Case Study Finance

Strengths

· Effective execution of new projects and high returns on capital expenditure.

· A reliable distribution network to reach potential customers over different markets.

· Strong cash inflows

· Successfully able to expand into new markets

· Build up a competitive advantage through mergers and acquisitions

· A very good brand portfolio

· High level of customer satisfaction through customers’ centric approach

Weaknesses

· Though Finish Line has been best at its core business but it is not successful at expanding to different products outside its core competence

· Not able to forecast demand properly leading to missed opportunities and high inventory handling costs

· Not able to utilize Cash appropriately. High Current and Liquid ratio indicates company has invested too much of funds in short term assets.

· High attrition rate in workforce.

Opportunities

· Low inflation rate which in turn will lead to more stability in the market

· High cash flows provide opportunity to company to invest in new projects and technologies

· Low shipping rates provide an opportunity to the company to expand in different markets

· Growing Online business, and company’s investment in online platform also provides opportunity to make its presence globally.

Threats

· Rising pay levels among workers present a threat to the profitability of the company

· Shortage of workforce in different markets possess a threat to global expansion

· Since the company has worldwide presence, and its agreement are made in advance, it is exposed to the risk of currency fluctuations

· The level of competition is increasing in the industry, and it possesses a threat to the brand value of the company

· The company is also exposed to various laws in different countries, and failure to comply with them may lead to huge risks to reputation.