Crazy eddi Essay Example | Topics and Well Written Essays - 750 words

dotty eddi - Essay ExampleHis relatives were voluntarily sent out by Antar. (Knapp, 2009). The main power for the failure is the inability to manage the firm. Since the management comprised of his relatives, Antar did not bother to look after the financial and investment needs. All this contributed to the problematic situation.The critical issue in the Crazy Eddars case is the fraudulent activity of increasing the companys profits in the companys balance sheet. This was purposely done by Antar to tide over the situation that prevailed during the 1980s. Antar survey it would solve the financial issues. But it resulted in a problem that provoked the problems in the companys investment. There were several other issues that contributed to the problems in Crazy Eddie.Antar lacked experience in managing stores and he relied on his relatives to help him whenever there was a problem in the company. The company had a tremendous growth in the initial stages and Antar strived hard to swan t he status of the company. Though it was well received and people often visited the store, the increase in the competition created a wave of fear.measure to gain investment and cap to improve the company and to expand its operations. Even though this seemed to be a good option, this led to a situation where people started investing more on this company. Due to this, the level of expectation increased. The shelves of the shop were filled with electronic items and most of the items remained there for a long time. The sales decreased gradually since people started to taint from the other retail electronic stores. Without resolving the situation Antar continued to open up new branches. (Knapp, 2009).As the competitions increased the number of customers got reduced. This affected the growth and expansion of Crazy Eddie and the profits started to decline. Even the suppliers were reluctant to provide them the necessary electrical equipments. This led to a situation where Antars relatives lost interest and they started to disintegrate. The companys financial condition was not abiding and in spite of the increase in the share value. Antar then returned the procured electrical goods back to the suppliers. The companys growth rate and profit margin declined and as