The Sherwin-Williams Co.
The Sherwin-Williams Company Sherwin Williams is the largest manufacturer of paint products in the U. S. It is the most famous painting company in the United States. The Company owns more than 34 factories and 3,200 of their own branded stores, that is why it is considered the largest chain stores in the world of colors. The American company Sherwin-Williams was founded in 1866. Since its establishment, the company made a bid for new technology and innovation. 11 years after its founding in 1877, Sherwin-Williams Company has produced a revolution in the coatings industry, it has patented the manufacture of paint in an airtight jar.
Since then the company is a leader in the development of new high-quality coatings based on the latest technologies and unique designs (Sherwin-Williams, 2011). Today, the Company Sherwin-Williams is the largest manufacturer of paint products in the U. S. , it is the most famous brand of paint in America, it is a transnational corporation with a turnover of 8. 02 billion dollars in 2007. Sherwin Williams Paints, known as ones of the highest quality, and therefore they are used for painting historic buildings and landmark buildings.
The superiority of Sherwin Williams, among other companies is leadership of its paints in the global market thanks to new technologies, environmental production and exclusive content. Sherwin Williams Company’s products meet the highest standards, and especially the line with the brand GreenSure (Hoffman et al. 2010). There are the main features of paints of the company Sherwin Williams. Firstly, paints of this company are not sprayed. Secondly, when applying them to the surface they create smooth surface in the drying process.
This is especially evident in comparison with the PVA-based paint or acrylic paint. Thirdly, paints of the company Sherwin Williams are aesthetic and efficient to use. Many of the Sherwin Williams paints can cover the surface with a single fold. This is due to different kinds of primers for different surfaces. The density of the substrate depends on both the paint and the shade. Therefore, Sherwin Williams paints save costs. Sherwin-Williams has and manages more than 2,000 retail trade in its possession. 50% of all its products come from enterprises, the shares of which belong to the corporation.
In order to assess the company’s risk it is important to understand that risk is the possibility of adverse situations during the implementation of plans and use of the company’s budget (Doole & Lowe, 2008). The financial risk is the risk of adverse financial consequences in the form of loss of income and capital under uncertainty conditions of its financial activities. Commercial risk, in turn, is the non-realization of purchased goods, failure to price changes, loss of goods, the excess costs of treatment (Allen, 2010).
At the present stage one of the main types of financial risks of the enterprise include (Adam, 2008): • Risk reduction of financial stability. This risk is generated by imperfections in the capital structure, generating an imbalance of positive and negative cash flows of the company by volume. As part of the financial risks of the hazard (generated by the threat of bankruptcy), this risk has played a leading role. • The risk of insolvency of the company. This risk reduction is generated by the liquidity of current assets, generating an imbalance of positive and negative cash flows of the company over time.
In terms of financial impact this risk is also one of the most dangerous. • Investment risk. It characterizes the possibility of financial losses in the investment activities of the enterprise. • Inflation risk. In an inflationary economy, it stands out as a separate type of financial risks. This type of risk is characterized by the possibility of depreciation of the real cost of capital (in the form of financial assets of the enterprise) as well as the expected income from financial transactions in an inflationary environment. This type of risk under current conditions is permanent and is accompanied by virtually all financial enterprises. Interest rate risk. It is an unexpected change in interest rates in financial markets (both deposit and lending). The cause of this type of financial risk is the change in financial market conditions under the impact of government regulation, growth or decline offers of free cash resources and other factors. Negative financial consequences of this type of risk can be observed in the emission of the company in its dividend policy, in short-term investments and other financial transactions. • The credit risk. It takes place in the financial activities of the enterprise in the provision of commodity or consumer loan customers.
Its forms is a risk of nonpayment or late payment for a loan now tempered finished products, as well as the excess of the estimated budget for debt collection. • Tax risk. This kind of financial risk has several implications: the likelihood of introducing new types of taxes and duties to carry out certain aspects of economic activity, the ability to increase the rates of existing taxes and fees; change the terms and conditions of certain tax payments, the probability abolish existing tax breaks in the field of business enterprise.
It has a significant impact on financial performance. • Structural risk. This type of risk is generated by inefficient financing the current costs of the enterprise that contributes to the high proportion of fixed costs in their total amount. High operating leverage ratio under adverse conditions of the commodity market developments and lower gross positive cash flow from operating activities generated a significantly higher rate of decline in the amount of net cash flow for this activity (Sandhusen, 2000; Lasher, 2010).
Sherwin-Williams uses long-term debts that directly impact its bonds rating. This estimation has a significant role for the company’s development since it reflects the position of the company in the market. Moreover, the company has the obligations towards clients and investors and that is why it has to pay attention to the assessed rating of its obligations (McDonald & Mouncey, 2011). Works Cited Adam, Alexandre. Handbook of asset and liability management: from models to optimal return strategies. John Wiley and Sons, 2008. Allen, Judy.
Marketing Your Event Planning Business: A Creative Approach to Gaining the Competitive Edge. John Wiley and Sons, 2010. Doole, Isobel & Lowe, Robin. International marketing strategy: analysis, development and implementation. Cengage Learning EMEA, 5th ed. , 2008. Hoffman, Andrew et al. Sherwin Williams: Splashing Into the Low VOC Paint Market. William Davidson Institute At The University of Michigan, The, 2010. Lasher, William. Practical Financial Management. Cengage Learning, 6th ed. , 2010. McDonald, Malcolm & Mouncey, Peter.
Marketing Accountability: A New Metrics Model to Measure Marketing Effectiveness. Kogan Page Publishers, 2011. Ogden, James & Rarick, Scott. The Entrepreneur’s Guide to Advertising. ABC-CLIO, 2009. Sandhusen, Richard. Marketing. Barron’s Educational Series, 3rd ed. , 2000. Sherwin-Williams. History of Sherwin-Williams. 2011. Web Nov. 25, 2011. Standard & Poor’s. The Standard & Poor’s 500 Guide. McGraw-Hill Professional, 2005. US Fire Administration. Sherwin-Williams Paint Warehouse Fire; Dayton, Ohio. FEMA.