Cango Swot Analysis
Analysis Inc.
CanGo Business Analysis
Team B
DeVry University
BUSN 460
Table of Contents
Page
EXECUTIVE SUMMARY............................................................................................................4
INTRODUCTION...........................................................................................................................4
SWOT ANALYSIS.........................................................................................................................5
FINANCIAL ANALYSIS...............................................................................................................6
Financial Strategic Recommendations...............................................................................
MARKET …show more content…
ANALYSIS...................................................................................................................
Market Strategic Recommendations................................................................................
STRATEGIC PLANNING...........................................................................................................
Planning Strategic Recommendations.............................................................................
COMPETITIVE ANALYSIS.......................................................................................................
Competitive Strategic Recommendations.......................................................................
HUMAN RESOURCES...............................................................................................................
Human Resources Strategic Recommendations..............................................................
LEGAL ANALYSIS....................................................................................................................
Legal Strategic Recommendations.................................................................................. CONCLUSION............................................................................................................................
REFERENCES.............................................................................................................................
Executive Summary
CanGo is a web based organization seeking to provide exciting products and services such as online gaming and access to books and videos.
CanGo thrives to provide the best quality in delivery and support. Their mission statement below shows their potential to want to grow and create that relationship with their customers and employees.
“We have a strong belief in the value of our employees and our customers. We believe that the best way to serve our employees is through their involvement in decision-making, staff training, and development. We strive to keep our employees motivated and working at their full potential, so that our customers can reap the infinite benefits.” (CanGo, Inc).
CanGo continues to provide their best quality in customer service and continues to strive for the growth of their company. However, there are a few adjustments that need to be made and resolved in order for CanGo to succeed in their goals which are done through their employees.
CanGo Business Analysis
Introduction
Our company, Analysis Inc., will review the performance and production of CanGo Inc. Our team will address any issues found among all departments and provide our recommendations. The following analysis report highlights the main issues of CanGo Inc. All these issues identified are purposed with a recommendation on how those issues could have been avoided and performed in a more corrective …show more content…
manner. There will be a total of seven issues that are addressed which include the following: a formal SWOT analysis on the company, financial analysis, market analysis, any strategic planning issues, issues with other competitors, performance of human resources and any legal issues.
SWOT Analysis
CanGo has multiple types of internal and external factors that will both help the company be a success and hinder them. A SWOT analysis will show these different areas in a way that CanGo can fully understand the impacts they have to the organization. One factor in which CanGo can be a success is the online market that they currently use now. The online market allows for the growth opportunities of CanGo to be endless. They can expand to different markets outside of online gaming to eBooks, music, and even other media streaming. This is an important factor for CanGo to keep in mind because it is an area in which growth will not be too costly, since they already have the physical foundation. They will need to expand some of their technology but it is less costly then to try and get into physical media. Another advantage CanGo has is the ability to view their products from a customer’s perspective. They are strong at knowing how to give their customer’s what they need and because of this they can develop a strong loyalty
base. Some of CanGo’s factors that can be a weakness to the company are their unorganized management team, communication issues, and competition. The management team within CanGo is unorganized and most do not know the direction in which the company is going. This ties into the communication issues within the company because most upper management does not communication with each other or with its staff. Communication is important for any organization it not only allows for the employees do know what is expected but it also allows for the customers to know what is going on. Competition is always a factor in business and should not be taken lightly. Though being online is a factor that is one of the company’s strength it is also a weakness since there is now more competition out there than before. CanGo needs to stay competitive by having strong advertising and competitive prices. They also need to stay current with exchange rates that may apply for any outside business. CanGo has the potential to be a strong unstoppable business with strong strengths and a variety of opportunities that allow for growth. Though some changes need to happen within their organization they are mostly internal and easy to change with some tough decisions.
Financial Analysis
Financially CanGo is in a good place. They have done a good job at not having too much debt and they can easily pay off their debts if need be. CanGo has a current ratio of 5.39 and their quick ratio is 4.53. A quick ratio is the amount of dollar liquid assets available for each dollar of current liabilities. (Quick Ratio, 2014) CanGo also has a working capital of $164.8 million with a debt ratio of 40%, while most companies have a debt ratio of 62%. (Fiancial Information, 2009)This means should CanGo need financing for expansion or any other project a bank will more likely be willing to work with them and consider CanGo a low risk. One area in which CanGo needs to improve upon is their Inventory ratio. Currently they have a ratio of 0.28 and this number could potentially be considered a red flag for an investor or bank. A low inventory turnover ratio could be an indication that they are having problems selling their products or they have way too much on hand. It could also be that CanGo is too new of a company and they have yet figured out their inventory processes. CanGo does have their sales revenues reported at $51 million which is in indication they are simply too overstocked and they need to get a hold of their inventory (Fiancial Information, 2009).
