The Abc Company Specializes Of Siding Shingles And Making Cedar Roofing

Decent Essays

The ABC Company specializes in siding shingles and making cedar roofing. A new product has been introduced by using shingle scrap materials to construct cedar dollhouses because annual sales in that three year period reached $3,000,000. I want this report to help the CEO’s make a decision that’s internal.
I. An overall risk profile of the company based on current economic and industry issues that it may be facing. There are all kinds of different risk everywhere and in industry conditions and economic conditions in the economy they may come in to being. I like how Zirra felt about “the greatest risk nowadays is the volatility of prices. In a period when the demand for products and services is dramatically reduced, the investors have no …show more content…

Political risk that arises from dramatic change in the political regime
6. Threats can arise from any of the five forces of Porter’s five forces model. Such forces are rivalry among existing firms, threats of new entrants, bargaining power of buyers, bargaining power of suppliers and threat of substitute products or services.
7. Potential loss of key personnel, sourly relationship of the firm with its labor Union
8. Other operational losses can occur because a heavy natural disaster can threat the company, its operations, and its business severely
The USA economy may still be in a declined economic and business but starting to show signs of recovering. Previous tandem can’t keep up with old and new production for sustainable products. Trade deficit is what the country is running because standard living is causing massive debts, selling off assets, and it’s easy for international competitors to take possession of market share because of globalization. The USA firm’s results could include self-sufficiency, leverage, and domestic market share. US manufacturers can be attracted to things such as engineer, design, and third world market produce in China and Mexico because achieving low cost advantage is there pursuit of happiness. II. Current company cash flow In the textbook I read “cash is necessary to meet payroll and other business costs. It is needed for capital

Get Access
Get Access