Response to Dee
Hello, it is no doubt that currently, CarMax is the car sales company. I also believe that the company will continue to be useful for the next three years from the financial analysis. However, there are unique strategies that CarMax should take to remain competitive in the market. In the calendar 2019, CarMax sold about 4.7% of 0 and 10-year old cars compared to average store markets (CSIMarket, 2019). I agree that CarMax is in a stable financial condition because their equity and liquidity ratio is in a stable condition. They should concentrate on extending their presence in existing markets and opening new stores in new markets. CarMax should also deliver a customer-driven, Omni-channel purchasing, and selling experiences (MarketScreener, 2020). CarMax should again hire and develop engaged and skilled employees and improve the efficiency of its logistics and store operations to drive out waste.
References
CSIMarket. (2019). KMX Company Profile . CSIMarket. https://csimarket.com/stocks/at_glance.php?code=KMX.
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MarketScreener. (2020, April 21). CARMAX: Management's Discussion and Analysis of Financial Condition and Results of Operations. (form 10-K): MarketScreener . MarketScreener.com | stock exchange quotes| Company News. https://www.marketscreener.com/quote/stock/CARMAX-INC-13273/news/CARMAX-Management-s-Discussion-and-Analysis-of-Financial-Condition-and-Results-of-Operations-for-30452749/.
Response to Eman
Hello Eman, I agree that economic impacts tend to play a fundamental role in all business operations. I agree that Chevron lost its market value due to the decline of its sensitivity to commodity prices. Additionally, when oil firms have been picking on the smallest natural gas competitors, the firm has been obligated to write down about $10 billion of natural gas assets (Chevron, 2019). However, the company is still lucky because they can continue with their operations despite climate change. Chevron should develop a balanced and measured strategy to curb economic turmoil. Therefore, the firm should ensure that all environmental and energy requirements are met. Costs should be distributed equally to climate change adaptation measures to reduce greenhouse gases (Team, 2020). Chevron should ensure that they have access to cheap and reliable energy to boost their growth and sustained improvements and quality of life.
References
Chevron. (2019, February 01). Chevron Issues Update to Climate Report for Investors . https://www.chevron.com/stories/chevron-issues-update-to-climate-report-for-investors
Team, T. (2020, January 3). What Does Chevron's Future Hold as It Tries to Overcome Its Natural Gas Write Down? Forbes. https://www.forbes.com/sites/greatspeculations/2020/01/03/what-does-chevrons-future-hold-as-it-tries-to-overcome-its-natural-gas-write-down/.