Financial Strategic Recommendations There are many different strategies CanGo can use to improve its ratios. They can provide incentives such as rebates to customers that pay their balances off quickly and timely as well as add on fees to those that do not. CanGo could even not charge interest if balances are paid off in a specific amount of time. CanGo also needs to conduct a complete inventory analysis to determine what exactly they have on hand, what is selling, and how often does it sell. This will then help them determine their inventory cycle on each item and keep their stock on hand to a minimum. This will then save CanGo on storage and warehouse expenses and increase their inventory turnover ratio.
Market Analysis
Market Strategic Recommendations
Strategic Planning
Strategic Planning Recommendations
Competitive Analysis
The international Online Shopping industry is expected to generate $442.54 billion, increasing the industry performance to over 33% from previous years occurring to the IBISWorld industry report. The rate of growth is also growing at a high performance of about 58% per year. All these factors are driven by the higher quality of living in most international markets and the availability of companies offering large range of goods at competitive prices. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
The industry along with its increasing growth faces competition amongst all organizations that have established a base in the international market. The competition will drive organizations to gain the confidence of consumers and invest into services that provide the most usable features for their websites. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
CanGo will share the online shopping market with many international competitors that provide similar goods and services. These competitors are part of the retail industry were consumers purchase products exclusively through the Internet or telephone. Products that have been ordered through competitor’s website are delivered to the consumer location.
Currently AliBaba a China based company accounts for the largest portion of the online shopping market by taking 56% of the market. Amazon is currently the only major US based company and with JD.com another China based company continue to gain territory in the market. The potential growth of the industry we see that 10% of the market goes to Companies that hold less than 5% of the market. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
The major players in the online shopping market set the competition very high with accounting for 70% of the market. The players target certain markets but non-other bring greater revenue than household consumers who account for about 88% of online shopping in the international market.
Alibaba the largest holder of the market hold on due to their subsidiaries companies as Yahoo that helps generate an extensive customer base. JD.com is growing as major player with 6,000 suppliers selling products through their website at low prices and giving consumers confidence with usable features giving JD,Com advantages in the market. Amazon is the major domestic competitor for CanGo who provides similar goods and services but have now taking measures to deal with industry moving globally. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
The industry is still growing and moving at high speed, CanGo can be one of newer startups that can gain ground within the industry, but the Major Players continue to increase their shares making it competitive for newer companies. CanGo needs to meet the industry expectation in keeping up with high level of competition and establish a successful business model.
Competitive Strategic Recommendations
CanGo being a new player in the international market for online shopping can establish a successful road map by following key success factors that experts in the business world say are critical to this industry:
Key Success Factors
“Having a loyal customer base: A loyal customer base results in repeat buyers and ensures continued sales.
Attractive product presentation: Displaying a clear and attractive product description will help customers to be confident in purchasing decisions.
Having a clear market position: Having a clear market position ensures that operators have an appropriate product range for their target customers.
Ability to quickly adopt new technology: Operators that keep up-to-date with the latest technology can offer advanced websites and catalogs.
Ability to control stock on hand: Stock control ensures that popular items are adequately catered for.
Provision of superior after sales service: Superior after sales service includes the provision of prompt refunds and/or exchanges, and discounts or incentives for frequent buyers.” IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
Human Resources
CanGo’s needs to develop human resource management polices and activities to link up to the company’s strategic plan. A formulation of a strategic plan for HR would focus in producing CanGo’s current and new employees skills levels and behaviors to meet CanGo’s strategic plan.
Developing a effective HR management process helps avoid problems for managers to hire the wrong person for a position in company. Each part of the HR process interacts and affects the other that will overall link up to the company’s strategic goal. Hiring people who can’t learn the new position are set to fail regardless of the training invested into that person. How each phase interacts with each other sets the employees behavior to support the strategic goal. Dessler, G. (2013)
Human Resources Strategic Recommendations
The first step in CanGo’s HR strategic plan in linking with the company’s strategic goal is bringing in HR personnel with operational excellence background to help along managers adapt to process change. CanGo’s current challenges with the HR personnel come with no “credibility to challenge line managers on whether they are improving the attitudes and skills of their people at the same time they’re redesigning their jobs”. Power, B. (2012, February 8)
The focus for the HR department at CanGo is spending the majority of the time on administrative roles. The second step in helping CanGo’s HR strategic plan would be to free up time to focus on process improvement by streamlining traditional administrative roles. Power, B. (2012, February 8)
The third step of HR strategic plan think of HR as marketing, obtaining and holding on to good employees is similar to holding on to customers. CanGo approach to attract the best candidates in this competitive market place will need bring out their marking skills. The HR strategic plan cannot succeed without utilizing marketing basics such as examples shown below to acquire the best talent. France, C., & Bonchek, M. (2014, July 11)
“Marketing Basics
Value proposition: What is the source of your differentiation? Do you have a good elevator pitch and consistent messaging in your communications?
