Cheap Rent / Low Overhead Costs Due to Inner-City Paint's location, as well as the condition of their manufacturing facility, the rent is significantly low. This assists the business with a low-cost strategy and gives a competitive advantage since they can focus their expenses on other aspects of the business.
Cheap Employee Wages Being a nonunion organization, ICP can set lower wages for its employees. This strategy can help the business keep wage expenses at a minimum rather than spending money on high paid jobs.
Low Production Cost Mr. Walsh discovered a way to produce low-cost, high quality paint. This can result in lower prices for his paint than the competition offers. The quality along with the price is both a consumer and producer benefit. 1b. Weaknesses
Employee Knowledge / Experience - Inner-City Paint has no worker training programs implemented into the business which results in a huge lack of knowledge in basic business procedures. The inexperience of the 35 unskilled laborers, as well as the inexperience and youth of the plant manager makes it difficult to believe that the company's business practices are organized in the most efficient way.
Unorganized ICP has no form of organization in terms of inventory records and customer records. Having to process these records manually results in wasted time that can be spent on other business aspects. In addition, not having these records restricts growth for the business. Only having the warehouse manager keeping a mental record of inventory in his head shows how unorganized the business is.
Poor Financial Situation Due to the decline in the recent market for ICP, net income is exceptionally low. This makes it difficult to put money back into the business to increase supply, update problems, and to pay off any debts. The fact that ICP has cannot pay suppliers and owes a large sum of back taxes will make it difficult for them to be able to get a loan...
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