Identification of the Key Issus with Westlake Lines ------- 3
External Analysis ----------------------------------------- 3
Porter’s Five Forces Analysis ----------------------------- 3
Rivalry among the Competitors (Medium) -------------------- 3
Bargaining Power of Consumers (medium) -------------------- 4
Bargaining Power of Suppliers (High) ---------------------- 4
Threats of New Entrants ----------------------------------- 5
Threats of Substitute Products (Low) ---------------------- 5
Summary of the External Analysis -------------------------- 5
Internal Analysis ----------------------------------------- 6
VRINE Analysis -------------------------------------------- 6
Summary of the Internal Analysis -------------------------- 7
Financial Analysis ---------------------------------------- 8
Criteria of taking Decisions ------------------------------ 9
Alternatives ---------------------------------------------- 10
Recommendation -------------------------------------------- 11
Implementation -------------------------------------------- 11
Contingency Plan ------------------------------------------ 12
Practicality of the Plan ---------------------------------- 12
References ------------------------------------------------ 13
Identification of the Key Issus with Westlake LinesFrom the case study, it is found that Westlake Lines is a company that provides different recreational activities to the users, such as bowling with enjoying the food items and other things (Beetsma et al., 2013). The General Manager (GM) of the company, Shelby Givens is concerned with the financial outlook of the company and their capability of paying back the debt which is currently owned by their board members. At this point, the board of the company may decide any alternatives that deem favourable and efficient for the company such as liquidating the assets.
External Analysis Porter’s Five Forces AnalysisPorter’s five forces analysis is one of the most important strategic management tools that exhaust by the companies for the purpose of maximising their positioning in the market. It is a model which is divided into five different elements deem favourable for the companies in particular (Chang & Chou, 2011).
Rivalry among the Competitors (Medium)The first important aspect that paves under the model of Porter’s Five Forces Analysis is Rivalry among the competitors. Competition is the beauty of industrialisation, and it is important and essential for the organisations to manage their operations to become highly competitive in a respective marketplace (Chu, Anguelovski&Carmin, 2016). The same is applicable to Westlake Lines as well. The amount of the companies and casinos which provides different recreational activities were extremely high within the region of the United States, which is showing that the level of competition is locating on a higher node. Based on the same aspect, it can be said that things were not in the favour of Westlake Lines, and they have to work extremely hard to overcome the major problem of competitiveness. They can attain the desired outcome by transforming their strategies and make them more lenient to the profitability of the company.
Bargaining Power of Consumers (medium)The 2nd significant aspect that paves under the model of Porter’s Five Forces Analysis is the Bargaining Power of Consumers. Bargaining Power of Consumers has a strong connection with the competition level in the industry (Elbanna, Andrews &Pollanen, 2016). The same is applicable to Westlake Lines as well. Since the amount and level of competition in the company are locating on a higher node, therefore the bargaining power of the consumers is locating on a higher node as well. It means that the consumers will start bargaining for the services providing by the Westlake Lines because they have multiple options to shop with. Considering the same aspect, it can be said that things were not in the favour of Westlake Lines, and they have to work extremely hard to overcome the major problem of competitiveness. They can attain the desired outcome by transforming their strategies and make them more lenient to the profitability of the company.
Bargaining Power of Suppliers (High)The next significant aspect that found the model of Porter’s Five Forces Analysis is the Bargaining Power of Suppliers. Bargaining Power of Suppliers has a strong but negative connection with the competition level in the industry (Elmeziane&Elmeziane, 2012). The same is applicable to Westlake Lines as well. Since the amount and level of competition in the company are locating on a higher node, therefore the bargaining power of the suppliers is locating on a lighter node. It means that the suppliers will not bargain with the company, and will provide the products in the current pricing. Considering the same aspect, it can be said that this thing is in the favour of Westlake Lines, and they have multiple options to get the desired product and product line from the suppliers. This particular aspect provides operational efficiency to the company.
Threats of New EntrantsBarriers to Entry (High): is known as the barriers which are applicable to the industry that refrains or appreciate the companies to become an integral part of the industry (Kandananond, 2014). Entrance in the market of the United States has a lot of barriers, especially after the period of 9/11, therefore this particular outcome deems highly in the favour of Westlake Lines, as the amount of competition is not likely to increase in the future. Hence, this particular outcome would be essential and effective for them in the long run.
Barriers to Exit (High): is known as the barriers which are applicable to the industry that restrict the companies to exit the market easily. Exit from the market from the United States is not an easy task, as the companies have to comply with the requirements and comply with all the possibilities and formalities before exiting the market. Based on the same mechanism, this particular outcome deems unfavourable for Westlake Lines, as the amount of competition will not reduce with the passage of time because of high barriers.
