Carphone Warehouse
Table of Contents
Executive Summary 3
Introduction 4
1. Company Overview 4
2. Marketing 5
2.1 Introduction 5
2.2 Strategic Business Units in Carphone Warehouse 5
2.3 SBUs and Their Orientation 5
2.4 SBUs and the BCG Model 6
2.4.1 BCG Model’s Recommendations 7
2.4.2 Product life cycle of the ‘cash cow’ and the ‘question mark’ 7
2.5 PEST Analysis 8
2.6 Carphone Warehouse SBUs and “Five Forces” 8
2.6.1 Industry Competitors 8
2.6.2 Substitutes 9
2.6.3 New Entrants 9
2.6.4 Buyers (Customers) 9
2.6.5 Suppliers 9
2.7 Current Strategies 10
2.8 Recommendations 11
2.8.1 Short-term Recommendations 12
2.8.2 Telecoms Marketing Mix In The Short-Term 12
2.8.3 Long-term Recommendations 13
2.8.4 Sell Distribution (retail business) 13
2.8.4 Invest in Telecoms and re-brand as TalkTalk (use for operations) 14
2.8.5 Establish effective relationships with the consumer by delivering value 14
2.9 Conclusion 14
3. Finance 16
3.1 Financial Analysis Précis 16
3.2 CPW Overall Performance 17
3.3 Group Operating Profit Margin 17
3.4 Return on Capital Employed (ROCE) 18
3.5 Gearing 19
3.6 Interest Cover Ratio 20
3.7 Earning Per Share 21
3.8 Current Ratio 22
3.9 Management Ratios (Including Stock, Debtor & Creditor Days) 23
3.10 Divisional Contribution Margin 24
Divisional Contribution Margin – Segmental 24
3.11 Operating Profit Margin 25
3.12 Recommendations 26
4. Operations 27
4.1 Operations Analysis Précis 27
4.2 The Transformation Model 27
4.3 Operations Characteristics 29
4.3.1 ‘Four Vs’ Model 29
4.3.2 Implications of ’Four Vs’ 31
4.4 Polar Representation 33
4.4.1 Analysis of Polar Representation 33
4.5 Recommendations 33
Conclusion 35
References 36
Appendices 37
Marketing: 37
Finance 40
Executive Summary
THIS REPORT PROVIDES AN INSIGHT INTO THE MAIN STRATEGIC PROCESSES AND METHODS OF CARPHONE WAREHOUSE (CPW), EUROPE’S BIGGEST INDEPENDENT MOBILE RETAILER. IT AIMS TO PROPOSE VIABLE FUTURE STRATEGIES FOR THE BUSINESS BASED ON THE
Executive Summary 3
Introduction 4
1. Company Overview 4
2. Marketing 5
2.1 Introduction 5
2.2 Strategic Business Units in Carphone Warehouse 5
2.3 SBUs and Their Orientation 5
2.4 SBUs and the BCG Model 6
2.4.1 BCG Model’s Recommendations 7
2.4.2 Product life cycle of the ‘cash cow’ and the ‘question mark’ 7
2.5 PEST Analysis 8
2.6 Carphone Warehouse SBUs and “Five Forces” 8
2.6.1 Industry Competitors 8
2.6.2 Substitutes 9
2.6.3 New Entrants 9
2.6.4 Buyers (Customers) 9
2.6.5 Suppliers 9
2.7 Current Strategies 10
2.8 Recommendations 11
2.8.1 Short-term Recommendations 12
2.8.2 Telecoms Marketing Mix In The Short-Term 12
2.8.3 Long-term Recommendations 13
2.8.4 Sell Distribution (retail business) 13
2.8.4 Invest in Telecoms and re-brand as TalkTalk (use for operations) 14
2.8.5 Establish effective relationships with the consumer by delivering value 14
2.9 Conclusion 14
3. Finance 16
3.1 Financial Analysis Précis 16
3.2 CPW Overall Performance 17
3.3 Group Operating Profit Margin 17
3.4 Return on Capital Employed (ROCE) 18
3.5 Gearing 19
3.6 Interest Cover Ratio 20
3.7 Earning Per Share 21
3.8 Current Ratio 22
3.9 Management Ratios (Including Stock, Debtor & Creditor Days) 23
3.10 Divisional Contribution Margin 24
Divisional Contribution Margin – Segmental 24
3.11 Operating Profit Margin 25
3.12 Recommendations 26
4. Operations 27
4.1 Operations Analysis Précis 27
4.2 The Transformation Model 27
4.3 Operations Characteristics 29
4.3.1 ‘Four Vs’ Model 29
4.3.2 Implications of ’Four Vs’ 31
4.4 Polar Representation 33
4.4.1 Analysis of Polar Representation 33
4.5 Recommendations 33
Conclusion 35
References 36
Appendices 37
Marketing: 37
Finance 40
Executive Summary
THIS REPORT PROVIDES AN INSIGHT INTO THE MAIN STRATEGIC PROCESSES AND METHODS OF CARPHONE WAREHOUSE (CPW), EUROPE’S BIGGEST INDEPENDENT MOBILE RETAILER. IT AIMS TO PROPOSE VIABLE FUTURE STRATEGIES FOR THE BUSINESS BASED ON THE
References: BORDEN, NEIL H. “ THE CONCEPTS OF THE MARKETING MIX,” JOURNAL OF ADVERTISING RESEARCH 4 (JUNE) 2-7 Kotler, P (2006) Marketing Management, 12th Ed, Pearson, London McCarthy, E.J., 1996. Basic Marketing: A Managerial Approach. 12th ed. Irwin: Homewood. Naylor, J., 2002. Introduction to Operations Management. 2nd ed. UK: Prentice Hall. NetMBA Business Knowledge Center n.d., Strategy: Strategic Management> BCG Matrix. Retrieved November 20, 2007, from http://www.netmba.com/strategy/matrix/bcg/ Pope, J., n.d Porter, M (1980) Competitive Strategy, Free Press. Schroeder, G., 2003. Operations Management: Contemporary concepts and cases. 2nd ed. London: McGraw Hill. Slack, N. AND Chambers, S. AND Johnston, R., 2007. Operations Management. 5th ed., London: Pearson Education. E. Jerome McCarthy, Basic Marketing: A Managerial Approach, 12th ed, (Homewood, IL: Irwin, 1996 www.12manage.com/description_gearing_ratio.html (2006 – 2007) OF CARPHONE WAREHOUSE |Formulas and Calculation |2007 |2006 |