Callaway

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Transcript of Callaway

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Group members:

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Callaway Golf Company.

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George FellowsPresident, Chief Executive Officer and

Director.

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• 1981 Ely Callaway sells wine vineyard for 14 million dollars

• 83’ Ely renames the company Callaway Hickory Stick USA

• 85’ Company moves to Carlsbad.• 88’ Company renames its self Callaway Golf

Company.• 89’ Introduce traditional sized steel clubs.

History of Callaway Golf

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• 95’ Callaway becomes number one manufacturer of sales in woods and irons

• 96’ Callaway becomes worlds largest manufacturer of clubs

• 97’ Callaway acquires Odyssey Sports 02’ Callaway lunches HX Golf Balls.

History of Callaway Golf

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Vision Statement

One good shot is not enough.

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Mission statement:

. At Callaway golf, we make golf equipment, for players world wide, who think that hitting just one great shot is not enough. We believe technology is powerful tool for creating user friendly equipment that can help golfers of all styles and skill levels enjoy the game and may be a few more great shots along the way.

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Competitive Analysis. Callaway Golf (ELY) operates in the Sporting and Athletics Goods Manufacturing IndustrySegment (NAICS Code 339920). ELY’s operations are split into five primary segments: drivers,irons, putters, golf balls and accessories.

1. Products in the drivers category include drivers, fairway woods sold under theCallaway Golf, Ben Hogan and Top-Flite brand names.19.5% share domestically and a 21.0% share in the U.K.

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2. Products in the irons category include irons and wedges sold under the Callaway Golf, BenHogan and Top-Flite brand names. Holds the number one position in the iron market,with a 25.6% share domestically and a 24.6% share in the U.K.3. Products in the putters category include putters sold under the Odyssey, Callaway Golf, BenHogan and Top-Flite brand names.with a 38.5% share domestically and a 37.4% share in the UK.

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4. Products in the golf ball category include balls sold under the Callaway Golf and Top-Flitebrand names. with a 12.2% sharedomestically and a 13.5% share in the U.K.

5. Products in the accessories category include golf bags, footwear, gloves, headwear, towels,umbrellas and other accessories.

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Total Working Capital: $ 236592

Current RaTotal Working Capital. T.C.A-T.C.L

490003-253411$ 236592

Current Ratio. T.C.A/T.C.L490003/253411

$ 1.93

Quick Ratio. T.C.A-INVENTORY/T.C.L490003-257191/253411

$ 0.92

Profitability Ratio.(ROI) N.P.T/T.A66176/855338*100

7.74%

Debts Ratio. Total debt/total assets21559/855338

$ 0.025

R.O.E Ratio N.P .T/S.H.E*10066176/578155*100

11.45%

Internal Analysis: Financial Ratios

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Plant Manager

S. Thornley

Manager Tour Relations

ControllerManager—S.D

F. Lundgren

Organization Chart – Callaway Golf CompanyOrganization Chart – Callaway Golf Company

Vice-President R&DVice-President R&DVice-President HR

Christopher O. Carroll—

Vice-President U.S Chief Financial Officer

George FellowCEO & Director

George FellowCEO & Director

Jeffrey M. ColtonAlan Hocknell

Bradley J. Holiday

Joseph UrzettaRonald S. Beard

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Strengths:1. Financial ratios.

2. Strong management team.

3. Profit margin of 50%, low cost production.

4. Diverse product line (width).

5. Technology and innovative skills.

6. Net working capital( 2.8% increase) .

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Weaknesses:1. Customer Service.2. Production process, golf ball company.3. Employment contracts.4. Distribution.5. Only view specified suppliers.6. Only production facility in USA.7. Marketing.

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Callaway’s products:

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External Analysis:

Major Competitors of Callaway Golf Co.

1. Nikon Corp.

2. Thor Industries Inc.

3. Polaris Industries Inc.

4. Pool Corp.

5. Amer Sports Corp.

6. Eastman Kodak Co

7. Brunswick Corporation.

8. Drew Industries Inc

9. Zumiez Inc .

10. Winnebago Industries, Inc .

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Threats:1. Price decline in golf club equipment 1.3%. 2. Mergers make former competitors stronger.

3. Competitors.

4. Short production life-cycle.

5. Weather conditions.

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Opportunities:1. Market in Europe expected to grow by 3-3.5%.

2. 35% -43% Cheaper Labor in Eastern Europe and Asia.3. Euro-Zone, no currency fluctuations.4. Attitude towards leisure time.5. Internet as distribution channel.6. High school sport, 2.8 mill Juniors, 2-3%

increase.

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SWOT Matrix:

• S-O Strategies:1. Expand production

into Eastern Europe.

2. Open selected Callaway shops around the world.

• W-O Strategies:1. Start Callaway

Online shop.

2. Callaway Golf Camps.

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• S-T Strategies:

1. Improve Production.

2. Acquire competitors like Nikon.

• W-T Strategies:1. Move Marketing

Channels.2. Select personalities

for endorsements.3. Buy golf ball

manufacturer.4. Backward

integration.

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Recommendations. 1. It is recommended that the Callaway Golf company should launch it’s products outside the United State. 2. Callaway Golf should enhance it’s R & D. 3. It should enhance it’s advertisement campaign.

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4. Callaway Golf Company should keep aware himself about the fast changing external environment it is possible only with the improved and

fast communication within the organization and outside the

organization as well and keep concentration on the operation of

competitor

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ANY QUESTION

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