Resource-Based View Analysis
Liquidity profitability ratios are extremely fundamental in carrying out reliable financial analysis. These ratios are mainly significant in defending the ability of an enterprise to meet short-term obligations. It includes the current ratio, cash ratio, and quick ratio. Each of these ratios is useful in defining certain performance of an organization.
Current ratio would be the ration of current assets to current liabilities of the company. Quick ratio shows the relationship between current assets minus mostly illiquid current stocks such as stock and prepayments. Cash ratio indicates the relationship between cash asset and the current liabilities of the company.
Current ratio = $ 17,060/$9,963 =1.71
Quick ratio= (17060-222)/9963 =1.69
Cash ratio=476 / 9963 = 0.048
Current ratio = 14727 / 9630= 1.53
Quick ratio = (14727- 254) / 9630 = 1.50
Cash ratio = 333 / 9630 = 0.035
Current ratio = 14110 / 9461 = 1.49
Quick ratio = (14110 - 138) / 9461 = 1.48
Cash ratio = 47 / 9461 = 0.005
Liquidity ratios table for Canadian Pacific Railway Limited
As a tool to measure the ability of an enterprise to pay current debts, it is proper indication that since 2011 up to 2013, the company has had increasing ability to pay its debts. This is an indication of an increasing financial ability of the organization. The current ratios have been increasing from 2011 to 2013. The increasing current ratios indicate that the company will repay lower interest rates on its debts in 2013 than in 2012 and 2011 (CP, 2014).
The quick ratio has close connection to current ratio but difference arises where the quick ratio considers the illiquidity of some of the current stocks such as stock and prepayments. In this regard, the ratio shows that the company always has a set of illiquid assets that are prevalent in the three years. They have no massive influence on the current ratios since the quick ratio also increases with time. This is an affirmation that the company’s capabilities to pay debts are increasing every day.
The cash ratios shown in the table are proper indication of the amount of cash the company has as a tool for operations. In 2011, the ratio was smaller than that of 2012, which indicates that the company had a stronger cash base in 2012 than 2012. In addition, the ratio in 2013 is higher than that of 2012 indicating that there was more cash in operations of the company than in 2012 (CP, 2014).
The physical stand of the company can be understood through analysis of the structures of the company. The company is operating on self-constructed structures that are extremely significant for the operation of the company. The most significant physical structure of the company is the railroad. According to the last quarter of 2013, the company had a net fixed assets value of $ 13.33 billion. In 2012, the last quarter of the year indicated net-fixed assets of $ 13.01 billion. On the other hand, in 2011 the Canadian Pacific Railway the net fixed assets of the last quarter were $ 12.75 billion (CP, 2014).
This is proper indication that the company has been having exclusive investment in fixed structures. The increase in net fixed assets may be because of the increased structures of the company. Railroads and operation premises are some of the assets that have seen the company continuously grow in terms of fixed assets. The cost of constructing railroads and buying the locomotives is the main determinant of the fixed assets that the company uses in its operations. In addition, the company has been purchasing locomotives that are essentially useful in defining increased assets for the organization (CP, 2014). The company relies on for competitiveness in the locomotive industry these major assets.
The company manages its technological issues through the Canadian Pacific Information Services. This department takes exclusive control of technology and systems of the company. The company has ensured that its operations are well integrated through an excellent technological system. This system maintains information concerning the operations of the company (Our past, present, & future, 2013).
Communication in the company is extremely fundamental and deserves exclusive reliance on technology. Since the company operates railways in different stations, need for technological investment must be critical. The company has had an exclusive technological footprint that assists in enhancing communication in the operations of the company. The company mainly operates through signals for communication. These signals are mainly transmitted through reliable technological devices. This is proper representation of the need of technology in the company (Canadian Pacific, 2014).
The company has constructed an advanced infrastructure that supports extensive use of technology in the company. As a result, the company is building state-of-the art data centers as well as disaster recovery facilities. This is center aims at keeping all the data about the company intact and without possible loss out of mishandling. The aim of having this infrastructure is to ensure that the company transforms railway transport in North America (Canadian Pacific, 2014).
