Schizophrenia and Risperdal Case Study Discussion Case study attached, please read and answer all questions carefully in APA format, 1-2 pages double-space
Schizophrenia and Risperdal Case Study Discussion Case study attached, please read and answer all questions carefully in APA format, 1-2 pages double-spaced, must cite references, must include a separate reference page, each question must be answered in a paragraph. Follow all directions carefully Assignment 1 PETSMART
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PetSmart External Analysis (PESTEL)
Yumeng Sun
A00423481
PETSMART
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PetSmart External Analysis (PESTEL)
PetSmart is a corporation in the American retail industry that has its operations in
Canada, United States as well as Puerto Rico. It engages in the sale of pet products as well as
services such as dog and cat boarding facilities, dog training and grooming and the pet daycare.
It also provides adoption and sale of small birds, reptiles, fish, and amphibian among other small
pets. Pet Smart has been operating from 1986 when it was founded in Arizona in the United
States. It is a company that has a high level of pet love and advocates for offering the best
treatment for the pets (PetSmart, n.d). It is the largest known retailer of pet specialty even though
it is a private company offering high-class solutions and products for the pets. The mission and
vision statement, objectives, PESTEL analysis as well Porters Five forces of PetSmart are
discussed.
Vision and Mission
PetSmart has a vision and mission that motivate its everyday activities. The vision of the
company is to offer pet care that is lifetime to every pet, its parent as well as the pet owners. To
achieve this vision, the company aims at providing the most superior customer services, growing
the business of pet services each new day as well as creating differentiation that drives brand
preferences in each day (PetSmart, n.d). The mission of the company is that the company
believes that pets make them better people, and that is the reason it creates more moments for
people getting inspired by their pets.
Strategic Objectives and Financial Objective
Since its establishment, PetSmart has objectives that it set and works towards their
accomplishment. One of the strategic objectives of the company is to have operation excellence
in terms of the care it offers to the pet and pets owners. The financial goal of the firm is
profitability regardless of the stiff competition that the company faces (Brennan, 2013). It has the
aim of making high profits, and having the stability to set prices of the products lower, it still
make a profit to prevent new companies from getting into its market.
SMART Analysis
The objectives, mission, and vision of the company are specific in terms that they are
aiming at adding more stores, and offering excellent customer services to improve their
operations. They are measurable in the aspect that an increase in their sales which mean they
have quality services and products. They are achievable in that the company has the experience
of conducting these services as it has served for a long time. They have already started
operations towards the accomplishment of these objectives, mission and the vision.
External Analysis
External environment of Pet smart are those factors that are outside the company that has
the capability of affecting the operations of the company either positively or negatively.
PETSMART
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PetSmart experiences these influences, which have a significant impact on its operations. In
understanding the external environment of the company, PESTLE analysis is used.
PESTEL Analysis
Segment
Political Factors
Economic Factors
Social Factors
Technological Factors
Ecological Factors
Legal Factors
Macro-Environment factor
Political stability
Government regulations concerning the
license
Regulations provided by the Animal
Law Resource Centre
Inflation
Recession
Demand and supply
Shared beliefs
Culture of the societies
Use of websites
Use of technological devices
climate change
weather change
Antitrust law in the retail industry
Intellectual property law
Political factors revolve the government regulations that may influence the operations of
the company on a positive or negative aspect. The political environment keeps on changing with
changes in the government policies as well as actions in the government level (Marmol et al.,
2015). The first political factor is political stability. PetSmart has its operations, there is political
stability. For example, the company is expected to have an updated license for the sale of
animals, as well as the possession of the animals. The company also adopts small animals, and it
is expected to undertake the procedures given by the government in adopting a pet regardless of
its size.
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Economic factors affect a company in terms of occurrence of inflation, recession,
demand, and supply as well as interest rates, among others. PetSmart is affected by these factors
as they are factors that affect the entire economy of a country. The major economic factor that
has affected PetSmart is a great recession, which led to the decline of the spending on Pets
(American Pet Products Association, 2018). The economic downturn of the countries where the
company has its operations decreases the expenditure on pets.
