趋势网讯：
News on November 30, according to foreign media reports, some media reports said that the Groupon Board has been considering employing a new CEO to replace current CEO Andrew Mason.Mason admitted to the audiences at the Ignition conference which held at Business Insider that the Board of Directors of the Company is in the process of making an assessment of his achievement on Wednesday. He said: “since the IPO a year ago, the company’s stock fell 80%. Therefore, it will be weird if they do not doubt my competence. That’s their duty and they had already discussed it in the past time.
In a regular meeting held on this Thursday, board members who bear the shareholders fiduciary duties will propose some severe problems, for example, should Mason continue managing the company’s daily work, or whether its necessary to introduce a more experienced manager.If this will be decided by Mason himself, he said: “if I think I’m incompetent, I will be the first one be fired by myself.”There are five problems likely to be inquired by Board members during the meeting . This is the part of the assessment to decide the Mason’s leave or stay.
1 Financial conditionFinancial position is never of Groupon’s strengths. Groupon spare no effort to deal with the problems of the financial accounts. Prior to the IPO, Groupon was forced to re-declared revenue report and had to abandon the schedule to make the company look more profitable. Unfortunately, after listing, this problem did not disappear. When the first financial report come out, the company was forced to redeclare profits to take extra part of expected return during last Christmas holiday into consideration.
2 management chaosIn the beginning of this year, Groupon has finally appointed a chief operating officer, karl Raman. This post has been vacant for more than a year. Raman has ben promoted to senior vice president in charge of worldwide sales and operations. He actually already doing this work before. After the resignment of two former chief operating officer in 2011, it’s the third time of Groupon to try to have an highlevel operating executives. It’s obviously that Margo Georgiadis from Google and Rob Solomon from Yahoo as Groupon’s chief operators is very short.
3 Maintain profit marginsThis is a big problem, due to a substantial increase in income, Groupon is considered a rapid growth company. However, the real reason about the high value of the company is the high profit margin. Local hotels and businesses are willing to spend a lot to get more customers. When the market became saturated , Groupon began to enhance its original business by sale physical commodities. The profit margins of physical commodity is very low. Groupon’s business get into a rather competitive field, challenged by some successful business such as Wal-mart and Amazon .
4 Trouble from EUThe Groupon had made a commitment to be the dominant in the world when listed. In order to became a global household name, Groupon copied its popular business model in the USA around the world. However it did not work in EU. Mason admitted, Groupon focused too much on the maket share in these area, resulting in a decline in technological innovation, customer and merchant satisfaction. Its revenue severely affected.
