Professional Documents
Culture Documents
Stoneridge, Inc. is one of the leading firms in the Auto Parts. Over the years Stoneridge, Inc. has
redefined the ways of doing business in Consumer Goods. Stoneridge, Inc. is listed at New York
Stock Exchange (NYSE) and have a market cap 417.69M USD.
Internal Forces
Marketing Stone ridge is considered to be one of
the two leading commercial banks in
the region.
Stone Ridge maximise its potential as
a bank as it serves as intermediary
between Wall street and the little
fellow in the hinterland
Its strong regional pride and regards
ite new York ans West Coast Bank
corresponds as convenient sources of
the help for regional development
Having strong position, Stone Ridge
Bank is not out on the prowl looking
for a bank which they might take over.
Since the Stone Ridge Bank has a
strong in market, they dobnt need a
lot of help from any big companies
Structure
Processes and system/Operation Stone Ridge bank performs all the
usual commercial activities.
Stone Ridge accepts demand and time
deposits, makes loans with various of
securities and conditions, does leasing
financing, automated payroll services,
buys and sells foreign exchange, does
cash management and fund transfers
function, advises on short investment
of excess cash and the like
Providing their customers, a service
they will have difficulties obtaining
elsewhere.
External Forces
Legal and Regulatory Stone Ridge Bank operates under a state
charter and is a member of the Federal
Deposit Insurance Corporation. The bank is
also affiliated with the Stone Ridge Trust
Company (both are owned by a holding
company). Wherein the latter oversees, estates
of many prominent local citizens and is the
epitome of conservative respectability
Industry Changes
Economic
Social/ Customers Stone Ridge Bank is located over a thousand
miles from the major financial centres of the
U.S., Stone Ridge has longed served as an
intermediary between Wall Street and the
little fellow in the hinterland. It shares a
strong regional pride, and regards its New
York and West Coast bank correspondents as
convenient sources of help for regional
development. In fact, especially since World
War II, the region has had a significant influx
of industry, and Stone ridge has been an
active participant in this development. Stone
Ridge, with less emphasis on consumer and
agricultural banking, has benefited more than
competing banks from its industrial growth.
Superb Performance in New Markets – Stoneridge, Inc. has built expertise at entering new markets and
making success of them. The expansion has helped the organization to build new revenue stream and
diversify the economic cycle risk in the markets it operates in.
Good Returns on Capital Expenditure – Stoneridge, Inc. is relatively successful at execution of new
projects and generated good returns on capital expenditure by building new revenue streams.
Strong Free Cash Flow – Stoneridge, Inc. has strong free cash flows that provide resources in the hand of
the company to expand into new projects.
Strong Brand Portfolio – Over the years Stoneridge, Inc. has invested in building a strong brand portfolio.
The SWOT analysis of Stoneridge, Inc. just underlines this fact. This brand portfolio can be extremely
useful if the organization wants to expand into new product categories.
Automation of activities brought consistency of quality to Stoneridge, Inc. products and has enabled the
company to scale up and scale down based on the demand conditions in the market.
Strong dealer community – It has built a culture among distributor & dealers where the dealers not only
promote company’s products but also invest in training the sales team to explain to the customer how
he/she can extract the maximum benefits out of the products.
Highly skilled workforce through successful training and learning programs. Stoneridge, Inc. is investing
huge resources in training and development of its employees resulting in a workforce that is not only highly
skilled but also motivated to achieve more.
Successful track record of integrating complimentary firms through mergers & acquisition. It has
successfully integrated number of technology companies in the past few years to streamline its operations
and to build a reliable supply chain.
WEAKNESSES
Days inventory is high compare to the competitors – making the company raise more capital to invest in the
channel. This can impact the long term growth of Stoneridge, Inc.
The company has not being able to tackle the challenges present by the new entrants in the segment and has
lost small market share in the niche categories. Stoneridge, Inc. has to build internal feedback mechanism
directly from sales team on ground to counter these challenges.
Organization structure is only compatible with present business model thus limiting expansion in adjacent
product segments.
There are gaps in the product range sold by the company. This lack of choice can give a new competitor a
foothold in the market.
The profitability ratio and Net Contribution % of Stoneridge, Inc. are below the industry average.
Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios
suggest that the company can use the cash more efficiently than what it is doing at present.
Limited success outside core business – Even though Stoneridge, Inc. is one of the leading organizations in
its industry it has faced challenges in moving to other product segments with its present culture.
