Collapse of Dick Smith Holdings Limited

This report highlights the factors responsible for the collapse of Dick Smith Holdings Limited, including strategic errors, accounting practices, and corporate governance issues. It discusses the changing pattern of customer demand, the company's bigger network, declining market shares, and failure in clearance sales output. The report also examines the responsible accounting practices, such as Real Activities Management (RAM), and the corporate governance issues that contributed to the collapse. Lessons learned from this case study are also discussed.