Inner City Paint Corporation Strategic Analysis
1. Introduction
Inner City Paint Corporation is a small company specialized in the manufacturing of wall paint. It is established in the “downtown” business area of Chicago. The company has steadily grown from a two-person business to a company which employs thirty-eight employees. At the first year of the business, the sales represented $60,000. Now, five years later, the profit is up to $1,800,000.
Inner City Paint Corporation supplies small- to medium-sized decorating companies. The company only supplies in the immediate area. In this paint manufacturing market, which is a high competing market, Inner City Paint Corporation has many competitors because of the high costs of shipping. To be differentiated from the other paint manufacturers, the company guarantees to its customer a fast service.
Despite the steady growth of the company, the way Stanley Walsh manages the business still identical as when it started. It causes some difficulties, such as in the sales work. Indeed, Stanley Walsh is the only salesman. He also does all the office work. Because of that, these tasks are not done on time and Stanley Walsh is seen as a disorganized man and unable to delegate authority. It ruins the reputation of the company and the customers see Inner City Paint Corporation as a non reliable company.
All these facts, added to the overall slowdown of the economy, may bring the company to bankruptcy. Now it becomes a necessity to set right the financial situation and to improve the reputation of the Inner City Paint Corporation.
2. Environmental Scan
2.1. Analysis of the key internal activities/ Departments
Operations department
The business is based on manufacturing paint and to deliver it. To do those operations the company rents a building which is sufficiently large to contend the manufacturing part and the office part. Inner City Paint Corporation also owns mixers, lift trucks and a fleet for the manufacturing process and the delivery of the
Inner City Paint Corporation is a small company specialized in the manufacturing of wall paint. It is established in the “downtown” business area of Chicago. The company has steadily grown from a two-person business to a company which employs thirty-eight employees. At the first year of the business, the sales represented $60,000. Now, five years later, the profit is up to $1,800,000.
Inner City Paint Corporation supplies small- to medium-sized decorating companies. The company only supplies in the immediate area. In this paint manufacturing market, which is a high competing market, Inner City Paint Corporation has many competitors because of the high costs of shipping. To be differentiated from the other paint manufacturers, the company guarantees to its customer a fast service.
Despite the steady growth of the company, the way Stanley Walsh manages the business still identical as when it started. It causes some difficulties, such as in the sales work. Indeed, Stanley Walsh is the only salesman. He also does all the office work. Because of that, these tasks are not done on time and Stanley Walsh is seen as a disorganized man and unable to delegate authority. It ruins the reputation of the company and the customers see Inner City Paint Corporation as a non reliable company.
All these facts, added to the overall slowdown of the economy, may bring the company to bankruptcy. Now it becomes a necessity to set right the financial situation and to improve the reputation of the Inner City Paint Corporation.
2. Environmental Scan
2.1. Analysis of the key internal activities/ Departments
Operations department
The business is based on manufacturing paint and to deliver it. To do those operations the company rents a building which is sufficiently large to contend the manufacturing part and the office part. Inner City Paint Corporation also owns mixers, lift trucks and a fleet for the manufacturing process and the delivery of the
References: Paint and Coatings in the United States: Industry profile (2008), DataMonitor. Online Material Bureau of Labor Statistic Data (data extracted 16 November 2009) ‘Labor Force Statistics from the Current Population Survey’, US employment rate from 1999 to 2009 (Updated 15 September 2009) ‘UCAR establishes environmental certification program’ Paint.org Industry news http://www.paint.org/news/09-15-09-issue04.cfm