The company mission is to produce competitively priced products, good quality, fit for the purpose, products that provide best performance and have comfort. This products respond to particular needs of customers through superior capability, innovation and team that specialize in respective industries within their client portfolio. The company has a mission of expanding worldwide and currently has branches and subsidiaries in other countries and continents. The company has also an urgent awareness of the fact that it cannot survive without innovation, to achieve future competitiveness in speedy response to changes in the environment and customer’s demand, by maintaining the sustained attitude of change and innovative towards the company mission. It cultivates creativity and challenge, acknowledging that future competitiveness depends on the production of timely good quality product a head of their competitors. Purdue North Central University Athletics inspires to be the market leader in their industry with insight to foresee the future, and good sense to indentify and preoccupy opportunities. They have created an open culture where the senior staff lead and junior staff are encouraged to make decisions and act proactively and act with a sense of ownership , based on the mutual respect of individually and trust and credibility.
The company philosophies operate through business values like teamwork, customer satisfaction and integrity. This has facilitated growth and expansion of the company. Their philosophies includes; strong partnerships with its retailers and suppliers, market leader in the manufacturing of the athletic products industry, and technical superiority. The company basically remains focused on the core values of the company and this has led onto tremendous increase in sales worldwide which has brought about recommendable growth and expansion of the company.
THE COMPANY HISTORY
The company history dates back to 1950’s when they started manufacturing customer demand athlete products. This products were specifically made for men, women and kids. In 1960’s they improved their techno lodge and this helped them to produce better products which increased the demand .With this new expertise ,the company grew and expanded further. This led to the opening of new branches and subsidiaries in different countries and continents. This company is currently owned by John Weber and the name of the business is known as John Weber, Purdue North Central University, manufacturer of athletic products. Purdue North Central University Athletics has established good reputation for technological innovation and today reigns as the industry ‘s fit expert and opportunity manufacture of performance- oriented athletic products.
Purdue North Central University has structured its operations in such manner that the top management leads the company and the junior are empowered to make decisions to facilitate the achievement of the company objectives. The juniors are directly responsible to their activities and they report to the top management .this structure can be illustrated as bellow.
PRODUCTS AND MARKETING MIX.
Purdue North Central Company has a range of products. It has athlete shoes and athletic clothing wears. Since the company’s mission is to produce performance oriented products, it has introduced a wide range of products with different widths and heights .This is because a well fit product performs excellent. As to shoes, this company has offered up to ten different widths—from a narrow 3A to an expansive 10E. They have developed 22 different foot models for which they design their shoes around. In these models ,each takes into account the users that is ; men ,women and children and the use and this when combined create a complete profile to design a superior shoes. This superior shoes produced meets the diverse needs of athletes engaged in a variety of activities. This is because the product produced addresses the needs of an individual athlete.
Further, this company has different sizes of sports wears (clothing) .It has kids wear, large size, medium size and small size which are all designed to perform different activities. Also this clothing are of different heights making sure that they are fit for the purpose.
In addition, Purdue North Central has other accessories for athletes which are of different varieties too. These are the facilities that are used in athletics around the globe. This company has ensured that the accessories are of good quality and perform better. This includes;
Purdue North Central University athlete has a wide range of products and these products are based on consumer demand depending on the characteristics of that group. It has produced products designed specifically for men and women, kids, teenagers and grownups. The marketing mix of this company has also taken into consideration the income levels of different customers and as such it has produced products with dissimilar prices for those clients.
ANALYSIS OF THE MARKET
Purdue North Central University Athlete has undertaken the task of market planning where by it has indentified it’s opportunities in the market environment. This company owns and operates many factories in United Kingdom and others in France. Others are based in four developing countries making it famous. In addition it has also suppliers from foreign countries making it exclusive.
Purdue North central faces distinctive challenges in home manufacturing but it has survived. This is because It has a high quality labor force and has focused on innovation and excellence .therefore it has taken leadership position in an industry that has sent its production in foreign countries.
Purdue North Central has focused on producing high quality products which are performance-driven hence they do not embark on promoting the product through advertisements which further ensures that athletes do not appear in their advertisements. This company has ensured that its continued success is brought about by the role played by the world athletes and as such Purdue North Central‘s marketing approach and relationship with its clients is focused on the design and development of advanced performance driven product.
