FIN400 Discussion. Article by Zoe Wood and Julia Kollewe. Finace Essay

FIN400 Discussion
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FIN400 Discussion
“Asos Issues Second Profit Warning in Seven Months as Shares Fall” by Zoe Wood and Julia Kollewe reveals that the implementation of the information technology (IT) can have significant effects on a firm. The online fashion company admitted that it had problems with its overseas warehouses, which affected its profits and shares adversely. In particular, Asos’ shares dropped by 23%, and the firm lost about 60% of its value (Wood & Kollewe, 2019). The company had anticipated making profits of Ј55 million, an objective that it did not achieve.
The selected financial event is crucial since it portrays that poor IT implementation can lead to losses. In reality, Asos made profits of Ј102 million in 2018 (Wood & Kollewe, 2019). However, the IT chaos in its overseas branches affected the firm negatively, resulting in losses and a drop in its share prices. The news should be a lesson to other companies that want to enter the global market. Firms should analyze and test the effectiveness of specific technology before implementing it. Consequently, company owners can understand the significance of rese...