Social factors include those factors that are in line with the culture of the society.
Usually, they have a significant impact on the marketing strategies of a company. Examples are
the shared beliefs of a country when it comes to pests. The culture of the societies in the United
States is that they support and loves rearing of pets. Therefore, this makes Pet Smart to gain a lot
of support when it comes to caring for pets, especially the dogs where almost every home has a
dog as a pet besides other benefits. Having a culture that recognizes the importance of caring for
pets has boosted the operation of the company at a high level.
The Key Industry Pressures in Retail Industry
PetSmart operates in the retail industry, which faces some industry pressures. The first
pressure is on buying behaviors and brands. The reason is that it is a generation that has been
brought up with the new technology and is conversant with using the Internet. PetSmart is trying
to follow the changes of that, as it is possible to book for pet grooming online.
The second pressure is economic challenges where the industry is prone to the effect of
the changes in the economy. It is an industry that depends on the state of the economy to carry
out its operations. When the economy is favorable, the retail sector flourishes and shrinks when
the economy gets into its downturn.
The third pressure is on technology, which is changing in each a new day and requires the
industry to go as per the changes. The retails industry is now expected to embrace the ecommerce business where everything is done on online platforms.
Porters Five Forces
It is a tool used in analyzing the competitive state of a company. Just like any other
company, PetSmart faces competition. The competitive analysis is done in terms of first industry
rivalry, which relates to the competitors within the industry (Roy, 2015). There are a large
number of competitors who create a lot of competition for the company. The second force is new
entrants threats where a new company who wants to get into the pet industry are limited by the
tax rates as well as the costs of license. The third force is the substitute for pet products that are
provided by the company. There are other sources of the pet products such as the specialized
suppliers of pet foods as well as warehouses, veterinarians shops and the grocery stores, which
become a threat to the products of the company (Hertzlr, 2019). The fourth force is the
bargaining power of the buyers. It is affected by the presence of retailer such as Amazon. In this,
there is also the challenge of brand recognition. The last force is the bargaining power of the
product suppliers, where there are a lot of restrictions on the channels of distribution.
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References
American Pet Products Association (2018). Pet Industry Market Size and Ownership statistics.
Retrieved from https://www.americanpetproducts.org/press_industrytrends.asp
Brennan, D., (2013). Case study: PetSmart searches for a sustainable strategy. Journal of the
Academy of Business Education.
PetSmart. (n.d). About us. Retrieved from https://www.petsmart.com/
Hertzlr, L., (2019). Petsmart to Acquire Montco e-commerce Company pet360. Retrieved from
https://www.digitalcommerce360.com/2014/09/17/petsmart-pays-handsome-sumacquire-pet360/
Marmol, T. ., Feys, B., & Probert, C. (2015). PESTLE analysis. Place of publication not
identified: 50Minutes.
Running head: PETSMART INTERNAL ANALYSIS
PetSmart Internal Analysis
Yumeng Sun
A00423481
1
PETSMART INTERNAL ANALYSIS
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This report is all about to show an internal analysis for PetSmart, and in terms of its three
parts: Financial Analysis, Resource Based-View analysis, Value CHAIN analysis and Core
Competency analysis.
Financial Analysis
1. Liquidity analysis
BALANCE SHEET FOR PETSMART INC.
Period Ending:
2012
2013
2014
3/2/2012
3/2/2013
2/2/2014
Total Current Assets
1263.89
1317.14
1318.24
Total Assets
2544.08
2536.98
2521.97
Total Current Liabilities
681.31
754.89
794.35
Total Liabilities
1390.26
1413.39
1428.19
Liquidity ratio
Current ratio
1.855088 1.744811 1.65952
Quick ratio
0.908588 0.845222 0.727563
Working capital
582.58
562.25
523.89
The analysis of the liquidity ratio of the company, as indicated above, provides a vital
overview of the business. The current ratio of the company is more than 1, which suggests that
the company can meet short-term obligations as they fall due (Davis, 2019). In 2012 the
company had a current ratio of 1.855, in 2013 it had 1.74, and in 2014 the company recorded
1.65. The information indicates the current ratio of the company across the years are decreasing.
The current ratio measures how the company can meet short-term obligations as they fall due in
the organization. The quick ratio measures how quick the company can convert assets into cash.
