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Part 5 – Conditions
Read the Caskey Trucking Case and identify the strengths, weaknesses, opportunities,
and threats of the company.

Strengths
• Bill’s parents currently provide him
with a steady stream of work in the
logging industry.
• Bill has been in the trucking industry
his entire adult life and has a strong
understanding of the industry.
Weaknesses
• Bill currently relies almost entirely on his
parents for work. He has no other source of
income.
• Bill lacks management skills and financial
acumen.
• Bill has not forged any business
relationships of his own.

Opportunities Threats
• Thriving regional oil and gas industry. • Oil & gas is a cyclical industry subject to
significant price volatility. Although thriving
• The region has a long-standing
currently, a downturn in the oil price may
logging industry.
reduce activity in the industry dramatically.
• Logging activity is subject to variable lumber
prices, as well as weather conditions.
• Clients in oil & gas and forestry do not
guarantee amounts of work or continued
work.
• There are many small owner-operated
trucking firms.
• Small trucking firms don’t typically have
bargaining power with larger clients nor do
they have bargain power with truck
dealerships.
Overall Conclusion
The region has a long-standing forestry industry and a thriving oil and gas industry.
However, both industries can be very cyclical. Small trucking companies like Caskey
Trucking have limited bargaining power with suppliers and clients and find it difficult to get
guaranteed amounts of work. Bill’s parents have provided guaranteed work for Bill in the
past however he has no relationships with clients in the oil and gas industry.