A Presentation on Financial Sickness of

MEANING OF SICK COMPANY

INTRODUCTION OF BLACKBERRY LTD

CAUSES & SYMPTOMS OF SICKNESS OF BLACKBERRY

PROBLEM FACED BY BLACKBERRY

STEPS TAKEN BY COMPANY FOR REVIVAL

CONCLUSION

Sick Company- Meaning

Sick industrial unit is defined as a unit or a company which is

found at the end of any financial year to have incurred

accumulated losses equal to or exceeding its entire net worth

Internal and external factor

Blackberry
BlackBerry Limited, formerly known as Research In Motion

Limited (RIM) is a Canadian telecommunication and wireless equipment company best known as the developer of the

BlackBerry brand of Smartphones and tablets

CEO is Thorsten Heins Blackberry was once a mobile phone juggernaut that nearly

controlled the entire segment.

Known for its famous BBM service

Symptoms of sickness
BlackBerry announced that it would lay off 4,500 employees, or

nearly 40 percent of its already reduced work force because of its launch of new OS is delayed for unreasonable time.

Blackberry Limited is in talks with Cisco systems, Google and

SAP about selling them all or parts of itself.

Blackberry has been acquired by Fairfax financial holdings.

Financial Analysis

Revenue:
Revenue
25000

20000

19907 18423

15000

11073

Years Revenue

2011 19907

2012 18423

2013 11073

10000

5000

0 2011 2012 2013

Operating Income
Operating Income
5000
4636 4000

3000

Years Operating income

2011 4636

2012 1497

2013 -1235

2000 1497 1000

0 2011 -1000 -1235 2012 2013

-2000

Net Income
Net Income
4,000
3,500 3,000 2,500 2,000 3,411

Years

2011

2012

2013

1,500 1164 1,000 500 0 2011 -500 -646 2012 2013

Net income (loss)

3,411

1164

-646

-1,000

EPS
7 6.34 6 5

EPS

Years EPS

2011 6.34

2012 2.22

2013
2

2.22

-1.23
1

0 2011 -1 -1.23 -2 2012 2013

Reason for financial sickness

Stiff competition and inability to compete with the android

smart phones
No innovation with changing times Pessimistic approach The worldwide Blackberry outage that has plagued Research In

Motion has left millions of subscribers in dozens of countries

without access to email and other messaging services for days

and it resulted in corporate and professional shifting to android and other operating system

Problem faced by Blackberry

Management Perception

Customers Perception

Employee Dissatisfaction

Decreasing Revenue

Revival Steps taken by Blackberry

The company had planned to take its new BlackBerry 10 smart

phones on a road show to woo carriers, developers and ultimately consumers

More customer and user friendly phones for quick messages

Conclusion
Growth of android and smart phones have destroyed the market

of Blackberry

Blackberry has lost its uniqueness with the Corporate and the

Professionals

Future of Blackberry is bleak but it has to adopt itself with

changing times and innovate with its business.