InternalAnalysis (Roger Communication Inc.)
Rogercommunication Inc. has been very influential in the lives of theCanadian citizens through all the services it has offered to themsince its establishment until today. The communication hub isresponsible for the delivery of media, cable, wireless and solutionto commercial firms all over the country. It acceptance andpreference over other existing industries in the communication worldhas been met the excellent services they provide to their esteemedcustomers. They have reportedly been able to provide the best voiceand media services, faster Internet services and secure network forwireless telephone and cabled and digital television services. Otherservices such as installations and maintenance are offered to theirconsumers at standardized cost. Customer satisfaction is inaccordance with the service providers, and that has a deal with howthe company has strategized itself to ensure it provides continuoussatisfying services and products to its people. I was, therefore,prompted to look into the internal environment of Roger Company toidentify the following factors discussed below.
Stayingcompetitive within a market in any business requires a strong teamand persistence effort to fight off the competitors. Severalimportant factors have to be considered by any company operating inthe twenty-first century to keep hold of its customers. Advancementsin technology and infrastructure have provided many changes in thepreferences and choice of services and products compared to thedemand in the earlier years. As a firm in communication industry in acountry entangled with rapid technological changes, Rogers havestrategized themselves adamant internally to ensure they stay in themarket.
Capitalto start up, run and maintain a company is always required. Thelocation of any firm needs a strategic location that would enhanceaccess by the consumers and also be a remarkable structure which mostservice seekers can see. Land as a resource is, therefore, afundamental requirement for any business. In case new developmentproject needs to be laid down then, the company needs enough spacefor its expansion. Rogers beat many businesses since they haveacquired enough space and therefore, it has been able to develop morebranches which offer their products all over the nation. The companyhas two primary branches located in Ontario and Toronto[ CITATION Ojo06 l 1033 ].
Secondly,the need for labor is critical to ensure that service delivery isvery fast and customer appealing. The company has employed manyworkers and in the year 2013, the total employee population was abouttwenty-six thousand people. Enough laborers have proven to be thereason for the existence of this company and its competitive power inthe market. Workers are very disciplined and professional in how theytreat their customers. The rapport between the two groups hasclimaxed the greater need for consumers to seek more services fromthis company. The table below shows the company’s main sections andtheir respective services that they provide to the Canadians.
It provides wireless telecommunications operations for Canadian customers and businesses within the different states all over the country.
Cable telecommunications operations, including Internet, television and telephony (phone) for Canadian consumers and businesses
Network connectivity through our fiber network and data center assets to sustain a range of voice, networking, data, hosting and cloud-based services for small, medium and large Canadian businesses, governments, and on a wholesale basis to other telecommunications providers
A spread portfolio of media properties,
counting radio and television broadcasting,
specialty channels, digital media, multi-platform shopping, publishing, and sports media and entertainment
Theworkers employed in this business under training on performance andwork delivery as per the organization`s missions, and objectives musthave qualified in media studies and telecommunication. Individualhave been selected into the executive community which is a trust ledby the children of the founder Ted Roger, Edward Rogers III andMelinda Rogers, who serves and the Chair and vice-chair of thecompany respectively. They work together with other business-orientedpersonnel who take other managing and directing roles in a differentdepartment to facilitate the achievement of the company`s objectives(Corrado, 2006). The existence of a real leadership system andpoaching of good and fruitful managers into the company has been areason the success.
AtRoger Company, a number customer satisfaction is their primaryachievement target since they are very much aware of how losing asingle customer impact on their business. They have, therefore, gonea mile away to identify the specific touch points which when improvedthey can be the good reasons to hold on to their consumers. It hasprompted the company to identify at least nine thousand employees inwithin its entrepreneurial branches which are supposed to conduct thecustomer touch point information collection. After collection of theinformation, they are required to give a compiled report to the ChiefDirector Officer of the firm. Efforts to fight for customers has madethe company to even hire a chief customer officer (Deepak Khandelwal)from Google Inc. just to ensure that they remain very competitive inthe communication industry. This approach has boosted the servicedelivery, and the officer is responsible for training policies in thefirm that equip recruits with the possible organizational skillsrequired.
Tochallenge the market, technological advances keep changing, and itneeds a company to ensure it is updated to the current standards. Ithas emerged to be an important requirement in the business strategiesand operational methods. Rogers Communication Inc. ventured in theupgrade system and adoption of the current systems that propeldigitization and publication services. The company has also joinedthe New Tech network through which establishment innovative publicschools is being enhanced in Canada.
