Essay: Weaknesses of Koala Bear Corporation

Sample Essay

Weaknesses

The company is unable to meet the demands of the customers making it the biggest weakness of the company. Centralized structure failed to provide proper guidance over instruction and policies. Koala is not even close to the expected incomes this year.

The company’s net income decreased by 21% and the shares dropped by 58 cents per diluted share as compared to the status of 1999. Koala has liabilities which way above the shareholder’s equity. The liabilities have risen almost 3 times since the last fiscal year. The competitive disadvantage for Koala is the presence of other manufacturers in the market before Koala was launched (Koala Corporation, 2001). Though many of the customers are attracted and retained by Koala, yet there is still a large base of customers unaware of the brand’s name. The delays in the shipments of orders result in shortfalls of projected revenue for the full fiscal year.

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