Strategic Management Analysis: Capstone Couriers Board Report, C107257

This report provides a comprehensive analysis of Capstone Couriers' strategic management, evaluating the achievements and shortcomings of the management team. The analysis focuses on key financial metrics such as cash flow, productivity, and market share, highlighting the impact of strategic decisions on the company's performance. The report identifies instances of high productivity and effective control of noncash items, leading to increased cash flow and improved stock purchase capacity. It also examines the company's focus on the low-end market segment and its impact on market share. Conversely, the report addresses disappointing performance aspects, including emergency loans, negative cash flow, inaccurate production forecasts, and the impact of marketing decisions on production. The report uses data from the Capstone Courier board reports to provide a detailed overview of the company's strategic management, providing valuable insights into its successes and failures.

Running head: STRATEGIC MANAGEMENT
1
1
Strategic management
Name
Institution
Professor
Course
Date

STRATEGIC MANAGEMENT
2
2
Question 1
In an analysis of the Capstone Couriers and Board Report, there are major achievements
of the management team identified. The first achievement is high productivity and capacity
levels which results in high cash flow. Through an analysis of the financial summary, the cash
flow from all operating activities is high. In addition, there is achieved control of noncash items
by the management team. This has improved the performance of the company by increasing the
common stock purchase capacity. Round 1-6 shows that retirement from the current debt is
achieved through payments of the dividends. Profit sharing framework has been established in
human resource report increasing the productivity index. This has led to recruitment cost balance
in all involve individuals. CHESTER’S Board Report shows various achievements by evaluation
of the external and internal factors influencing the production. The declining share price has been
worked upon and raised to $16. This has been achieved by making sure operational processes are
done under low cost. In addition, high-quality dependable products have been offered at
affordable prices. Improved living standards of the customers have been achieved through
provision of high-quality products at affordable prices. The demands of the customers have been
catered for by productions of various products serving the same purpose. The low-end market
segment has been achieved by Chester because customers are more interested in price than the
size and performance of the products. From round 1-6, Chester has focused on the low-end
segment characterized by the cost leadership framework. This has increased the market share up
to 22% of the 2224 units in market share.

STRATEGIC MANAGEMENT
2
3
Question 2
There are some disappointing performance aspects of the management team in all rounds.
In round 1-3, they had an emergency loan because the negative cash flow exceeded the positive
cash flow. This resulted into an unexpected inventory that outstripped the inflows. The
management team was supposed to be keen to control the positive and negative cash flow. The
company is now forced to borrow money outside to support its operations. This is one of the
disappointing aspects of the management team because if they were careful, the company could
not have reached to this extent. They were supposed to keep the cash inflow to be high than
outflow. Although Chester decided to lower the price of the products by approximately $1, this
did not completely improve the market share of the industry. In addition, there was a wrong
production forecast in all rounds which led to huge losses in the traditional market. For instance
in rounds 1 and 2, there was a large inventory which led to high losses of the company. In round
3, Chester invested a lot in R and D so as to differentiate products in the market to attract
customers. The decision made by the Chester in round 3 improved the performance in round 4.
The introduction of coco and cake was the wrong production forecast because much of the
money generated after improvement of round 1-4 was used to market the products. This led to
low production in round 6 because much of the money had been spent in the marketing of the
newly introduced products in the market.