Entrepreneur Analysis: A Case Study of Eureka Company

Entrepreneur Analysis: A Case Study of Eureka Company

Introduction

Company analysis plays a crucial role in establishing the past, present, and future success and failures of an enterprise. Company analysis is an essential aspect of the business because it can be used as an evaluator when it comes to setting targets and goals. For this assignment, I have chosen to analyze Eureka Company, an electronic business that has served the Middle Easterners and some parts of Europe for decades. The paper is organized and divided into sections, starting from the executive summary cutting through to implementations and controls. The information provided in this paper is based on the company’s annual report as well as other scholarly documentation about the same.

Executive Summary

Eureka organization shopping precinct involved in the marketing segment of digital products and user integrated circuit technology. The company’s focus is on. The organization was at first settled in 2001 to fill the customer request hole in the retail division. Activities began in 2000, with the significant outlet being initiated in a 3700 square meter room in the vital road of Al-Mubarak. The main showroom’s colossal accomplishment set the tone for the foundation of more showrooms in Kuwait’s other districts. For instance, Shwaikh was set up in 2005, and Fahaeel stuck to this same pattern in 2007. However, the marketing showcase in Kuwait keeps on broadening and grow, and the organization is centered around searching for progressively vital areas for new areas. It is seen that deliberately finding a store will expand entry to the store by clients along these lines extending deals. Moreover, vital regions will facilitate the coordination of shipping the items to the stores. This will upgrade benefiting from the accessible open the market doors and provide improved administrations to the clients.

Situational Analysis

The SWOT investigation is an apparatus that permits organizations to classify their interior and outside variables to structure their asset distribution adequately, particularly as to their showcasing blend (Bowman and Birnick, 2017). The following table presents the Eureka’s SWOT investigation.

Industry Analysis

The chief organization’s administration under the CEO’s initiative has figured out how to extend the organization’s commercial activities by launching additional provisions. In an interview with the press, the organization’s CEO Ahmeed Al-Qeneye affirmed the proceeded with new growth strategies in its tasks. This had prompted the opening of branch number four, Farweniya megastore. Likewise, the CEO, during the initiation service, said the administration was focused on advancing the unique idea of the organization (Gulfji.com,n.d). The organization has an aggregate of five showrooms situated in different districts. The showrooms have all the organization items very much showed to upgrade client experience and administration conveyance.

Competitive Analysis

A portion of the dangers confronting the organization incorporates extending contender marks in the marketing advertise. Contenders are initiating additional stores in different districts and, in this way, reinforcing their appropriation channels. Such organizations are additionally centered around strengthening the inventory network coordinate with the worldwide brands. Also, the decrease in oil costs will negatively affect the customer acquiring authority. This is concerning the reduction in livelihoods amid the Kuwaiti state since the economy fundamentally depends on oil. Other retail companies, such as Blink, pose an immediate threat to the company. On the bright side, the organization is portrayed as amongst the greatest gadgets’ retailer megastore in the Middle East. It has a sum of more than 55 outlets, 222 universal brands, and more than 7400 items under one rooftop (e.net.kw/parners,nd). Eureka Company has approximately 222 worldwide brands in the stores, which suggests that it has a setup inventory network organize which gloats of notable global electronic brands, and puts it in a better competitive position. The assortment of items it offers is very much perceived for the top-notch benchmarks.

Consumer Analysis

The company targets all consumers, young and old. With more around 55 outlets in Kuwait alone, the company reaches approximately 4000 customers daily. To minimize competition and expand client experience, the organization has its megastores comprise of a diversion segment where clients can get to nourishment and drinks, sports offices, and bistro. The organization has likewise repaired and substantially updated its item show furniture in the more significant part of its showrooms. This is planned for amplifying client experience while adequately fulfilling their needs (eureka, nd). The organization is additionally effectively engaged with purchaser offers and advancements. For example, the ‘Arrangement of the Day,’ ‘Ensured least value refund’ and ‘$3 million Gift Campaign’ are the absolute best special projects that the organization has figured out how to dispatch in the market. The organization acknowledged gigantic deals volume and upgraded client unwaveringness for its arrangement of items. The organization has understood that the retail part in Kuwait is continuously growing. Along these lines, the organization has left on distinguishing progressively vital areas to set up more stores. This will guarantee that the organization can viably catch a more noteworthy nearby piece of the pie in the different regions. On that note, it’s strategic to turn into the most prominent retail location in the Middle East. In this manner, there is space for development by daring to different markets outside Kuwait.

