Brunswick Public Traded Corporation Research Order Instructions: Assignment 5: Capstone
worth 400 points
Select a publicly traded corporation for which you would like to work or are currently working.
(Please use Brunswick Corporation)
Research the corporation on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
Write an eight to ten (8-10) page paper in which you:
1. Determine the impact of the company’s mission, vision, and primary stakeholders on its overall success.
2. Analyze the five (5) forces of competition to determine how they impact the company.
3. Create a SWOT analysis for the company to determine its major strengths, weaknesses, opportunities, and threats.
4. Based on the SWOT analysis, outline a strategy for the company to capitalize on its strengths and opportunities, and minimize its weaknesses and threats.
5. Discuss the various levels and types of strategies the firm may use to maximize its competitiveness and profitability.
6. Outline a communications plan the company could use to make the strategies you recommend above known to all stakeholders.
7. Select two (2) corporate governance mechanisms used by this corporation and evaluate how effective they are at controlling managerial actions.
8. Evaluate the effectiveness of leadership within this corporation and make at least one (1) recommendation for improvement.
9. Assess efforts by this corporation to be a responsible (ethical) corporate citizen and determine the impact of these efforts (or lack thereof) have on the company’s bottom line. Provide specific examples to support your response.
10. Use at least five (5) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
• Determine ways in which the vision, mission, and stakeholders of a firm impact that firm’s overall success.
• Identify how the six segments of the general environment affect an industry and its firms.
• Identify the five forces of competition.
• Analyze the external environment for opportunities and threats that impact the firm.
• Analyze the internal environment of a company for strengths and weaknesses that impact the firm’s competitiveness.
• Identify various levels and types of strategy in a firm.
• Assess the ethical implications related to strategic decisions.
• Predict ways in which corporate governance will affect strategic decisions.
• Assess the relationship between strategy and organizational structure.
• Use technology and information resources to research issues in business administration.
Write clearly and concisely about business administration using proper writing mechanic
Brunswick Public Traded Corporation Research Sample Answer
Introduction
Brunswick Corporation is a company that has been building boats for commercial and military use for more than 50 years. This has been the case since their meager commonly referred to as the legendary Boston Whaler brand. Brunswick company, is one of the largest marine manufacturers, among other indoor recreational equipment. The company does not only manufacture their products, but also market them around the world, but majorly operate in the US. Brunswick headquarters is located in the Lake Forest, Illinois.
Brunswick company has a vision of being the best and the most profitable company producing recreational and lifestyle brand. In fact, they are aiming at redefining the marine, recreational and a greater experience for generations to come. This will help in elevating people’s life fun, provide fitness solutions as well as help people live their lives well. This implies that Brunswick has an outstanding brand that has a recognizable mark around the world market. The company innovations move in a direction that ensures the customers get the best experience. The mission statement is to become the market leader in the marine, fitness, and recreational industries. The company has also made countless effort to gain experience so that they can provide the best quality recreational commodities. In fact, no industry is comparable to Brunswick that offers the world-class marine machinery. Furthermore, they have outstanding quality products that they have no rival companies. Also, they have outstanding knowledge about their product. Brunswick has a unique mission does not include their customers, employees, and their shareholders. However, their main aim is to retain the best-talented workers and provide game-changing commodities. The company advertisement id based on the slogan, Getting the product right.
Brunswick Public Traded Corporation Research and Forces of competition
Over the years the company has not been innovative thus has continuously made products that are not differentiable products. Brunswick also overstretches in four segments it has not mastered any of their products. This fact has made them less competitive in the global market in any of the segments they operate (Venkatraman, n.d.). The forces of completion to this company are very high. There are different forces of competition that the corporation faces. For instance, they face highly specialized competitors who have an advantage over Brunswick. The specialized companies have an advantage in that they can occupy a certain market niche and satisfy their customers well. However, the company has a vast knowledge of the market rather that a specific expertise (Venkatraman, n.d.).An example of forces of completion that faces this company includes; the entry of new businesses into the market. This is a moderate risk, where a larger capital expenditure firm needs to enter into this niche. This will be a significant blow. However, they have an upper hand advantage of the cost and performance advantage as they enjoy the economies of scale. Also, they can supply their products through their developed chain of supply. In the case of a new firm entry, the customers can switch to those products as there is no cost of switching from the product(Dobbs, 2014). Also, the risk of entry of a new firm has been moderate since the capital required for manufacturing an identical products offered by Brunswick is high. Furthermore, there are licensing issues which need to be acquired before starting the operation.