Market research: Where can you find the talent you want? What is important to them in a job, career, team and employer?
Pricing: What are the key elements of compensation (salary, bonus, benefits, equity), and how do you compare with competitors?
Sales: When you have found the right candidate, do you move quickly to close?
Brand: Are you visible in the marketplace with a reputation for innovation and excellence?” France, C., & Bonchek, M. (2014, July 11)
Legal Analysis
Legal Strategic Recommendations
Conclusion
References Dessler, G. (2013). Ch.1 Introduction to Human Resource Management. In Human Resource Management (13th ed.). Pearson. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.). Retrieved October 20, 2014, from http://clients1.ibisworld.com.proxy.devry.edu/reports/cn/industry/competitivelandscape.aspx?entid=928
Fiancial Information. (2009). Retrieved 10 08, 2014, from CanGo company site: http://vizedhtmlcontent.next.ecollege.com/ec/Courses/13775/CRS-DVUO-2148869/Flash/BUSN460/CanGo_Intranet/htm/financialinfo.html
France, C., & Bonchek, M. (2014, July 11). Strategies to Attract Superpower Marketing Talent. Retrieved October 20, 2014, from http://blogs.hbr.org/2014/07/strategies-to-attract-superpower-marketing-talent/
Quick Ratio. (2014). Retrieved 10 08, 2014, from Investopedia: http://www.investopedia.com/terms/q/quickratio.asp
Power, B. (2012, February 8). Focus HR on Process Improvement. Retrieved October 20, 2014, from http://blogs.hbr.org/2012/02/focus-hr-on-process-improvemen/
CanGo Business Analysis
Team B
DeVry University
BUSN 460
Table of Contents
Page
EXECUTIVE SUMMARY............................................................................................................4
INTRODUCTION...........................................................................................................................4
SWOT ANALYSIS.........................................................................................................................5
FINANCIAL ANALYSIS...............................................................................................................6
Financial Strategic Recommendations...............................................................................
MARKET …show more content…
ANALYSIS...................................................................................................................
Market Strategic Recommendations................................................................................
STRATEGIC PLANNING...........................................................................................................
Planning Strategic Recommendations.............................................................................
COMPETITIVE ANALYSIS.......................................................................................................
Competitive Strategic Recommendations.......................................................................
HUMAN RESOURCES...............................................................................................................
Human Resources Strategic Recommendations..............................................................
LEGAL ANALYSIS....................................................................................................................
Legal Strategic Recommendations.................................................................................. CONCLUSION............................................................................................................................
REFERENCES.............................................................................................................................
Executive Summary
CanGo is a web based organization seeking to provide exciting products and services such as online gaming and access to books and videos.
CanGo thrives to provide the best quality in delivery and support. Their mission statement below shows their potential to want to grow and create that relationship with their customers and employees.
“We have a strong belief in the value of our employees and our customers. We believe that the best way to serve our employees is through their involvement in decision-making, staff training, and development. We strive to keep our employees motivated and working at their full potential, so that our customers can reap the infinite benefits.” (CanGo, Inc).
CanGo continues to provide their best quality in customer service and continues to strive for the growth of their company. However, there are a few adjustments that need to be made and resolved in order for CanGo to succeed in their goals which are done through their employees.
CanGo Business Analysis
Introduction
Our company, Analysis Inc., will review the performance and production of CanGo Inc. Our team will address any issues found among all departments and provide our recommendations. The following analysis report highlights the main issues of CanGo Inc. All these issues identified are purposed with a recommendation on how those issues could have been avoided and performed in a more corrective …show more content…
manner. There will be a total of seven issues that are addressed which include the following: a formal SWOT analysis on the company, financial analysis, market analysis, any strategic planning issues, issues with other competitors, performance of human resources and any legal issues.
