Their direct competitors consist of other auto parts stores that sell direct to consumers, big chain retailers that offer basic parts at discount prices and salvage yards that sell used parts direct to consumers. Other direct competitors are service centers that don’t sell parts to consumers but the sell installation services (and keep an inventory of parts themselves). Indirect competitors are new/used vehicle dealerships. An auto part store is immediately affected when one of their customers decides to stop maintaining their current vehicle and purchase another one. A1.
Curled Metal Inc. Executive Summary Situation Analysis and Main Problem - CMI is a well established company in the automotive market that is about to launch a new product. The new CMI’s cushion pads have tested very well in field tests conducted by the company and now its managers must decide how to penetrate this new market. The pads main competitor product are the aluminum pads, many companies manufacture them and some construction companies even do it themselves. There are no organized channels of selling and distributing the product and CMI must decide for themselves how to sell the product and at what price. EVC analysis (Appendix A) shows that the new pad’s EVC is ~$4,500 and CMI must now decide on how to price the new product as to distribute the value between themselves and the customers.
GM has had to reevaluate the company’s organizational structure for financial solvency, and to gain a foothold against strong competition expanding into the US and developing markets abroad. The Company’s Traditional Structure The old GM historically had a Vertical organizational structure. The rigid hierarchy may have contributed to some of the problems they faced as globalization increased competition. GM had many different companies centralized and all tied to the GM name. This created many redundancies in management, and this reflected in the products.
Gap Analysis: Kuiper Leda Regardless of how successful a business is, if supplies do not keep up with demands that business will have a difficult time to make profits without the needed sales. The reverse is also true when the supplies grossly exceed demands as the excess inventory would result in tied up money that could be used for other projects or business plans. Therefore, the art of making the most of the inventory is to have the products available when and where they are needed. Situation Analysis Kuiper Leda (KL), operated out of the Republic of Novamia, is a manufacturer of electronic components, especially in the production of the Electronic Control Units (ECUs) and the sensors for the automotive industry (University of Phoenix, 2009). For the past six months, KL has introduced the new product line of producing the Radio Frequency Identification Devices (RFIDs) (University of Phoenix, 2009).
The weaknesses that Kudler may face would be the financial burden of going public. Sometimes expenses pile up just from seeking help from outsiders to protect the investments. The economy has fluctuated over the years; therefore the company needs to ensure they have contingency plans in place when business may not be as stable. There are ample opportunities that can come about from selecting an IPO. A company's debt-to-equity ratio will usually improve after going public, which tends to result in more favorable financing arrangements (2014, Going Public, para 1).
* Product lines that were not covering their avoidable costs could be dropped. * New product development is likely to receive more focus as the review program identifies areas of increasing demand. * Gourmet is likely to benefit from better monitoring of competitors’ product development, prices, and market share trends. F. This is an open-ended question; the specific steps are likely to vary based on the circumstances and the information found. Analysis for a given product might include the following general steps: * Identify the product to be analyzed by using a quantitative monitoring technique (e.g., size decline in contribution margin or sales) or some other method * Obtain and analyze detailed revenue and cost data prior periods; look for negative trends * Obtain and analyze the correlation of sales for this product with other products; look for potential relationships with other products that might influence a decision to drop the product * Obtain and analyze industry information about the product; look for information about trends in customer tastes, competition,
At this point, sales are virtually diminished, pricing is considerably offset from market trends, and the ability to maintain a level of profitability becomes a major challenge. An organization can put forth efforts in the attempt to reverse, or otherwise avoid, the decline stage by a few idealogic strategies, all of which are designed to readapt and conform to newly enhanced demands by the industry and its respective consumers. Most importantly, an organization can empower itself to readapt and act in a proactive manner by analyzing market trends and determining the future scope of a certain type of product or service within a reasnable timeframe prior to the onset of saturation and declination. Perhaps it would be in the best interest of an organization to produce/ provide a product of similar fashion, yet a unique alternative, before actually retiring or discontuing a product. For production to end indefinitely of a specific good, an alternative must be researched, produced, and introduced into the marketplace at the same time to create an equilibrium of market introduction of one product and declination of another.
Although the Sarbanes-Oxley Act was passed by Congress for positive reasons, there are many disadvantages that come along with it. A major issue is the cost of regulation, especially for smaller companies. Expanding internal controls delay the timeliness of financial statements by adding processing time to accounting functions. To follow the SOX, companies would need to separate duties, causing an increase in personnel. The SOX also calls for additional audits which increase business costs.
In an attempt to reduce the uncertainty of Krispy Kreme’s stock recommendation 2 suggests that Krispy Kreme make a firm commitment to issue financial statements on a feasible date. Many of the firm’s problems stem from inaccurate accounting data. A confident and prompt restatement of earning would go a long way in resolving the agency problem that plagued the firm under former CEO Livengood. The sooner accurate statements can be made available, the better. Long run success is dependent on honest financial reporting and resolving other components of the agency
While environmental pressures are situations or obstacles which are out of a company’s control, at least from a direct point of view such as mandates, fashion, and declining markets. A good change would be that demand for your product increases therefore with increased revenue a company may look for ways to create more revenue in the form of growth creating new jobs, technology being heightened and expansions begins. This is a good and usually pretty straightforward change. Or on the negative side reduced demand for a company’s products decreases sales. It also turns around negative cash flow, forcing a company to make radical decisions in order to avoid bankruptcy and organizational death.