Transcription
Cameron WalburgEvan ZamoraJeff DeanJuliet LaChappellNicole SkubicTyler CramerTyler FordA
ContentsI. Executive Summary. 1II. Columbia’s Past and Current Strategies. 2Past Strategies. 2Current Mission and Vision Statement. 2New Mission and Vision Statement . 3III. SWOT and Environmental Analysis. 3Columbia SWOT Analysis . 3Columbia SWOT Matrix . 4Cabela's SWOT Matrix. 4Patagonia SWOT Matrix . 5Lululemon SWOT Matrix . 5Under Armour SWOT Matrix . 5Marmot SWOT Matrix . 6Macroeconomic Factors . 6IV. Columbia’s Organizational Structure . 7Current Organizational Structure . 7Reorganization. 8V. Columbia’s Unique Position . 9B
Value Chain Analysis . 9Key Success Factors . 9Distinctive Core Competencies and Core Competencies . 10VI. Market and Competitive Analysis . 11Michael Porter’s Five Forces Model of Competition. 11Strategic Group Maps. 11Competitive Strength Assessment . 12IE Matrices . 12BCG Matrices . 13GE Nine-Cell Planning Grid . 13Company Life Cycle. 14VII. In-depth Financial Analysis . 14Edward Altman Z-Score. 14Trend Analysis. 15Revenues, Expenses, and Net Income . 16VIII. Recommendations and Implementations . 17SPACE Matrix. 17Grand Strategy Matrix . 17QSPM . 17Balanced Score Card . 18C
GANTT Chart. 18EBIT and Net Worth Analysis . 18Pro Forma Recommendation Implementation. 19Sources of Resistance . 19Contingency Plans . 20Fishbone Diagram . 21IX. Epilogue. 21References. 22APPENDICES . IAppendix A: Vision and Mission Statements .IIAPPENDIX B: SWOT Analysis and Matrices . IIIAPPENDIX C: Organizational Chart. XIVAppendix D: Value Chain . XVIIAppendix E: Michael Porter’s Five Forces .XXAppendix F: Strategic Group Maps . XXIAppendix G: GE 9 Cell Matrix/CSA .XXIIIAppendix H: IE Matrices . XXVIIAppendix I: BCG Matrix . XXXVIAppendix J: Life Cycles.XXXVIIIAppendix K: Edward Altman’s Z-Score. XXXIXD
Appendix L: Financial Analysis Trends . XLAppendix M: Revenue, Expenses, and Net Income Graph. XLIIIAppendix N: SPACE Matrix. XLVAppendix O: Grand Strategy Matrix. XLVIIAppendix P: QSPM. XLVIIIAppendix Q: Balanced Score Card .XLIXAppendix R: GANTT Chart. LAppendix S: EBIT and Net Worth Analysis . LIIAppendix T: Pro-Forma Cash Flow and Income Statement .LVIAppendix U: Fishbone . LXE
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I.ExecutiveSummaryThe following is an analysis and evaluation of Columbia Sportswear Company. Thiscomprehensive strategic audit contains recommendations to improve the company’s prospectiveprofitability and financial stability. The methods used for analysis contain models and analyticalmethods including: SWOT, Porter’s Five Forces of Competition, debt and current ratios and ValueChain Analysis. All calculations and graphs can be found in the appendices. The forward thinkingstatements and recommendations created by the authors are opinions and suggestions only. Werecognize there is no guarantee that if followed, the recommendations will see the same results asprojected in this report.The current position of Columbia Sportswear is steady but stagnant. Columbia has anestablished distinct brand name in the outdoor sportswear industry. They have been able to producenew sportswear technologies and meet the current demands of the changing market. Their marketshare has declined over recent years due to competition as well as the effects of seasonality on anoutdoor sportswear company. The analysis of the SWOT Model revealed Columbia is weakened dueto their focus on retaining key employees in the Boyle family who started the company, as BoardDirector, CEO and upper management positions. Through the use of return on equity and EBIT ratiosthey portrayed that Columbia is underperforming and needs to improve their financial stability. Asfound from Value Chain Analysis, Columbia has the lowest revenue percentage of all theircompetitors, therefore we highly suggest Columbia pursue a joint venture with Lululemon. Throughthese suggestions, Columbia can increase its market share, have a higher share price and will becomemore profitable. We believe that if these recommendations are followed and implemented correctly,Columbia Sportswear will not only survive in the volatile market but thrive in the industry.Sincerely,UNR Consultant Group1
iesOver the past 5 years, Columbia Sportswear was focused on strengthening the Columbia,Mountain Hardwear and Montrail brands as leading innovators in the outdoor industry.Columbia also elevated the SOREL brand, targeting female consumers with the brand’s evergrowing popularity and appeal; however this did not translate to an increase in sales. Aside fromtheir numerous innovations, they have also successfully implemented updates to existingproducts as well, using technological advanced to progress style, fit, and construction. Thesestrategies helped Columbia create a competitive advantage in the battle to offer products thatkeep consumers warm, dry, cool and protected in the outdoors.We believe there remains significant opportunity for growth, despite the unseasonable weatherthat temporarily decreased demand for cold weather apparel. We suggest that Columbia continueto expand the existing innovation platforms the company has focused on previously. We alsorecommend that due to the issues with cold weather, Columbia shift some of their focus fromtheir winter weather products to warm weather. See Appendix ACurrentMissionandVisionStatementColumbia has a standard mission statement, that does include key factors of the company, but itcan use some work. The current mission statement is a bit too wordy and although it does includekey components of the company it could be done in a more efficient manner. For example, themission statement uses “outdoors” and “outfits”. The repetition of this word is obvious because itis such a small statement. The full current mission statement can be found in Appendix A.2
Columbia does not currently have a distinctive vision statement. The recommendation is torestructure all future plans for the company into a clear and concise vision statement that can beused to gauge the company’s progress and to see if they have met all goals they have set.We also recommend that Columbia strategically develop a list of core values that the company isfounded on; these values would be innovation, quality and performance. These are core valuesthat are apparent throughout the entire company and represent the mission and vision of thecompany well. See Appendix ANewMissionandVisionStatementThe new mission that we recommend Columbia implement appeals to the outdoor enthusiastcliental of customers that buy their products. It includes the innovative company culture thatColumbia is founded on. It also does not include an unnecessary breakdown of their productlines that came across too wordy in the current mission.The new vision lists actions that Columbia will take in order to further the company in thedirection they want. This new and developed vision will serve as a guide for company decisionmaking in the coming years. We believe that this new mission encompasses all that Columbiastands for and represents the company in a far superior way. A full current mission, vision, andcore values can be found in Appendix A. See Appendix sisOne of the greatest strengths that Columbia has in the outdoor industry is their line of OmniTech clothing. Columbia’s stre
Under Armour has the strengths of a really strong brand and many athletic endorsements. These athletic endorsements help shed more light on their brand and also helps strengthen the brand since athletes are using the product. Under Armour struggles with a weak economy and they
