Staples Case Study

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Staples – 2011 Forest David A. Case Abstract Staples is a comprehensive strategic management case that includes the company’s year-end 2010 financial statements, organizational chart, competitor information and more. The case time setting is the year 2011. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Framingham, Massachusetts, Staples’s common stock is publicly traded under the ticker symbol SPLS. Staples is the #1 office supply superstore operator in the US. selling office products, furniture, computers, and other supplies through its chain of some 2,280 Staples and Staples…show more content…
7. Unemployment rate continues to be just below 10%. 8. Consumer spending has been flat over the last 2 years. 9. National customer satisfaction has been flat over last 2 years. 10. Office Depot and Office Max are large global competitors. Competitive Profile Matrix [pic] EFE Matrix [pic] [pic] E. Internal Audit Strengths 1. Staples has an excellent pricing system. 2. Efficient e-commerce system. 3. Integrated supply chain. 4. Uniform adoption of new financial performance indicators which helps identify trends on a more reliable basis and does not give false impressions. 5. Staples brands account for 22% of sales with 10-15% saving to customers. 6. Overall sales growth of 5.2%. 7. Currently operates in 24 different countries. Weaknesses 1. Have many stores close together possibly cannibalizing profits. 2. Over reliance of North American retail market. 3. Low sales per employee ratio compared to the industry average. 4. Non-participation of employees in the decision making process.(top-down management) 5. Own-branded goods will eventually cause problems between Staples and third-party suppliers. 6. Inability to repay long-term debt. 7. High rates of employee turnover in international stores. 8. Debt of $2.54

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