Inner City

1 Inner-City Paint Corporation Analysis of Case 24 proposed by Laurene , Claire, Sanae, Victor, Daniel and Alberto 2 What are the opportunities and threats facing Inner-City Paint? Opportunities • Larger orders • More varieties in sold gallons Threats • Compete with giants • Lost confidence of customers • Slowdown in overall the economy 3 What are the strengths and weaknesses of Inner-City Paint? Strength • Fast service • Quality • Lower prices

Weaknesses • Without managing and financial control • No inventory records • Inflexibility • Disorganized (Management did not grow with the size of the firm) 4 What are the strategic factors facing Inner-City Paint? • Only market of Chicago • Direct competitors in Chicago • Cash on delivery • Customers purchase by credit • Nonunion employees 5 Does Inner-City Paint have any core competencies? If yes, what are they? • Quality • Fast service 6

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Does Inner-City Paint have a distinctive competency? If yes, what is it? • Supplies paint to contractors within 24 hours 7 What is the role of strategic management in Inner-City Paint? What impact, if any, is this having on the company’s present performance? Customers = Untrusted No delegation Stanley Walsh Financial difficulties The only salesman Employees = Unskilled Unspecified 8 How would you (Mr. Walsh) fire your mother, Mrs. Walsh, the office manager? Have a meeting with her to explain the situation of the firm • Explain her that her job is not very necessary for the company • Minimize the situation and talk with her about the compensations she will have • Explain her that it’s not against her but he has no choice if he wants to maintain his firm afloat 9 How should Mr. Walsh deal with the negative rumors about his company? Publication of an article in a magazine Organisation Rumors Borrow money to pay current bills. 10 What type of documentation should Mr. Walsh prepare before asking the bank for a loan? Financial file: – sales – purchases – investments – financing -accounting documents

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