Working capital measures the amount available in the organization to facilitate daily business
operations. Higher working capital indicates that the company is more profitable and is more
stable. All those three show a downward trend from 2012 to 2014.
2. Profitability analysis
PETSMART INTERNAL ANALYSIS
Period Ending:
3
2012
2013
2014
3/2/2012 3/2/2013 3/2/2014
Total Revenue
6113.3
6758.24
6916.63
Gross Profit
1804.42
2062.14
2115.94
Gross profit margin
30%
31%
31%
Net Profit
5%
6%
6%
Return on Asset
11%
15%
17%
Profitability
The analysis of the profitability of the company increases from 2012, which had 30%, in
2013 the company had 31% and in 2014 it had 31%. It is an indicator that PetSmart is profitable
from financial analysis.
Net profit also increases from one financial year to another fiscal year. It is indicated that
the performance of the company is operating at a profit level.
The analysis of the ROA of the company indicates that financial performance increased
from 11% to 175 in 2014. It indicates that the company has a better economic performance
within a particular set-up on the asset in the organization (Wang, Vredenburg, Wang, & Feng,
2019). It provides insight on the return on the assets to the shareholders of the company.
Resource-based View (RBV) Analysis.
Physical resources
The analysis of the physical performance of PetSmart indicates that it has property, plant,
and equipment. PPE forms part of resources in the organization which the Company has put in
place to ensure better services delivery in the organization. The property, plant, and equipment
decreases across the financial year. The plant includes all machines used in the manufacture of
the resources in the organization. The property consists of all material within the premises of the
Company assist it in enhancing performance. The property might include buildings, premises
and other things within the organization.
Technological Resources
Technology entails approaches the Company uses in research and development (R&D) of
new products in the organization. High technology enhances the performance of the
organization, while low performance will reduce efficiency in financial performance.
PETSMART INTERNAL ANALYSIS
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Intangible Human Resources
Innovation and creativity resources: They are examples of the intangible asset, which
enhances PetSmart performance. High creativity and innovation improve performance in the
organization hence promote service delivery in the organization. The management needs to
develop approaches which ensure that it recruits employees with high intelligence to enhance
creativity and innovation in the Company.
Reputational resources
PetSmart has a high level of reputation, has a high ability to earn a lot of revenue.
PetSmarts core value of Caring is the foundation of our Ethics & Integrity Program. Customer
prefers a company with goodwill since they assume that they offer better quality from the
information they heard from people. It is quite important to note reputation is one of intangible
asset which can make the Company to earn a lot of revenue from the business operations in the
economy. PetSmart is committed to providing education, training and awareness to their
associates regarding their Ethics & Integrity Program. The E&I department works
collaboratively with other departments such as Human Resources, Internal Communications, and
Training to ensure they provide awareness and training to emphasize compliance throughout
their company. (PerSmart)
Value Chain Analysis.
Inbound logistics
The analysis indicates the Company has enough resources which facilitate storage of all
goods that come into the organization for either processing or manufacturing. PetSmart has well
as structure inbound logistic in which it focuses on proper management of the business
operations. Adequate storage of incoming goods provides ensures that the Company does not
lack inputs for manufacturing or processing products in the Company. It also provides a
warehouse for the commodities in the organizations they await other processes in the
organization.
Operations
Management in the organization needs to develop appropriate strategies which ensure
that all business operations are running smoothly for better performance. Operation management
entails administering business practice through coordination of service delivery in the
organization. The management in the organization needs to ensure that business operations are
PETSMART INTERNAL ANALYSIS
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running efficiently. PetSmart has put in place rules and regulation that ensure that routine that
guides business operations in the company are followed keenly by employees. Proper
coordination of business operations increases the reputation of the company.
