Significant Financial Management Issues.
A. Acquisition of small, independent recording companies in the earlier days of DMC's corporate existence. This action was significant in a financial management context because the acquisitions strengthened the strategic reidentification of the corporation's core business as entertainment based. The action was consistent with the corporate objective of seeking innovative market leadership in the entertainment industry with a strong emphasis on the music segment of the industry. Depending upon the character and quality of the artists acquired through this action may have also contributed to the attainment of the corporate objective to establish a superior competitive advantage through the identification and exploitation of market opportunities. This action relatively was one of the more important steps in the development of DMC as a corporate entity. The action, however, is not a critical contemporary concern because the effects of the action largely have already been absorbed.
B. Acquisition of a major competing recording company. This action was significant in a financial management context because the acquisition strengthened the strategic reidentification of the corporation's core business as entertainment based. This action was consistent with the corporate objective of providing shareholders with a valued and prestigious investment
entity. This action also held the potential to contribute to the future attainment of the corporate objective to maximize the value of financial returns from on going operations. This action relatively was one of the more important steps in the development of DMC as a corporate entity. The action, however, is not a critical contemporary concern because the effects of the action largely have already been absorbed.
C. Investing in a chain record stores. This action was significant in a financial management context because the i...