Essays on Crazy Eddie

Aggressive, arrogant, and dictatorial are the words that best describes the way Eddie Antar's leadership. Being a school drop-out, Antar uses it as a motivation to fulfill his ambition of becoming a successful business mogul. Aggressiveness was the primary factor used by Antar in driving the consumer electronics store he built in 1980. Through his aggressive business ideology, Antar managed to expand the business operation of Crazy Eddie with the company became a famous entity in Wall Street. In addition, the company aggressively opened different stores and branches despite facing financial and operational decline. The management decided to expand ...

Crazy Eddie, Inc. was established in 1969 by Eddie Antar who was a 21 year old high school dropout from Brooklyn. The company became a market leader in the retail consumer electronics business in a short span of 18 years. It had a total turnover of more than $350 million and a collective market value of $600 million by 1987. Crazy Eddie’s empire soon collapsed when a major financial scandal was uncovered at the end of 1987. Eddie Antar and his associates were found to be fraudulently involved in the overstatement of inventory and profits and the understatement ...

1. With a 22.7% gross profit ratio, and a 5% return on assets, there is a huge red flag raised. It makes no sense when looking at Crazy Eddie’s figures as to why the profit ratio should be so low. With a profit margin of just 3% over a three-year period, a red flag is raised. This is because with so many millions of dollars in sales, one would expect the gross profit ratio and return on assets to be higher, especially since the chain was expanding during this time period. Because of this, an audit was necessary in order to determine where the ...