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Monday, February 21, 2011

Communicating Changes

For an organization undergoing massive changes, there will usually be barriers that will block the flow of communication.  Canadian Tire is one such organization finding itself in this situation.
Canadian Tire has been around for almost a century now, and great changes have occurred.  But the problem is how to communicate these changes? Many people still view Canadian Tire as one of the “Old” domestic retailers.  With many long years of service they have built this reputation.  Having a reputation has its ups and downs, and when trying to compete in a rapidly changing and competitive market, it may cause the communication of changes to be difficult.   Consumers must be made aware that the “New” Canadian Tire is a new and improved business model and has a lot more to offer.
In saying this, I believe that the one of the barriers blocking the communication of changes is their reputation.  It is hard for an organization to change its model and expect consumers to be aware immediately.  It is a gradual process of making people aware of what new features are available and what old ones have changed.   A new reputation must be formed.  This is important because if it fails the organization may fail.  In the economy today you either keep out or get left behind, “Out with the old, in with the new”.   Other barriers such as increasing competition from competitors will also block communication. 
When organizations are undergoing massive changes, a certain level of balance should be attained in order to keep satisfied current customers, and attract new ones.  Canadian Tire has been doing a good job of this because they have been keeping up with the current market and competition while keeping the customers satisfied.   

Saturday, February 19, 2011

CANADIAN TIRE CORP - CTC.A:TSX

There was an article in the Toronto star last year entitled “Canadian Tire sees future in cars, fitness”.  This article talked about current and future business plans. One interesting quote from this article stated;
The company said it plans to wring eight to 10 per cent higher annual profit on three to five per cent higher sales by focusing on its core business, customer needs and efficiencies. Such figures will boost shareholders’ annual return on equity by 10 to 12 per cent.
Conformation of their predicted “boost” can be seen by viewing the Canadian Tire Corp. - CTC.A: TSX stock chart.   

Friday, February 11, 2011

Demands of the Current Market

In today’s competitive market, it is tough for a business to remain standing for so many years, but Canadian Tire has been doing in since 1922. In the 1990s some rough times were faced and business analysts were convinced that Canadian Tire was a “Retailer that was going to die”.  Needless to say, they have survived and are doing quite well now in 2011.
Canadian Tire remains competitive by staying in touch with the times and its customers by listening and responding.  Tracy Fellows, vice president of consumer advertising and marketing, describes changes they made to their image:
What we wanted to do was build on our legacy and past.  This is about evolution rather that than revolution.”  
-          Tracy Fellows
They are also pushing more towards and entirely online catalogue as the portion of customers using the printed catalogue are decreasing and the portion using the online catalogue are increasing.