Business Analysis on PCC Connections Incorporated, Term Paper Example

Introduction

Established in 1982, the business of PCC Connections Incorporated is a company that is founded upon the desire to make buying IT products a more convenient experience for all. Under the leadership of Patricia Gallup and David Hall, PCC Connections was formed to make sure that IT products are made available for individuals who do not have the capacity to buy their gadgets or other IT paraphernalia from a physical store. The first purchase of inventory on the part of the organization is noted to amount to $8000. Following such purchase is the creation of a definite path towards business growth. Practically, the organization’s key to embracing modern development is the emergence of embracing what innovative living is all about. Starting out from a mere presentation of simple campaign ad, the recognition of the business on the part of the market they serve came mostly from word of mouth that spurred out from creating satisfied customers from all over the world.

The practical source of competence of the organization is basically based on how it aims to serve the needs of the market it hopes to influence. Innovation is one of the most important keys to the matter; it also establishes the foundation of operation that the business is dependent upon. From the point of its beginning towards the current status of the organization, it could be understood how growth and open options for development are being used as the distinct source of business competence for the organization. As a result, PCC Connections became one of the most sought after organizations in the market that offers online purchase culture that holds a definite control on how the market receives the products and services offered by the business.

Financial Data Analysis

The primary source of income for the company includes business organizations tying up with the business especially when it comes to identifying what the organization is founded upon. Through hiring highly-skilled individuals to impose on the need to support the overall operations of the business, it could be analyzed that the emergence of good business development is largely based on how the employees are empowered to work better and the IT specialists to become more innovative especially in making sure that the online portal used by the organization to function in the market is evidently effective to provide what is needed by the market.

To note of the financial data that attests to the supporting development that the organization embraces through time, it is important to note that the business already garnered a recognizable award from Fortune 1000 which gives reputable mark on companies that are able to withstand market competition and industrial expansion through time. In 2013, the company has already garnered revenue of $2.2 billion from its three primary business subsidiaries [which include PC Connections Sales Corporation, MoreDirect Inc and the GovConnection Inc. The large amount of profit the business garners from the market is primarily sourced out from the partnerships they establish with business organizations that strongly depend on them for IT product supplies.

During the first quarter of this year, the business has already increased its profitability to at least 6% based from the past year performance of the organization. The third quarter performance report of the organization further reveals a distinct indication on how much the business have growth within a relatively short span of time based on the business operations of the organization. This matter increased the value of profitability of the organization further.

Business Analysis

With the expansion of operations that the business engages with, it could be realized how the modern market entails to provide a sense of competence on the part of the organization’s desire to expand further. Notably, the service that it provides the target market with could still be enhanced especially in consideration with the way IT solutions are implied to support basic business operations that could still be improved through the option of improving the real concept of organizational growth. The company currently hires and trains highly skilled IT staff to help create innovations that would improve the pioneering edge of the business against that of the competitors in the market.

The current status of the organization, being one of its kind, is challenged by other entrants in the industry that particularly offer lower-priced gadgets and IT solutions for business customers. Considerably, it could be observed that when it comes to defining the capacity of the organization to provide support to the business ventures it aims to serve, the quality it boasts among all other characteristics of the products it offers the market with gets the attention of the buyers thus creating better options of gaining profit from the consumers.

Following the revenue model, the business strategy of PCC Connections is most often than not dependent on the condition of evaluative operation that makes it easier for the business to take on the challenge of dealing with new competitors and other incoming organizations that are assumed to create massive impact on how the business operates as a whole. At present, this particular model of operation allows the organization to make manageable connection with prospected clients, thus imposing on the establishment of good and constant source of profit that the business could duly expect relative expansion from.

Stock Price Estimate [Business Ratios]

From the year 2008 to 2013, the stock price estimate for PCC Connections has increased by at least 4% to 5% within an annual pattern of progression. With a close volume of 20,011, the stock valuation of the organization’s assets presents a high rate of benefit for stock investors of the business. Based from the quarterly result of sales, PCC Connections has been able to create a relative stand especially in considering the overall concept of business operations in par with the goals it has been primarily founded upon.

Through time, PCC Connections’ value for business development becomes more and more attractive for investors especially that the organization is entering a new realm of operation as it hopes to expand its business operations towards catering to a larger number of customers in the international market. With a gross margin of profitability ranging at 13.40% the business is expected to incur further points of growth in the future. The profit margin of the organization stands at 1.70% which entails a constant pattern of improvement within the following quarters of sales in the market.

Through this formula, the WACC of the business is presented accordingly. The data used for the completion of this computation are the ones posted in the chart below [based from the financial report that the business has created through the first quarter of the year 2014]:

Based from the data posted in this table, the equity of the debt of the organization in par with the stockholder’s equity value provide a definite picture especially in relation to what aspect of growth the organization embraces at present.

The application of proper strategies in establishing the strength factor of the business insists on the capacity of the organization to redefine the way it utilizes available resources that are intended to assist the business towards emerging fully from the distinct operations it engages with online.

Conclusion

Assumed as the most effective options of development that the business ever embraced, PCC Corporation hopes to become one of the most sought after providers of IT products in the web. Apart from its counterparts that also provide access to the same products through the internet, the organization holds strongly on how it is able to make use of the resources available for its utilization and make sure that such resources are able to mandate on how conditional operations of development are given attention to by the organization.

Based from the presentation and business evaluation noted herein, it could be realized how the strategies of improvement actually gives the business the relative edge it needs to remain strong within the international competition it has to withstand in relation to the services and products it provides the public with. What constitutes such standing is the capacity of the organization to hold strong of its primary culture which is based on innovative development of both the products and services it is notably recognized for.

PCC Connections provide a massive source of support for business clients that focus on how the organization is able to respond to their demands. This is what good business management is about. Proper positioning in the market does provide good edge for the business to thrive strongly in the industry it exists in. Nevertheless, it is the willingness of the organization to adjust towards what is considered as practical improvement that establishes the competitive stance that the business is strongly grounded upon.

What makes modern business development more effective in providing PCC Connections the edge it needs to be included in the pool of competition among organizations of its kind I the industry is that of the desire of the organization to expand further; to become more effective in providing the market with what they demand for. This is the reason why even though the business started out at a relatively smaller state, its growth and its advancement cannot be denied. The obviousness of such progress gives the business a good title that is easily recognizable by the market, both locally and internationally.