Case study Phil’s Haulage

Phil’s Haulage is a construction material and aggregates hauling business newly owned by Mike Rice who is the president and chief executive officer of Rice Commercial Group.

The company is located in Mount Albert Ontario Canada, and they transport goods and provide services to customers from one location to another. Mike Rice’s current business has been very successful over the years, and he is considering on taking the opportunity to make PH more standout by providing more services to its customers. Mike has carefully reviewed the current hauling business market and has discovered that there are opportunities for growth If the business expands into the excavation market. However, Mike is unsure if the business will be viable given the risks / the cost associated with expanding the business to another level.

Upon reviewing PH’s current financial position and its strategic position in the market.  It is evident that the business will general substantial growth given that the company is well known across the region and its extensive customer-based clientele which will contribute to the overall business success as well as its well-situated location near Hwy 404.

Overall, Phil’s Haulage would benefit from its current strategic position to take the business to a high level since secondly, the business has a great number of staff to keep up with demands during their busy season, Phil would need to invest in continuous training to make sure the employees are well trained and educated to the highest standards in order to be competitive since the company does not have experience in excavating.

On another hand, it was revealed in the projected income statement that if Phil’s Haulage proceeds with the expansion, the business will generate a revenue of $2.2 million if the business could maintain a $50,000 cash balance at the end of the year. More details and explanations are to follow in the quantitative analysis.

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