Case Study - Inner City Paint

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University of the District of columbia|
Strategic Audit Plan/ Case Analysis|
Case 28 - Inner-City Paint Corporation|
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[Type the author name]|
3/21/2013|
Business Policy
TR 5:30pm – 6:50pm
Spring 2013

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I. Current Situation
A. Current Performance
1. Poor financials
2. High account receivables
3. Very disorganized system of business
4. Lack of Customer Confidence
B. Strategic Posture
1. Mission: To produce a paint that was less expensive and of higher quality than what has been used commercial buildings, etc. 2. Reputation: Built on fast service; frequently supplies paint to contractors within 24 hours. 3. Primary Market: small to medium sized decorating companies 4. Policies: Walsh handles all mail, payments, and billings II. Strategic Managers

A. Top Management
* Consists of Stanley Walsh who handles all mailing/billing, payments, etc. * Office is managed by Mary Walsh (Walsh’s mother) with help of two part –time clerks * Plant Manager is an acquaintance of Walsh’s who only has experience as a painter III. External Environment (EFAS)

A. Societal Environment
1. Economic
a. The slowdown in the housing market combined with a slowdown in the overall economy caused financial difficulty for Inner-City Paint Corporation (T) b. Now required to pay cash on delivery (C.O.D.) for its raw materials (T) 2. Technological: Computers and Information Technology offers opportunity to better organize the business (O) B. Task Environment

1. Rivalry High: Larger orders usually go to larger companies due to lack of customer trust. (T) 2. Competitive Prices (O)
3. Threats of Substitutes High (T)
IV. Internal Environment (IFRAS)
A. Corporate Structure
1. Thirty-five employees (20 part-time); most unskilled workers who lack training (W) 2. Lack of Delegation: lacks employee empowerment and too much of workload is carried by the business...
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