The Analysis of Yellowtail Marine, Inc. Case

By Corey Andrews,2014-01-15 02:57
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The Analysis of Yellowtail Marine, Inc. Case

    The Analysis of Yellowtail Marine, Inc. Case

    The Yellowtail Marine, Inc. case focuses attention on the difficulties of Robyn Gilcrist, which is the newly appointed president, to efficiently managing the company’s daily operations while at the same time developing a corporate strategy.

    This case concerns Gilcrist’s first day as president. Due to the intervention of Gunerson’s unexpected death, Gilcrist has to join Yellowtail some weeks ahead of the scheduled starting date. Also, she must learn the business in a fast pace and keep it running without the help of Gunerson, which is the former president of Yellowtail.

    For me, this case is very unique due to the time limitation that Gilcrist has. Although she faced a series of tricky problems, to deal with all things according to the grade of urgency and importance is essential.

    As stated by the case, when Gilcrist got to Yellowtail’s boatyard, she realized that she had only two hours or perhaps a little more before she would have to leave for San Francisco. Therefore, in such a limited time, I consider that Gilcrist should make the following specific operations:

    1. Sending the representative of management to tour the plant with Mr.

    Arch Towne of OSHA, in order to investigate the case of worker safety


    2. Sending the yard foreman and the representative of trade union go to

    the workshop to learn the actual situation and give emotional comfort of workers.

    Moreover, receiving the report of the whole progress in time. In addition, the

    specific decision-making will be drawn up when Gilcrist return from Gunerson’s


    3. Let Clarke reply the detailed date of deliberations relating to

    job-hopping to Yellowtail to Stewart Marschal. At the same time, notify the

    Saggitarius Inflatable Boats, Inc. of the aspiration about the acquisition, and told

    that she would contact them after April 15.

    4. After completed above things, Gilcrist has to fully utilize the time on

    the way to Gunerson’s funeral to develop the strategies of Yellowtail, and

    prepared for the discussion with Boswell.

    5. After attending Gunerson’s funeral, Gilcrist ought to convene a meeting

    to discuss the problem concerning the date of exhibition.

    6. Finally, Gilcrist needs to have a meet with their legal advisor, Finch, as

    soon as possible, for negotiating whether they have necessary to follow the “clean

    water” regulations or take other legal actions.

    For Gilcrist, while dealing with the matters in hand, setting a long-term goal for herself is equally vital. It will effectively improve the level of management, and contribute to effective implementation of control activities.

    In my personal view, the most appropriate long-term goal for Gilcrist is increasing the sales of enterprise, thus the company can enhance the profitability.

    According to Boswell’s words, the sales of Yellowtail had slipped from just over $10 million in 1973 to approximately $8.4 million in 1975, as the oil crisis and the Great Depression cut deeply into boat industry’s sales.

    Through the analysis of Yellowtail’s balance sheet on July 31, 1975, we can recognize that the company's asset-liability ratio was as high as 0.7. It indicated that most of the company's total assets were obtained by borrowing, and that was to mean the repayment capability of Yellowtail was certainly not satisfied, therefore, a great financial risk existed.

    As far as I am concerned, however, as a result of Boswell said he had already hired a new advertising agency to beef up the company’s sales in the summer of 1976, the turnover of next year will be increased extremely likely. Furthermore, if Gilcrist can successfully takeover the Saggitarius Inflatable Boats, Inc. and then enter the inflatable boats market, the turnover of Yellowtail will definitely have an upsurge.

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