abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON Armstrong World Industries : Armstrong World Industries, Inc. (NYSE: AWI) is an international designer and manufacturer of floors, ceilings and cabinets. Based in Lancaster, Pennsylvania, Armstrong operates 40 plants in 10 countries and has approximately 12,300 employees worldwide. In 2006, Armstrong’s net sales were $3.42 billion, with operating income of $210.8 million.
Armstrong World Industries, Inc. emerged from Chapter 11 reorganization on October 2, 2006. Its stock began trading on the New York Stock Exchange October 18, 2006 under the ticker symbol AWI. The Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust, holds approximately 66% of AWI’s outstanding common shares. Armstrong's “Fourth Amended Plan of Reorganization, as Modified,” dated February 21, 2006, and confirmed by U.S. District Court Judge Eduardo Robreno in August 2006, become effective Oct. 2, 2006. The Plan includes a comprehensive settlement resolving AWI’s asbestos liability by establishing and funding a trust to compensate all current and future asbestos personal injury claimants. The company had filed for reorganization December 6, 2000, with the federal bankruptcy court in Delaware for reorganization under Chapter 11 because pending asbestos injury claims appeared to exceed the value of the company, and were growing.
“In addition to resolving AWI’s asbestos liability, we used the time in Chapter 11 to restructure our flooring business to make it more competitive,” Mr. Lockhart said. “We made substantial improvements in our cost structure by closing several plants and streamlining our workforce in the U.S. We have also expanded capacity to manufacture wood flooring, broadened our product lines and improved product quality and customer service.”
Strengths
* Large PC maker - economies of scale
* Brand recognition
* Cuts out the retailer
* Lean supply chain; relatively cheap labor
* Online capabilities to customize products
* Strong service reputation
* manufacturing excellence allows diverse products and bespoke orders
Weaknesses
* Huge range of products and components from many suppliers from various countries
* Commoditization
* Inventory
* Customers view the products as "not state of the art"
* Door to door delivery problem in emergent countries
* some quality concerns from customers
Opportunities
* Diversification strategy by introducing many new products to its range
* Making and selling low-cost, unbranded low-price computers to PC retailers in the United States
Threats
* Competitive rivalry that exists in the PC market globally
* New entrants to the market pose potential threats
* Exposed to fluctuations in the World currency markets (i.e., changes in exchange rates)
* substitute products (ipad etc)
Armstrong World Industries, Inc. emerged from Chapter 11 reorganization on October 2, 2006. Its stock began trading on the New York Stock Exchange October 18, 2006 under the ticker symbol AWI. The Armstrong World Industries, Inc. Asbestos Personal Injury Settlement Trust, holds approximately 66% of AWI’s outstanding common shares. Armstrong's “Fourth Amended Plan of Reorganization, as Modified,” dated February 21, 2006, and confirmed by U.S. District Court Judge Eduardo Robreno in August 2006, become effective Oct. 2, 2006. The Plan includes a comprehensive settlement resolving AWI’s asbestos liability by establishing and funding a trust to compensate all current and future asbestos personal injury claimants. The company had filed for reorganization December 6, 2000, with the federal bankruptcy court in Delaware for reorganization under Chapter 11 because pending asbestos injury claims appeared to exceed the value of the company, and were growing.
“In addition to resolving AWI’s asbestos liability, we used the time in Chapter 11 to restructure our flooring business to make it more competitive,” Mr. Lockhart said. “We made substantial improvements in our cost structure by closing several plants and streamlining our workforce in the U.S. We have also expanded capacity to manufacture wood flooring, broadened our product lines and improved product quality and customer service.”
Strengths
* Large PC maker - economies of scale
* Brand recognition
* Cuts out the retailer
* Lean supply chain; relatively cheap labor
* Online capabilities to customize products
* Strong service reputation
* manufacturing excellence allows diverse products and bespoke orders
Weaknesses
* Huge range of products and components from many suppliers from various countries
* Commoditization
* Inventory
* Customers view the products as "not state of the art"
* Door to door delivery problem in emergent countries
* some quality concerns from customers
Opportunities
* Diversification strategy by introducing many new products to its range
* Making and selling low-cost, unbranded low-price computers to PC retailers in the United States
Threats
* Competitive rivalry that exists in the PC market globally
* New entrants to the market pose potential threats
* Exposed to fluctuations in the World currency markets (i.e., changes in exchange rates)
* substitute products (ipad etc)
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