SWOT Analysis
CanGo has multiple types of internal and external factors that will both help the company be a success and hinder them. A SWOT analysis will show these different areas in a way that CanGo can fully understand the impacts they have to the organization. One factor in which CanGo can be a success is the online market that they currently use now. The online market allows for the growth opportunities of CanGo to be endless. They can expand to different markets outside of online gaming to eBooks, music, and even other media streaming. This is an important factor for CanGo to keep in mind because it is an area in which growth will not be too costly, since they already have the physical foundation. They will need to expand some of their technology but it is less costly then to try and get into physical media. Another advantage CanGo has is the ability to view their products from a customer’s perspective. They are strong at knowing how to give their customer’s what they need and because of this they can develop a strong loyalty
base. Some of CanGo’s factors that can be a weakness to the company are their unorganized management team, communication issues, and competition. The management team within CanGo is unorganized and most do not know the direction in which the company is going. This ties into the communication issues within the company because most upper management does not communication with each other or with its staff. Communication is important for any organization it not only allows for the employees do know what is expected but it also allows for the customers to know what is going on. Competition is always a factor in business and should not be taken lightly. Though being online is a factor that is one of the company’s strength it is also a weakness since there is now more competition out there than before. CanGo needs to stay competitive by having strong advertising and competitive prices. They also need to stay current with exchange rates that may apply for any outside business. CanGo has the potential to be a strong unstoppable business with strong strengths and a variety of opportunities that allow for growth. Though some changes need to happen within their organization they are mostly internal and easy to change with some tough decisions.
Financial Analysis
Financially CanGo is in a good place. They have done a good job at not having too much debt and they can easily pay off their debts if need be. CanGo has a current ratio of 5.39 and their quick ratio is 4.53. A quick ratio is the amount of dollar liquid assets available for each dollar of current liabilities. (Quick Ratio, 2014) CanGo also has a working capital of $164.8 million with a debt ratio of 40%, while most companies have a debt ratio of 62%. (Fiancial Information, 2009)This means should CanGo need financing for expansion or any other project a bank will more likely be willing to work with them and consider CanGo a low risk. One area in which CanGo needs to improve upon is their Inventory ratio. Currently they have a ratio of 0.28 and this number could potentially be considered a red flag for an investor or bank. A low inventory turnover ratio could be an indication that they are having problems selling their products or they have way too much on hand. It could also be that CanGo is too new of a company and they have yet figured out their inventory processes. CanGo does have their sales revenues reported at $51 million which is in indication they are simply too overstocked and they need to get a hold of their inventory (Fiancial Information, 2009).
Financial Strategic Recommendations There are many different strategies CanGo can use to improve its ratios. They can provide incentives such as rebates to customers that pay their balances off quickly and timely as well as add on fees to those that do not. CanGo could even not charge interest if balances are paid off in a specific amount of time. CanGo also needs to conduct a complete inventory analysis to determine what exactly they have on hand, what is selling, and how often does it sell. This will then help them determine their inventory cycle on each item and keep their stock on hand to a minimum. This will then save CanGo on storage and warehouse expenses and increase their inventory turnover ratio.
Market Analysis
Market Strategic Recommendations
Strategic Planning
Strategic Planning Recommendations
Competitive Analysis
The international Online Shopping industry is expected to generate $442.54 billion, increasing the industry performance to over 33% from previous years occurring to the IBISWorld industry report. The rate of growth is also growing at a high performance of about 58% per year. All these factors are driven by the higher quality of living in most international markets and the availability of companies offering large range of goods at competitive prices. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
The industry along with its increasing growth faces competition amongst all organizations that have established a base in the international market. The competition will drive organizations to gain the confidence of consumers and invest into services that provide the most usable features for their websites. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
CanGo will share the online shopping market with many international competitors that provide similar goods and services. These competitors are part of the retail industry were consumers purchase products exclusively through the Internet or telephone. Products that have been ordered through competitor’s website are delivered to the consumer location.
Currently AliBaba a China based company accounts for the largest portion of the online shopping market by taking 56% of the market. Amazon is currently the only major US based company and with JD.com another China based company continue to gain territory in the market. The potential growth of the industry we see that 10% of the market goes to Companies that hold less than 5% of the market. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
The major players in the online shopping market set the competition very high with accounting for 70% of the market. The players target certain markets but non-other bring greater revenue than household consumers who account for about 88% of online shopping in the international market.