Rogerorganization has recognized its best economic profits in 2015 withand continuous increment in the adjusted operating profit for eachyear since 2011. The value of its total assets has increased over theyears from eighteen million in 2011 to twenty-nine million in 2015.
Financialanalysis overviews for Roger Communication Inc.
Amount in billions of dollars
Amount in billions of dollars
Despitethe greater change in the financial turnover for Rogers over thethree years, the profit ratio has not changed either negatively orpositively. Operating income is always calculated by subtracting theoperational expenses such as the goods sold and workers’ wages fromthe gross income revenue. Equilibrium, therefore, means that there isa shift in specific characters such as the depreciation rate beinghigh and the expenses that not positive changes are realized.Workers` wages can be argued out differently since they consistentlyreduced the population of the worker. It could, therefore, mean thatthe recruited workers demand extra high wages since the educationalqualifications and experience keep changing.
Itis essential to find out as an entrepreneur if the performance ofyour cooperation tallies the industrial ratios. Such observations areimportance in benchmarking and identifying the likely problems sothat a mechanism for correctional measures is implemented. Itmeasures the company’s performance and helps to compare how poor orwell an organization is set to compete in the market. Rogercooperation operates in the communication industry and below are theindustry averages. In price to earning average as per 2015 P/E ofabout 30. By the year 2014, the company was at 12.9 and thereforeneed for improvement. When the P/E ratio is high, those who wish torisk with the business expects high income in the future compared toa company with a lower value. But, since the firm has differentsub-section the wireless sectors has the highest operating profit andthus a higher ratio and thus it can lure stakeholders into investingin the company[ CITATION Rog08 l 1033 ].
Theliquidity ratio in any business is set to define the current ratioand the quick ratio of the industry regarding the available cash andthe cost equivalent to the cost of the available assets that can beused to cover liabilities. It is therefore calculated by the formulabelow.
Cashratio= Cash+ Cash Equivalents + Invested Funds
Currentratio for Roger Communications versus the quick ratio
Current ratio (quarterly)
Tableof quick ratio for Roger in the last three years.
Currentratios need a closer check up with a comparison to other many factorsbefore it is finally generated. However, when the current ratio isgreater than one (1) in many cases it regarded to be normal. Thatimplies that the current assets owned by the company can be easilyconverted into cash which is crucial value. From the table, we cansay that Roger Company only experienced a good current ratio at thestart of 2014 and then the score has completely drowned back to verylow values in the year 2015. More achievement and strategies are,therefore, require, and proper implementation is done to enable thecompany to keep on the track.
Fromthe ratio, we can, therefore, conclude that the firm faces troubleson its costs of goods sold. It depicts that the cost of goods hasbeen on an increase but, the company is stagnated regarding growth.As a financial implications state, the company is doomed to lose itseconomic stand in the market in the coming years if the situationremains in the same state. It is, therefore, a challenge to thecompany to ensure that its works into meeting the stability assuranceof this company. The most suggested method of solving the stint is byincreasing the growth of sales which concurs with a reduction in thecost of goods and services.
Ahigh debt to Equity ratio implies a company has more debts which arefrom the financial loans and resources used to run the organization.This translates to the net income of the business which is higherwhen no debts are incurred and small when debts are present, andthus, Roger Company might just be facing a similar trouble. Financialreport about Roger in 2009 show a debt to equity ratio of 1:2.98 andthis was a successful year for the firm as it generated a high freecash flow growth in the same year (Autumn, 2010). We can also seethat the company’s debt ratio keeps increasing in the years whichis a very dangerous factor in the survival of Roger Company.
It,therefore, involves the current ratio also known as a short-term rateor working capital. Calculated by current assets divide by currentliabilities owned by the company. Secondly, we have the quick ratioalso called the liquid ratio since it is used to test the liquidposition of the firm. It is calculated by dividing liquid assets bythe current liabilities.
Profitabilityratio for Roger Communication Inc.