Recently, the company hired a set of experts who are supposed to boost the use of technology in the country. The company has been looking for individuals with exclusive expertise in handling project risks. This is mainly significant through application of exclusive project management techniques. Risk mitigation, and security have become major concerns for the company following its exclusive growth. The company has invested in a sensitive system that orders activities of the organization. Therefore, there have is need to have a secure system, which is headed by technological experts in the company (Canadian Pacific, 2014).
The company is extremely big and it requires exclusive management and use of available skills to ensure its success. The company has not been ignorant of the significance of proper organizational structure.
The company has a board of directors that consists of 15 members. John Cleghorn chairs the board. These individuals sit regularly to monitor the activities of the organization as well as the challenge the stewardship skills of the management. They make key decisions like determination of dividends for shareholders. They are also in charge of crucial decisions like hiring the chief executive officers and other senior officers.
The company operates under excellent leadership of Frederic Green who is the CEO and president to the company. he is entitled the role of making crucial decisions on behalf of the directors. He works with an exclusively strong team whose duty is to ensure the goals of the company have been achieved. He allocates duties to the subordinate managers and evaluates their performance (FAQs, 2014).
The operations of the company occur through departments. The departments have heads who represent the CEO at their specific roles. The departments of the organization have unique roles with each one of them ready to handle their respective roles. The departments are integrated in such a way that failure of one of the departments would dictate failure of the rest of the departments (FAQs, 2014).
A company cannot ignore this resource. It defines all the departments in an organization. It is through human resource that all operations of an organization take shape. Canadian Pacific Railway Ltd cannot ignore the sensitivity or the significance of having a reliable human resource as its asset.
The human resource team of the company is led by the CEO Frederic Green, who monitors the activities of the rest of the employees in the organization. He is the senior employee to the organization. He has extensive influence to the flow of activities in the organization. It is through his advice that the organization makes critical moves and decisions in line with the business of the company (FAQs, 2014).
The operations of the company do not depend on the efforts of the CEO alone. There are subordinates who await his instructions to carry out various duties in the organization. The different departments in the organization have different employees who undertake different duties. Each department is supposed to employ people based on the roles that they play and the duties that they are supposed to undertake while in organization. For example, the accounting department is supposed to portray the financial position of the organization and they are in charge of all accounting duties for the company. The company has employed chief financial analysts who assist in preparing financial statements for the company. These may be representation of the wide class of professionals who have made the company stand as it is at the moment. The company also has professional advisors who are significant in defining the way forward for the company. They advise on critical decisions that the company wishes to undertake (Canadian Pacific, 2014).
Also, the company has casual laborers who offer manual labor to the company. they are in charge of technical works and they assist the management in having the technical works done. For example, the company has messengers, cleaners, and security men (Canadian Pacific, 2014). This class of human resource is essentially important as those above it.
Innovation and creativity
The continuity of the organization would highly depend on the creativity of the employees in the organization. Since this is not the only company offering railway transport, the company has embarked on creativity and innovation. As a result, the company has hired exclusively knowledgeable individuals with massive exposure to the activities that are revolving around the world (Canadian Pacific, 2014).
The company portrays its art of creativity and innovation, when it came up with the technological system that it created. Through technological experts, the company came up with an integrated system that allows easy monitoring and flow of activities in the organization. Through creativity, the company has avoided massive costs that result from use of excessive papers in daily of activities. There is concrete significance in the definition of innovation and creativity when most of the activities are carried out through the system (Canadian Pacific, 2014).
The CEO is an extremely creative and innovation leader. He has influenced massive decisions concerning the operations of the company following his creativity and innovation. He has been influential in choice of extensively talented individuals to head different departments or projects on behalf of the company. the general creativity and innovation in the company has been the main cause of the exclusive success that the company is enjoying from day to day of its operations in North America (Canadian Pacific, 2014).
The reputation of the company can be rooted from its history. The company has long history of operations in North America. It began its operations in 1881 under the name CP Rail. At the time of its initiation, the company began its operations as a legal owner. Since then the company has been the leading company in offering transport through rail (FAQs, 2014).
