Company Analysis of Capstone - Case Study Example

Company Analysis of Capstone Table of Contents Introduction 3 About Capstone 3 Impact of Mission, Vision and Primary Stakeholders on Capstone’s success 3 Analyses of Capstone based on Porter’s Five Forces 4 SWOT Analysis of Capstone 5 Strategy based on SWOT Analysis 6 Strategies for maximizing Competitiveness and Profitability 7 Communications Plan in Capstone 8 Effectiveness of the Corporate Governance mechanisms in Capstone 8 Effectiveness of Leadership in Capstone and Recommendation for Improvement 8 Evidence of Corporate Citizenship in Capstone and its impacts on the Bottom-line 9 References 11 Introduction The paper endeavors to understand and evaluate the strategic potential of Capstone, a Florida based company such that it aims to conduct analysis based on the use of different strategic tools to reflect on its strategic competence in meeting the needs of its different stakeholders. Effective set of recommendations would be furnished in the course of the discussion to help Capstone Companies inc. gain needed confidence in acting in a responsible fashion in meeting of business, social and environmental objectives. About Capstone Capstone Companies Inc. operates as a public holding company in Florida. The company based on the actions of its operating subsidiary aims to design and produce innovative consumer products like lighting solutions for power failure. Key market for the innovative consumer products produced by Capstone Companies Inc. relate to the retail markets of North and Latin America. Capstone Companies Inc. Different types of consumer lighting products like portable and specialty book-lights, lights enabled for multi-tasking activities, decorative and multi-function lights for power failure and also sensor lights are generated by the company to help meet the different needs of its consumers. Umbrella branding activities are used by the company in the selling of the above products such that they are sold under a common brand name of the fully owned subsidiary company, Capstone Industries Inc (Capstone Companies Inc.). Impact of Mission, Vision and Primary Stakeholders on Capstone’s success The mission and vision objectives of Capstone Companies Inc. reflect on encouragement of spontaneous innovation relating to the development of new products and technologies that help in satisfying the changing needs of its customers. Through promoting large scale innovation and technological development the company aims at generating greater profitability, cash flow and revenues to the company. Further another potential objective of the company relates to the marketing of the innovative and technology based products at low or in affordable prices such that the same helps in enhancing the parameter of customer loyalty and satisfaction. Similarly the company also aims in generating greater accessibility for the consumer products through the incorporation of the activities of wholesalers, retailers and also based on integration of the activities related to merchandisers and other communities like buyers and customers. Capstone Companies focuses on producing the different products to help in making the liver more enjoyable, active and simpler for the different consumers (United States Securities and Exchange Commission , 2013). Analyses of Capstone based on Porter’s Five Forces The analysis of Capstone Company Inc. conducted based on the use of Porter’s Five Forces can be effectively produced as follows. Capstone Company Inc. is taken to counter the bargaining activities of its consumers such that different types of lighting merchandises are produced by the company at highly affordable prices. Similarly the company through the use of different distribution channels helps the customers to effectively enjoy the products in an easy and affordable fashion thereby reducing the chances of switching over to other companies. Capstone Company Inc. aims to enter into strategic relationships with other supplier companies such that the same contributes in helping Capstone govern the activities of its supplier bases to help expand its market in America. The company aims at sustaining an effective relationship with the supplier base to help in the sharing of research and development and other technical know-how for providing innovative lighting solutions for the American consumers (Capstone Companies Inc., 2014). Capstone Company Inc. through enhancing its product assortment related to the production of different types of innovative lighting equipments aims to counter the growth of substitute products. Relating to internal rivalry, Capstone Companies Inc. tends to counter potential challenges from a large number of competitors operating in the production of lighting equipments like Jasco, Energizer and also another company like Sylvania. Similarly other retailers like Target, Wal-Mart, Home Depot and also Costco are observed to generate effective competition to the company in the form of generating private label lighting products (Capstone Companies Inc., 2014). Relating to new entrants, the market for consumer lighting in United States is reflecting a growing demand for entry of LED lighting equipments such that lighting solutions and products are being gained from Asian markets like China. This reflects an increasing threat of foreign competition faced by Capstone