Strategic audit

Topics: Asset, Balance sheet, Federal government of the United States Pages: 31 (4381 words) Published: December 1, 2013


Strategic Audit
for iRobot Corporation Case Study

I. CurrentSituation
A. CurrentPerformance
iRobot designs and builds robots that make a difference in the home, field and workplace. iRobot was founded in 1990 in Delaware, Massachusetts and it was the first company to introduce robots into the life of the household and make the robots part of their daily life. In comparison to the other products, home products were the most successful ones. Some of the iRobot’s products are: Roomba (vaccum cleaning), Scooba (floor cleaning), Brava (floor mopping) – home products; PackBot, SUGV, Warrior, etc. – Defense and Security products; iRobot Aware 2 robot intelligence software, Robot Developers Kit – developer products. According to iRobot Third Quarter Financial Report: Home Robot revenues increased by 16% in the third quarter compared to one year ago. For the first nine months of 2013 were recorded revenues of $361.1 million, net income of $24.5 million, earnings per share (EPS) of $0.84, Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $49.4 million. In this report were also included expectations for the coming three months until the end of the fiscal year 2013. The table below shows what iRobot expects to achieve until end of December 2013 and what was achieved the previous year, 2012. Fiscal Year 2013:

Current

Prior
Revenue

$485 - $490 million

$485 - $495 million
Earnings Per Share

$0.90 - $0.95

$0.88 - $1.00
Adjusted EBITDA

$58 - $61 million

$55 - $61 million

iRobot focuses on four core technology areas:
Advanced Platforms
Human-Robot Interaction
Collaborative Systems
Semi-Autonomous Systems

B.Strategic Posture

1. Mission
iRobot mission statement is:
“Build cool stuff. Deliver great products. Make money. Have fun. Change the world.” This is a really inspirational mission statement, where it says what the company does (builds and delivers cool products). Have fun refers to employees enjoying working in this corporation. Change the world means change the life of the people by introducing this new products that in a near future is going to turn into a “must have” product. 2. Objectives

iRobotclearly specifies that:
“Our objective is to expand our leadership globally in designing and building practical robots and in developing robotic technology” The objectives of iRobots are:
Develop new products
Coming up with new products is crucial in this type of industry. Since things are changing fast being ahead of time is very helpful. Being innovative and come up with great products is Stay ahead of consumer needs

Do not wait for the consumer to look for a product that he needs but develop a product that the consumer will need. Expand Globally
Become a global company and explore other markets and increase sales Stay the leader in developing robotic technology
Be the number one company in developing robotic technology and stay ahead of the competitors. Compete with competitor in uniqueness, price, and quality of its products Increase sales of the home robots

Home robots generate the highest sales from the total sales. Informing the consumers about the home robots,their usefulness and what they are capable of doing would increase the interest of consumers having this product in their own homes. Spend more time and resources in R&D

In order for iRobot to stay competitive and to develop new and successful robots (either home or military robots) is very important to know what the customers need and provide them a product that were looking forward on having.

3. Strategies
iRobot wants to be the leading company in the robotics industry even in the future, therefore having clear strategies about the future is crucial for the company. Some of the strategies iRobot is willing to pursue are: Focus on core markets

iRobot...

References: http://www.irobot.com/us/cool_stuff/Research.aspx
http://prezi.com/swxgfa_fra6h/irobot
http://www.irobot.com/us/Company/Press_Center/Press_Releases/Press_Release.aspx?n=022812
http://www.boston.com/businessupdates/2013/01/04/irobot-rolls-out-new-machines/fY80Bz1a1hr1imcREM2VsL/story.html
http://www.intouchhealth.com/in-the-news/press-releases/02-01-2012
http://finance.yahoo.com/news/irobot-reports-third-quarter-financial-200100698.html
http://seekingalpha.com/article/1492472-irobot-will-see-future-revenue-boost-from-brazil-contract-and-ibm-technology
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