The Bargaining Power of Customers is extremely high. When the commodity becomes so expensive, the customers are ready to switch to the readily available more affordable product. This sensitivity of the price possesses a high risk to this company. Thus, to win the hearts of their customers, Brunswick corporate needs to provide unique commodities at relatively affordable prices. That is to say; they need to be much more innovative when manufacturing their goods. In other words, the company should not settle in providing standard products as they will not sustain the customer’s individual needs (Venkatraman, n.d.). Furthermore, the company should have a good relationship with their dealers as they play a vital role in the price of the commodities. This is mainly because the dealership has the power to control much of the marketing over the market.
There is a higher bargaining power of the suppliers and the likelihood of the vendor threatening to integrate into the company. This is simply because the enterprise produces commodities that are less differentiated. The suppliers also have a vital role to play as they have a higher pricing power. They maintain a large margin of income; the company needs to keep agood relationship with their suppliers. This will increase not only the company’s profit but also the efficiency. The suppliers will advertise the commodity as Brunswick produce, and the commodities will find a ready market.
The company’s product is also faced with threats of substitutes (Venkatraman, (n.d.). Brunswick is a jack of all trades, but a master of none since they are engaged in; boat building, manufacturing transport vessels, indoor sports kits, fitness equipment, and also consumer products. Thus, they lack specialization in any niche in the industry. Furthermore, the company has a much-extended value chain that lacks differentiated products. This causes a diminishing in their brand equity.
A SWOT analysis for the company
In an attempt of identifying the internal strength, weakness of Brunswick and also an environmental opportunities and threats, the SWOT analysis was performed. There is some favorable internal strength that Brunswick Corporation enjoys, for instance, they have an intellectual property right. This has enabled them to acquire recognition and financial benefits from their creation. In other words, they have patents, trademarks, and copyright which helps them to operate with the specified law. This helps the company to nourish their innovation, which makes them have a competitive advantage. The company also enjoys an extensive network distribution which has made them penetrate the global market. In fact, the company has explored different distribution channels which are efficient and cheap, hence reaching a wider market. Also, these channels have enabled the commodity to reach the market at affordable prices. In addition to this, the company practices good human resource, which has allowed them to acquire an excellent reputation (Brunswick n.d.).
Some of the internal threats the company faces are like the downgrading of the credit rating, which has been of a detrimental effect on the financing options. This has occurred as a result of analysts feeling that the future prospect of the security has weakened. This is primarily due to the fundamental operations changes of the company or the future outlook of the firm. Another internal threat that Brunswick Corporation faces is the financial market volatility. This can be defined as the dispersion of returns for the company’s security, which have an impact on the pension assets and consequently affected the liquidity position of Brunswick.
On the other hand, there are some of the external opportunities that companies can invest in research and development, which is likely to increase sustainability in the competitive market. A point often overlooked, the investment in D&R helps in the development of a new product, and also remain competitive and does the company stays ahead of the technology. The company also has a great opportunity in increasing or expanding the international footprint, which will offer more market since the home market has declined. The company opts to increase their international marketing which is likely to offer better buyers of their diverse commodities (Brunswick n.d.). The company also can adopt some restructuring initiatives that will improve the expenditure in the business. This will also significantly reduce overhead cost and thus increase the profit margin.
The company Faces some external threats like; they excessively depend on General Motors in their distribution. Thus, in the case of any disruption in General Motors, chain distribution, the company is highly likely to suffer from a lack of sales (Brunswick, n.d.). Furthermore, there is the universal deterioration of the economic conditions. This reduces not only their sales but also the profit margin. Last but not least, if a competitor dealers reduce their inventory, this can adversely impact the financial results of Brunswick.
