Rock of Ages Case Study
Rock of Ages Case Study
May 17, 2008
Executive Summary
Rock of Ages (ROA) is an industry leader in granite quarrying and manufacturing, specializing in memorials. With nine quarries ranging through Vermont, Quebec, Pennsylvania, North Carolina, and recently Ukraine, ROA offers a variety of granite colors and grades for the selective consumer. Until January, 2008, ROA also had a retail division dedicated to memorials.
Although ROA has been in business for over a century, economic factors in a global economy are eroding on their once rock-solid consumer base. Specifically, ROA has operated at a loss over the last several years, with 2008 being a transition year due to the discontinuation of the Retail division. This case study serves to evaluate ROA’s strategic direction given both internal and external environmental factors using best-of-breed analysis tools.
Table of Contents
Executive Summary 2
Rock of Ages Case Study 2
Table of Contents 2
Introduction 3
Mission and Goals 4
Situation Analysis 5
SWOT Analysis 10
Porter’s Five Forces 12
Sustainable Competitive Advantage 13
Resources and Capabilities 14
Performance Measures 16
Strategic Integration 17
Bibliography 22
Introduction
Rock of Ages is in trouble. The following pages illustrate ROA’s declining performance over the last five years in revenue while operational costs continue to rise. Return on equity plummets while debt continues to climb. This diminishes shareholder value for ROA, and impacts their long-term viability. The time for action is upon them.
To evaluate the appropriate strategy to revitalize ROA’s business, we employ several analyses - essentially inspecting the company from separate facets as though it were a prism. First, we analyze the current strategy and direction. What does the organization already have in motion to change their fiscal landscape?
Next, we perform situational analyses of ROA by evaluating both
May 17, 2008
Executive Summary
Rock of Ages (ROA) is an industry leader in granite quarrying and manufacturing, specializing in memorials. With nine quarries ranging through Vermont, Quebec, Pennsylvania, North Carolina, and recently Ukraine, ROA offers a variety of granite colors and grades for the selective consumer. Until January, 2008, ROA also had a retail division dedicated to memorials.
Although ROA has been in business for over a century, economic factors in a global economy are eroding on their once rock-solid consumer base. Specifically, ROA has operated at a loss over the last several years, with 2008 being a transition year due to the discontinuation of the Retail division. This case study serves to evaluate ROA’s strategic direction given both internal and external environmental factors using best-of-breed analysis tools.
Table of Contents
Executive Summary 2
Rock of Ages Case Study 2
Table of Contents 2
Introduction 3
Mission and Goals 4
Situation Analysis 5
SWOT Analysis 10
Porter’s Five Forces 12
Sustainable Competitive Advantage 13
Resources and Capabilities 14
Performance Measures 16
Strategic Integration 17
Bibliography 22
Introduction
Rock of Ages is in trouble. The following pages illustrate ROA’s declining performance over the last five years in revenue while operational costs continue to rise. Return on equity plummets while debt continues to climb. This diminishes shareholder value for ROA, and impacts their long-term viability. The time for action is upon them.
To evaluate the appropriate strategy to revitalize ROA’s business, we employ several analyses - essentially inspecting the company from separate facets as though it were a prism. First, we analyze the current strategy and direction. What does the organization already have in motion to change their fiscal landscape?
Next, we perform situational analyses of ROA by evaluating both
Bibliography: CANA. (2006). Final 2005 Statistics and Projections. September 4. http://www.cremationassociation.org/docs/CANA-Final06Prelim.pdf Chapman, Allen. (2008). SWOT Analysis. BusinessBalls.com. Retrieved April 21, 2008 from http://www.businessballs.com/swotanalysisfreetemplate.htm Friedman, Milton. (1970). The Social Responsibility of Business is to Increase Its Profits. New York Times. September 13. Granite Museum. (2008). Vermont Granite Museum of Barre. Retrieved May 11, 2008 from http://www.granitemuseum.com/ Kotter, John P. (1996), "Leading Change", Boston:Harvard Business School Press. MSN Money. (2008). Rock of Ages Corp: Financial Statement. Retrieved May 10, 2008 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=ROAC&lstStatement=Income&stmtView=Ann ROA. (2008). Form 10-K Annual Report. March 31. Brock, Nancy. (2007). Rock of Ages conference call. May 11. ROA Civic. (2008). Civic Memorials: Stories in Stone. Retrieved May 10, 2008 from http://www.rockofages.com/memorials/civic/stories.php?id=29 USGS. (1997). Mineral Industry Surveys. US Department of the Interior. January 23. http://minerals.usgs.gov/minerals/pubs/commodity/stone_dimension/800295.pdf