Caribbean Information And Credit Rating Services Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION

Caribbean Information and Credit Rating Services CariCRIS was formed in 2002 and officially launched in 2004 at Port of Spain. The main purpose of CariCRIS is to assess the creditworthiness of its clients in comparison with other debt issuing agencies.

CariCRIS has also expanded its services, initially it was providing services within one region and currently it has expanded its operations and started providing services across the nation. CariCRIS has been associated with Credit Rating Agency (CRA), which has established a presence in almost 10 countries in the Caribbean.

CariCris was founded by Theodore Sinclair and David Barnes in 2002. Vijay Raghavan is the Chief Executive Officer of the company and now he is considering his retirement and giving the whole authority to new Chief Executive.

CariCris’ ratings aim to provide a regionally applicable threat evaluation of entities and the debt that they issue within a wider framework of an investigation of economic trends and monetary developments. This will considerably increase an investor's capability to compare sovereign and corporate credits in the region. For borrowers, CariCris’ ratings will enhance credibility and expand access to funding sources.

FACTS OF THE CASE

The company is unable to make huge profits because of less sales. The competitors of CariCris are becoming a hurdle in the expansion of the company. The company has set to the highest standards and best practices. The CEO of the company is retiring and a new CEO named, Brian Howard has been hired by the company. The company made its formal launch in 2004 in which it incurred a huge expense and was able to convince only one potential client. The company is unable to convince the regulatory authority of the country. The business development of the company was single handedly managed by the existing CEO of the company. The company is unable to fulfill the needs of its shareholders therefore, the company’s share holding start decreasing. Most of the potential clients in the market admired and gave preference to P&B over CariCRIS. The employees of CariCriss are demotivated because the company doesn’t have many clients as well as they are not involved in the decision making of the company. Raghavan did not get spare time to discuss the confidential issues with his team members. CariCriss conducted two credit rating programs and also got a mandate for conducting for five private credit assessments. The company has marketed full service private rating to attract its clients.

WARNINGS

If the company does not make any suitable sales or marketing strategy, then the company will remain in the same position or it could also plunge into depression. If the regulatory authority does not support the company therefore, the company would not be able to get more clients as it won’t be able to build a good reputation in the entire market.

SWOT ANALYSIS

STRENGTHS

CariCris has a brand name to some extent which attracts prospective and potential clients towards the company. The first launch of CariCris was successful in which the management of the company has convinced the potential customers by giving realistic and credible speeches. CariCris got its first mandate National Gas Company (NGC), which is a cash rich and well reputed client. Caricris had shown excellent performance in its first client due to which it has gained the satisfaction of that client. Caricris launched a quarterly journal named as Rating Monitor, which is well received by the market and has obtained constructive feedbacks from the potential clients.

WEAKNESSES

CariCris charges low prices from its clients due to which the company is unable to make huge revenues. CariCRIS does not involve its employees in the decision making of the company due to which they are less motivated, which decreases the overall efficiency of the company. The employees of the company are not highly educated as well as they do not possess enough expertise in order to give competent services to its clients.

The company is unable to grab a huge share in the market due to which its shareholders are unsatisfied as well as they have doubts on the integrity of CariCRIS and they don’t even take services of credit ratings from CariCRIS.

OPPORTUNITIES

The companies all over Carribean are getting aware of the services of credit rating, which provides an opportunity for CariCRIS to expand its business. The political stability of Caribbean and the good economic and financial conditions of the Caribbean also provide opportunity for CariCRIS to expand its business efficiently and effectively.

Nowadays, businesses are more inclined towards credit purchases and credit sales, due to which they want to assess the credit ratings of the other debt issuing authorities and financial sectors. Therefore, CariCRIS can make its backbreaking efforts to capture a huge market share in the entire industry.........

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