Strategy to capitalize on strengths and opportunities
Some of the fruitful strategies that the firm can adopt to increase their profit are the reconstruction initiative, which can lead to a significant increase in saving the cost of production. For the matter of fact, the company will make significant sales, which will be adequate to enhance their income. Furthermore, the company can increase the distribution channels, and therefore boost their sales. In the case of growth in the international footprint, the company will stop over dependence of General Motors as their primary supply distribution. Thus, the company will penetrate the global market, and their goods will gain more recognition.
Strategies to maximize competitiveness and profitability
These are the key mechanism that the company needs to focus its energy and resources so that they can increase their sales and also dominate the targeted market niche. To maximize profit a competitiveness, the company opts to strategize the product development, its marketing goals, relationship management, pricing, distribution among other crucial factors(Business Plan Hut.n.d.).In fact, (Business Plan Hut, n.d.) stipulates that there are three major strategic approaches that a business can adopt to increase competitive advantage and increase profit. The first devised plan is the low-cost production strategy, which makes the product not only cheaper, but also at a conceivable price. This plan will give Brunswick a cost advantage over their rivals. To be sure, there are two options unveils through this strategy. The company can undercut their competitors and enjoy a significant market share, or they can just continue selling their goods at the prevailing market price and consequently enjoy larger profit margin. This can be achieved through a number of ways like; adopting more efficient equipment, minimize overtime costs, reducing the wastage of raw materials among other vital techniques.
Secondly, Brunswick should take a differentiation strategy, which will help to satisfy the customers need when standardized commodity can’t. This involves the producer, mastering the features and attributes that their targeted market prefers. More importantly, this makes the customers value the goods that a company produces. Moreover, any firm operates so that they can gain a competitive advantage over their competitors(Business Plan Hut, n.d.).Differentiated products are much valued, and the customers are willing to incur an extra cost for those products. The third strategy that the Brunswick corporation can incorporate to optimize their profits and dominate their competitors is focus strategy. This involves focusing on a small segment of the market that existing businesses has not served. In fact, ensures that the goods and services produced to satisfy the needs, desire, and interest. This theoretically implies that the company should serve a niche much adequate rather than a large market just adequately or inadequately. This strategy proves useful when the customers have diverse needs, wants, characteristic, profitability and desire. In other words, the producer can pay attention to a specific market segment and satisfy their desires.
Communication strategies.
Brunswick has an upper hand when it comes to competition. In the matter of fact, this company has changed their operation game by optimizing their internal strengths to increase their opportunities and reduce external threats. One of the best strategy that they can adopt to improve their market penetration, and improve their R&D. Indeed, the company needs to develop eco-friendly products and recreating their products so that they can gain popularity. This plan will make Brunswick products to have global recognition as well as a competitive advantage.
Another communication strategy that the company can use to win the heart of their business is manufacturing unique indoor recreational tools, which caters all people’sneeds. This should be promptly done before any other competitor notices the existing gap. Furthermore, when marketing, they need to adopt clever measures to leverage (Steyn, 2012). Thus, Brunswick should try as much as possible to improve the brand image to compete at the global level.
Corporate governance mechanisms
Brunswick in most cases, practices ownership concentration one of three corporate governance. These are the effort used by large shareholders that have a strong incentive of monitoring the management as they have invested a significant stake in the firm. In fact, they spend their time, effort and expense so that they can monitor the management closely. Furthermore, they may secure Boards seats so that they can monitor more efficiently. This is because the role of the board of director is mainly to control and ratify most of the manager’s actions so as they can protect the firm’s owner’s interest. Brunswick has adopted some measures to enhance the effectiveness of the board. First, they have increased the diversity of those in the Board, also strengthen the accounting control system as well as the internal management (Zhu, 2014).
Secondly, the institution has adopted different methods of offering executive compensation. For instance, the company offers a basic salary as one of the compensation elements, which is the foundation of the total pay. This has proved important for it has increased external competitiveness. In this case, the person’s external competitiveness, internal equity, and general individual performance are considered during the base wage of the executives (BRUNSWICK CORPORATION – DEF 14A, n.d.).Furthermore, there is an annual incentive plan, which an approach is used to reward the executive’s accomplishment based on the set business or an individual’s goals within a given year. Lastly, the company uses the performance shares that help in creating and sustaining the value for the shareholders. Some of the metric used in this case are the Cash Flow Return On Investment (CFROI), and the Relative Total Shareholder Return (TSR).
