Bob's Baloney

Abstract

This case examines the financial performance of Bob's Baloney, a leader in the ultrapremium bologna market. While the business appears to be doing well with respect to most of its stakeholders, its largest equity investor has recently expressed strong dissatisfaction with the company's financial performance. Students are invited to examine the financial statements and ratios associated with the business to understand the source of the underperformance and to provide recommendations for business policy changes. Excerpt UVA-F-1942 Mar. 18, 2020 Bob's Baloney Upon entering the executive conference room in early 2021, Amanda Spangler had to pinch herself to be sure that she was really in an executive meeting at headquarters. After completing an MBA degree, Spangler had landed her dream job as a lead manager at one of the premier brands in the American food industry, Bob's Baloney (Bob's). Spangler's first months on the job had been all that she had hoped. She had wrestled with important business decisions, experienced the genius of some favorite foody legends, witnessed the drama of marketing a true premium brand, and even hobnobbed with several celebrities. It had been truly amazing. But her biggest surprise was what was going on right then in the conference room. It was clear that things were not well at Bob's. The Company . . .