Waheedur Rahman Nabeel
Md. Arif Billah
Shitab Dayyan Akash
TABLE OF CONTENTS
3.1 Current Financial Position
3.2 Feasibility of the 5 year Scheme
Analysis of the Strategic Position (External and Internal)
4.1 VRIN Framework
4.2 SWOT Analysis
Issue Analysis and Recommendations
5.1 Selection of New Design Supplier
5.2 Accident At Work
5.3 Racing Boat Marketing Decision
5.4 Sales Force Re-structuring
5.5 JKL and Shareholders
5.6 Late Delivery of Hull from Topcrest
1.0 EXECUTIVE SUMMARY
The rationale of this executive brief is to assess the strategic position and direction of Merbatty and to make recommendations to the Board of Directors in order to make the business much more high-ended in the current economy.
This report has followed a very typical analytical process starting with the financial analysis, followed by strategic direction analysis to evaluate the company’s strength and weakness, the core pressing issues that concern the company currently along with pertinent legitimate recommendations and also a feasibility evaluation (study) of the 5 years plan proposed. Based on the research, a few conclusions and recommendations are included at the end of the report which is expected to help the company accomplish a better performance in the future. However, as the report is based on the web sources provided to us, some information are limited and based on personal opinion and subsequent assumptions only.
Merbatty is a Northern European based luxury boat building company established by its current chairman and founder Alberto Blanc 33 years ago. Presently they operate 2 boat building facilities, one in Europe and the other in the US. Merbatty’s core success factor lies in their extensively ubiquitous and deeply connected global sales agents, competent management workforce and unparalleled one to one client handling adeptness. Currently it has a market share of 9.13% in 2012 and operating profit of 15.1%, but with their imminent plan of embarking on the middle-eastern market, it is promised to bring in tremendous financial prosperity and business expansion.
3.0 FINANCIAL ANALYSIS
A very brief financial analysis is done on the current and the future financial prospects of the company to better understand the position of the firm in the present economic environment.
3.1 Current Financial Scenario
As of the recent business position of Merbatty, they seem to have made great strides in the fiscal year of 2011-2012, the most considerable increment seems to be their current ratio from 0.79 to 3.15. This specifically means that their liquidity position has improved dramatically culminating from an increase in the company's current assets and the working capital. This most importantly means that Merbatty will be able to successfully pay off their debts to suppliers easily and efficiently, which will ensure a healthy working relationship with the handful of suppliers too.
Merbatty's quick ratio has also augmented from a mere 0.31 to 1.94 , which means now they are not dependent on their inventories to fund them for cash as they have enough current assets other than their stock. The company is also making a healthy profit on its investment, as indicated from its ROA of 5.21%, so this would make the shareholder's content as their
investment are yielding a positive return. Although it is important to note here that the company needs to broaden its profit margins further to keep the shareholders continually interested.
3.2 Feasibility of the 5...
Please join StudyMode to read the full document