Imagine that you are the Director of HR for a company in the technology industry. The industry is rapidly changing and very fast-paced. Unfortunately, your company has not been performing well compared to competitors. The DuPont model of calculating the Return of Assets and the Return on Equity is a powerful tool for analysis. Use the data from the table below:

Year NPM TAT FLM ROA ROE

2010 .074 1.8 1.75 13.32% 23.31%

2011 .071 1 .93 1.9 13.70% 26.04%

2012 .055 2.03 2.04 11.17% 22.78%

NPM=Net Profit Margin

TAT=Total Asset Turnover

FLM=Financial Leverage Multiplier

ROA=Return on Total Assets

ROE=Return on Equity

1. Define the potential areas of financial strength and weakness
2. After you determine these financial strengths and weaknesses, what strategies should the company implement to improve the situation?
3. How can HR contribute to this effort or be actively involved in the process?