Case Study Analysis Ideal Standard France: Pat Paterson
Ideal Standard France (ISF) has been in operation for 75 years, the two primary manufactured goods are heating products and sanitary china products. ISF has accounted for over one-third of the total sales and approximately one-half of heating business in Europe. Heating products make up approximately 90% of ISF's sales.
Strengths, weaknesses, Opportunities and Threats (SWOT)
American Standard invested $6 million at an ISF site in the form of new equipment and machinery, which expanded the capacity of Aulnay by 50%. This additional ISF capacity is considered a key strength to increase production and sales. One of ISF's strengths is that it has been able to compete on its brand recognition and product design.
A large weakness of ISF is the strong increase in COGS in the last six months (of 1974), if it continues at its present rate it could reach approximately $124,960 a 21% increase over the 1973 value. This is detailed by the first chart show in appendix A.
ISF prior management could have reduced employment too deeply and weakened their manufacturing capability; this is illustrated by the first chart in appendix A, which shows that the increase in COGS followed the decrease in employment. ISF's liquidity ratios show a declining trend could be considered a financial weakness; this trend is detailed in the second chart of appendix A. Another IFS weakness is the decline inventory turnover ratio; shown in appendix B, shows a reduction in how fast ISF is converting inventory into accounts receivable (4.65 to 4.61), this shows a small decline.
ISF has an opportunity to expand markets in Europe for boiler type products because there appears not to be a trend toward warm air or forced air heating systems as in North America. There may be an opportunity to increase sales if the economic turnaround happens as forecasted by the French Government, increase of 7% of housing completions in 1977 and non-residential construction would build to a 7.5% growth rate in 1977. This
Strengths, weaknesses, Opportunities and Threats (SWOT)
American Standard invested $6 million at an ISF site in the form of new equipment and machinery, which expanded the capacity of Aulnay by 50%. This additional ISF capacity is considered a key strength to increase production and sales. One of ISF's strengths is that it has been able to compete on its brand recognition and product design.
A large weakness of ISF is the strong increase in COGS in the last six months (of 1974), if it continues at its present rate it could reach approximately $124,960 a 21% increase over the 1973 value. This is detailed by the first chart show in appendix A.
ISF prior management could have reduced employment too deeply and weakened their manufacturing capability; this is illustrated by the first chart in appendix A, which shows that the increase in COGS followed the decrease in employment. ISF's liquidity ratios show a declining trend could be considered a financial weakness; this trend is detailed in the second chart of appendix A. Another IFS weakness is the decline inventory turnover ratio; shown in appendix B, shows a reduction in how fast ISF is converting inventory into accounts receivable (4.65 to 4.61), this shows a small decline.
ISF has an opportunity to expand markets in Europe for boiler type products because there appears not to be a trend toward warm air or forced air heating systems as in North America. There may be an opportunity to increase sales if the economic turnaround happens as forecasted by the French Government, increase of 7% of housing completions in 1977 and non-residential construction would build to a 7.5% growth rate in 1977. This