Silver Ships Case Study

3058 Words13 Pages
Silver Ships is not as well prepared for the future as it could be in terms of succession planning, diversification and capital structuring. The attached report recommends that Mike McCarty take immediate action to establish a strong plan for the future of the company. The company is currently funded entirely by equity, and the appropriate use of debt to grow the company would provide for opportunities to expand and diversify. McCarty must rely on his vision and innovative skills to expand and promote future Silver Ship models. As Silver Ships grows, McCarty must recognize that he can’t be there forever and for his dream to continue, he must shift his strategic focus towards a succession plan for his company. Mike McCarty, CEO of…show more content…
The key success factors for competing in the aluminum boatbuilding industry are tied to the ability to build high quality boats at competitive prices Efficiencies created by the use of innovative technologies (such as CAD) are critical and supply management is important, as the costs of inputs are significant. McCarty has a clear consistent strategy which is producing boats of excellent quality. McCarty has stayed true to his value proposition, "If you never let a little problem go, you won't have to deal with a big problem later" (page C-218). McCarty is committed to ensure each boat is better than the last. He recognizes this is not done without complete buy-in from his employees. He is committed to improving operating efficiency through continuous evaluation of competitors, creating a culture of Kaizen continuous improvement. McCarty’s long-term vision has positioned Silver Ships and its employees to absorb some of the future unknowns: higher taxes, a slowing economy, and higher than anticipated costs. This will continue to separate Silver Ships from its competitors and remain nimble with strategies as dynamics of the environment shift. 4. What does SWOT analysis reveal about Silver Ships' attractiveness? How attractive is the company's situation and position? The SWOT analysis reveals Silver Ships is attractive to a niche market due to innovation; quality which is not sacrificed due to cost, and
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