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Submitted by Randa19822 on December 20, 2007
Category: Business
Words: 835 | Pages: 4
Views: 259
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Summary:
Inner-City Paint Corporation is a small company that had steady growth. However, the slow down of the housing market in addition to an overall slow down in the economy caused financial difficulties for the company.
Although the company has a few strengths and has a reputation for fast delivery, Mr. Walsh is overlooking a lot of opportunities that could solve his financial problems. He is also very reluctant to change his policies, procedures, management and financial structure which are also negatively affecting his business in terms of growth and development.
Statement of the problem:
What are the strategic steps that Mr. Walsh can make to improve the financial situation and reputation of Inner-City Paint Corporation?
Strategic Factors affecting Inner-City Paint Corporation:
• Environment: Mr. Walsh manages the company the same way he did when he started the company. He doesn’t delegate or empower employees. He also doesn’t have a policy around recruiting and hiring the right employees for the job that is affecting the growth of the company because he can’t trust hiring new salesmen he is losing an opportunity to penetrate the market and getting a bigger share, the same issue exists with hiring unskilled laborers that is affecting his productivity level and the opportunity to serve larger clients and getting larger orders.
• Product: Mr. Walsh didn’t anticipate possible change in the external environment; he also didn’t have a strategic plan for company growth and the steps that he needs to take when his company grows. Therefore, he got lost and couldn’t deal with the problem of slow down in the housing market and economy overall and didn’t have an options. His inventory record keeping is also a major problem that is holding his customers from relying on him for big orders.
• Competition and Market Entry: Inner-City Paint is confronted by aggressive...
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