1. Why did Nolan decide no to reduce customer service staff in the cable operation? Nolan
decided not to reduce customer service staff, because Cablevision was already in hot water
with New Yorkers for not carrying the Yankee games. He didnt want to loose more
customers then he might have already lost. He also wanted to keep existing customer
service members to handle the high call volumes they expected due to inquires.
2. How did the company sinking stock prices affect its financial management?
Cablevision relied heavily on the sales of its own stock as a source of cash and as a
collateral for loan if they needed to borrower money. With the massive tumble their stocks
took, it left the financial management scrambling for money that they counted on from
stocks and active loans in the past.
3. Why couldnt Cablevision simply borrower $600 million to close the cash flow gap?
Cablevision relayed on stocks as a source of financial support if they needed to borrow
money and through the years they had fallen back on their stocks to support their
borrowing. Borrowing enough money to close the gap would be tough given the sinking
stock-collateral value and the fact that they were $7 billion in debt after acquiring business
units over the years.
4. How has the company performed financially in recent years? Cablevision has continued