Thisis a measure of a company`s performance through gauging the amount ofprofit generated over a given period. It, therefore, measures theability of firms to make profits. There are several profitabilityratios which include:
GrossMargin this type of ratio is directed towards identifying theprofits generated by the good and services offered by yourorganization. Calculated by the following formula
GrossMargin = Cost of goods sold/ Net Sales* 100
Inreality of this concept is that when a company is selling services orproducts to its customers, it is said to be making sales. It,therefore, experienced by the business when goods are sold away sincethe unsold goods have similar prices but are still owned by thebusiness firm (Donaldson, 2007).
OperatingMargin in this type of ratio, it highlights the cost incurred inproducing the product and services that are closely related to directproduction of the company`s products and services. This may includethe cost for activities such as overhead administration. Calculatedby the formula below. It is very relevant since it will help todiscover the impact of the other services such labor in the businessand therefore, a need for recruitment where it arises.
Operatingmargin = Operating Expense/ Net Sales * 100
Theratio has different implications when assessed on the scale. Thesmaller a ratio becomes, it shows how greater the industry is capableof generating profits and vice versa. For instance, an operationmargin ratio of 19.30% in the year 2015, means that the organizationmade a net profit of $ 0.193 per each dollar of sales. It, therefore,means that an increase in the operating margin ratio over a givenperiod implies that profitability is improving (Donaldson, 2007).
Thisis a ratio that focusses on the accounting ability of an industry bymeasuring the firm`s ability to convert different accounts and theirusage on assets, leverage, and other balance sheet items. Itevaluates the how good the business can turn the services andproducts it has into cash. This ratio will always enable the companyto ensure it offers competition to other existing companies in themarket. Little activity ratio implies the firm is going intodormancy, and it can be used to predict losses (Webster & H.,2006).
Creativityis a critical characteristic of Roger industry has used to beat itscompetitors. The brand name “Roger” is very influential when itcomes to business competition. Since the company is well known, andmany citizens in Canada are consumers of its services and products,many companies would always prefer working in collaboration with thisfirm compared to other business. A good example is the New TechNetwork, which has partnered with Roger Communication Inc. to provideinnovation and technological studies in schools all over Canada.Through such activities, the company has been able to link with manyfirms and in turn advertise itself in the markets up to the ruralareas (Dobby, 2016).
Secondly,the Roger industry has become successful due to its internal force oflabor output. The human resource department has consistently reducedthe number of employees over the three years this is with theefforts to employ a manageable population with the required skills.Companies keep seeking employee with quality skills and the fact thiscompany is granted the best in communication in the nation manyindividuals long to work here. This is an advantage over thecompetitors. It has thus, earned the company a good reputation. Thecooperate rules regulate worker policies, and the laborers enjoy theleadership system and the human resource sector (Dobby, 2016).
Brandrecognition of Roger Communication Inc. is a stronger force operatingbehind its success. Services and products are trademarked in thecompany’s name in an appropriate and customer friendly way. It isimportant to mark your products in a way appealing to the customersto coax them into purchasing your products and also acquiring yourservices. The company has to collaborate with other organizationssuch packaging industries to ensure they produce very appealingpackaging equipment for the cooperation. The weight and fragility ofthe products are critical when it comes to customer satisfaction andtherefore, needs to be considered.
Industriesmostly improve the choices of people by providing several preferencesin the market. Sourcing of raw materials and producing a finalproduct to be consumed is the responsibility of the manufacturers.The cost is always passed to the consumer through pricing of theservice or commodity. Provision of quality services and products is,therefore, an internal force within an industry that would makeconsumers increase demand. Roger communication Inc. has signed anagreement with several organizations that supply it with the rawmaterials. For instance, Arlon which provides it with frequencycircuits and engineered silicones to be used in the internet anddigital television systems (Ehrhard, 2008). In the treaties reachedby the two companies, several modes of payment, delivery andprotection rights against damage are reached before signing to theagreements. The management body has a set of individuals throughwhich the business activities follow its protocol. Marketing is donethrough advertisements over the Roger media sources. Anotherimportance characteristic is the production of technologicallyadvanced systems and product. The company keeps track of any changesin the technological world and upgrades to any advancements thatwould keep attracting more customers and keep hold of those who useit services.
Organizationalcapability is best described by the ability of the firm to change andmeet the market demands with response to the changes that occur inthe external world in which it is situated. It should, therefore,have a good sustainability. This has to be met through various byseveral internal power which helps to identify and rectify any smallvariations in the business such as departmental failure and losses.Secondly, the firm must be competent to hand any challenges from theexternal competitors and also establish a better way to interactswith them. Roger Company has developed a good rapport after deferringwith its rival Bell Canada over duopoly issues (Barney, 2010).
