Canadian Tire Corporation (CTC) – A Growing Organization

Introduction

Amongst the numerous organizations operating in Canada, some are successful Canadian-based companies such as Canadian Tire Corp (CTC). Catering to the specialized needs of the country, the organization has become a household name in Canada, while maintaining continuous growth over the years.

Method

Being a business student, it is important to research and obtain knowledge about as many operational organizations as possible as eventually they will be prospective employers. CTC is one of Canada’s largest and most well-known retail chains whose growth has contributed to the intense competition of the Canadian economy. Using archives and the corporate website we are able to learn more about the company’s activities and possibly predict it future.

Key findings

Canadian tire is a corporation which has maintained success throughout many decades while competing with several other retailers. The company has continued to achieve success through various methods: enhancing consumer experience, curating unique loyalty programs, developing a strong digital presence developing a professional yet meaningful company culture. The Canadian company recognizes and understands the process of evolution in the retail industry; as a part of their business strategy to sray competitive, they underwent the three-year renewal course. They upgraded around 200 retail sites to facilitate productivity and enhance customer experiences; CTC has also been growing their digital profile as they have adapted tools such as price-look up and customer service stations. The company has vastly improved its product selection, yet they are one of the pioneers of the pay and pick up systems; the digital loyalty system in junction with their e-commerce strategy will provide the with useful consumer behaviour data in terms of purchasing decisions.

Their strategic direction has proven that CTC is a major player in the Canadian economy. With the rise of social media, consumers are becoming more and more knowledgeable about the organizations they purchase from; this has given corporations the opportunity to be more transparent in their decision making and encouraged them to develop creative solutions to commercial, social, environmental and ethical issues to remain competitive. As a result, CTC has become an increasingly environmentally conscience and ethical brand; with multiple initiatives and programs internally and externally in place the company is able to display transparency. CTC has a ‘smart commute’ program for employees, which is an annual program that illustrates the significance of sustainable alternatives modes of transportation to and from work; it encourages employees to use greener forms of transportation such as public transportation and or carpooling. (website) CTC take great pride in their approache towards social responsibility, including ethical sourcing and their supplier code. Products available at the CTC retail outlets are ethically soured, yet all vendors associated with CTC must comply with their supplier code to ensure a diplomatic yet professional vendor-management relationship in terms of ethicality. CTC is the founder of the ‘Alliance for Bangladesh worker safety’; in 2016 a supplier code factory audit took place where only three out of 613 were eventually suspended and banned from conducting any further business with CTC.

CTC has invested multiple resources to participate in green initiatives. They have put constant effort into their supply chains to innovate from road to railways. This initiative has positively resulted in the decline of greenhouse gas emissions; the road to rail ratio has moved from 9:11 to 3:22, respectively, the change has reduced 60% of GHG emissions. The company initiated a pilot program for the purpose of generating cleaner hydrogen using the process of water electrolysis. The project was successful and is now a recognised method for generating hydron in the industry. They have also begun to use green initiatives at their retail outlets, such as auto heat shut off, utilizing recycled construction materials and etc. Every building consists of 25% recycled material, making use of the materials they have, has not only decreased the need for using new material yet it also reduces GHG emissions, as less is being emitted in the course of processing old material. They have also installed an automatic ventilation system which turns off as doors open to prevent the wastage of energy; once the doors close the system comes back on.

Every corporation has strengths and weaknesses, Canadian Tire is no different; as they are a strong player I the retail market their strengths outweigh their weakness. Their top three strengths are brand equity, store network and sustained financial performance; yet their weakness is the inventory turnover ratio. Brand equity relates to their solid brand recognition, figuratively 98%, which facilitates expansion operations and increasing customer loyalty. They have been able to maintain a very strong presence in the Canadian market which a huge customer base and innovative store layouts; CTC’s store network has helped them serve more than 90% of the Canadian population, which in turn further expand their customer base and market share. Their sustained financial performance is a strength that corresponds to the company’s health; they experienced a 5.9% increase in revenue from CAD 13,434.9 million, in 2017, to CAD12,681 million. Lastly their weakness is their inventory turnover; they experienced a positive ratio of 5; however, it was lower in comparison to their biggest competitor, Walmart, who has a ratio of 8.5. (bus/ins)