Startegic Analysis (Sherwin Williams) Essay

2213 Words9 Pages
The Sherwin-Williams Company
SHW (NYSE)

Strategic Analysis

-------------------------------------------------
SWOT ANALYSIS
Strengths Weaknesses
Strong financial performance High debt to equity ratio
Wide product portfolio Increase in current liabilities Strong market presence
Opportunities Threats
Global demand for coatings market Consolidation in chemical industry
Opening new stores Foreign exchange risks
Strategic acquisition Environmental regulations

The Sherwin-Williams Company is viewed as one of the leading paint manufacturing and retailing companies in the US. Some of their key strengths are a strong market presence, wide product portfolio, and strong financial performance.
…show more content…
Increase in current liabilities Substantial increase in current liabilities weakened the company’s liquidity position. Its current liabilities were US$2,063.94 million at the end of FY2010, a 48.09% increase compared to the previous year. However, its current assets recorded a marginal increase of 25.07% - from US$1,770.02 million at the end of FY2009 to US$2,213.72 million at the end of FY2010. Following this, the company’s current ratio declined from 1.27 at the end of the FY2009 to 1.07 at the end of FY2010. A lower current ratio indicates that the company is in a weak financial position, and it may find it difficult to meet its day-to-day obligations.

Opportunities:

Global demand for coatings market The growing market for global coatings will certainly benefit the company. Market analysts expect the global coatings market to reach US$98.69 billion by 2015. This expected increase is primarily due to economic activity, rapid industrialization, and increasing demand from automotive and construction sectors in developing countries. The Asian market is also forecast to increase at a compounded annual growth rate of 4.2% through 2015. Being a manufacturer of paints and coatings, the company can tap this growing market.
Opening new stores The company’s expansion plans of new stores will attract huge customer

    More about Startegic Analysis (Sherwin Williams) Essay

      Get Access