The repetition of the company would also be measured by the distance it covers in its transportation duty. The company owns around 14,000 miles of track across Canada, as well as the United States. The rail from Vancouver to Montreal and to other regions also connects major cities in the United States and Mexico to the highly reliable railway network (FAQs, 2014).
The long history of operations with major contracts being signed by the company makes it highly reliable in the business of transportation. For example, the contract it signed with the government of Britain in 1891 to transport imperial mails have made the company reliable by many British who wishes to send parcels or travel to or through Canada (Canadian Pacific, 2014).
Currently, the company is one of the best performing companies in the industry. It has been a major cause of worry among many companies following its attractiveness to business people as well as passengers. It is an attractive company and many people swear to use the company in the transport of cargo as well as their own transportation.
Knowledge, skills, and abilities
The company has been keen on the kind of employees it hires to handle different tasks concerning the company. There must be people with different skills for different departments. To start with, the company has hired a CEO who has exclusive skills in management and business evaluation. He has mastery for business processes and wide knowledge in managing finances. Therefore, it is extremely easy to have him employing highly experienced and expertise individuals(FAQs, 2014).
The executive committee of the company, which consists of the overall heads of the departments company comprises of experts in the fields, which they have been assigned. They are people with proven past record of performance. This means the company has its departments well monitored and managed. The expertise among the committee members helps in easy decision making in the committee since it is easy to consult on sensitive and critical matters (Our past, present, & future, 2013).
The company has also hired extensively skilled technology experts who aid in monitoring the performance of the integrated system within which the company operates. The individuals are people with exclusive knowledge on how activities should flow in the organization. There should be excellent platform on which the technology of the company is maintained. It has been exhaustively easy for the company to maintain a secure system following the availability of people who can detect the problems concerning the systems as they arise (FAQs, 2014).
Also, the company has a fleet of engineers who are people with excessive knowledge on machine operations and performance. These people help in detecting problems in machines that are used in the company. They are in charge of daily service for the trains and other locomotives that the company has. Therefore, the company does not incur the cost of hiring such experts (Canadian Pacific, 2014). This is further confirmation of the success of the company.
Combination of resources
Canadian Pacific Railway Limited has built its success from creative combination of its resources. In this case, the human resource plays an extremely critical role since it is the one that defines how the rest of the resources will be managed. However, it cannot work without the presence of the rest of the resources (Canadian Pacific, 2014).
The company has exclusive organizational structure that combines the different abilities of its leaders. For example, the executive committee of the company is a pool of experts who have knowledge on how they use different resources in the company. There is the leader or the human resource manager. He is in charge of the issues concerning the employees. He controls the process of hiring and firing of employees. In his work, he combines expertise with the ability to work in line with the rest of the employees and resources (Canadian Pacific, 2014). Hence, he is vital in fashioning success for the different departments in the organization.
The experts must be able to use the resources available for them accordingly and in the right manner. They must be willing to invest in knowledge and expertise that would be exhaustively essential to bring in proper combination of all resources.
The company has not had cases where some personnel have appeared bigger and more critical than others have. A messenger and a manger have the difference as the occupation of office but when it comes to work they have to work together and ensure that task in hand has been completed accordingly (Canadian Pacific, 2014).
If money is required to purchase certain asset to improve the operations of the company, it has to be done in the required time since there is exclusive willingness among the members to have the activities done accordingly. This ensures proper coordination of the departments in the company.
Value Chain Analysis
The company has its logistics well controlled and a lot of keenness is paid in the locomotives available. There are useful or definite abilities that the system has created to enable movement of goods. This has been achieved with the company having set up proper logistics system that allows flow of activities within the organization. There is close monitoring of how activities flow in the organization. All strategic measures to control flow of activities in the company have been fashioned in such a way that they allow achievement of certain critical goals in the logistics department.
The company mainly deals with bookings for transport and it has to ensure that all activities at this point flow, as they should. There are plans that have been executed to ensure that the bookings take place as they have been defined. The tickets have to be sued for the time indicated on the ticket. If otherwise, the customer has to report of his concern immediately for consideration of an option (FAQs, 2014).
The company has to make proper logistics plans for all its customers to ensure dissatisfaction does not occur among the customers. There is exclusive need for continuous support of integrity in the transport sector defined by the company. The customers are satisfied through the services they get from the company since they are timely in delivery of services.
