Introduction

The CanGo Company has an ambition plan of expanding its online services through different market areas. The company has been working hard in providing to its customers the latest cutting edge online gaming services. In order for CanGo to be very successful with the online services, the company needs to make sure that it is able to leverage its strengths and capabilities to take advantage of the opportunities present. The CanGo Company had experienced many obstacles and conflicts during the development of the proposed online gaming services. It is imperative for CanGo to review or to identify any problems that could threaten the company’s future goal. First of all, All team management of the company need to have a clear vision about the company’s long term planning, and analyze very carefully what audience would be targeted for the online gaming services. Also CanGo needs to perform a reliable analysis about their financial status, and making sure that they have the equipment is fully functional and available necessary before they start on new online gaming project. CanGo should also consider that each staff is fully aware about the CanGo’s mission, and this would be a positive way for the company to successfully achieve its goal.

SWOT Analysis

CanGo is made up of multiple internal and external factors that are both favorable and unfavorable to the company’s future plans and success. A SWOT analysis helps to breaks these areas down to fully understand their impacts on the organization.

CanGo does have unfavorable factors including internal weaknesses, and external threats. Weaknesses that have been identified include an unorganized management team. Low customer satisfaction is another internal weakness that is crucial to the success of CanGo. Another internal weakness includes severe communication issues within CanGo’s management and employees. External threats such as competition, plays a big role in the future success of CanGo. Your organizations internal organizational strengths such as online growth, and cost advantage offers great potential if properly utilized. Another external threat includes economic slowdown. The economy can play a direct role in the success of an organization, and should be monitored accordingly. Another external threat is currency changes which can affect business and sales in other countries, another area that should be monitored closely.

With limitless external opportunities in markets online CanGo has room to expand in multiple markets outside of online gaming, books, and the music industries. With online market growth the opportunities for CanGo are endless, a very important factor to consider in the company’s future growth. Cost advantage is another external opportunity along with CanGo’s ability to view products from customer’s perspectives. CanGo has great potential with strong strengths and opportunities to allow for success and growth. CanGo can be unstoppable, highly competitive, and ready for whatever the future holds by implementing FGL’s Consulting Firm’s strategically planned, analyzed, and proposed suggestions.

Financial Analysis

CanGo is off to a good start financially. CanGo has done a great job of not taking on more debt than they can handle. CanGo also has very good current and quick ratios, with a current ratio of 5.39 and a quick ratio of 4.53 it is pretty clear that CanGo could easily pay of their debt if need be and still be able to keep running. CanGo has a working capital of 164,820,000 on again this shows that CanGo is more than capable of paying off its debts. When looking at CanGo’s level of solvency they seem to be doing very well in this area as well with a current debt ratio is 40.23%. According to the Risk Management Association the average debt ratio for most companies is 62%, given that CanGo is at just over 40% should they need financing for a project banks will consider them as low risk and be more likely to give lower interest rates (Financial, 2008).

There are many strategies CanGo can use to improve its receivable turnover ratio; providing rebates or incentives for customers who pay their balances off quickly, imposing fees on those who take more than a specified amount of time, and lowering or even eliminating interest on accounts that are paid in a specified period of time. All of these strategies will encourage customers to pay their debt as soon as possible. It is important for any company to collect on its receivables quickly because the longer a receivable goes unpaid the more likely it is that it will be defaulted on. CanGo needs to do a complete inventory analysis, they need to determine what is in stock, how much of each item they have, how many of each item is being sold, and how often they are selling each item. They then need to determine how many of each item should be held in stock and how often they should do re-orders. The purpose is to be to keep as little stock on hand as possible without creating stock outs. This will increase CanGo’s inventory turnover ratio and save them avoidable storage and warehouse expenses.

Market Analysis

A thorough understanding and analysis of the online gaming market is essential to the success of CanGo’s organization. Our team has fully analyzed and researched their organization’s market. Therefore, the purpose of this analysis is to give CanGo a detailed overview of the industry that will include information regarding the target market, geographic area and size of the audience to include gender and age; along with trends and outlook of the gaming market.

First we will begin with the market size. Throughout this analysis it was found that the market size has grown in both revenue and popularity. “Estimates that the video game market will increase from $31.6 billion in 2006 to $48.9 billion in 2011” (Intelligence, 2006). This makes video games the third-fastest-growing segment of the entertainment and media market after TV distribution (up 9.3% to $250.7 billion in 2011) and Internet advertising and access spending (up 13.4% to $331.6 billion in 2011).” (Scanlon, 2007) This is an enormous jump and places CanGo in a prime time for advancement availability and success. Which means that there will be a

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Status NEW Posted 04 Jan 2018 05:01 AM My Price 10.00

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