Table of Contents
1. Company Overview
2.2 Strategic Business Units in Carphone Warehouse
2.3 SBUs and Their Orientation
2.4 SBUs and the BCG Model
2.4.1 BCG Model’s Recommendations
2.4.2 Product life cycle of the ‘cash cow’ and the ‘question mark’
7 2.5 PEST Analysis
2.6 Carphone Warehouse SBUs and “Five Forces”
2.6.1 Industry Competitors
2.6.3 New Entrants
2.6.4 Buyers (Customers)
2.7 Current Strategies
2.8.1 Short-term Recommendations
2.8.2 Telecoms Marketing Mix In The Short-Term
2.8.3 Long-term Recommendations
2.8.4 Sell Distribution (retail business)
2.8.4 Invest in Telecoms and re-brand as TalkTalk (use for operations)
14 2.8.5 Establish effective relationships with the consumer by delivering value
14 2.9 Conclusion
3.1 Financial Analysis Précis
3.2 CPW Overall Performance
3.3 Group Operating Profit Margin
3.4 Return on Capital Employed (ROCE)
3.6 Interest Cover Ratio
3.7 Earning Per Share
3.8 Current Ratio
3.9 Management Ratios (Including Stock, Debtor & Creditor Days)
23 3.10 Divisional Contribution Margin
Divisional Contribution Margin – Segmental
3.11 Operating Profit Margin
4.1 Operations Analysis Précis
4.2 The Transformation Model
4.3 Operations Characteristics
4.3.1 ‘Four Vs’ Model
4.3.2 Implications of ’Four Vs’
4.4 Polar Representation
4.4.1 Analysis of Polar Representation
THIS REPORT PROVIDES AN INSIGHT INTO THE MAIN STRATEGIC PROCESSES AND METHODS OF CARPHONE WAREHOUSE (CPW), EUROPE’S BIGGEST INDEPENDENT MOBILE RETAILER. IT AIMS TO PROPOSE VIABLE FUTURE STRATEGIES FOR THE BUSINESS BASED ON THE CRITICAL REVIEW OF ITS MARKETING, FINANCE AND OPERATIONS. CPW IS SPLIT INTO TWO MAIN STRATEGIC BUSINESS UNITS (SBUS): DISTRIBUTION AND TELECOMS. EACH SBU IS ASSESSED INDIVIDUALLY. METHODS OF ANALYSIS INCLUDE PEST, ‘5 FORCES’, RATIO AND COST ANALYSIS. ALL CALCULATIONS CAN BE FOUND IN THE APPENDICES.
The results of our assessment show that CPW has been growing at a fast rate, with Distribution being the main source of revenue in the earlier years. However, Telecoms SBU, having started at a much lower point than Distribution, is catching up very fast and may soon overtake Distribution in its growth. Furthermore, we discover that a number of strong forces, such as suppliers’ bargaining power could potentially undermine the future of the Distribution unit. Vodafone’s exclusive contract with Phones4U, combined with the possibility of consolidation among CPW’s main suppliers make the Distribution unit vulnerable to factors outside its control.
We propose shot-term and long-term objectives for CPW. These include developing the Telecoms brand via CPW’s current distribution channels and selling off of the Distribution business to reinvest in Telecoms and reinforce its growth. Our analysis of CPW’s financial ratios and operations shows that the margins for the Distribution division have remained flat over the years whilst the Telecoms division has seen growth in its contribution margins. With everything taken into consideration, we believe that the Telecoms division could potentially become a solid business through a number of cost-saving infrastructural investments, which would improve its profit margins and make it less dependent on its supplier, BT.
THE PURPOSE OF THE CASE ANALYSIS IS TO GAIN BROAD INSIGHT INTO THE DIFFERENT STRATEGIES EMPLOYED BY THE CARPHONE WAREHOUSE PLC. THIS WILL AID IN DEVELOPING RECOMMENDATIONS FOR MAJOR ASPECTS OF ITS FUTURE STRATEGIES. THE REPORT WILL BE DISSECTED INTO THREE SECTIONS: MARKETING, FINANCE, AND OPERATIONS. EACH...
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(2006 – 2007) OF CARPHONE WAREHOUSE
|Formulas and Calculation |2007 |2006 |
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