Rogercooperation is rated with a competitive strength ability of between5.8 KSFs weighted. This assessment model focuses on several keyvirtues of business to arrive at such a weighted score. Among theconsidered issues in the market and business world are extensivedistribution, customer focus, economies of scale and productinnovation. These factors are compared to the competitor’s abilityand then an average calculated to give a given firm’s score. Therating scale ranges from 1 which is equivalent to frail to 10 whichequals to an adamant company. It, therefore, fair enough to say that,Roger Company is an average performer basing on the type ofcompetitions experienced within its environments.
Value,Rareness, Imitability, and organization analysis is a method employedin the internal environment to assess the stretches over which abusiness survives and compare it to that of its rivals.
Analysis of Roger Company
The question of Value
The company was able to fight its enemy Bell Canada a duopoly by preventing it from immediately acquiring the SHAW company which would have given it a stronger power.
The question of rarity
Apart from the two children in ownership the company by the year 2015, 15th February it had just twelve senior executive officers who take over the officers and control the resources of the industry.
The question of imitability
This has been clearly depicted by the fight over similarity in service delivery and production goods by the Roger Communication and the Bell Canada. This is a direct effect on the capability ability where consumers resort to the prices and one company may short of survival and lose its customers to the other[ CITATION Bar10 l 1033 ].
The question of organization
Ultimately, the Roger company is well set and has always been willing to risk and exploit any business opportunity it comes across. This has facilitated its ability to develop more branches all over Canada.
Everybusiness has to assess itself by this four questions model whichhelps to identify how good it stands within the market to offer stiffcompetition to its rivals. Referring to the question of value, theorganization must be to use the available chances to the externalthreats. It is, therefore, a question knowing if the business hasenough resource in store to fend off its challengers. Secondly, wehave the model of a rarity in which the leadership and resourcemanagement is conducted in the internal environment. Severaladministration method such authoritarian, democratic and leisure fareare employed according to the employee`s willingness and abilities toperforming tasks. Any improvements and achievement would rely on theworkers efforts and commitment which are always passed downed fromthe leaders (Barney, 2010).
Anothermodel to be considered is the imitability issue and within it limitswe discuss the facts on how simple or difficult it is for anotherorganization to start production of similar good and services ascompared to what your firm does. The effects such as customer loss,cost significance, and production levels should be focused on aseither being demoralizing or encourage factors for failure or hardwork respectively. The final key question in this model is theorganization plan. This examines how the firm is situated and itsreadiness in conducting the business activities in efforts to meetits set goals (Barney, 2010).
Rogerbeing the only high-tech communication industry it is an easierbreakthrough for it to conquer its enemies in the distribution andoperational world. It is recognized to be the fastest in outsourcingInformation Technology infrastructure to IBM. This is a strategy tomake the Capital Expenditure departments efficient. Distributions ofservices and products all over Canada has ensured the organization’sstrong network all over the country. The sales and marketing haveabout 1.5 million smartphone operators who exhaust the services ofthis firm. Sales and marketing have thus, been easier which is simplydone through phone messages and also on the televisions. Organizedservice delivery teams of employees who are dedicated to ensuringthat their customers’ needs are provided. The team of workers hereengages with customers who are seeking the company’s servicesthrough the online forums and microblogs. In summary, Roger has thebest technology, outsource, distribution network and customer servicethat makes it way to success.
Key success factors rated out of 10
Sinceits establishment Roger Communication Inc. has been a success andtherefore, it has highlighted several key reason to be behind itsenjoyed breakthrough. The firm has a rating of 10/10 as all itscompetitors stand at 8/10 in the technological skills. First, it hasthe best technology compared to its rivals such as Bell Canada, SHAWCommunications, and TELUS. It is the only company in thecommunication industry that exhausts the services of Global Systemfor Mobile communications (GSM) and High-Speed Packet Access (HSPA)technologies. The two technologies have been significant reasons forsmiles in Roger Company since they attracted a bigger percentage ofusers in the mobile wireless network, and it was the highest revenuesource in 2015. The industry heavily invested in the InformationTechnology systems and consequently, training and development. It isa way of offering a strict competition to our rivals by ensuring ouremployees can deliver consistently positive customer capabilities(Shoalts, 2016). Besides, advancements are focused on ensuring thebusiness produces plans that are easier for the customers tounderstand and implement while targeting intuitive and user-friendlyinterfaces in product production.
