Groupon Inc: Daily Deal or Lasting Success

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& Bamford, 11-3). Merchants have the choice to agree on a partnership with groupon. Groupon’s adherence to their business model and core competencies was a vital assets to their success. I do believe groupon should offer daily deals to their consumers based on a profitable margin and continue their investment in gaining new subscribers.

Finding of Fact: “Groupons high operating cost, expenses and income low"

The company’s greatest increases in operation expenses, however were in marketing, selling, general and administrative expenses (Wheelen, Hunger Hoffman, & Bamford, 11-9). Groupon finances are already in constraints. having high expenses means the company will have less profitability. Partial of groupon’s growth was their investment in international markets, however this contribute to their annual net losses as well.

I think Groupon needs to consider focusing on which segment will build their business. The company should incorporate reengineering and strategy implementation which could help them achieve major gaines in cost. Consider targeting social media sites to assist with marketing to gain consumers. Most people are on social media sites so this could engage the targeted audience the company is looking for and be cost effective. I would suggest that top management implement action planning to establish positive results towards this situation.

Finding of Fact: “Groupon had to restate earnings to correct for an error in its presentation of revenue."

This error prompted the company to report a "material weakness" in its internal control over financial reporting (Wheelen, Hunger Hoffman, & Bamford,

11-4). Groupon having their financial reporting considered questionable by investors and the Securities and Exchange Commission is unacceptable and shows lack of responsibility of the Chief Financial Officer Jason E. Child. Mr. Child’s has been the CFO for Groupon since 2010 and served in other financial positions for other companies. Groupon need to build a good rapport with merchants and the company and to consider an executive succession in the financial department.

Groupon needs to considered the personnel handling their finances receive extensive training and understand the formality of their business strategy. Groupon could even consider hiring an outside agency to do quarterly audits on their financial report to ensure they are reporting accurate data. Over all top management needs to be involved more with the company which will be a new perspective for the company and to ensure that these financial issues do not arise again.

Works Cited

Wheelen, Thomas L, et al. Strategic Management and Business Policy, Globolization, Innovation and Sustainability. Case 11: Groupon Inc.: Daily Deal or Lasting Success . 14th ed. Upper Saddle River, NJ: Pearson, 2015

Wheelen, Thomas L, et al. Strategic Management and Business Policy, Globolization, Innovation and Sustainability. Chap 9, Chap 10. 14th

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