Security of the goods as well as passengers is a critical logistic concern for the company. The trustworthiness of the company among many customers who remain loyal to the company mainly depends on the ability to retain absolute security for customers and their belongings(FAQs, 2014).
Also, the use of exclusive technological measures to monitor the movement of goods and passengers through the rails of the company is a useful logistic concern. It ensures no dangers that may be fashioned against the customers by enemies or customers would prevail. The technological monitoring process of the logistics of the company is useful in defining the required success of the company. It is easy to monitor the activities of the personnel entrusted the transportation of the customers, as well as their goods (FAQs, 2014).
The company carries out its duties every day for 24 hours. All the shifts operate with normal charges with the day shifts experiencing higher number of customers than night. Therefore, there is exclusive need for investment in more logistics in the day than at night. However, the personnel working in the company during the day is higher than at night.
The company operates through stations. These are sub-operating points where the trains pick and drop customers. They act as subsidiary companies of a bid company. They help in carrying out duties, which could have been carried out by the big office. They offer tickets and charge as stipulated by the main office depending on the distance. They operate through the integrated system of the company (FAQs, 2014). Therefore, logistics technology remains critical at this point.
The company has invested in exclusive different types of trains. These trains help the company deal with all the kinds of customers. The trains are representation of different classes of people who may wish to travel with the trains form the company (Our past, present, & future, 2013).
This assures all customers comfort based on their ability and willingness.
Also, the company has extended its operations to other services than railway services. The company has services on radio, telegraphs, hotels, airline, and steamships. These operations are extremely useful in defining the logistics of the company (FAQs, 2014). It has extended the services that customers may require closer to them.
The company is extremely keen on the processes it uses in delivery of the goods entrusted to it as well as transportation of people from one station to the other. There are extremely critical measures that have been put in place to ensure that goods are safely delivered. There are conditions that have to be fulfilled to ensure that goods remain intact at the time of their delivery (Our past, present, & future, 2013).
The company has special trains for transporting goods as well as people. The ones designed to carry goods have special facilities that are useful in preserving goods. This is to ensure that goods get to their destination safely as they were required. People have to be carried in a safe manner free from accidents that are likely to occur if proper measures are not taken (Our past, present, & future, 2013).
Marketing and sales
For every company to realize exclusive sales and performance within its industry of operations, marketing is an extremely critical element. The company relies on exclusively talented marketing department led by Jane O’Hagan. She is a person with exclusive knowledge on the marketing skills and ability to sell (Our past, present, & future, 2013). Through her efforts, the company has succeeded in making exclusively sensitive moves in marketing and sales.
The company has adopted extensively sensitive promotional strategies. It has bought the idea that people mainly respond to promotions. This is because they have tasted the goodness of the goods and the services of the company. The Canada Pacific Railways Limited has been at the forefront to push for excellence through this platform of transportation (Our past, present, & future, 2013).
Many people in North America have known the company and its operations are of exclusive interest to them. This mainly relies on the knowledge that the public has acquired from the promotional messages that the company is carrying around in support for its operations. As a result, the company has had exclusive sales on its services, which is shown through the revenue generated by the company. Following the different financial reports that have been given at different times, there is indication that the marketing strategies have increased sales with time (Our past, present, & future, 2013).
The company has shown its customers as the main asset in its possession. Therefore, the company pushes on securing exclusive transport services. To sustain high flow of customers, the company has vowed to continue executing reasonable and reliable services to its customers.
The company offers transport for goods for customers. There are special facilities that have been developed in the bid to achieve accurate or deliver quality services. The locomotives designed to carry passengers are fitted with exclusive security that make it easy to travel and safe for all user for all users. For transport of goods special facilities had to be fitted to the locomotives to ensure perishable goods were well protected (Our past, present, & future, 2013).
The company also extends courier services to its customers. This means that the company has services to transport parcels from one point to the other. The company delivers goods within different cities in the places where the operations of the company are available. The company is known of taking care for accurate and safe delivery of the goods on behalf of their customers (Our past, present, & future, 2013).