Consistencyin the provision of customer needs and experiences requires anunderstanding for each given individual group of customers based ontheir choices and preferences. Roger industry has to meet all thediversities by ensuring a system of flexibility agility within itsinternal environment that would consistently fend off theiradversaries. Through the high-tech levels in Roger Inc. web serviceshave been provided to the customers where inquiries can be done onthe existing services and available products with the costs. It hasbeaten the human sales and marketing people who are sent to thefields and other organizations as many individuals have no time tolisten to them due to the busy daily schedules. Another advantage isthe phone industry which has the best communication signals of GSMand HSPA and it has given the company change to interact with itscustomers in an easy, fast and eloquent way as opposed to the otherfirms. This has boosted the sales through changes in the wirelessnetwork and finally enabled customers to seek their services raisecomplaints and also give suggestions for improvement. The company hasbeen able to locate the residential areas for its customers andenhance the delivery of products to them.
Secondly,operation across the nation has also facilitated the firm`s activeexistence in the market. It has several established branches which inturn feed in revenue at the end of the day even if a given departmentdoes not make the targeted sell the other outlets caters for thecover up to avoid losses in the company. Diversified distributionlinks are located all over the nation with retail shops for thedisplay and selling of the enterprise’s products. The head officesare connected through the minor divisions to ensure the servicesoffered are enough at all times so that they do not give any chancesfor the other impending rivals to breakthrough quickly. Basing on thescore of the best performing industry in diversified institutions inCanada Roger Communication stands at 9/10 only beaten by its biggestcontender Bell Communications (Dobby, 2016).
Lastly,valuable customer services. The services offered by this company areof quality since the innovation and technologies employed in the firmare high-tech. Cherished services have it grow from 25 subscribers in100 scores in 2000 to 70 in 100 in 2010. This company has increasesimproved its product performances are hitting very high in thecurrent years, and it has even become a forex concerned industrywhich is aired on the media services since it has a greater influenceon the nation’s Gross Domestic Product (GDP). The products of thisindustry have been said to be the best by the consumers. An exampleis a wireless industry which performs very well compared to the TVand cabled services. The wireless network had the following score inpercentage about the other services in the business. (See the tablebelow)
Operating revenue (%)
Adjusted operating profits (%)
Inconclusion, organizations have a greater challenge in ensuring theycan survive the market competition. Good strategies, properleadership infrastructural and technological improvements are amongthe key factors that should be considered internally by a businessorganization to ensure it meets its objective. Roger CommunicationInc. is a company that can be emulated by other communicationindustries all over the globe to seek higher profits.
Autumn. (2010). Canadian Industrial Outlook. The Conference Board of Canada (pp. 131-146). Torino: Rogers.
Barney, J. B. (2010). VRIO framework. New Jersey, 68-86.
Corrado, C. (2006). Intangible Capital and Economic Growth. Federal Reserve Board Discussion, 2006-2024.
De la Merced, M. J. (2016, June 4). What is Adjusted CSOI? New York.
Dobby, C. (2016, June 4). Rogers CEO hInts at new media strategy as profit slips again. Ontario.
Donaldson, S. A. (2007). Federal Income Taxation of Individuals. St. Paul: Thomson West press.
Ehrhard, M. b. (2008). Corporate Finance. A Focused Approach, 139.
Inc, R. C. (2008). Bringing Your World Together. Ontario: Rodgers.
Kieso, D. E. (2007). Intermediate Accounting. New Jersey: John Wiley and Sons.
Klein, J. (2009). Organizational Leadership and Change. New York: Saunders.
Laermer, E. (2016, June 4). Online Marketer Yodle is expanding into Canada. New York, USA.
Lev, B. D. (2004). Consequence of Enterprise Management and Corporate reporting. Measuring Business excellence, 6-17.
Ojo, T. (2006). Ethnic Print Media in the Multicultural Nation of Canada. Sage Publications, 343-361.
Rens, J.-G. (2001). The Invinsible Empire. Toronto: McGill Queen`s Press.
Shoalts, D. (2016, June 4). Hockey Night in Canada How CBC Lost it all. Toronto.
Webster, E., & H., J. P. (2006). Investment in the Intangible capital. The Economic Record, 82-96.