MISSOURI CAN COMPANY

                The company has been performing well over the past years and it has had a long as well as an uneven history. There has been different Implementation of the strategies by the different administrators in the company as they all aim at competing within the competing environment. With the increase in the competitors, there have been several changes in the strategies implemented in the company. However, the company has been able to constantly remain committed towards packaging business in the varying business forms that the company has engaged into. There have been changes in this line of business which have affected the company and thus making the company to have a weaker position among their competitors and thus they lack the competitive advantage. It is due to this weak position and the lack of competitive advantage that the company has engaged in other production activities which have not been able to perform well. It is through these problems that it is important to identify some of the strategies that ought to be put in place so as to enhance the company to realize better opportunities in the business and to be able to have the competitive advantage. This paper therefore will present a five year strategic plan inclusive of the cost estimates as well as a timeline. It will also present the situations that are facing the company and it will discuss on the specific recommendations for the company. It will also analyze the financial impact of the decisions that would be taken and the difficulties that the company may face in the implementation of the recommendations.

Five year development strategy

                Vision: Growth and profitability within the company.

                Mission:  “To effectively produce quality products and services within the company’s restructured sector that involves the packaging, insurance, forest goods and energy so as to be able to attain the competitive advantage from the increased productivity, invention and focus in market”.

                Objectives:

• By 2021, to increase the size of the company’s operations by increasing the sales and the profits on segment property by 15%-18% annually.
• By 2021, to incorporate with the shell and Mobil companies in the construction of the 502- miles carbon (IV) oxide pipeline so as to achieve a profit of 13% annually for the five years.
• By 2021, to look at the franchise beyond the manufacturing of the bottles that are blow molded or aluminum cans but rather as a relationship established with their major competitors in the package business line.
• By 2019, to build two paperboard plants and other plants to be included in the planning and design process that should be on line with the five year strategic planning.

 

 

 

 

Strategies: The specific strategies to be implemented include:

• Reduce assets in operations that do not achieve the performance objectives or fails in meeting the long term strategy of the firm.
• Selling of these assets and using the funds in areas that have a high promising growth rate in profits.
• Develop long term profit on equity due to the reinvestment approach.
• Reinforce of the organization’s balance sheet as well as the credit standing.

Action plan:

Action step	The Individual (s)responsible	Date of completion	Cost estimated	Potential barriers
Incorporation of the shell and Mobil companies.	Project committee and a consultant.	January 2021	$250,000,000	None anticipated
Business expansion and marketing	Sales and market department	December 2019	$10,000,000	None anticipated
Improvement in the preventive preservation practices by building a competitive plant	Forest product experts	December 2021	$ 1,000,000,000	The company administration may view this project as so expensive, thus they must be convinced of the benefit even before approving the plan.

 

Financial analysis

Years	2008	2007	2006	2005	2004
Current assets	$2,080	$2,090	$2,498	$2,446	$2,476
Total assets	7306	8398	8270	8172	8060
Net income	398	360	468	400	370
Revenue	11044	10024	11588	10240	9022
Current liabilities	1464	1556	1670	1740	1688
Return on assets	0.05	0.04	0.05	0.04	0.04
Return on sales	0.03	0.03	0.04	0.03	0.04
Liquidity (current ratio)	1.42	1.34	1.50	1.41	1.47

 

               

                The company thus has a low liquidity and thus it requires some recommendations as it shows that it will default on attaining the short term goals like that of the five year and thus there are recommended strategies that ought to be implemented so as to enhance the company to realize more opportunities as well as have a high liquidity. As the company works towards the success of the strategic plan developed for five years, it should have some changes within its operations so as to be able to attain their core vision of expansion and opportunities within the business. There are several recommendations that the company ought to implement in its business so as to realize maximum profits. It is thus recommended that the company should evaluate their assets so as to identify those ones that are not used or those ones that are failing to perform well in the company. The returns from the sale of these assets would help the business in reinvesting in other projects that would help the company to realize more opportunities.  Another recommendation is on the incorporation of the company with other companies as this would help them to have a shared goal and each company will work towards the attainment of the goal and hence increasing the productivity of the company resulting from the corporation.

                The company is also recommended to build competing plants so as to be able to produce quality forest products that would cost less and than that of their competitors thus allowing them to lead in the business segment.

This would result in high demand of the products by the customers and this would help to raise the level of profitability and cash flow within the company thus allowing the company to reinvest the improvement projects so as to realize more competitive advantage. The uncertainties involved in the recommendations included the possible risk of engaging in the large corporations with large ventures. This is because the company lacks a protected position in a firm that is rapidly joining into large companies which have the finances to join, lose and to big bet on the exploration. Therefore the company should focus on the ways in which they can expand their company through less risky practices and as they become big, they can now focus on alternative practices such as incorporation with the large entities.

                In conclusion, the company should consider the following recommendations as they will help the company to be able to be competent amongst their competitors and also to be able to grow and expand their operations. The recommendations include;

• Reduce assets in operations that do not achieve the performance objectives or fails in meeting the long term strategy of the firm.
• Selling of these assets and using the funds in areas that have a high promising growth rate in profits.
• Develop return on equity over the long term as a result of the reinvestment strategy.
• Reinforce of the company’s balance sheet as well as the credit standing.

                Once the recommendations are implemented in the company, it will be able to invest more on advancing investments and this will increase the annual revenues even in the absence of the major investments. This will thus enhance the company to constantly improve, develop, grow and expand hence allowing the company to realize competitive advantage.

 

 

 

 

 

 

 

 

 

 

References