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Strengths

Name recognition and current ownership Reputable


organization & investment possibilities
Intimate knowledge of consumers Creates competitive
advantage through consumer loyalty
Product accessibility Methodology to sell worldwide and to
venture into new markets
Current overall employee morale Employees genuinely
want organizational success

Weaknesses
Capital Limited ability to research, advertise, market & hire
new employees
Organizational Planning Extremely limited strategic and
directional planning
Appraisal System Ownership and upper hierarchy currently
has an invalid assessment of personal performance
SWOT Analysis Continued

Opportunities
Additional Revenue Loans, public offerings, selling of client
listings & marketing of new products
Organization Efficiency Additional staff training and project
direction, barcoding & ASRS systems
Asian & Pacific Markets Revenue creation through
international marketing & partnerships

Threats
Competitors Large & small businesses, rivalry
intensification & product counterfeiting
Computer Hardware & Software Issues Cyber crimes &
computer related malfunctions
Human Capital Service issues and human error caused by a
lack of organizational direction
Online Services

Electronic Books

Streaming Audios and Videos

Online purchases

Online Gaming
$20 billion - $50 billion revenue

72% of gamers using online


gaming

Shift of Physical to Digital


Ownership

Mobile Gaming potential for


expansion
Competition for E-Commerce is high

Companies like Books-A-Million as well


as Barnes and Noble offer same products

CanGo must continuously monitor


competitors

Must be able to weigh the positives and


negatives when considering new ventures
Online gaming market is dominated by companies
like Electronic Arts

Competitors currently offer a wide range of games


for multiple platforms

Platforms include consoles, computers, and online


gaming

CanGo will need to understand the current market


to make the best decisions toward new
products
Success as an internet company.

Profits rose substantially over the


past year.

Online gaming did not see the


expected return-on-investment.

A few concerns that need to be


addressed.

CanGo should continue to do well.


RATIO ANALYSIS AND COMPARISON
Receivables Turnover - Efficiency
150 Receivables are only turning over
at a rate of 1.56x. A low
100 CanGo receivables turnover tells us that
Books A Million CanGo is not effectively managing
50 Barnes & Noble their accounts receivable.
EA
0
Receivables Turnover

CanGo Books-a-Million Barnes & Noble EA


1.56x 127x 42.37x 11.20x

Return on Assets - Profitability


3.00%
Although CanGos ROA is low
2.00%
at 2.33%, they still beat their CanGo
1.00%
competitors and investors may Books A Million
0.00%
choose to invest in them as an Barnes & Noble
.
up and coming new company. -1.00%
EA
-2.00%
-3.00%

CanGo Books-a-Million Barnes & Noble EA


2.33% -0.95% -1.81% 1.38%
Debt to Equity Financial Leverage
200

150 CanGo

Books A Million
CanGo has a debt-to-equity ratio of
100
67.30% . However, they are still
Barnes & Noble
50 better off than their competitors.
EA
0
Debt to Equity

CanGo Books-a-Million Barnes & Noble EA

67.30% 158.46% 145.92% 120%

Current Ratio - Liquidity


6

With a current ratio of 5.39 they 5

are doing much better than their 4 CanGo

competitors . This liquidity ratio 3 Books A Million

tells us that CanGo can quickly 2 Barnes & Noble


liquidate current assets to pay 1 EA
current debts that come due.
0
Current Ratio

CanGo Books-a-Million Barnes & Noble EA

5.39 1.32 1.11 1.3


Strategic planning and operations of the
organization.
Mission
Vision
Value
Strategies

Marketing Plan
Focus on customer wants
Target
Surveys and feedback
Research and Development
Create a team
Manage new ideas
New product development

Strategic planning is the overall key to


organizational success.
SWOT, Market, Financial, &
Competitive Analyses

Recommendations
Strategic Planning
Marketing Plan
Research & Development Team
Economy Watch. (June 30, 2010). Online Gambling Industry. Retrieved from
http://www.economywatch.com/world-industries/casino/online-gambling-
industry.html
The NPD Group. (May 2, 2013). The NPD Group: Report Shows Increased Number of
Online Gamers and Hours Spent Gaming. Retrieved from
https://www.npd.com/wps/portal/npd/!ut/p/a0/04_Sj9CPykssy0xPLMnMz0vMAfIjC3Kt
8jNTrKLM4928TU0tfUOMDQ28jF0MPN1MAo1dg_0NjE1NHMAqzHCqsDTWD07N0y_IdlQE
AJ1LKCY!/
Kennon, J. (2013). Return on Assets (ROA), Investing Lesson 4 - Analyzing an Income
Statement. Retrieved October 10, 2013 from:
http://beginnersinvest.about.com/od/incomestatementanalysis/a/return-on-assets-
roa-income-statement.htm

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