Crocs Essay Example for Free

Crocs EssayThe companys primary products include footwear and accessories which utilize its proprietary closed cell-resin, Croslite. It operates through three segments Americas, Europe and Asia. * line from WSJ. The stock price (from 1/1/2007 to now) shows the overall up and down trends to Crocs. The point indicates on Nov. 2007, Crocss price meltdown. Clearly, Nov 2007 is just a start for Crocs to upkeep going down. 2. Management problems-Inventory Crocs is a huge shoe-manufactory and international company. As mentioned in the case, there is some management problems exist in the company. As seen the chart of price above, such big volatile may reflect something wrong in the company. As we analyze the balance sheet and income statement of Crocs. We find that the inventory derangement is a little low. That is a huge problem for Crocs.Because the low rate means there are too much surplus inventory in the company. While shoes are fashionable items and Crocs is now come toering l arge amount of new styles to customers. Thus the surplus inventories do damage to the company. The chart under compares Crocs with related-field companies to see if the inventory turnover is really low. *source from www. sec. gov/ However, I think Crocss inventory crisis may not be that serious. Because Crocs is an international company which focuses on seasonal products, the excess inventory can be digested selling abroad.Besides, there is another way to handle this problem. According to Ron Snyder, President and CEO of Crocs, theres really no risk in having excess inventory of our high-volume products, where the new products we want to have excess capacity in place where, when a given style takes off in a season, we can quickly ramp up and take advantage of that new style.