strategic management , bus

 

Please write a 3 to 4 page paper outlining the company’s misfortunes with recommendations for how this may have been avoided.

 OR 

You may use bullet points which may drastically change the length of the finished project.

 

please follow the instructions on the attachment ( struggling company)

can you please look for struggling company in the United State

 

• look at the SAMPLE STRUGGLING attachment

      

STRUGGLING COMPANY ASSESSMENT: Prepare an individual strategic analysis of a struggling company. All of your companies have been approved—but changes are permitted. You should include an analysis of the following:

· SWOT

· Competitive disadvantage

· Operational inefficiencies

· What was the company’s critical mistake(s)

· Recommendations for how it may have been avoided.

Please write a 3 to 4 page paper outlining the company’s misfortunes with recommendations for how this may have been avoided.

OR

You may use bullet points which may drastically change the length of the finished project.

Three pages—this is just in general—the paper should be an adequate length to relay the relevant information and it will depend on the use of charts and graphs—bullet points—white space.

This assignment will be graded for punctuation and grammar so please proof your work before you submit it.

STRUGGLING COMPANY–INDIVIDUAL

Possible

Achieved

Name of the company and a detailed description of their current situation

10

References used—citations not necessary*—except for charts/graphs

10

S.W.O.T.**

10

Analysis of the S.W.O.T. going into this situation

15

Any other analysis you would like to use**

15

Competitive Advantage (CA) being pursued vs. appropriate CA
Cost—Differentiation—Speed—Focus. Based on what????

25

Competitive disadvantages

15

Operational inefficiencies

10

Critical mistakes leading to their current situation

15

Recommendations for how this situation might have been avoided

10

Mechanics — GRAMMAR/SPELLING/PUNCTUATION***

15

TOTAL

150

*If citations are used they must be APA—this is standard for all assignments in the SSOB

**Bullet points are permitted—as are charts & graphs

***Preview of your drafts will not include proofreading

By: Joseph Brandt

(Consultant)

Company overview

Molson Coors Brewing Company drinks with the big boys: the company is one the world’s largest beer makers by volume. Operating through its subsidiaries, MCBC produces some 502 million US gallons of beer a year. The beer maker’s portfolio of brands, led by Coors Light, dominates the Canadian market, accounting for 40% of the beer sold in that country. In the US, MCBC does business through Miller Coors, a joint venture 58%-owned by SABMiller. Miller Coors, the second-largest US brewer by volume, markets Coors, Coors Light, and Molson brands. In addition to Canada and the US, MCBC operates in the UK, and as Molson Coors International, in developing markets.

Problems

Primary Problem #1

Molson Coors produces over 40 different brands of beer while the strong four Coors, Coors Light, Blue Moon, and Keystone account for over 80% of the company’s sales. Variety is key, but overproduction is causing a problem for Coors by producing too much unnecessary cost.

Primary Problem #2

Few brewing sites makes distribution costs high and production low

Secondary Problem #1

Advertising expenses are very high throughout the US, especially when trying to compete with Anheuser Inbev.

SWOT

Strengths

· Strategic alliances with the NFL and NASCAR

· Merger with Miller Brewing Company

· Innovative (survival of prohibition)

· Can and bottle design

· Worlds largest brewery in Golden, CO

· Going green marketing water and energy savings

· Vertical integration

Weakness

· Few brewing sites

· Union worker dispute

· EEO accusations

· Dependent on raw materials (wheat, hops, barley)

· Reliance on only a few popular brands exposes the company to vulnerability

Opportunities

· Growing number of sponsorships

· Merchandise

· Loyal customer base

· Asian beer market provides business expansion because of consumption and growing population

Threats

· Competition (Budweiser)

· Growing import market

· Changing market trends

· Economic slow recovery, most beer drinkers are middle class who have the least disposable income

Market Share

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Value chain

Firm Infrastructure: Coors operates the world’s largest single brewery facility at its headquarters in Golden, Colorado. It has over 40 different types of beverages and has made over 5 billion dollars in US revenue.

HR Management: Coors hires many minorities and offers growth from within the company for all employees.

Technology Development: Coors is the first brewer to develop a recycling plant.

Procurement: Vertical integration, Coors is in many cases their own supplier.

Inbound logistics: Customers can be assured that the resources are of the quality that Coors claims. (i.e. Rocky Mountain spring water)

Operations: Non-pasteurization and longer fermentation, Coors processes beer differently than competitors for better taste.

