The purpose of this assignment is to analyses Inner-city Paint Corporation, with focus on its present position and possible changes for the future. First, let me introduce this company: Inner-city Paint Corporation is a small company that manufactures wall paint and is located in Chicago. The main product is flat white wall paint, the major customer is small and medium sized decorating company. Because of its fast service, the company had been operating normally. Stanley Walsh is the manager of inner-city Paint Corporation. Furthermore, the assignment is divided into 3 sections with each section devoted to a different aspect of Inner-city Paint Corporation. The first part is the environment scan. The following analysis will concentrate on the internal activities inner-city Paint Corporation and also external environment. External environment needs to be analyzed in detail which through political, economic, socio-cultural, technological aspects. Also, “five-force” model is a vital method of analysis and can help us to understanding of the inner-city paint corporation’s external environment more comprehensively. The second part is strategy formulation which is the essential part of this assignment. We can formulate a strategy to inner-city Paint Company. We will use TOWS matrix to illustrate how the external opportunities and threats facing this particular corporation can be matched with that company’s internal strengths and weaknesses. This will result in four sets of possible strategic alternatives. In the last part, we will examine these alternatives and make recommendation. This is an important part of this assignment because it relates to the established of strategies and that it is the ultimate goal of the analysis.
Part 1: Environmental scan:
Firstly, let us look at the internal environment of inner-city Paint Corporation. We will analyses internal environment from two aspects which is strengths and weaknesses. This method has the advantage of understanding all-sided internal factors. We now turn to the question of which factor provides a better environment of internal strengths. 1, Inner-city paint corporation has its own proprietary technology which is its own testing lab to ensure the quality of the products. As we known, the basic condition to establish a company is can it produces goods that have a big advantage over the other companies. 2, Inner-city Paint Corporation has two other identifiable strengths: fast service and reasonable price to small-to medium-sized decorating company. Although inner-city Paint Corporation can not compete with giants, they can stand in the small enterprise and survive small group. 3, manufacturing facilities can fulfill requirements at present. Five mixers, two lift trucks, testing lab and a cheaper lease workshop and storage. Now, we shall see below the potential internal weaknesses of inner-city Paint Corporation. 1, There is no management control of this company. Walsh who has an authoritarian style does every thing and decides everything. Employees haven’t a chance to say and give advice to company development. So, employee relations are not good. 2, it’s bad for process-oriented R&D, and slow on new products. Inner-city paint corporation just products two standard paints 5 gallons and 55 gallons and no innovation products. 3, distribution channels are small, it just supplies the immediate area.
Before an organization can begin strategy formulation, it must scan the external environment to identify possible opportunities and threats. In undertaking environment scanning, we must first be aware of the societal environments. These societal environments factors are shown below, economic forces, technological forces, political forces, sociocultural forces. Trends in the economic part of the societal environment can have an obvious impact on business activity. For example, an increase in interest rates can be...