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Based on your research and SWOT Matrix and other matrices, you are to complete an executive summary for the company's employees (minimum 2000 words) in which you provide strategies that will enable the company you have created gain and sustain a competitive advantage in its industry

Date Posted: 22/11/2018
Category: Business
Due Date: 23/11/2018
Instruction
So here i have the SWOT Analysis STRENGTH Successful track record of integrating complimentary firms through mergers & acquisition. Having strong free cash flows that provide resources in the hand of the company to expand into new projects. They have built expertise at entering new markets and making success of them.  Logistics consolidated revenue for 2017 increased 5.2% to $15,380.8 million from $14,619.4 million in 2016. Exciting developments underway with intelligent machines, customer service mobility It has built a culture among distributor & dealers where the dealers not only promote company’s product. It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. WEAKNESSES The profitability ratio and net contribution percentage of logistics are below the industry average. Have not being able to tackle the challenges from new entrants and has lost small market share in the niche categories The current asset ratio and liquid asset ratios suggest that can use the cash more efficiently than what it’s doing at present. Faced challenges in moving to other product segments with its present culture. Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors Logistics’ use of capital deteriorated last year compared to 3 years ago (return on capital). Logistics has not efficiently used shareholders’ funds last year (return on equity less than 20%).   OPPORTUNITY 1.      The new taxation policy can open new opportunity 2.      The adoption of new technology standard and government free trade agreement has can Logistics an opportunity to enter a new emerging market. 3.      With stable free cash flow there is opportunities to invest in adjacent product segments. 4.      New customers from online channel: This investment has opened new sales channel for Logistics 5.  Have systems in place to ensure that all activities, products and waste materials related to our contract logistics operations are responsibly managed to reduce environmental impact. 6.   Can Leveraging Freight and Logistics Market. 7.    Debt to total Assets 1%: The ratio is greater than 0.5, which means creditors and investors are on equal footing in asset increasing debt to asset ratio.   THREATS 1.   There intense competition –because of the stable profitability the number of competitors in the industry over last two years has increase this could lead to low profitability. 2.      Has a shortage of skilled workforce which is a threat to steady growth of profits 3.      The company can face lawsuits in various markets, they were allegedly misclassifying drivers 4.      Rising raw material can pose a threat to the profitability. 5.      Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability 6.      Imitation of the counterfeit and low-quality product is also a threat to product especially in the emerging markets and low-income markets.  7. Increasing cost of transportation
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