Gabriel AS - Case study

Résumé du document

Gabriel AS is one of the European leading supplier of furniture textiles placed in Aalborg. They have specific goals and objectives, which they are trying to fulfill, such as: A return on invested capital (ROIC) of at least 15% before tax; an increasing operating margin. The company also wants to have Blue Ocean status. Meaning they want to add extra value on top of their service, therefore, have no threatening competition.

This company has grown fast over the past few years. “Gabriel‘s growth is ensured in close co-operation and trading with approximately 50 selected key account customers in a global strategy.” The market is relatively wide because there are many textiles and upholstery suppliers over the Europe and globe. Therefore, Gabriel is trying to slightly differentiate from the competition. They are focusing on being environmentally friendly (ISO accreditation from DS certificating) and using innovative technologies and materials.

Extraits

[...] Profitability 1. Return on Assets - almost double in the last year(from to 8.0 , indicating profitability Return on Sales - the growth is a very good sign (no financial troubles) and shows a growing profitability Assets turnover - profit margin has increased from the last year Return on Equity - measures the corporation profitability by revealing how much profit a company generates with the money invested by shareholders. The highest, the better, so the increase proves the company is doing well. [...]

[...] We want to invest money in innovative products, make them more environmental friendly, add more value. In order to do so, we need more resources (that's why the money is needed earlier). Both sides will get the benefits from those investments. e.g. If Gabriel is more environmentally friendly then the customers are also perceived as ecological. Therefore is a win-win situation. Question 2[10] I. Financial situation 1. Solvency ratio[11] in 2011 is an excellent score showing a financially healthy situation. [...]

[...] SCOPE Gabriel AS is a Danish company, being an European leaders in its field. At the same time they want to be perceived as a global supplier. We will focus on Gabriel's financial situation from the global point of view, taking into consideration the Danish market. METHODOLOGY Within this paper we will try to find answers for all the questions, which are intriguing us. Thus, we chose some methods to support the research. To answer the first question, we found the Build-Up[5] segmentation model relevant, because of the complex relationship management of the company based on long term commitment ( aprox key account customers around the world). [...]

[...] As a consequence, investing in Gabriel shares should be a good deal ! In the conclusion we decided to weight some factors to assess the risks we might face when choosing Gabriel as collaborator Clarity of strategy : 3/5 - because of the specific goals, targets and long term relations with the key customers Investments in new business areas : 4/5 - because of the economical crisis and the uncertainty of some markets (Greece, Spain, etc) 3. Attractiveness of customer base : 3/5 - aprox key customers around the world with strong bonds; the ratios show the company becomes more profitable and attractive for investors Relative market share : 3/5 - no Danish competitors Market size : 3/5 - only dealing with B2B; the textile furniture industry is growing Competition : 3/5 - decided only to look at European level - there are only 12 competitors, which means the intensity is not that high and manageable Internationalization level : well established abroad ( China, North America, Europe, etc) Management group: 2/5 experienced, with vision and business oriented Age of the company: Gabriel was established in Dependencies a. [...]

[...] Figures and ratios show that profit is increasing and risk is tending to diminish. Therefore the company is attractive for new investors. Bibliography Michael D. Hutt & Thomas W. Speh- Business Marketing Mangement, 11th ed. http://www.gabriel.dk/about-us/ http://www.gabriel.dk/about-us/our-company/vision-values/ http://www.gabriel.dk/about-us/ http://www.gabriel.dk/business-units/gabriel-china/iso-certification/ power point presentation from Fronter ( ISM) http://www.gabriel.dk/uploads/tx_gabrielyearreport/Annual_report_10- 11_web.pdf http://www.gabriel.dk/uploads/tx_gabrielyearreport/Annual_report_10- 11_web.pdf http://www.gabriel.dk/uploads/tx_gabrielyearreport/Annual_report_10- 11_web.pdf materials from Fronter in the Economics subject http://www.investopedia.com/terms/s/solvencyratio.asp http://www.investopedia.com/terms/l/liquidityratios.asp http://www.ccdconsultants.com/documentation/financial-ratios/acid-test- ratio-interpretation.html APPENDIX http://www.gabriel.dk/about-us/ http://www.gabriel.dk/about-us/our-company/vision-values/ http://www.gabriel.dk/about-us/ http://www.gabriel.dk/business-units/gabriel-china/iso-certification/ power point presentation from Fronter ( ISM) Michael D. Hutt & Thomas W. Speh- Business Marketing Mangement, 11th ed. [...]