Evaluating managers, ROI, value-chain analysis of cost structure. Integrated Automatic @ Solutions is one of the largest

Question:

Evaluating managers, ROI, value-chain analysis of cost structure. Integrated Automatic @

Solutions is one of the largest and most successful companies that design, implement, and 1.F lexible Systems ROI maintain integrated systems of process controllers in the petrochemical industry. The board 2009 = 9.8%

of directors met urgently several times during the last weeks to decide on the appointment of its new president after its president and CEO died in an airplane accident. An executive search firm recommends that the board consider appointing Louise Reinhold (current president of Flexible Systems) or John Cross (current president of Rigid Structures). You collect the following financial information on Flexible Systems and Rigid Structures for 2008 and 2009 (in millions): image text in transcribed

In early 2010, an industry publication ranked Rigid Structures as the best of its class among a list of 16 companies, while Flexible systems was ranked fifth, down two positions from a year ago because of customer-service problems. The publication also ran an article on innovative solutions; Rigid Structures received high marks in 2009, while Flexible Systems’
performance was called “mediocre.” One “unnamed insider” of Flexible Systems commented:
“Our innovative solutions cupboard is empty.”
REQUIRED 1. Use the DuPont method to analyze the ROI of Flexible Systems and Rigid Structures in 2008 and 2009. Comment on the results.
2. Compute the percentage of costs in each of the six business-function cost categories for Flexible Systems and Rigid Structures in 2008 and 2009. Comment on the results.
3. Rank Reinhold and Cross as potential candidates for president of Integrated Automatic Solutions.LO1