Strategic Audit of Mohawk Industries - Assignment Example

According to SEC Form 10-K of the company, the Mohawk segment or subsidiary “designs, manufactures, sources distributes, and markets its floor covering product lines, which include carpets, ceramic tile, laminate, rugs, carpet pad, hardwood and resilient.” Brands under the segment include Mohawk, Aladdin, MohawColorCenter, Floorscapes, Portico, Mohawk Home, Bigelow, Durkan, Horizon, Karastan, Lee and Merit.The Dal-Tile segment “designs, manufactures, sources, distributes and markets a broad line of ceramic tile, porcelain tile products.

” Primary brands under the Dal-Tile segment include Dal-Tile and American Olean. According to the SEC Form 10-K, the Dal-Tile segment is vertically integrated from the production of raw materials for body and glaze preparation to the manufacturing and distribution of ceramic and porcelain tile.” Based on Form 10-K, the Unilin segment “designs, manufactures, sources, licenses and markets a broad line of ceramic tile, porcelain tile, natural stone and other products.” The Unilin segment is “one of the largest vertically-integrated laminate flooring manufacturing in the U.S. producing laminate flooring and related high-density fiberboard” and “also produces roofing systems, insulation panels and other wood products.

”Thus, the Mohawk segment concentrates on carpets, rugs, and floor covers in general, the Dal-Tile segment focuses on the ceramic and porcelain floor covers and tiles business, and the Unilin segment focuses on laminate covering and expansion of the company to other types of house or building-related businesses but usually wood or wood-related or fiberboards. Mohawk Industries describes herself to be in the leading market positions in carpets, ceramic, laminate, rugs and mats, stone flooring and countertops, and wood products.

Data available appear to support her claims.As the leading firm in the market, Mohawk’s financial data (shown in Annexes 1 to 9 of this work) is indicative of the industry’s long-term profitability.