Le Chateau Essay

5252 Words Oct 10th, 2012 22 Pages
au
Table of Contents

Organizational Introduction
Company Overview
Positioning
Financial Performance
External Analysis
Porter’s Five Forces Analysis
Internal Analysis
Resources
Capabilities
Strategic Analysis
Business-Level Strategy
Corporate-Level Strategy
Objectives & Alternative Courses of Action
#1: Alter Manufacturing Process
#2: Strategic Alliance
#3: Global Expansion #4: Acquisition
Recommendation
Works Cited
Appendix
Interview

Organizational Introduction
Company Overview Le Chateau is a leading Canadian specialty retailer that offers contemporary fashion apparel, accessories and footwear. Founded in 1959 by Hershel Segal, the retailer was originally named “Le Chateau Men’s Wear”. The name was
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The current ratio of 3:1 is significantly high and has been hovering around that value for three years. However, this number can be considered deceiving as a majority of current assets are tied up in inventory. One could choose to look at the quick ratio and notes that for 2011 fiscal year a current ratio just above one is held. It would seem that despite significant inventory and macro-economic issues, Le Chateau is a solvent and liquid company. Given the decrease in sales, margin, and inventory turnover, the company has experienced significant decrease in its stock price. The overall market forces from 2008-2009 affected the company’s stock. The stock price was then relatively stable holding a range from $11.8- $14.54 in 2010 (Bloomberg, 2012). However, the significant trends caused the start of a massive downtrend in the stock price. The company historically paid out an 18-cent dividend each quarter midway through 2011, and this was cut to eight cents. The lack of communication from the company, including the unexpected dividend cut, increases the rate of decline in stock value. Thus, while the price at the start of 2011 was $11.75, the price as of April 5th 2012 close is $1.30 representing a 88.9% decrease in the company’s value in only 15 months (Bloomberg, 2012).
External Analysis With many niche segments, the retail clothing industry is characterized by a large number of players who range from global retail chains to local

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