Purdue North Central has sponsored many races, track and flied events, youth sports initiatives and teams. Some of the field events includes Standard chattered marathon, safari 20m marathon, Chicago marathon among the others. This company has also sponsored and initiated teenage
Financial Analysis of a company is the critical look at financial performance of a company. Financial performance indicators used in analysis of the company include stock performance, financial ratios, dividend payout, competitors’ performance, and industry average measures, performance of market segments, interest coverage ratios, dividend yield, conclusions and recommendation.
The financial health of this when gauged using ratios of the company will look as shown below:
The company’s earnings per share for the year 2006 were 59.68% which was a good return on the shares of the company. This means the company is doing very well in terms of return on equity. The company’s rate of return on total asset also was 11.56% for year 2006 and 11.53% for the year 2005 meaning that the return on asset was almost constant for the 2 years it did not fluctuate very much. The rate of return on stock holders equity was 19.92% for the year 2006 and 17.89% for year 2005. This means that the return on equity was higher in the year 2006 than in the year 2005. The company ratios will be as follows.
a) LIQUIDITY RATIOS
(1) Current Ratio = Current Assets = 2.9 Times
= 14509 = 2.9 Times
(2) Acid Test/ Quick Ratio =Current Assets – Stocks (Inventory)
= 2.6 Times
(3) Cash Ratio = Cash (In Hand And At Bank) + Marketable Securities
= 2.335 Times
1. Return on Assets = earnings before tax = 14.05%
2. Return on capital = Earning before Interest Tax
Capital employed (net assets) = 21.89%
3. Return on Equity = Earning before Interest Tax
Equity = 21.89%
4. Gross profit margin = Gross profit =31.65%
The current debt to equity ratio for year 2006 is 0.72 and 0.55 for year 2005. This means the debt ratio increased for the two years and the long term solvency of the company is in question. The company has followed its corporation business strategy of expanding and being ahead in innovation. The company also is following a strategy that is working that is why the stock of the company has grown as shown in the table and the earnings per share have increased. The price earning ratio of the company has also increased in the two years meaning that the earning to the owner equity is in good health. The company’s current ratio currently is 2.9 for the year 2006 and 2.6 for year 2005 this means the current ratio also for the company increased and the short term liquidity of the firm is in sound position.
The company’s Inventory turnover is 71.6 which is the highest turnover meaning that the average stock held in store is 71 days therefore the company holds the stock for three months on average before it is sold. DuPont Analysis is the analysis of net margins i.e. net income over sales. For the company it is 18% for year 2006 and assets turnover is 17.9% and the shareholders leverage factor is 1.4. Therefore DuPont Analysis is 46%. DuPont analysis measures the return on equity and most businesses that generate high returns create substantial assets for each dollar. It measures how a dollar invested is returned. In this case every dollar invested the company gets 46% of assets.
The company has seen growth which is due to strategic reasons. The growth ratios for last year is as follows:- Total revenue ratio 23.73%, Earnings before interest and tax, and depreciation is 61.8%, return on receivable was 7.8%, earnings per share before extra ordinary items was 59.68%, cash flow from operations 233.5% intangible book value 39.79%, and capital expenditure 44.9%. This shows that the company assets are returned well in terms of rate of return and the share holders income is in good position, however, from impeccable the company shares seems to be performing very well in the market because of the products that they introduced in year 2005 into the market.
Other performance indicators for the company as compared to the industry figures is as follows: long terms solvency improved and currently stands at 2.9 as compared to the industry, also total assets to liabilities stands at 34.5%, assets turnover for the company ratio also improved as the total assets turnover was 1.3 as compared to the industry while fixed assets turnover was 17.9% as compared to the industry, account receivable turnover was 24.1 as compared to the industry, from this ratios the assets were turned well over above the industry. Growth during the year was also very good as we have seen from the cash flow statement that the operating cash flow improved by 233%, showing that the company has enough cash to pay for short term liabilities and dividends.
I believe this company has performed very well over and above the industrial average and it is a good company for anybody to put his money because of the bright future.
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