Outbound logistics
The inventory system in PetSmart provides a control system in which goods are
monitored effectively. It is the process that facilitates all property and goods to move from the
Company to the outside. It outlines all means that are required to facilitate better services
delivery in the organization. The management of the PetSmart can ensure goods are monitored
for the benefit of the entire organization. The main function of the outbound logistics is to store
products safely and transport them to the customers. PetSmart has to ensure that the customer
receives goods ordered. Logistics and monitoring of dispatch goods to the customer is
undertaken in this depart to ensure that employees are in the right conditions. The outbound
process has organized process through which monitors products in the organization for the
benefit of the entire organization operations. The inventory system in PetSmart provides a
control system in which goods are monitored effectively.
Marketing and Sales
It is a coordination process that ensures goods manufactured in PetSmart are presented to
the customers. PetSmart applies marketing strategies by setting the right prices and look for the
market for the finished goods in the organization. Sales teams ensure the company maintains
stocks in the storage (Shahzad, Jamil, Gul, & Dongjun, 2019). PetSmart sales goods and services
to the customers. Sales and marketing department are responsible for the benefit for business
operations. The management of the Petsmart ensures that the marketing department is equipped
with the resources required to facilitate selling. The provide allowance and promote sales teams
by the provision of the commission on sales above a certain amount.
Services
They are activities which are undertaken by the company to enhance performance in the
organization. Services ensure that there is smooth flow work in PetSmart Coordination of
activities in the organization provides an appropriate mechanism that ensures all business
operations are running smoothly.
Procurement
PETSMART INTERNAL ANALYSIS
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It is a department which coordinates the supply of the commodities in the organization.
The management of PetSmart. ensures that the organization has a sound procurement department
that coordinate the supply of all products received and stored. Proper coordination is required to
enhance better service delivery in the organization
Technology Development
It is where the company uses modern high tech machines for research on new products in
the organization. The analysis ensures that business operations are effective hence promotes
better services delivery. Technology is one of the critical factors which enhances the
performance of the company. Improved technology can provide security in PetSmart. For
instance, the company can opt to use Biometric systems as means of identifications of some
issues in the country (Aydalot, & Keeble, 2018). The company can secure its business
operations by introducing CCTV in the offices so that it monitors business operations
(Greenhalgh, Fahy, & Shaw, 2018). Adoption of technology can help to secure some issues
which ensure that business operations are effective for the benefit of the entire organization.
Human resource management
It is responsible for the coordination and recruitment of competent employees. Human
resource manager ensures that PetSmart is adequately staffed. Lazy employees are fired and
replaced with more qualified employees. Human resources are also responsible for the appraisal
of performance in the organization. They ensure that the company is on the right track of
performance. Any deviation from the performance has to be accounted for, and they report to
Director of the PetSmart. Human resources management provides a productive environment
where business operations operate effectively. They ensure that employees in the organization
follow specific rules and regulations for the benefit of the entire organization.
General administrations/Infrastructural
They ensure that the organization is running smoothly. They coordinate activities in the
organization. Management plays a critical role in the organization. They coordinate daily
business operations. They engage in planning, and execution of vital business operations.
Manager in the organization act as a figurehead and provide directions in which the business
operations are supposed to move concerning the business operations. The management of the
company plans on significant events and allocate resources issues, which enhances the
performance of the general performance of the organization. An effective administrative
PETSMART INTERNAL ANALYSIS
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structure will improve high performance. PetSmart has well-coordinated management that is
effective.
Core Competence Analysis
Organizational capabilities
The Company can carry out research and develop high-quality products, which attract
more customers hence increasing the reputation of the Company. There are many issues which
the Company can participate in it. First, with an improved source of the revenue, PetSmart is in
the position to engage in corporate social responsibility such as promoting sports activities,
building hospitals, maintaining or roads and building of more schools. Its one of the approaches
which ensures that the Company gives back to the s…
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