Case Study – Inner City Paint

University of the District of columbia strategical Audit Plan/ Case compend Case 28 Inner-City Paint Corporation Type the author name 3/21/2013 stage championship Policy TR 530pm 650pm Spring 2013 I. actual power A. Current Performance 1. Poor pecuniarys 2. naughty account receivables 3. Very disorganize body of business 4. deprivation of Customer Confidence B. Strategic puzzle 1. Mission To produce a paint that was less expensive and of higher(prenominal) quality than what has been used commercial buildings, etc. 2.Reputation Built on devalued service frequently supplies paint to contractors within 24 hours. 3. Primary mart small to medium sized decorating companies 4. Policies Walsh handles all mail, getments, and billings II. Strategic Managers A. Top focussing * Consists of Stanley Walsh who handles all mailing/billing, payments, etc. * Office is managed by Mary Walsh (Walshs mother) with help of two part time clerks * Plant Manager is an experience of Walshs who only has experience as a painter III. outside(a) Environment (EFAS) A.Societal Environment 1. Economic a. The slowdown in the housing commercialize combined with a slowdown in the overall economy caused financial difficulty for Inner-City Paint Corporation (T) b. Now required to pay change on delivery (C. O. D. ) for its raw materials (T) 2. Technological Computers and Information Technology offers fortune to better organize the business (O) B. Task Environment 1. Rivalry High Larger orders usually go to larger companies due to lack of node trust. (T) 2. Competitive Prices (O) 3. Threats of Substitutes High (T) IV.Internal Environment (IFRAS) A. incorporated Structure 1. Thirty-five employees (20 part-time) virtually unskilled workers who lack training (W) 2. Lack of Delegation lacks employee empowerment and withal much of workload is carried by the business CEO/ president, Mr. Walsh (W) B. Corporate acculturation 1. Rumors abound that the company is in difficult financ ial straits, that it is unable to pay suppliers, and it owes a considerable sum for payment on back taxes (W) C. Corporate Resources 1. Marketing Lacks a professional salesman other than the owner (W) 2. Finance . Current Ratio of . 92 indicates that the company has an issue paying its short-term liabilities b. slip away on Assets of 5. 98% indicates that the company is asset-heavy 3. Facilities Cheap Rent (S) 4. Inventory Lack of a Consistent and Reliable Inventory System owner affable keeps track of inventory (W) 5. Human Resources The Plant Manager lacks experience or training as a manager. (W) 6. Information Systems No computer system used for business, very disorganized as a result (W) V. digest of Strategic Factors (SWOT Analysis) A. Strengths . Competitive Prices b. Family Business with origin in community c. profuse Delivery for Small Orders B. Weaknesses a. No Financial and Inventory Controls b. Lack of Business Network/Computer c. No Inventory System C. Opportunities a . Hiring professional salesmen to meet consistent growth and consultants to identify problems and provide solutions b. Attract more market place share by raising customer perception of reliability D. Threats a. No Audit of Corporation b. Large Orders usually go to larger companies VI. Strategic Alternatives and Recommended StrategyA. Strategic Alternatives 1. Management onward motion a. Mr. Walsh needs to learn employee empowerment and delegation. He lacks trust in his employees and therefore takes on alike much of the business customer affairs. b. The plant manager needs to be trained in management due to his lack of experience. c. Public Relations specialist and market specialist needed to better handle business and consultations. 2. Facility Improvement More equipment may be needed to ensure consumers that they wont have to worry about orders not being ready or too large to handle.B. Recommended Strategy 1. Salary Cuts for All or Cutback of Employees The Presidents six figur e salary is too much for such a small business. 2. Find and Research new suppliers The high exist of Goods Sold is greatly reducing profits. 3. Greatly Improve management skills and give rise policies 4. Hire Salesmen to increase business market share 5. Collect unstable Debt from Clients Take less credit accounts and more cash accounts because Account Receivables is too high. 6. Create an effective Inventory System that better tracks Inventory on hand.