1. Current Situation
Sporting goods business was initiated by Steven Donnie in 1994 and it was a seasonal based business at the beginning which was diversified by the owner. In the start, the business name was different “Outdoor Equipment Company which was changed to more innovative and attractive name as “Mountainarious Sporting Company”
Current situation of the company is that it is run and managed by the owner himself. It was dealing in season hockey sticks and it keeps on changing its line of business with the passage of time but it is very difficult for the company to get its return on assets by being in the seasonal business as the demand for guns and cameras have become obsolete and the demand for soft goods is growing day by day such as branded shoes and clothes. So, company is planning to expand its business to maintain its profitability. It was operating in equipment based sports business such as racquets, bicycle and hockey sticks.
Owner offered its land on rent to some other business chains and he was earning its income to run its business and it was a good source of income for the company till year 2008 which the company is desirous to utilize for its soft goods business operations and provide its customers an attractive place for shopping.
Mount Everest 1996 Harvard Case Solution & Analysis
2. Issues
Company was facing so many issues since its incorporation and it became worst when it was caught by a fire which forced the owner to restructure its business model and switch it to the other area.
There is another issue of lack of management because owner was himself managing all the operations which became quite a difficult task for him and he was lacking in experience for soft goods business so it was very difficult to manage both the businesses.
Company did not stick to one business and askepton changing the business line which was very much alarming and it was quite difficult for them to compete with thecompetitors and there was technological advancement coming on such as selling their goods through online portal which company was lacking because it did not have the expertise to carry on online business.
Company was lacking in delegation of authorities and responsibilities to the managerial level staff for taking their decisions and suggesting the creative and innovative ideas to management for successful implementation of new plans and strategy for achieving its targets.
Company was unable to manage its credit limit and maintaining the profitability due to the seasonal business changes and they were moving towards new products.
3. Importance
These issues are very important to take into consideration before doing any projections for expansion as they needed to first resolve these issues so that they would be profitable enough to carry on its operations. They should look into the shortage of credit facility problem and get the grant of additional 20000 dollars so that they meet their working capital requirements..........
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