Company Inc (LEDs Magazine , 2010). SWOT Analysis of Capstone The SWOT Analysis of Capstone Company Inc. can be effectively generated as follows. Strengths of the company effectively relate to the incorporation of needed technological development and research and development activities related to the production of innovative lighting and security solutions at an affordable price range. The company however reflects a potential weakness relating to the dimension of corporate communication such that it does not put into use social networking mediums to rightly communicate with its different stakeholders. Similarly operating in the internet era the company is not observed to use the e-commerce technology to help its customers in gaining access to the products in a convenient manner. The demand for energy efficient and also other innovative lighting solutions is taken to increase both in United States and also around different regions. This reflects a potential opportunity for Capstone to increasingly produce the innovative products for the market. Capstone Company Inc faces an increasing threat to its business operations such that the market reflects an increasing demand for LED lights produced by the Asian markets like China. Strategy based on SWOT Analysis The company needs to enhance its research and development activities to help in enhancing the potential of the product innovation and thereby in enhancing the parameter of customer satisfaction. Similarly the company is also required to incorporate social networking and e-commerce activities such that the same helps in generating greater accessibility and convenience to customers to avail the products. To track the opportunity base the company needs to strategize its brand awareness activities in terms of incorporating the social networking tools like Facebook, Twitter, and YouTube and also through the development of blogs to enhance the level of interaction. Finally the company can also focus on forming of strategic alliances with other companies operating in the lighting industry pertaining to the Asian markets like China. The same would rightly help in countering the growing threat of becoming obsolete. Strategies for maximizing Competitiveness and Profitability Capstone Companies Inc. strategizes on the generation of innovative product offerings at an affordable price range that helps in attracting the interests of the consumers. Technological development is generated in the form of using batteries built up on high technology that can be effectively recharged to generate use for longer periods. Further apart from reflecting stylish designs the products also help in satisfying consumers relating to its multi-tasking capabilities such as working as flashlight, decorative lights, and night and also work lights. Innovative lighting solutions generated by the company relate to the automatic lighting up of the products in the event of a power failure. The level of competitive advantage can also be enhanced through the use of the e-commerce and social networking platform. Marketing based on the use of the above platform would help the company in generating greater accessibility and convenience of the customers in visualizing, selecting and ordering the products online. Further use of the agile supply chain system functions can also be generated through the incorporation of Point-of-Sales scanners, Radio Frequency Identification (RFID) tags and potential software to help integrate the retail outlets with the warehouses. The above function would help in effectively tracking of inventory movement and also in evaluating the demand of the customers. The above strategy would help in reducing the inventory cost and thus in reducing the price of the products (Ismail & Sharifi, 2006). Similarly the strategic viewpoint of the company in rightly pricing the products to create an appeal to the consumers and also aiming at winning the consumer retail space is taken to help in the growth of needed competitiveness owing to the growth of sales of such products thereby generating needed profitability and market share. Use of segmented pricing techniques can be used such that higher prices can be fixed for certain equipments while low cost for others. This would help in earning needed sales revenues from market (Capstone Companies Inc., 2014). Communications Plan in Capstone Different types of mediums can be effectively incorporated by the management of Capstone Company Inc. like use of print mediums in the form of newsletters and annual reports to communicate the strategy selection made by the company to enhance the profitability and competitiveness to employee groups. Similarly the use of brochures also helps in rightly informing any new modification generated to its customer groups. Use of company websites, social networking platforms and also the use of electronic mails and blogs can be generated to help in creating needed awareness about its strategies to stakeholders residing in global regions. Stakeholder engagement can also be generated in the form of developing seminars and meetings with the employee groups and supplier bodies such that they collaboratively work in meeting of consumer needs (KPMG, n.d.). Effectiveness of the Corporate Governance mechanisms in Capstone The Corporate Governance activities of Capstone Company Inc. are observed to be supervised by the