Financial Analysis

In the last 12 months, Eureka’s debt levels have dropped from $2.1 billion to $1.8 billion, including both long-term and short-term debts. The considerable reduction in debt has left the company with $3.1 billion in short-term investment and cash. In the same period, the company managed to generate $4.6 billion worth of cash from operations. Out of this, the company stands at cash to debt ratio of 256%, showing that the company’s money is enough for debt coverage. The ratio can likewise be interpreted as an efficiency measure as an alternative to assets return. The company’s liabilities level of U.S $5.4 is an assurance that the company has kept a safe level of current assets needed in meeting its obligations. Typically, for companies like such, this ratio is suitable because there are enough cash buffers while holding less capital in low return investments (123HelpMe.com)

With 39% equity debts, Eureka may be thought of as levered appropriately. It is a safe range because Eureka is taking on very little debt responsibility, which may be pressuring for future development. The best way to check if the company can meet its debt obligations is through the rule of thumb. The law suggests that tax and interest cannot come before earnings. With a ratio of 85.47x, the company has its benefits easily covered. Besides, Eureka exhibits proper current assets management.

Alternatives Analysis

As a qualitative and quantitative alternative, the company maintains a diversified and dynamic management model. Having options to management helps the company adapt to changes in the environment, both internal and external. According to a press release by the director of operations on 13 March 2019, the company has put in place secure and adaptable forms of management to ensure its growth. Similarly, Eureka maintains a high level of transparency because it reflects a corporate responsibility commitment. “By giving a clear explanation of how our business and industry work our difficulties and open doors as we get them, our corporate duty objectives, and the advancement we are making toward them, we can set these partners in a place to offer pertinent and insightful input. We see an incentive in various techniques for detailing and conveying, and we depend on various systems, exposures, self-appraisals, exercises and models, and legitimate difficulties to announcing.”, he explains. Also, Eureka has a culture of product tests before unleashing them to the market. Other alternatives include product tests, dynamic recruitment techniques, and alternative back up capital (Eureka.com, nd).

Implementation and Control

Eureka has created a commercial culture rich with delegate dependability and solidarity. The corporation decides to consider its base camp a “grounds” instead of an office. Reps are designated “players,” directors are “mentors,” and gatherings are “clusters.” These terminations go far to make the daily work bright for the privileged representatives in Kuwait. The organization uses principles, for example, per-share income, net benefit, profitability degree, growth of sales, growth of resources, and degree of value. Execution norms are likewise settled and checked routinely. A portion of the regions where the organization has built up gauges are profitability of creations destinations, the problematic situation of Kuwait comparative with the worldwide market, mechanical administration in contrast with contenders and general social obligation and the public’s discernment (123HelpMe.com)

References

“Strategic Alternatives for Eureka” 123HelpMe.com. 06 Feb 2020
<https://www.123helpme.com/view.asp?id=167434>.

e.net.kw/partners, (nd). Retrieved from http://www.e.net.kw/online_payment.aspx. Accessed on <6th May 2015.>

Eureka (nd). All about Electronics. Retrieved from http://www.kuwait.superbrandsmena.com/pdf/pdffile1399460562.pdf.  Accessed on < 6th May 2015.>

Gulfji.com (nd). Eureka electronics opens a new branch in Farwaniya. Retrieved from http://www.gulfji.com/NewsDetails.aspx?ID=518. Accessed on < 6^th May 2015.>

Kuwait Consumer Electronics Report Q2, 2019. Retrieved from http://www.reportlinker.com/p0183198-summary/Kuwait-Consumer-Electronics-Report-Q2.html. Accessed on <6th May 2015.>

Tawfik, A. M., Magdi, H., Ghandour, M., Al Hassan, A., & Speece, M. (2015). Consumer perceptions of social media usage by consumer electronics retailers in Kuwait.