Alibaba the largest holder of the market hold on due to their subsidiaries companies as Yahoo that helps generate an extensive customer base. JD.com is growing as major player with 6,000 suppliers selling products through their website at low prices and giving consumers confidence with usable features giving JD,Com advantages in the market. Amazon is the major domestic competitor for CanGo who provides similar goods and services but have now taking measures to deal with industry moving globally. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
The industry is still growing and moving at high speed, CanGo can be one of newer startups that can gain ground within the industry, but the Major Players continue to increase their shares making it competitive for newer companies. CanGo needs to meet the industry expectation in keeping up with high level of competition and establish a successful business model.
Competitive Strategic Recommendations
CanGo being a new player in the international market for online shopping can establish a successful road map by following key success factors that experts in the business world say are critical to this industry:
Key Success Factors
“Having a loyal customer base: A loyal customer base results in repeat buyers and ensures continued sales.
Attractive product presentation: Displaying a clear and attractive product description will help customers to be confident in purchasing decisions.
Having a clear market position: Having a clear market position ensures that operators have an appropriate product range for their target customers.
Ability to quickly adopt new technology: Operators that keep up-to-date with the latest technology can offer advanced websites and catalogs.
Ability to control stock on hand: Stock control ensures that popular items are adequately catered for.
Provision of superior after sales service: Superior after sales service includes the provision of prompt refunds and/or exchanges, and discounts or incentives for frequent buyers.” IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.).
Human Resources
CanGo’s needs to develop human resource management polices and activities to link up to the company’s strategic plan. A formulation of a strategic plan for HR would focus in producing CanGo’s current and new employees skills levels and behaviors to meet CanGo’s strategic plan.
Developing a effective HR management process helps avoid problems for managers to hire the wrong person for a position in company. Each part of the HR process interacts and affects the other that will overall link up to the company’s strategic goal. Hiring people who can’t learn the new position are set to fail regardless of the training invested into that person. How each phase interacts with each other sets the employees behavior to support the strategic goal. Dessler, G. (2013)
Human Resources Strategic Recommendations
The first step in CanGo’s HR strategic plan in linking with the company’s strategic goal is bringing in HR personnel with operational excellence background to help along managers adapt to process change. CanGo’s current challenges with the HR personnel come with no “credibility to challenge line managers on whether they are improving the attitudes and skills of their people at the same time they’re redesigning their jobs”. Power, B. (2012, February 8)
The focus for the HR department at CanGo is spending the majority of the time on administrative roles. The second step in helping CanGo’s HR strategic plan would be to free up time to focus on process improvement by streamlining traditional administrative roles. Power, B. (2012, February 8)
The third step of HR strategic plan think of HR as marketing, obtaining and holding on to good employees is similar to holding on to customers. CanGo approach to attract the best candidates in this competitive market place will need bring out their marking skills. The HR strategic plan cannot succeed without utilizing marketing basics such as examples shown below to acquire the best talent. France, C., & Bonchek, M. (2014, July 11)
“Marketing Basics
Value proposition: What is the source of your differentiation? Do you have a good elevator pitch and consistent messaging in your communications?
Market research: Where can you find the talent you want? What is important to them in a job, career, team and employer?
Pricing: What are the key elements of compensation (salary, bonus, benefits, equity), and how do you compare with competitors?
Sales: When you have found the right candidate, do you move quickly to close?
Brand: Are you visible in the marketplace with a reputation for innovation and excellence?” France, C., & Bonchek, M. (2014, July 11)
Legal Analysis
Legal Strategic Recommendations
Conclusion
References Dessler, G. (2013). Ch.1 Introduction to Human Resource Management. In Human Resource Management (13th ed.). Pearson. IBISWorld Industry Report 6592, Mail-Order & Online Shopping in China. (n.d.). Retrieved October 20, 2014, from http://clients1.ibisworld.com.proxy.devry.edu/reports/cn/industry/competitivelandscape.aspx?entid=928
Fiancial Information. (2009). Retrieved 10 08, 2014, from CanGo company site: http://vizedhtmlcontent.next.ecollege.com/ec/Courses/13775/CRS-DVUO-2148869/Flash/BUSN460/CanGo_Intranet/htm/financialinfo.html
France, C., & Bonchek, M. (2014, July 11). Strategies to Attract Superpower Marketing Talent. Retrieved October 20, 2014, from http://blogs.hbr.org/2014/07/strategies-to-attract-superpower-marketing-talent/
Quick Ratio. (2014). Retrieved 10 08, 2014, from Investopedia: http://www.investopedia.com/terms/q/quickratio.asp
Power, B. (2012, February 8). Focus HR on Process Improvement. Retrieved October 20, 2014, from http://blogs.hbr.org/2012/02/focus-hr-on-process-improvemen/