Analysis on Premium Corporation Case

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Date Submitted: 09/27/2012 06:01 PM

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Case Assignment 1 - Premium Corporation-1


Canadian Premium Corporation (CPC), a division of Complete Sports (Complete) which has 17 years history formed by a renowned outdoor athlete, was established in 2005 and mainly produced high end outdoor clothing. Benefiting from its innovative design, unique organizational culture and remarkable employee compensation, CPC has been performing profitably well until year 2010 and 2011. CPC suffered its first financial loss in 2011, and the reasons why CPC meet with this crisis are various. A new president of CPC is trying to lead this division to turn loss into gain and couples of alternative strategies have been suggested. For helping decision-making, a report providing strategic and cost analysis as well as recommend implementation plan is performed here. According to the given information, this report is developed by following three parts: situational and SWOT analysis; major strategic alternatives analysis and recommendations; implementation plan and balance scorecard.

Situational and SWOT Analysis of CPC

In order to have a better understanding of CPC’s goal and constraints, first, we can look closely at CPC’S mission statement and statement of values.

According to the content of CPC’s mission statement and statement of value, they both indicate that “innovative, excellent and useful” is the criterion for CPC’s all products; “reduce or reverse the environment harm we cause” is CPC’s promise and obligation to the society, also is a constraint for all behaviors and activities of CPC.

Additionally, CPC’s mission statement provides that “to earn a sufficient profit to achieve these objective, but without the pursuit of growth for growth’s sake” which means that CPC will not purely pursuit profits at the expense of sacrificing products quality and environmental protection; “to honour our obligations to each other and to our stakeholders” which presents CPC’s accountable attitude to all shareholders....