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Startegic Analysis (Sherwin Williams)

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Startegic Analysis (Sherwin Williams)
The Sherwin-Williams Company
SHW (NYSE)

Strategic Analysis

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SWOT ANALYSIS
Strengths Weaknesses
Strong financial performance High debt to equity ratio
Wide product portfolio Increase in current liabilities Strong market presence
Opportunities Threats
Global demand for coatings market Consolidation in chemical industry
Opening new stores Foreign exchange risks
Strategic acquisition Environmental regulations

The Sherwin-Williams Company is viewed as one of the leading paint manufacturing and retailing companies in the US. Some of their key strengths are a strong market presence, wide product portfolio, and strong financial performance. Some major areas of concern are a high debt to equity ratio and increasing current liabilities. Going forward, the risks associated with foreign exchange risk, environmental regulations, and consolidation in chemical industry may impede its business growth. However, ample growth opportunities for the company are obtainable through strategic acquisition, opening new stores and increasing global market for coatings.
Strengths:
Strong financial performance FY2010 reflected an impressive financial performance for the company. They registered total revenue of US$7,776.42 million in the FY2010, up 9.62% on an annual basis from US$7,094.25 million in the FY2009. The increase in revenue was principally due to the acquisition of two industrial wood finishes businesses(Sayerlack and Becker Acroma).These two acquisitions increased revenues for FY2010 by more than US$440 million. Also, their operating profit increased by 8.82% from US$622.82 million in the FY2009, to US$677.78 million in the FY2010. Simultaneously, the company net income increase by 6.11% to US$462.49 million in the FY2010 from US$435.85 million in the FY2009. Based on such strong financial performance, the company can aggressively pursue its growth and expansion plans.
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