SWOT Analysis On Kohlberg Kravis Roberts

adam June 15, 2012 Banking & Financial No Comments

The company Kohlberg Kravis Roberts was founded in 1976 which was founded by the Jerome Kohlberg, Henry Kravis and George R. Roberts from whom Jerome Kohlberg resigned from the company in 1987. The company is headquartered in New York, United States which is based on the industry of private equity and has 13 different offices in 9 countries. The products and services manufactured and produced by the company are leveraged buyouts and growth capital.

Kohlberg Kravis Roberts SWOT Analysis

Strengths

• As the company is privately owned and is considered as the strength for the company, so it is not biased for the thinking of short term.

• The company is engaged in providing its services in a very large scale and it is centrally managed.

• The financial position of the company is considered to be well healthy and have the minimum and relatively low debts.

• The value scheme of the company is well established as related to the convenience and the price.

• The healthy defined approach is developed for the customers of the company to attain their attention and interest.

• The company acquires many of the small companies and firms that increases the wide and range of the company.

Weaknesses

• The turnover of the company is very high that increases the cost of the production and faces huge challenges of labor.

• The cost structure of the company of very high that is related to the cost of the operations.

• The executions of the functions that are done in the stores are very inconsistent and contradictory.

• Inconsistent and steady growth of the company as in case of the sales as well as the stores.

• The minimum level of innovation and inventions that are made by the company that decreases the demand.

Opportunities

• The company should try to improve and enhance the productivity of the existing and accessible buildings.

• Optimize and maximize the chain of the supply, levels of the inventory and stocks and also for the in-store execution.

• Enhance and increase the financial position of the company in the general market.

• Increasing and improving the supply chain of the company and also increasing the efficiency of the production.

• The establishment of the new stores with the new innovation and inventions that grasp the attention of the market.

• The more and more acquisitions and merger should be made by the company to enhance the business.

Threats

• The increasing percentage of the consumable commodities has an important factor as of the improving margins.

• The increasing pressure of the economic circumstances that is on the core customers related to the unemployment and fuel.

• The overlapping that is faced by the company as because of the bigger stores and the businesses.

• The issue of the exchange rate fluctuations all across the world due to the under pressure source.

• The increasing competition of the company in the market that decreases or stagnant the growth ratio.

References

• (2011), Principles of Management, Kohlberg Kravis Robert Corporation.
• www.kkr.com, Retrieved on June 9, 2012.

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