Cango Executive Summary

Online retailers or online company which is what CanGo is provides the power of online purchases from the comfort of the consumer homes and delivery to their doorstep. While doing some research, “In June 2009, a study by the Carnegie Mellon Green Design Institute in the US found that shopping online can reduce our environmental impact by as much as 66%.” For businesses like CanGo, the advantages of e-commerce lies mainly in the low cost setting up and maintaining the business.

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

CanGo’s operating and net profit margins seem satisfactory at 10.97% and 16.5% respectively. Investors do

Liquidity is important for any firm as it is an assessment of the ability to pay its' liabilities in the short term. There are two main liquidity ratios: the current and the quick ratio. The current ratios divides the current assets by the current liabilities to assess how many times the current assets can pay the current liabilities (Elliott and Elliott, 2011). Traditional ratios are usually in the region of 1.5, but this may vary depending on the industry and nature of the business (Elliott and Elliott, 2011). The current ratio is shown in table 1.

CanGo is a fictional Internet startup that retails a variety of products and services, ranging from books and videos to online gaming services. The CanGo team deals with practical issues of business in many ways relevant to the realities of today 's business world. CanGo brings into focus a variety of issues important to businesses in general, and particularly those engaged in the challenging world of e-commerce. For example users:

1. CanGo has too many activities without having specific goals or setting priorities. As they find something that needs to be accomplished, it is always as soon as possible without setting definite time deadlines. Setting priorities is one way to insure that the tasks which need immediate attention are worked on first, while other task can be delayed because they are not as important. Being able to schedule people to complete specific task requires careful planning while know what resources are available. According to the Business Dictionary, a resource is “an economic or productive factor required to accomplish an activity” (Resource, 2013). CanGo

CanGo currently operates primarily as an online retailer of books, compact discs, mp3 files, videos, and video game software. This configuration has allowed them to take advantage of internet marketing and expand their customer base worldwide. Despite the drawbacks of increased competition, overall growth in internet retail sales is projected to continue for many years to come, providing CanGo with ample opportunities for continued growth and expansion. The Forrester Research Firm projects that online sales in the U.S. alone will reach $248.7 billion by 2014, with an estimated increase of 10% in the five years following. ("The growth of,") Online sales in foreign markets will also continue to grow as internet technology expands into developing markets such

There are many types of flow charts that can be utilized by CanGo as a continuous improvement tool. A continuous improvement tool is something that is used to measure the compliance level of a business process, policies and procedures. (Page, 2000) Other tools that can be utilized in conjunction with the various types of flow charts include:

We began with a look at your efficiency ratio, concentrating on your receivables turn over for the past year. This reflects the time between your sale and actual collection. If a company 's Turnover

Looking at CanGo’s detailed financial analysis position compared with their competition Apple, Inc. and Amazon.com, Inc. we are able to properly assess and estimate CanGo’s debt, profitability, and efficiency. After all these ratios will help point CanGo in the right direction and give an insight on the organizations financial strength. CanGo’s inventory turnover is a .41 compared to Amazon.com Inc. at 2.58 and Apple, Inc. at 2.72. Which means that CanGo’s inventory turnover is quite slow compared to Apple, Inc. and Aamzon.com, Inc. Having the lower ratio means that the organization is able to manage their inventory well. If CanGo had a higher ratio then that would indicate a loss in sales or returns. Comparing CanGo to the debt to equity ratio,

Liquidity ratios show how well CanGo can pay its creditors as the debts come due.

Amazon and Borders books history and the core business of each company will be discusses. A comparison of the companies will be done to analyze each company’s management approach they took to internet marketing, and sales. At least three reasons will be given as to why Amazon is successful. Three reasons will be given as to why Border’s ended up in bankruptcy although they were initially successful. How Amazon and Borders books management adapted to changing marketing conditions will be analyzed. To sum everything up at least three recommendations on how a company should build in flexibility to back up its decision making process so they can adapt to changing market conditions.

A quick ratio of 1:1 is considered to be ideal. It is a more thorough test of liquidity than the current ratio. As observed from the graph, the quick ratio has decreased considerably from its position in 2012-13 to 2014-15. The instant debt paying capacity of the company has decreased considerably.

The quick ratio of 1.46 is a further analysis into the actual monetary values that are highly liquid and excluding fixed assets as part of the assets. The CFO/Avg. current liabilities also show a healthy 73%, 28% in 2004, on average of which is still higher than the industry.

Amazon is a relatively small player in the bookstore industry, and its main competitors are Barnes & Noble and Borders. Despite the difference in scale, the company shows great promise, because its business model overcomes many of the competitors’ drawbacks.