Case Report - Business Course
Introduction
This report’s purpose is to examine the internal and external environments in which GWL Roofing Ltd (GWL) operates. It identifies and analyzes the advantages and disadvantages of various strategic alternatives, makes recommendations, and provides an implementation plan to allow GWL to adopt the recommended strategy.
Situational Analysis
Current Mission & Vision
GWL has no official mission or vision statements, however the implied statements are as follows:
Mission
To offer superior products and roof management solutions to ICI customers in Central and Eastern Canada and North Eastern US at premium prices.
Vision
To be the leading provider of total roof management solutions.
External Environment
A thorough analysis of the external environment in which GWL operates has been completed, including an industry value curve, uncovering two key opportunities:
The North American green roofing market is expected to double over the next five years with 10% yearly growth for the following 15 years, and
Residential housing starts are expected to increase in 2010, rising 16.2% in Canada and 24.9% in the United States .
Some threats to GWL’s business were also revealed, including a decrease in new construction projects, both residential and commercial, due to the economic slowdown, as well as an increasing trend of American competitors competing in Canadian markets. Appendix 1 contains a detailed analysis.
Internal Environment
High quality specialized products, and the roof management program (RMP) are GWL’s foremost strengths. A heavy debt load, no cash flow, and numerous accounting policy issues remain GWL’s most significant weaknesses. Appendix 1 contains a detailed analysis of the internal environment.
Three constraints were observed:
A line of credit is secured by a bank covenant requiring 75% of accounts receivable (AR) is under 90 days
Approximately 20% of incremental sales is required to finance growth in the form
This report’s purpose is to examine the internal and external environments in which GWL Roofing Ltd (GWL) operates. It identifies and analyzes the advantages and disadvantages of various strategic alternatives, makes recommendations, and provides an implementation plan to allow GWL to adopt the recommended strategy.
Situational Analysis
Current Mission & Vision
GWL has no official mission or vision statements, however the implied statements are as follows:
Mission
To offer superior products and roof management solutions to ICI customers in Central and Eastern Canada and North Eastern US at premium prices.
Vision
To be the leading provider of total roof management solutions.
External Environment
A thorough analysis of the external environment in which GWL operates has been completed, including an industry value curve, uncovering two key opportunities:
The North American green roofing market is expected to double over the next five years with 10% yearly growth for the following 15 years, and
Residential housing starts are expected to increase in 2010, rising 16.2% in Canada and 24.9% in the United States .
Some threats to GWL’s business were also revealed, including a decrease in new construction projects, both residential and commercial, due to the economic slowdown, as well as an increasing trend of American competitors competing in Canadian markets. Appendix 1 contains a detailed analysis.
Internal Environment
High quality specialized products, and the roof management program (RMP) are GWL’s foremost strengths. A heavy debt load, no cash flow, and numerous accounting policy issues remain GWL’s most significant weaknesses. Appendix 1 contains a detailed analysis of the internal environment.
Three constraints were observed:
A line of credit is secured by a bank covenant requiring 75% of accounts receivable (AR) is under 90 days
Approximately 20% of incremental sales is required to finance growth in the form