Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Venator's missmanagement practices
by: analysing_and_thinking (30/M/New York, NY)
Long-Term Sentiment: Hold 07/12/01 08:42 am
Msg: 8844 of 8846

I cheered to Venator's announcement to open 1000 new stores... but then I started to ask myself who's going to do it? What is the real ROI ?

To my dismay, it seems that the 3 departments in charge of revamping, moving or opening store have no idea what each other job is - there are no procedures, no job descriptions, nobody knows who are the bosses or who is responsible. It's like a bad case of the 1980s - they are playing ping-pong with responsibilities.

While it is already dubious that 6 project managers can cover a territory where over 400 stores are being remodeled, moved or opened, how can the 3 purchasing coordinator support them (only !) and manage all of the buying, shipping, budgeting, etc. That's over 1 store every two days, which is an average of 20 POs and revisions per day !?! I hope they are well paid since the whole business model relies on their ability to perform under this “huge pressure”.

Well, I thought "good they are saving costs", but how many bad POs, mistake purchase, delayed opening ? Surely, someone has looked into it to make sure that they are saving money ? At a rate of over $2000 per loss days of sales, lack of communication or time to do the job properly, I estimate that in the first 6 mths they have "loss" over $3 million dollars in store opening delay, miss-quote, and other lack of operation control/resources – that's already 1% of EBITDA margin !

As it stands, without appropriate actions or increase margin in pure sales, I do not see the stock passing the $16 threshold…

Recommendations to Venator: please do us and yourself a favor and take the following necessary steps: written processes, job descriptions, assignment of responsibilities, more purchasing coordinators and project managers.

Questions to investors: can anyone comment on the quality of their systems and IT support ? Could Venator be more efficient and save money over the long run by upgrading any of them ? If so which ones ? Have anyone estimate the level of cannibalization and cost of store opening/share-market ?

Re: Venator's missmanagement practices
by: ocdesign70
Long-Term Sentiment: Buy 07/12/01 01:56 pm
Msg: 8845 of 8846

It's so obvious that you must be an employee (or former) of Venator to know so much!

I agree with you that without improving margins and other numbers, the stock is not getting past $16.


Re: Venator's missmanagement practices
by: pisquare314
Long-Term Sentiment: Sell 07/12/01 02:01 pm
Msg: 8846 of 8846

Interesting comments... Yeah, surely an employee or former, or someone who've been talking to some. In any-cases, good info. Thanks for the insights. I'm getting out if employees start to rat.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.