Threats of Substitute Products (Low)The substitutes related to recreation activities is locating on a lower scale particularly in the market of the United States. Hence, this particular thing will help the company to overcome the major issues and maintain their attentiveness in the market as well.
Summary of the External AnalysisThe entire analysis which has been considered through the Porter’s Five Forces Analysis is revealing that the current position of Westlake Lines is in a good range and position, which helps the company to materialise their growth positively and efficiently. The position of Westlake Lines is good as far as competing with other organisations is concerned. Most of the aforementioned forces are in a medium-term range which will help the company to secure their positioning in the market.
Internal Analysis VRINE AnalysisAccording to the case study, Westlake Lines is in the business from last 30 years, which is quite an efficient aspect from the viewpoint of the company assisting them to secure their positioning in the market (Koontz &Newig, 2014).
ValuableWestlake Lines has been providing exceptional services to their end users from last 30 years, which is pointing towards the high level of customer loyalty for the company. The loyalty of the company has secured a continuous flow of the revenues for the company at the same time by keeping their customers away from the competition. The long-term operations of the Westlake Lines are essential and positive because of the current level of loyalty of the customers and their engagement with the companies in particular. This particular aspect affects the company positively.
RareThe case has identified that family businesses either shut down or merged their operations with other companies because they are no longer to provide the services and effectiveness to the individuals in particular.
Inimitable/SubstitutableThe capability of this business is neither inimitable nor substitutable because,at this point in time, there is no other company that can open a similar business in particular. Hence, it is not possible for other businesses to copy the idea and capability that used by Westlake Lines in their current strategy.
ExploitableThe capability of Westlake Lines is extremely high which can become a major strength of the company in the future (Mimura et al., 2015). Nevertheless, the capability is subject to exploit, if no cautiousness has put up in the same space. The company currently has a great chance to use the same capability for the purpose of enhancing their brand image positively, and maximizing their financial potential positively. This particular efficiency also helps the company to maintain their future.
Summary of the Internal AnalysisThe Internal Analysis also looks in the favour of Westlake Lines, as far as in the long term working. The internal analysis clearly lists the things which are favourable for the company. With the help of this capability, the company has a great chance to enhance their brand positively and efficiently in the market. But, they should check their strategy in a timely manner to the manner the factor of Exploit.
Financial AnalysisGross Profit Margin (GPM) and Operating Profit Margin (OPM) are two important tools which can be used for the purpose of the Financial Analysis. Both of these tools are essential for the sake of a company and an investor to assess their position. GPM is a tool that used to assess the ability of a company to generate gross income from their net sales. On the other hand, OPM is a tool which used to get an idea about the ability of a company in generating operating income from their sales. Mentioned below chart is showing both of these things
From the aforementioned chart, it is clearly found that the GPM of the company is locating on a positive and efficient node. The GPM of the company remained on the level of 78% in the years 2004, 2005 and 2006. However, the GPM of the company decreased marginally in the years 2007 and 2008 respectively by 1% and 2% respectively, but it was quite minimal. The resiliency power of the company was high that managed them to increase their GPM to uplift on a level of 82% in the year 2009. Reciprocates to the same, the OPM of the company had an opposite ride than the GPM. It was in the positive range from 2004 to 2006, but started to decrease heavily and reached the level of -10% in the year 2009.
The aforementioned graph is showing the tendency and ability of the company in managing the Debt to Equity and Current Ratio factor. The D/E of the company increased heavily in the year 2007, showing that the burdensome of debt has increased heavily in the same time. It decreased in the year 2008 but still situated at a higher node. On the other hand, the Current Ratio is in a good range. Current Ratio (CR) is a liquidity ratio that used for the purpose of analysing the ability of a company as far as meeting with the short-term financial promises. From the above-mentioned graph, it is clearly found that the CR of the company remained higher than 1:1 in each of the financial year except the year 2009. However, the average CR is still higher than 1:1, showing that the company is highly efficient and proactive as far as managing its short-term financial promises in a positive manner.
Criteria for taking DecisionsOrientation of the business, especially in the Long run
Plausibility and the practice
Cost
Personal Aspiration of the individual
Alternatives Alternative-1The first alternative is to liquidate all the assets of the company and pay the shareholders accordingly. This particular alternative has the benefit of paying the liability in a timely manner for the investors. In addition, it can be said that the amount can be spent on any other business as well. The disadvantage of the same alternative is the high opportunity cost. By taking this alternative into the consideration, there is a chance to devastate the entire business which owned by the family.
Alternative-2The second alternative is to maintain and retain the current status of the business and continuously thrive for its effectiveness. The company is likely to scrutinize the cost and associated revenues in particular with no major investment (Moeliono, 2011). The main benefit pertaining to this alternative is a low-risk factor associated with the re-engineering of the business and the jobs of the employees could have been saved easily. However, the major con of the same alternative is that the profitability would remain uncertain along with their expansion and broadness of the business which may increase their cost in a timely manner.