Outbound logistics: Refrigerated shipping, the stores receive the beer cold and it is never heated for better taste.

Marketing and Sales: Brand segmentation, Brand image, American-made Rocky Mountain taste is far better than the competition.

Additional Notes:

· By having their own rice and water fields Coors has strengthened its image and sales.

· The process by which they select these resources is due to them producing many of their resources.

· They developed their recycling facility to produce aluminum cans.

· Marketing and sales has the most interrelated part of the value chain. They Rocky Mountain taste is due to vertical integration, the way they brew or operation, the refrigerated trucks and rail cars (outbound logistics), and the way they select resources (procurement).

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Financials

Quick Raito	1.5
Current Ratio	1.66
Debt to Equity	25.65
Return on Equity	8.73
Return on Assets	5.37
Return on Investments	6.02
PE Ratio	11.26
52 Week High	49.58
52 Week Low	37.99

5 Year Income Statement (In Millions)

YEAR	2011	2010	2009	2008	2007
Gross Revenue	$5,169.90	$4,703.10	$4,426.50	$6,651.80	$8,319.70
Tax Receipts	$(1,654.20)	$(1,448.70)	$(1,394.10)	$(1,877.50)	$(2,129.10)
Total Revenue	$3,515.70	$3,254.40	$3,032.40	$4,774.30	$6,190.60
Cost of Revenue	$2,049.10	$1,812.20	$1,726.90	$2,840.80	$3,702.90
Gross Profit	$1,466.60	$1,442.20	$1,305.50	$1,933.50	$2,487.70

Financial notes

Molson Coors has had some financial ups and downs the past few years in 2007 the company merged with Miller and showed a large increase in revenue and profit. The company and the merger took a hit in 2008 at the height of the US recession. They continue to recover slowly and continue growth with current aspirations of buying STARBEV the eastern European Brewer. Molson Coors has not shown a constant growth over five years but they remain extremely competitive and solid: a good purchase on the stock exchange.

Alternatives

Problem #1

-The problem of producing too many kinds of beers can be solved by simply stopping production of most of the lines that produce the least amount of income.

-The second alternative to the problem could be to focus on new marketing options to sell the lesser beers.

Problem #2

-Reduce distribution costs by utilizing some of Miller’s brewing location

-Build new brewing locations

Problem #3

-High marketing expenses can be solved by utilizing free advertising on the web and making the current marketing work harder.

-Cutting some sponsorships

Solutions

Primary Problem #1

With marketing costs already high, adding more costs by marketing undersold beers would not be advisable. Stopping production of these lesser beers would, however, be a smart option for Molson Coors. Focus time and money on the top brands and make the company leaner and meaner. Coors, Coors Light, Blue Moon and Keystone account for over 80% of the company’s sales with 37 types of beer only bringing in 20% sales. This process should be pursued by Coors to cut costs and focus energy on top sellers.

Pros: –Draw more attention to top brands

-Help lower production costs

Cons: -Lose customers in search of rare specialty beer

-Possible profit loss if sales of tops sellers doesn’t increase

Primary Problem #2

Brewing sites and distribution is important to Coors. Because they do not pasteurize their beer, it spoils quickly if it gets hot. The beer is transported in refrigerated tucks and rail cars, which is costly. Coors should utilize some more of Miller’s brewing sites to cut distribution cost and ramp up productivity. Since the 2008 merger, Coors beer has only been produced in one east coast Miller brewery. Coors should follow this suggestion and move some brewing operations to these sites that are already equipped to brew Coors beer.

Pros: –Cut Distribution costs

-Increase brand recognition across the states

-Increase production

-Low cost

Cons: -Could slow down production of Miller products

Secondary problem #1

Marketing expenses may be high but they are necessary to compete with industry leaders AB Inbev. However, Coors can make the current marketing strategy, which includes alliances with the NFL and NASCAR, work harder. The current sponsors and marketing outlets attract the same type of audience: male sports fans. Diversifying some of the advertising funds can help attract new audiences and help increase sales.

Pros: -Increase brand recognition

-Market to larger audiences

Cons: -Possible loss of current customer

Dear Valued Shareholders,

My name is Caitlin Nicole Vazquez and I am the CFO of the Pacific Sunwear of California Inc. that you have so graciously invested in. As you may have seen, our company has been going though an economic struggle, like many other retail companies. I will be honest to you in this letter and explain what has been happening inside the company. I will also explain the mistakes we have made as well as how this company can come back to our original state.

