Cabela’s Strategic Corporate Audit Report
Cabela’s Strategic Corporate Audit Report
I. Current Situation
A. Current Performance of Cabela’s
The balance sheet or financial statement of the Cabela’s as of 2010 annual report shows that the performance of the corporation has improved from 2008 to 2010.
| 2010 | 2009 | 2008 | Total Revenue | $2,663M | $2,630M | $2,557M | Operating Income | $200M | $157M | $151M | Net Income | $121M | $92M | $83M |
In a nut shell, the table above shows that the corporation has significantly improved their financial position over the past three years. Cabela’s Total Revenue increased 3.2% to an all-time record of $1.7 billion, while their comparable store sales increased 1.6% propelled by a 7.3% increase in their all-important fourth quarter.
Due to the significant improvement of the corporation’s ROIC, their confidence to increase store growth rose. In 2010, the number of multi-channel customers increased 4% while their spending increased 6%. Finally, the corporation’s most important metric, return on invested capital, increased 210 basis points to 13.1% in 2010, the highest level in five years.
B. Strategic Posture of Cabela’s
Mission
According to the company overview, Cabela’s mission is “We are a leading specialty retailer, and the world’s largest direct marketer, of hunting, fishing, camping, and related outdoor merchandise. Since our founding in 1961, Cabela’s has grown to become one of the most well-known outdoor recreation brands in the world. We have long been recognized as the “World’s Foremost Outfitter.” Through our growing number of retail stores, and our well-established direct business, we believe we offer the widest and most distinctive selection of high-quality outdoor products at competitive prices, while providing superior customer service.” Although the mission of the Cabela’s is not clearly stated, as I expected, the language in the above statement refers to its mission. Company Objectives
The primary objective of Cabela’s
I. Current Situation
A. Current Performance of Cabela’s
The balance sheet or financial statement of the Cabela’s as of 2010 annual report shows that the performance of the corporation has improved from 2008 to 2010.
| 2010 | 2009 | 2008 | Total Revenue | $2,663M | $2,630M | $2,557M | Operating Income | $200M | $157M | $151M | Net Income | $121M | $92M | $83M |
In a nut shell, the table above shows that the corporation has significantly improved their financial position over the past three years. Cabela’s Total Revenue increased 3.2% to an all-time record of $1.7 billion, while their comparable store sales increased 1.6% propelled by a 7.3% increase in their all-important fourth quarter.
Due to the significant improvement of the corporation’s ROIC, their confidence to increase store growth rose. In 2010, the number of multi-channel customers increased 4% while their spending increased 6%. Finally, the corporation’s most important metric, return on invested capital, increased 210 basis points to 13.1% in 2010, the highest level in five years.
B. Strategic Posture of Cabela’s
Mission
According to the company overview, Cabela’s mission is “We are a leading specialty retailer, and the world’s largest direct marketer, of hunting, fishing, camping, and related outdoor merchandise. Since our founding in 1961, Cabela’s has grown to become one of the most well-known outdoor recreation brands in the world. We have long been recognized as the “World’s Foremost Outfitter.” Through our growing number of retail stores, and our well-established direct business, we believe we offer the widest and most distinctive selection of high-quality outdoor products at competitive prices, while providing superior customer service.” Although the mission of the Cabela’s is not clearly stated, as I expected, the language in the above statement refers to its mission. Company Objectives
The primary objective of Cabela’s