of the monitoring, harvesting, purification and distribution of information for its clients, in operation since the 2006. Presscut began its operation buying several accounts receivable of clients of small negative businesses, fusing personnel and processes to profit the business by means of a better managing management. The market of the clipping grew of €5.5 millions in 1996 to €8 million in the 2000, at the same time that went concentrated by the fusion of some businesses. At the same time, Presscut increased its participation of market from 20% to 25% in 1997 upon buying Average Reports, and then was losing participation, 3% in 1998, and 1% so much in 1999 as the 2000, had a drop for sale in 1999 but went recovering in the following years, to weigh that continued losing market. Presscut step to have a participation of market of 25% in 1998, to an of 20% in the 2000. At the same time, one of the businesses of the competence, Access, that was dedicated chiefly to television, was enlarging its participation of market in an average of 3% annual, inclusive was projected that displaced to Sofres/D + TO, French business up till then leader, in the 2001. Access had been bought in 1999 by Average Schedule and Europe Press with financial backup of Framework Pole Investments. To July of the 2001, the problem of José Luis, majority associate of Presscut and President of the Counsel, was that was found in the disjunctive one to decide if to sell the business to Access Group, that had done a proposal of purchase or to continue functioning for its account. In case to sell, had to define a sale price and to evaluate well the terms of the transaction.

SYMPTOMS In the five years that carries of operation, Presscut to had a highest rotation of executive personnel, there have been 5 managers in 4 years. During this time there has been years in which the information of their accounting states has been modified for its executives, disguising the real situation that passed the business in those years due to its bad management executive and poor politics of collections.

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