Cabela’s Strategic Corporate Audit Report
I. Current Situation
A. Current Performance of Cabela’s
The balance sheet or financial statement of the Cabela’s as of 2010 annual report shows that the performance of the corporation has improved from 2008 to 2010.
In a nut shell, the table above shows that the corporation has significantly improved their financial position over the past three years. Cabela’s Total Revenue increased 3.2% to an all-time record of $1.7 billion, while their comparable store sales increased 1.6% propelled by a 7.3% increase in their all-important fourth quarter. Due to the significant improvement of the corporation’s ROIC, their confidence to increase store growth rose. In 2010, the number of multi-channel customers increased 4% while their spending increased 6%. Finally, the corporation’s most important metric, return on invested capital, increased 210 basis points to 13.1% in 2010, the highest level in five years. B.
Strategic Posture of Cabela’s
According to the company overview, Cabela’s mission is “We are a leading specialty retailer, and the world’s largest direct marketer, of hunting, fishing, camping, and related outdoor merchandise. Since our founding in 1961, Cabela’s has grown to become one of the most well-known outdoor recreation brands in the world. We have long been recognized as the “World’s Foremost Outfitter.” Through our growing number of retail stores, and our well-established direct business, we believe we offer the widest and most distinctive selection of high-quality outdoor products at competitive prices, while providing superior customer service.” Although the mission of the Cabela’s is not clearly stated, as I expected, the language in the above statement refers to its mission. Company Objectives
The primary objective of Cabela’s Incorporated is to maximize investor assessment while adhering to the laws of the authorities wherein it operates and at all times observing high ethical standards. The Company will pursue this objective primarily through participation in the retail industry. Company Vision
Cabela’s 2012 Vision is to become the best multi-channel outdoor retail company in the world. Even though the business environment continues to be challenging, they believe their multi-channel model and their strong brand name provides them with opportunities for growth and profitability. Strategies
Cabela’s customers, employees, and owners, are supported by six strategic initiatives: * Focus on core customers: Cabela’s combines its outdoor expertise, product knowledge, and understanding of core customers to drive customer loyalty. Improve customer experiences, and customer satisfaction daily. * Improve Merchandise Performance: To improve margins and minimize unproductive inventory by focusing on vendors, assortment planning, and inventory management. Optimizing merchandise performance allows them to maximize margins, which will require detailed preseason planning, as well as in-season monitoring of sales and management of inventory. * Retail Profitability: Cabela’s improves its retail profitability by concentrating on sales, advertising, and costs while providing excellent customer experiences. Its goal is to identify the best practices that produce the best results and apply those findings to all of its retail stores. * Direct Channel Growth: To grow its direct business by capitalizing on quick-to-market Internet and electronic marketing opportunities and expanding international business. Its goal is to continue to fine tune its catalogs, as well as the number of pages and product mix in each, in order to improve the profitability of each title. * Retail Expansion: To take advantage of its brand strength by developing a profitable retail expansion strategy focused on site locations...
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