Five years ago, our stock was at an all time high at $23. From 2009 to 20

10

the economic decline in sales has affected our stock. In 20

10

the stock declined to $3.0

5

and today it is even lower with a trading price of $2.05.

In the last quarter of 2012 Pacific Sunwear grossed $17

4

million in revenue, but experienced a loss of $

15

million. With this loss, we had to establish a new line of credit with Wells Fargo. Unfortunately, The Pacific Sunwear Company is at a risk of going bankrupt. As of right now, the board of directors and I are analyzing our situation to avoid going into bankruptcy.

Pacific Sunwear does have strengths that set our business apart from other industries. Our target market is teenagers and young adults and we like to keep our pricing low to attract those young people. With the affordability, we also have many sales. Our customers are of high value and we pride ourselves on our high customer loyalty. Like all companies, Pacific Sunwear does have a few weaknesses. Doing some extensive research and focus groups we have discovered that we have not been as innovative as our competition. Many of our products look similar to other store brands clothing. In doing research with our branch stores, we have noticed that employees are not required to wear clothing that the store sells. As retail associates, making minimum wage, it is hard to afford the stores clothing. A great way to promote our goods is by employees and we know that is a downfall.

Lacking innovation within our company has actually brought an opportunity. We realize that other stores have similar products, so we will make a huge effort to look for more innovative designers to assist us. Another opportunity that will save us is to increase the online purchasing. We can lessen our physical stores and promote online sales of our products. This will save an increasing amount of money and make for higher profits.

Pacific Sunwear has external threats that have affected sales. One of our biggest threats would be stores like Hollister Co. and Fox. They sell similar clothing items to us and they have extensive marketing strategies. The economic slowdown has affected our sales. Styled clothing was not viewed as a necessity during the economic downfall in 2009, therefore less sales. Another external factor that has affected this company would be stylistic changes. From 2006-2009 many young people viewed the “beach look” as the best style. Today, a more of an edgy dress has taken upon the “beach look.”

Thorough our weaknesses and threats we do pride ourselves on our competitive advantage of cost leadership. With the materials that we use, we are able to keep our clothing and accessories at a low cost to increase affordability to our customers. Another competitive advantage that we have is focus and speed. Once our designs have been created, we quickly get them out to our stores. That way our loyal customers can see that we are creating new styles. We focus on the California beach style. This clothing makes perfect summertime wear or clothing for people going on a beach vacation.

As explained above, we do have disadvantages. The lack of innovation has affected our sales. We are slow to operate and come up with new ideas for clothing and accessories.

As we analyzed the company we have realized that we have made mistakes that have put us in the downturn. For one, we have made the mistake of having our stores too small. Too many clothes line the walls, and that makes stress for our customers. Pacific Sunwear only has 729 stores in the United States whereas others have more. With fewer stores, there is a lesser chance to reach new customers. Since we do not require our employees to wear the companies clothes, we are losing at a marketing strategy. An employee program has come into consideration to assist associates with buying more of the companies clothing. That way we can better our marketing strategy with associated that are familiar with the brands.

To avoid going bankrupt we have looked at many options. We are a smaller company and it could be possible to be bought by a larger company. We could also merge with another company to create an alliance. That is the last option that we are looking at. Right now we are trying as best as we can to fix this situation on our own. More innovation is critical to the survival of this company. We feel as we acquire more products and more differentiated products, that the company can begin to rise again. Shareholders, I understand that you might be worried that your investments have failed. I promise you, as the CFO, we are doing everything we can to make a comeback and maximize your investment.

Thank you for your generosity,

Caitlin Nicole Vazquez

Pacific Sunwear of California, CFO

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10

10

10

10

10

10

10

10

15

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10

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STRUGGLING COMPANY–INDIVIDUAL

Possible

Achieved

Name of the company and a detailed description of their current situation

10

References used—citations not necessary—except for charts/graphs

8

S.W.O.T.

5

4

Analysis of the S.W.O.T. going into this situation

Competitive Advantage (CA) being pursued vs. appropriate CA Cost—Differentiation—Speed—Focus. Based on what????

Competitive disadvantages

Operational inefficiencies

10

Critical mistakes leading to their current situation

15

Recommendations for how this situation might have been avoided

Mechanics — GRAMMAR/SPELLING/PUNCTUATION

TOTAL

100

97