The company does not manufacture the trains and locomotives that it uses. It purchases already fitted locomotives that assist in achieving its goals in delivery of quality services. There is no way the company can rely on poorly manufactured machines while it aims at delivering high quality services to its customers. The absolute significance of quality is the dream of the management of the company as they aim to acquire high quality services so that they may extend similar services to the public.
The company has to ensure that any company that delivers services to them is a renowned company in the given line of business. At no point would the services cost the Canadian Pacific Railway Limited fortune in the business world through loss of customers (Our past, present, & future, 2013).
If the company hires services form other companies, the services must be up to the required standard and they must not be services to compete with the core goals of the company.
Technology has become an essential tool in logistics. It is the easiest way to manage and monitor how activities flow within the various sections of logistics of a company. This is the most outstanding investment that any company can do to its logistics at a time following the sensitivity that goes with the edge of security in the current world (Logistics solutions, 2014).
The Canadian Pacific Railway Limited has been at the forefront to pursue keenness in use of modern technology in monitoring the logistics activities of its operations. The company has its operations controlled by signals, which are easily read through radio and telegraphs. These signals are exhaustively useful for communication and delivery of unique messages (Logistics solutions, 2014).
The company also has its locomotives fitted with cameras that are supposed to track the activities of the personnel entrusted the passengers. This also helps keep an eye on the goods being transported so that they may not be stolen on the way.
Through technology, it is extremely easy to monitor the period that goods stay on the transport mode. It is a method to challenge for timely delivery of goods. Under track of camera, transporters are likely to be more careful in avoiding time wastage as they transport the goods entrusted to them. They have to transport them within the required speed without unnecessary stopovers and reach the destinations in the required time (Logistics solutions, 2014).
Human resource management
Logistics department is extremely wide. It also has a department for human resource management, which requires exclusive concern and keenness while carrying out specific duties. Peter Edwards who is in charge of the Human Resources and Industrial relations has been at the forefront in fight for a system that supports proper trade (Logistics solutions, 2014). He insists on security and the reliability of the logistics of the company.
He encourages transparency among all employees by showing them the significance of the virtue. He assures them that the business would only succeed if there were exclusive respect for the put system and elimination of greed, which would only kill the performance of a business. For the employees to satisfy the customers they must practice transparency and timely delivery of the required goods (Logistics solutions, 2014).
The company has ensured that the logistics are well managed and controlled. These processes are extremely critical and they deserve to be treated with all the seriousness that may be available. The company has executed proper administration through use of the available personnel to fit the exhaustively required security of the system. The company has directly employed individuals with perfect knowledge of the happenings and they have been able to ensure the system is okay and the elements that seem vital are taken care of accordingly (Logistics solutions, 2014).
- The company enjoys services of more than 1500 employees with a pool of experts amongst them.
- The company has embarked on strong alliances with partners to provide logistics services as well as land transportation.
- The application of the state of the art technology has transformed the railway industry.
- The company owns a large number of large yards as well as repair shops across the system.
- The company also enjoys an outstanding network as well as strong brand reputation.
- There is low penetration of the market since there is massive untapped market.
- The company operates under limited product line and customer base.
- In addition, the company lacks international operations.
CP. (2014). Financial reports . Canadian Pacific. Retrieved June 2, 2014, from http://www.cpr.ca/en/invest-in-cp/financial-reports/Pages/default.aspx
Canadian Pacific. (2014). Management resources & compensation committee .Canadian Pacific. Retrieved June 2, 2014, from http://www.cpr.ca/en/about-cp/executive-leadership-and-governance/policies-and-guidelines/Pages/management-resources-compensation.aspx
FAQs . (2014). Canadian Pacific. Retrieved June 2, 2014, from http://www.cpr.ca/en/in-your-community/living-near-the-railway/Pages/faqs.aspx
Logistics solutions . (2014). Canadian Pacific. Retrieved June 2, 2014, from http://www.cpr.ca/en/ship-with-cp/logistics-support-and-solutions/Pages/default.aspx
Our past, present & future . (2013).Canadian Pacific. Retrieved May 31, 2014, from http://www.cpr.ca/en/about-cp/our-past-present-and-future/pages/default.aspx