Submit two files, a Word document with your completed essay questions and an Excel Spreadsheet with your completed financial ratio analysis of Fitbit.
Fitbit, Inc.: Has the Company Outgrown Its Strategy?
MGMT 4388 Online
Read “Fitbit, Inc.: Has the Company Outgrown Its Strategy?” (Case 07,
Textbook pp. C-66 to C-72)
Complete the Fitbit Inc. Spreadsheet with your calculations of the indicated
financial ratios (green boxes). Calculate your financial ratios for the
spreadsheet from Exhibits 5 and 6 in the case (pp. C-70 to C-71)
Answer the following questions with short essays (Typed, Double-Spaced,
12pt. Font w/ 1″ margins). Please clearly separate and mark each essay:
(1) How would you best classify Fitbit’s competitive strategy? Categorize Fitbit into one of the
five generic competitive strategies from Chapter 5 in the textbook. Next, discuss how Fitbit
executes and deliver this competitive strategy. (Recommended page length: ½ to 1 pages).
(2) Based upon your calculations from the Fitbit, Inc. spreadsheet, comment on the financial
condition of Fitbit. Briefly analyze the company’s financial condition with brief summaries
organized into the following clearly identifiable sections:
(1) Sales and Sales Growth,
(2) Gross and Operating Margins,
(3) Overall Profitability and Trends,
(5) Leverage, and
(6) Activity Ratios
Next, (7) discuss Fitbit’s overall financial condition. Classify Fitbit’s financial condition as
Strong, Weak or Indeterminate and support your conclusions regarding Fitbit’s financial
condition (Recommended page length: 1 to 2 pages).
(3) Briefly summarize three of the major strategic and financial issues that are faced by Fitbit.
What are the three major agenda items that demand managerial attention at Fitbit?
(Recommended page length: 1 to 1½ pages).
(4) Based upon your analysis of Fitbit’s major strategic and financial issues, make
recommendations regarding how to address these issues. How would you advise Fitbit
management regarding how to improve the company’s products, market standing,
competitiveness and financial performance over the next three to five years? What steps
should management take? Make three specific recommendations (Recommended page length:
1 ½ to 2 pages).
Case Analysis Submission:
Upload two files to Blackboard, the completed spreadsheet (.XLS or .XLSX format) and a Word
doc (.DOC or .DOCX format) with your essay answers.