Leadership effectiveness
One of the most crucial steps that Brunswick Corporation has adopted to ensure that there is a seamless flow of communication between the board and management is having the Company’s chief executive to operate as the chairperson of the board. This not only ensures that the management focus on the execution of the strategy, but also oversees the company’s strategic direction (BRUNSWICK CORPORATION – DEF 14A, n.d.).Expressively, the board believes that a combination of these mandates ensures that the operational objectives are met, and also it ensures that there is independent oversight of the execution of targets. This kind of leadership is doing currently wonderful.
One recommendation that the Brunswick Corporation needs to make their dream come to reality is that the leaders need to have clear of mind and have a clear vision. This will help them in innovation and also manufacture differentiate products. Indeed, when the visions are well defined, the institution’s operation tasks are clearer and easier. This makes the execution process of duties easy, and gratification process as the leaders cross of the job off the checklist. This will also help the management understand the areas that require more practice and those that require improvement.
Ethical practices
There are a number of practices carried out by the company so that they can maintain the ethical working environment. They have a number of programs undertaken in ensuring that the Directors and all the employees understand the expectations (Brunswick | Genuine Ingenuity, n.d.). The company works harder day in day out to ensure that their customers are satisfied, and they earn trust, candor, and honesty, as they take all the consideration and responsibility of their stakeholders. They make the right responsibility by acting with high integrity so that they can make the right decision, and upholding the utmost ethical behavior. One of the programs is the Brunswick Foundation, which was established in 1957 and is a charitable organization. The foundation oversees the following four major programs. The first program is the Sons &Daughters Scholarship program, the Dealers Sons & Daughters Scholarship program, The Dollars for Doers Program, and The Brunswick Foundation Grant Program ((Brunswick | Genuine Ingenuity, n.d.).
The bottom line of all these programs requires funding which can have detrimental effects if the company runs short of monetarily. Nonetheless, running these projects collect money, and the bottom line is that the funds obtained are tax write-offs (Brunswick | Genuine Ingenuity, n.d.).This implies the financial impact is low when compared to the reward and impact they bring to the community. In other words, the programs are more beneficial to the community than they cost the company.
Conclusion
The bottom line of all businesses is to increase the capital gain as well as maintain a good relationship with the community. Indeed, Brunswick Corporation has played a significant role in ensuring that the community benefits from their operation as well as obtain high-quality products.
References
Brunswick (SWOT Analysis). (n.d.). Retrieved July 07, 2016, from http://yousigma.com/comparativeanalysis/brunswick.html
Brunswick | Genuine Ingenuity. (n.d.). Retrieved July 09, 2016, from https://www.brunswick.com/company/ethics/programoverview.php
BRUNSWICK CORPORATION – DEF 14A. (n.d.). Retrieved July 09, 2016, from https://www.sec.gov/Archives/edgar/data/14930/000130817915000078/lbc2015_def14a.htm
Business Plan Hut. (n.d.). Competitive Strategies to Increase Sales and Profits | Business Plan Hut. Retrieved July 09, 2016, from http://www.businessplanhut.com/competitive-strategies-increase-sales-and-profits
- Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates.Competitiveness Review, 24(1), 32-45. From http://www.emeraldinsight.com/doi/full/10.1108/CR-06-2013-0059
Steyn, B. (2012). Strategic management roles of the corporate communication function. From http://www.repository.up.ac.za/handle/2263/25678
Venkatraman, M. (n.d.). Brunswick Corporation (BC) Memo. Retrieved July 7, 2016, from https://collab.itc.virginia.edu/access/content/group/dff17973-f012-465d-9e73-a05fa4456644/Research/Memos/MII%20Memos/Archive/Short/S-BC.pdf
Zhu, H., Wang, P., & Bart, C. (2014). Board Processes, Board Strategic Involvement, and Organizational Performance in For-profit and Non-profit Organizations.Journal of Business Ethics, 1-18. From http://link.springer.com/article/10.1007/s10551-014-2512-1
