This report provided analysis of the discussion and identification of the case study and using diagnostic tools to identify the primary and secondary problem to solve the issue and recommendations in supporting by relevant theories. The report comprised of four sections. The first section was about summarizes of the case study, the second section provided problems and analyzed based on case study. This was followed by the suggested diagnostic tools and recommendations to resolve the problems as the third and fourth section.
2.0 Overview of Case Study
Indian Ocean Developments (IOD) was known as a greatly conventional company with a reputation for its stability. Among the investors in the business industry, the company could be relied on for projects, which could be completed punctually. The Chief Financial Officer, Ced Pearce, had come out with an idea to invest in the aged care industry. With his persuasive personality and enthusiasm, the board members’ fears were dismissed. Ced’s sales ground was based on three things; the immense number of ageing baby boomers, wealthy baby boomers who wanted to live in better surroundings, and aged care being shifted to the private sector.
When Ced was given free restriction to establish the first facility, he soon dissociated himself from staffing and regulatory mechanisms of aged care. He was quick to always delegate and rushed to search for funds to expand the business rapidly. Soon, the company faced complications when the global financial crisis struck in 2008. When they entered the aged care industry, it coincided with the resources boom in Western Australia. Banks were unwilling to lend and the government reduced tax concessions. Due to these unavoidable issues, the company had inadequate cash flow to cover the imminent higher fundamentals and interest reimbursements. Hence, Autumn Leaves Aged Care Inc. was in jeopardy of collapsing and Ced was called to account.
3.0 A comprehensive model for