Board of Directors of the company. The objectives of the Corporate Governance policies are to help govern the activities of the officers and the management body of the organization such that the same contributes in safeguarding the interests of the shareholders. Similarly the Corporate Governance mechanisms carried out by the company also focus on enhancing the parameter of responsibility and ethics of the activities of the company. Standardization of the activities are made through the generation of code of ethics that in turn help in safeguarding the interests of the stakeholders of the company (Capstone Companies Inc., 2014). Effectiveness of Leadership in Capstone and Recommendation for Improvement The effectiveness of the leadership relating to Capstone Company Inc. can be rightly analyzed such that the Chief Executive Officer of the company, Stewart Wallach is observed to generate effective inputs pertaining to the design elements of the lighting solutions and also for the security and safety products produced by the company. Similarly the financial leadership in the company is generated by Gerry McClinton such that effective inputs are generated in the fields of finance and accounting. Leadership generated in the above field helps in protecting the interests of the shareholders and other investors. Reid Goldstein also serves in generating effective leadership pursuits related to the ambit of the marketing and promotional activities that are required to be carried out by the company to rightly penetrate into the mass market for lighting and security solutions (Capstone Companies Inc., 2014). Other than the above leadership facets the company needs to reflect potential leadership in the field of corporate communications such that the right kind of strategies can be generated to help in sharing of effective information with the potential stakeholders and thereby in involving them in business decision making. Evidence of Corporate Citizenship in Capstone and its impacts on the Bottom-line The Corporate Citizenship of Capstone Company Inc. can be potentially evaluated in terms of the Corporate Social Responsibility activities conducted the company. In terms of corporate ethics the company aims to operate in an ethical fashion thereby tending to generate equal opportunity for the organizational people irrespective of class, creed, race and sex. Similarly the company also operates in protecting the natural environment and also in creating sustainable practices to help in reducing the exploitation of the natural environment. Capstone’s management also focuses on in taking potential care of the social communities through generation of effective charity programs and also working to generate social betterment and development (Capstone Advisory Co Ltd., 2010). Activities related to Corporate Citizenship conducted by Capstone are taken to help in enhancing the parameter of loyalty and satisfaction for both the internal employees and the customers. Further working based on ethical framework contributes in generating needed integration of the different stakeholders to the business to help in meeting the business objectives in a collective fashion. The above activities are also observed to invite large scale support from the government bodies relating to the different regions in conducting of business activities. References Capstone Advisory Co Ltd. (2010). Corporate Social Responsibility . Retrieved September 5, 2014, from http://www.capstonegroup.com.mt/about/corporate-social-responsibility Capstone Companies Inc. (2014). 10-K Annual Report. Retrieved September 5, 2014, from http://capstonecompaniesinc.com/investors/10-k-annual-report/ Capstone Companies Inc. (2014). Capstone Companies Inc. and Light Engine Limited Sign an Exclusive Alliance for Entry to Americas. Retrieved September 5, 2014, from http://capstonecompaniesinc.com/we-believe-this-is-a-unique-solution-which-we-expect-to-assume-a-lead-role-in-the-power-failure-lighting-industry-we-are-now-capable-of-providing-the-safety-of-power-failure-lighting-soluti/ Capstone Companies Inc. (2014). Developing disruptive innovative technology for lighting and security products that challenge the status quo. . Retrieved September 5, 2014, from http://www.capstonecompaniesinc.com/ Capstone Companies Inc. (2014). Leadership. Retrieved September 5, 2014, from http://capstonecompaniesinc.com/company/leadership/ Capstone Companies Inc. (2014). Products. Retrieved September 5, 2014, from http://capstonecompaniesinc.com/brands/products/ Ismail, H., & Sharifi, H. (2006). A balanced approach to building agile supply chains . In R. I. Hoek, Agile Supply Chain (pp. 431-444). United Kingdom: Emerald Group Publishing. KPMG. (n.d.). Stakeholder Communications . Retrieved September 5, 2014, from http://www.kpmg.com/SG/en/IssuesAndInsights/ArticlesPublications/Documents/Advisory-RC-Stakeholder-Communications-Toolkit.pdf LEDs Magazine . (2010). WEB EXCLUSIVE: Lighting industry at the edge of the unknown. Retrieved September 5, 2014, from http://www.ledsmagazine.com/articles/2010/07/web-exclusive-lighting-industry-at-the-edge-of-the-unknown.html United States Securities and Exchange Commission . (2013). CAPSTONE COMPANIES, INC. Retrieved September 5, 2014, from http://capstonecompaniesinc.com/wp-content/uploads/2013/11/Capstone-Information-Statement-14C-2013-VER-2.pdf Read More