Inner City Paint Corporation System †Free Samples to Students

Question: Discuss about the Inner City Paint Corporation System. Answer: Introduction Inner-City Paint Corporation is a firm that produces wall paint and which is situated in Chicago and whose proprietor was Stanley Walsh. It began its operations in a warehouse. The company is facing problems of poor management and disorganized business. The customers lack confidence in the corporation, with poor financial management and high receivables in accounts (Narayana et. al., 2010). Mr. Walsh has been managing the company in a style that has not changed ever since he started the company. His policies on recruiting new employees are not revised and do not seem to work well with the company. This is because the company is facing problems including low productivity due to the lack of motivation to existing employees and at the same time hiring unqualified workers making him lose a chance to enter new markets, and improve on the product and getting more and bigger clients (Burrow Kleindl, 2013). The proprietor Mr. Walsh does not want to spend on hiring an auditor to take care of the finances. Therefore, audit has not been done and the suppliers and taxes have not been remitted due to poor management of finances. The income taxes were left out in the income statement making it hard to calculate the profits. Inner-City Paint Corporation is facing stiff competition from the small companies surrounding it. Glidden and Du-point is a larger company that tends to receive more clients than Inner-City thus Inner-City is losing its potential customers to Glidden (Scarborough, 2014). There are also smaller companies existing in the market giving Inner-City stiff competition. Mr. Walsh did not do a SWOT analysis to assess the environment. Thus, he did not do a strategic plan for the company making it hard for him to cope with the situation of economic slowdown and also the housing market. The inventory and record system was also poor, therefore unable to handle the management of the product and new orders (Open Polytechnic of New Zealand, 2008). Recommendations Mr. Walsh should review his management skills by improving on his management skills or by acquiring a competent manager to manage the company for him. It seems that as the company grows, it is becoming difficult for the Inner-City Corporation to cope with the external and internal environmental changes. The recruitment system should also be reviewed by a qualified human resource specialist to enable Mr. Walsh employ the right people and also learn how to maintain the existing people. The inventory system needs improvement to enable the company handle larger orders. Finances should be handled by an expert so that the financial expert may include the taxes of $38,510 in the income statement which figure was left out. The company should also pay taxes and control the debt because the debt was too high. Inner-City should also invest in more machinery and equipment for more and better products in the future. Mr. Walsh should also look for new markets, look for more orders and get a comput erized system of inventory that will enable him to lessen the errors. References Burrow, J. L., Kleindl, B. (2013).Business Management. Mason, US: Cengage Learning. Narayana, R. P., Appannaiah, H. R., Sathyaprasad, B. G. (2010).Business management: II. Mumbai [India: Himalaya Pub. House. Open Polytechnic of New Zealand. (2008).Business management. Lower Hutt, N.Z: Open Polytechnic of New Zealand. Scarborough, N. (2014).Effective small business management. Pearson.