Canadian Tire has articulated four strategic goals as well as objectives that it’s aiming towards their realization and objectives. Personally, I do agree with the set targets and objectives. They include strengthening their core retail, throughout the entire Canada, and the organization has configured to realize this through a customer-centric strategy. The second objective is operating as a single company by aligning all the business units with an aim of reinforcing their core functionality. The rest are establishing a high-performing organization and providing new platforms for growth.
These objectives can be achieved if the firm employs the right staff, all the way from the top management to other junior employees. A qualified staff will work towards the set business objectives; come up with clearly established strategies through every goal can be attained. The right staff will be dedicated to coming up with a corporate culture that will give room for continuous growth, as well as identifying and exploring other growth opportunities.
By determining where the wants to go, is a partly a way of coming up with growth strategies. The Canadian Tire’s business units can have their growth strategies mapped differently due to their different service and goods of production as well as location. Canadian Tire retail is well positioned to grow in the retail industry, by availing the entire household among daily shorter used commodities. PartSource should keep on with its strategies on luring the automotive users among other owners of automobiles.
Canadian Tire Petroleum needs to target automotive users to increase their petroleum sales; Mark’s has to stock its premises with latest clothing and outfits in terms of fashions. This will enable it meet the dynamism of demand in consumers’ way. On the other hand, FGL Sports has to update its 500 stores with the latest and updated sporting materials.
From this data, I can glean that the general business performances increase by the end of the year 2011. This is compared to the relatively little performance recorded in the year 2010. The organization realized an increase in its sales volume from the year 2010 to 2011, by $1156 million. This glean that business performance in the year 2011were relatively enhanced emerging more relevant to its customers as well as outplaying some of its competitors such as Target.
The organization realizes an increase in income before taxes from 2010 to 2011 by 43.1, with an increase in the taxation level. From the data on the two trading periods, we realize that the organization had an increase in the level of its expenses from 2010 to 2011. Among the expenses may include insurance, product promotion and awareness, employing more qualified staff as well as increasing the production quality. All these increased the level of spending by Canadian Tire, which in turn led to rising in the general performance in terms of sales.
Calculating the percentage change; % change in revenue= (change/the original value) * 100
Revenue change = 10387.1 – 9231.1 = 1156
% revenue change = (1156/9231.1) * 100 = 12.52%
Gross income change = 629.9 – 586.8 = 43.1
% change in gross income = (43.1/586.8) * 100 = 7.34%
Net income change = 467.0 – 444.2 = 22.8
%change in net income = (22.8/444.2) * 100 = 5.13%
|Revenue (millions)||Income before taxes||Net income|
|% change (2010-2011)||12.2%||7.34%||5.13%|
Canadian Tire can leverage its program under the Canadian Tire Money towards achieving additional market growth. This can be done by borrowing additional capital, invest them wisely under the program, with a two goals; making the profits exceed the interest payable as well as increasing the total revenue. Therefore, the realized revenue should be plowed back into the business to increase the level of sequential investment in the following year. Through this, the program will reach out to more markets for its financial products, hence additional market growth.