C&C Sports is a family and locally owned sport uniform company based in Texas since 1928. Their company started as a sewing operation with intents to provide clothing to workers. Over time, the co

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C&C Sports is a family and locally owned sport uniform company based in Texas since 1928. Their company started as a sewing operation with intents to provide clothing to workers. Over time, the company found a market niche in manufacturing baseball unforms and has attributed their continuous success to that. The company is run by the third generation of leadership with relatives running certain management positions.

In conducting a strengths analysis, we find that they are local and do not outsource operations from China. Because of this, they have grown favoritism throughout Texas and have grown a loyal fan base. Product delivery/shipment is also quick and reliable. C&C sports also has a ongoing connection with other vendors in the chain such as Universal Sports which offers marketing, less shipment costs, and additional sales for C&C Sports. Also, due to it’s history and close accounting records, C&C sports has been able to continuously generate income despite sales declining because they were able to understand what to do and that is create less clothes and ultimately, have production expenses reduce.

A weakness analysis displays a lower operating income percentage because it is a smaller firm and therefore can only produce so many clothes and income. In fact, there seems to be an ultimate decline in cash from operations despite income increasing and inventory increasing. There also seems to be a lack of growth and general expansion nationwide as their current business is staying stagnant.

Opportunities arise from C&C Sports’ current weaknesses AND strengths combined. Expansion is necessary in order to generate more revenue. C&C is so customed to occupying their current market niche (baseball apparel) and should look into alternate markets like other sport apparel and equipment even. The company can maintain its core values of not outsourcing but they should look into expanding and networking into other states/stores. The company also should pride themselves on their excellent customer service and high quality items and use those as a main selling point when they do venture into other markets. The company can also utilize various marketing tools from the internet and social media to display their brand.

Threats arise from alternate competitors or sport apparel stores that have been able to carry more than just baseball apparel. Overall, these competitors have occupied a certain portion of the market and C&C’s revenue even if C&C carries exclusive baseball attire (not found in other stores). Another threat that is incoming is the gradual decrease in sales due to the unbalanced operating income percentage. The company should also look into investing into operating activities as their current cash balance is decreasing despite their current method which is trading long term debt for short term debt is only a short-term solution.

It is crucial for C&C Sports to analyze their current financial reports and statements to identify where their strengths can be further utilized and how to correct their weaknesses. It is also important to identify whether or not the third generation President is fully mentally invested and capable in the job as he may no longer what a part of the business and is holding it back. “Thus, it is time to analyze the business’ opportunities and directions to ensure an appropriate match of management and leadership talents with the needs of the company” (Fritz, 1997).

 References:

Davis C. E., & Davis E. (2020). Managerial Accounting, Enhanced eText (4th ed.). John Wiley & Sons. ISBN-13: 9781119577669

Fritz, R. (1997). Wars of Succession : The Blessings, Curses and Lessons That Family-owned Firms Offer Anyone in Business: Vol. 1st ed. Silver Lake Publishing.