Concept Computers :: essays research papers fc

A Strategic and Financial Analysis of Concept Contents Page 1.0 – Introduction 2.0 – SWOT Analysis 2.1-Strengths 2.1.1-Established, Major Global Company 2.1.2-Workforce and Culture 2.1.3-Cash Reserves 2.2-Weaknesses 2.2.1-Post-Standardisation Decisions 2.3-Opportunities 2.3.1-Consultancy for Enterprise Solutions 2.4-Threats 2.4.1-Overseas Entrants 2.4.2-New CEO and Staff 2.5-Summary 3-PESTEL 3.1-PESTEL Framework Diagram 3.2-Political 3.3-Economical 3.4-Sociocultural 3.5-Technological 3.6-Summary 4-Porter’s Five Forces Framework 4.1-Threat of New Entrants 4.2-Threat of Substitutes 4.3-Bargaining Power of Buyers 4.4-Bargaining Power of Suppliers 4.5-Competitive Rivalry 4.6-Summary 5-Financial Analysis of Concept, 1999-2002 5.1-Calculations Sheet 5.2-Gross Profit Margin (GPM) 5.3-Expenses Ratio 5.4-Return on Total Assets (ROTA) 6-Bibliography 1.0-Introduction This report has been produced to give consultancy to Kent Andrews, CEO of the computing company Concept. I will use literature theory models to analyse Concept. Using this analysis Kent should be in a stronger position to reinstate Concept to market leadership in its industry. To closely study Concept strategically I will use the SWOT and PESTEL frameworks and Porter’s Five Forces model. I will use accounting calculations to assess Concept’s financial state and then comment on my findings. 2.0-SWOT Analysis Johnson et al (2005) state that a SWOT analysis â€Å"summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy development†. 2.1-Strengths: I would describe the three strengths below as being Concept’s ‘Core Competences’ (Hamel, G and Prahalad, C. K.). I felt it unnecessary to elaborate on the competency theory additionally. I feel these strengths support the definition Johnson et al (2005) give Core Competences: â€Å"†¦activities that underpin competitive advantage and are difficult for competitors to imitate or obtain† 2.1.1-Established, Major Global Company Despite recently losing market leadership, Concept is still a prominent global player. It has reacted well to competition in the past 30 years and this experience and knowledge of the industry should aid its recovery to the industry’s forefront. Concept has established itself as a leading brand name, and governmental decisions to assign Concept’s operating system as the industry standard shows potential buyers the professionalism and expertise of the company. 2.1.2-Workforce and Culture Concept has a well structured and experienced workforce, complete with Product and Country managers. Key staff was poached from competitors at the end of the 1970s. This would suggest to me that firstly these employees may still be with Concept, indicating it has competent employees, and secondly, it cements the notion that Concept was, and still is, an attractive company to be involved with. The organisational culture and structure is described as being the base of its success. Concept has adapted to a changing climate on a few occasions throughout its long history, especially when reacting to customer needs, such as by manufacturing palm tops and developing enterprise software.