OPPORTUNITIES
New customers from online channel – Over the past few years the company has invested vast sum of
money into the online platform. This investment has opened new sales channel for Stoneridge, Inc.. In the
next few years the company can leverage this opportunity by knowing its customer better and serving their
needs using big data analytics.
The new taxation policy can significantly impact the way of doing business and can open new opportunity
for established players such as Stoneridge, Inc. to increase its profitability.
New trends in the consumer behavior can open up new market for the Stoneridge, Inc. . It provides a great
opportunity for the organization to build new revenue streams and diversify into new product categories
too.
Opening up of new markets because of government agreement – the adoption of new technology standard
and government free trade agreement has provided Stoneridge, Inc. an opportunity to enter a new emerging
market.
Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in
bank the company can invest in new technologies as well as in new products segments. This should open a
window of opportunity for Stoneridge, Inc. in other product categories.
Decreasing cost of transportation because of lower shipping prices can also bring down the cost of
Stoneridge, Inc.’s products thus providing an opportunity to the company - either to boost its profitability
or pass on the benefits to the customers to gain market share.
Economic uptick and increase in customer spending, after years of recession and slow growth rate in the
industry, is an opportunity for Stoneridge, Inc. to capture new customers and increase its market share.
The market development will lead to dilution of competitor’s advantage and enable Stoneridge, Inc. to
increase its competitiveness compare to the other competitors.
THREATS
Changing consumer buying behavior from online channel could be a threat to the existing physical
infrastructure driven supply chain model.
Increasing trend toward isolationism in the American economy can lead to similar reaction from other
government thus negatively impacting the international sales.
Intense competition – Stable profitability has increased the number of players in the industry over last two
years which has put downward pressure on not only profitability but also on overall sales.
New technologies developed by the competitor or market disruptor could be a serious threat to the industry
in medium to long term future.
No regular supply of innovative products – Over the years the company has developed numerous products
but those are often response to the development by other players. Secondly the supply of new products is
not regular thus leading to high and low swings in the sales number over period of time.
Liability laws in different countries are different and Stoneridge, Inc. may be exposed to various liability
claims given change in policies in those markets.
Rising raw material can pose a threat to the Stoneridge, Inc. profitability.
As the company is operating in numerous countries it is exposed to currency fluctuations especially given
the volatile political climate in number of markets across the world.
X. Conclusion
Decision Matrix
Criteria ACA 1
Effectiveness 3
Sustainability 3
Profitability 3
Competitiveness 3
Rate of Success 3
Total 15
Average 2
Legend:
1- Least Favorable
2- Moderately Favorable
3- Highly Favorable
Definition of Terms:
Effectiveness- Producing the intended or expected result.
Sustainability- Able to maintain at a certain rate or level.
Profitability- Able to meet the target Return of Investment.
Competitiveness- Able to compete in the market.
Rate of Success- Possibility of achieving desired objectives.
Therefore, based on the comparative analysis of all the alternative courses of action which the researcher have
studied carefully, ACA No. 1 best suits as the solution to sustain the financial system of Stone Ridge Bank in the
foregoing changes in banking structures.
NEGOTIATION TEAM
The company must be able to appoint a New York
Executives
economist representative, who will communicate and 1st Quarter
Board of Directors
report latest economic financial forecast to make
necessary strategies to compete in the global market.
FINANCE
The company should be able to deliberate the budget
Finance Executives
associated with this project. Additionally, the 1st Quarter
Accounting Officers
company must be able to find funding opportunities
and prepare its capital investment.
HUMAN RESOURCE
The company needs to employ and train potential
financial counsellors with good connections in Human Resource
1st Qaurter
region. As well as, employment of renowned lawyers Department
and tax specialists who will serve as in-house expert
advisors of the counsellors.
OPERATIONS
The company should be able to uphold to its goal of
keeping up with its independence through tooling up
its Financial Counsellor Concept project with the Chief Operation Officer Quarterly
significant contribution of technological
advancement and focus on providing service to the
region.
Marketing Executive Quarterly
MARKETING
The company should have a systematic and
comprehensive plan for market research and market
development to cope up with the increasing
competition in banking industry. It should be able to
target all potential accounts and assign to specific
counsellors. Whereas, P.R campaigns should also be
launched focusing on the services Stone Ridge can
offer to the business community to attract more local
clients.
AUDIT
In accordance to the overall internal and external
analysis, the Audit Team will give a necessary
Auditor Quarterly
proposal which will help the company take possible
and strategic route from possible risk and threats that
will reduce the impact on the business operations’.