Inner-City Paint Corporation (Revised)

1152 Words Nov 9th, 2006 5 Pages
Executive Summary

Statement of the Problem

What strategic step can Stanley Walsh make to improve the situation and reputation of Inner-City Paint Corporation?

Objectives

To analyze Inner-City Paint Corporation's current situation.

To determine the company's strengths, weaknesses, opportunities and threats.

To make an industry analysis on Inner-City Paint Corporation.

To make a financial analysis of the Corporation.

To recommend alternatives that will determine the best solution to the given problem.

Alternatives

1. Management Improvement - Mr. Walsh should take up management degree. He needs to learn employee empowerment and delegation. He needs to learn employee empowerment and delegation. The plant manager needs to be trained
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There are small paint manufacturers in Chicago that supply the immediate area. The market for paint is highly competitive. It doesn't compete with giants such as Glidden and DuPont. Competition among the giants isn't that fierce, but they lose their large orders to them.

Bargaining Power of Suppliers

There is a high bargaining power of suppliers since the industry is highly dependent on component suppliers, a powerful supplier could exert pressure on the market, by supplying components at a higher price to increase his profits. their products are the primary raw material for the paint manufacturing companies. They could also erect high switching costs. Since Inner-City Paint is working only with few selected suppliers, the company is running at a higher risk than the average.

Bargaining Power of Buyers

There is a low bargaining power of buyers this is due to high number of other paint manufacturers in the area in the industry and the customer has the options to take the cheapest and the best.

Threat of Substitutes

There is a high threat of substitutes because there are larger companies that have demonstrated reliability and solvency that paint contractors can choose. There are also other small paint manufacturers in the area.

FINANCIAL ANALYSIS

Inner-City Paint Corporation's revenue for the year is $1,784,080. It experienced a Net Income of $ 17,610.

Profitability Ratios

Return on assets = $ 17,610 = 5.98%

;$ 294,565

This shows that Inner-City Paint is

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