Alternative-3The third alternative is to replace the business with a consultant base work. The basic benefit of this replacement is the diversification into some other areas of the business that helps the company to broaden their marketplace accordingly and maximise their potential in the market (O’Connor et al., 2012). Perhaps, the company may get a better output than their last output. However, the major problem that associated with the same business is non-understanding of the business. It requires a lot of time, investment and energy of the managers to put up their factors in the same aspect. The company has to invest a lot of money in order to train the managers and the employees about the new business idea.
RecommendationThere are three different strategies which have been discussed and stated in the aforementioned section that can bring positive change towards the company. However, it is essential for the company to select one of those strategies in order to secure their future and position. Among all the three alternatives, the 3rd alternative is the most efficient and secure one which is achievable as well. The second alternative requires the company to regain their old status accordingly, by implementing new strategies and tactics.
Ups and Downs is a part of the business and life, and organisations shouldn’t worry about the same aspect, therefore the alternative to identify the effectiveness would work for the company. The Porter’s Five Forces and VRINE analysis clearly reveals from the analysis of the current level of resources and factors that have by the company. There is a need to fine-tune the strategies through which the resources could have been managed and utilised in a professional way for the purpose of increasing the financial outcome positively.
It is also recommended to the company to increase the factor of communication within the premises of the company, as the tactic would be highly material and efficient for them to increase the level of innovation and perfection. With the help of taking these measures into the consideration, the chances are bright for the company to attain the significance in the market, especially in the long run for their efficiency and productivity.
ImplementationAfter the recommendation, the next important thing is associated with the implementation. The implementation of the same recommendation has four outlines which have to consider by the company in each of the 4 years.
The first year should be devoted to the operational management, in which the operational cost of the company will be managed properly. Cutting down cost will ultimately help the company to maximise their net income and potential. Further, in the second year, they should continue with the same activity to decrease the cost. The third year should be devoted to internal decoration and mechanism through which they can easily manage their positioning in the market and maintain their future aspects accordingly. Finally, in the fourth year, they have to devise new strategies because these strategies are essential for the productivity.
Contingency PlanThe company has the chance to hold the investment of the strategies, if their desired outcome hasn’t been achieved until the year 2013. Before going further in the investment, it is better to manage the operations and the cost accordingly.
Practicality of the PlanThe plan has been made for the purpose of proper management of the company, and it has complied with the principles of SMART objective. The objectives mentioned above are achievable in a timely manner, which is essential for their productivity.
ReferencesBeetsma, R., Giuliodori, M., Walschot, M., &Wierts, P. (2013). Fifty years of fiscal planning and implementation in the Netherlands. European Journal of Political Economy, 31, 119-138.
Chang, H. H., & Chou, H. W. (2011). Drivers and effects of enterprise resource planning post-implementation learning. Behaviour& Information Technology, 30(2), 251-259.
Chu, E., Anguelovski, I., &Carmin, J. (2016). Inclusive approaches to urban climate adaptation planning and implementation in the Global South. Climate Policy, 16(3), 372-392.
Elbanna, S., Andrews, R., &Pollanen, R. (2016). Strategic planning and implementation success in public service organizations: Evidence from Canada. Public Management Review, 18(7), 1017-1042.
Elmeziane, K., &Elmeziane, M. (2012). Enterprise resources planning systems implementation success in China. Business and Management Review, 1(12), 1-9.
Kandananond, K. (2014). A roadmap to green supply chain system through enterprise resource planning (ERP) implementation. Procedia Engineering, 69, 377-382.
Koontz, T. M., &Newig, J. (2014). From Planning to Implementation: Top‐Down and Bottom‐Up Approaches for Collaborative Watershed Management. Policy Studies Journal, 42(3), 416-442.
Mimura, N., Pulwarty, R. S., Elshinnawy, I., Redsteer, M. H., Huang, H. Q., Nkem, J. N., ... & Kato, S. (2015). Adaptation planning and implementation. In Climate Change 2014 Impacts, Adaptation and Vulnerability: Part A: Global and Sectoral Aspects. Cambridge University Press.
Moeliono, T. P. (2011). Spatial management in Indonesia: from planning to implementation: Cases from West Java and Bandung: a socio-legal study (Doctoral dissertation, Van Vollenhoven Institute, Faculty of Law, Leiden University).
O’Connor, S. K., Ferreri, S. P., Michaels, N. M., Greco, A. J., Viera, A. J., Faruki, H., ... &Roederer, M. W. (2012). Exploratory planning and implementation of a pilot pharmacogenetic program in a community pharmacy. Pharmacogenomics, 13(8), 955-962.
Get free written samples available from bestwritemyassignment.co.uk.
REC Solar: Strategising on a Solar Coaster