Canadian Tire Business Analysis Paper

520 Words2 Pages

Introduction

Canadian Tire Corporation Limited (Canadian Tire) is a retail store that sells a large assortment of goods and some services with a number of stores across Canada. The company also has a wide variety of subsidiaries in many different types of industries. The purpose of this assignment is to gather and analyze research on multiple business aspects of this well-known Canadian corporation. A greater understanding of this business’s activities through its net profit, how it has changed over time and predicting where the company is headed in the future.

Company Description and Analysis

Canadian Tire is the largest national retailer of sporting goods in Canada. The company provides products in the categories of automotive, living, fixing, playing and apparel. Along with a unique assortment of products, the company offers reliable credit card services to its customers. Canadian Tire has over 425 locations across Canada, along with its subsidiaries of Forzani Group Sports Ltd and Marks Warehouse. The vertically integrated company remains highly competitive in the Canadian market with a profit margin of $735.9 million (Canadian Dollars) according to the last annual shareholders report of 2015. It appears that the company is profitable, and therefore, does not have to consider expansion into the United States. Canadian …show more content…

With the slow and steady increase in profits every year, it is obvious that the company will continue to manufacture products for the population. However, in the year 2016, Canadian Tire suffered a quarterly loss of over C$100 million . On behalf of the shareholders, the former CEO, Stephen Wetmore, was reinstated in order to formulate new long-term focused strategies and to help the company adapt to the digital future ; The CEO change potentially may be the reason for the quarterly loss (See Appendix

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