Volcom Strategic Audit

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Volcom Strategic Audit

Professor
Steven L. Roop
Student
Dennis P. Sable

National University
September 2012

Volcom is a manufacturer of Boardsport related clothing and accessories. Based in Velcro Valley – south of Los Angeles – the company’s core values speak volumes about their marketing and sales goals and objectives. The Volcom philosophy, stated as, “youth against establishment”, implies that their aim is, at the very least, different from normal capitalist “Free Trade” established ways and means, and their history highlights the differences. The new Volcom “New Future” initiative is an example of their sales and marketing direction. As Derek Sabori, Volcom's senior director of the department of sustainability and corporate social responsibility says, "Our goals now are for us to go beyond just a product line, or an event or two. We're striving for sustainability to be truly ingrained into the drumbeat of our business and I feel like we're on a good path." (Whitton, 2012) Volcom’s efforts are focused on three things:

1. Remaining profitable
2. Not losing track of life
3. Doing so while repairing and not ruining the planet and its ecosystem Their Current Strategies for accomplishing their purposes are: 1. Utilize their ties with the Boardsport culture in order to keep their styles in vogue and high margin 2. Retain these ties through branded events, online marketing, athletic sponsorship, music, and film. 3. Retain perspective by growing slowly

4. Staying focused upon their core lifestyle
When asked about potential growth, Mr. Woolcott , the company Chairman and CEO, “was quoted in an article in Time magazine saying that the core lifestyle was more important to him. He said, ‘Getting bigger was totally secondary. I don’t want to put pressure on what we’re doing. I don’t even think about getting Quicksilver big.’” (Hunger, 2012)

Table of Contents
I.Current Situation6
a.Current Performance6
b.Strategic Posture6
1.Mission6
2.Objectives7
3.Strategies7
4.Policies8
II.Strategic Managers8
a.Board of Directors8
b.Corporate Officers8
III.External Environment (EFAS - Exhibit 1)9
a.Natural Environment9
b.Societal Environment9
1.Economic9
2.Technological10
3.Political - Legal10
4.Sociocultural11
5.Task Environment11
c.EFAS Summary12
IV.Internal Environment (IFAS – Exhibit 2)12
a.Corporate Structure12
b.Corporate Culture12
c.Corporate Resources12
1.Products12
2.Manufacturing13
3.Distribution13
4.R&D / Marketing13
5.HR & IT13
d.IFAS Summary14
V.Analysis of Strategic Factors (SFAS – Exhibit 3)14
a.Situational Analysis (SWOT)14
1.Strengths14
2.Weaknesses14
3.Opportunities15
4.Threats15
b.Review of Current Mission and Objectives15
1.Mission15
2.Objectives16
VI.Strategic Alternatives and Recommended Strategy16
a.Strategic Alternatives16
1.Strategic Alternative #1 - Growth – Through Concentration on Online Sales16
Corporate Directional Strategy16
Business Necessities16
Functional Follow-through16
IT17
Marketing17
HR17
Finance17
The Online Sales Growth Scenario17
Pros17
Cons17
2.Strategic Alternative #2 - Growth – Through Increased Focus on the Entertainment Field (Veeco Productions)18
Corporate Directional Strategy18
Business Necessities18
Functional Follow-through18
Marketing/HR18
Security18
Finance19
Design19
The Bigger-Better Veeco Scenario19
Pros19
Cons19
3.Strategic Alternative #3 – Retrenchment & Sale19
Corporate Directional Strategy19
Business Necessities20
Functional Follow-through20
HR20
Marketing20
Finance20
Operations20
The Sale of Volcom Scenario21
Pros21
Cons21
b.Recommended Strategy21
VII.Implementation (see Exhibit 6)21
a.Corporate22
b.Business Strategy22
c....
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