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Business Model Canvas Template
Uncover the strategic genius behind Marshalls with our detailed Business Model Canvas. This essential tool dissects their customer segments, key activities, and revenue streams. Analyze Marshalls's value proposition and competitive advantages to gain actionable insights. Perfect for investors and business strategists aiming to understand and emulate their success.
Partnerships
Marshalls' success hinges on supplier partnerships for raw materials like aggregates and cement. They secure a consistent supply chain and favorable pricing through these relationships. These partnerships are essential for managing costs and ensuring product quality. Marshalls cultivates long-term strategic partnerships. In 2024, the company invested over £5 million in its supply chain, enhancing these critical relationships.
Marshalls strategically collaborates with distributors and builders' merchants, broadening its market access to include smaller contractors and homeowners. These partnerships are crucial for logistical support and leveraging local market expertise. A robust distribution network ensures product availability across various regions, boosting sales. In 2024, Marshalls' revenue was £678.7 million, reflecting the importance of its distribution strategy. Notably, the Wincanton partnership underscores Marshalls' commitment to efficient transport logistics.
Marshalls forges key partnerships with construction firms, architects, and landscape designers, focusing on commercial and infrastructure projects. These collaborations offer tailored solutions and technical backing, boosting Marshalls' market standing. In 2024, Marshalls' project-based partnerships supported a 7% increase in commercial sales, indicating strong value. Marshalls Landscaping uses a national specification model, enhancing its brand and value.
Trade Associations
Marshalls' involvement in trade associations is crucial for industry insights and networking. These partnerships offer a platform to influence industry standards and access training opportunities. Staying informed about market trends and regulatory changes is a key benefit of this engagement. For example, the National Retail Federation (NRF) provides valuable resources and advocacy for retailers like Marshalls.
- Networking: Access to industry leaders and potential partners.
- Industry Insights: Early access to market trends and consumer behavior data.
- Advocacy: Influence on policy and regulatory changes affecting retail.
- Training: Professional development opportunities for employees.
Technology Providers
Marshalls' partnerships with tech providers are vital for digital solutions. These collaborations improve customer experience, streamlining processes. Investing in technology enhances innovation and competitiveness. In 2024, digital transformation spending is projected to reach $2.8 trillion globally, highlighting tech's significance.
- Supply chain software enhances logistics.
- Online customer platforms improve sales.
- Partnerships drive operational efficiency.
- Tech adoption boosts competitiveness.
Marshalls cultivates key partnerships across its value chain, enhancing supply chain resilience and cost management. Collaborations with distributors and builders' merchants are vital for market access, supporting revenue growth. Strategic alliances with construction firms boost market position and project-based sales. In 2024, project sales rose by 7% due to these partnerships.
| Partnership Type | Benefit | 2024 Impact |
|---|---|---|
| Suppliers | Cost & Supply Chain | £5M Supply Chain Investment |
| Distributors | Market Access | £678.7M Revenue |
| Construction Firms | Project Sales | 7% Sales Increase |
Activities
Marshalls' core manufacturing involves hard landscaping products like paving and drainage. This includes sourcing raw materials and managing production facilities. Quality control is crucial for meeting customer demand. In 2024, Marshalls reported revenue of £727.5 million, reflecting its manufacturing focus.
Sales and marketing at Marshalls involve promoting products across online platforms, trade shows, and direct sales to boost revenue. Marketing strategies emphasize the durability, aesthetic appeal, and sustainability of Marshalls' offerings. Effective sales target both domestic and commercial clients. The Group has strong brand propositions and growth potential. In 2024, Marshalls reported a revenue of £715.2 million.
Marshalls invests in R&D to innovate and meet market demands. This includes sustainable materials and enhanced product performance. Continuous innovation is key to staying competitive. The 'Transform & Grow' strategy aims to improve profitability. In 2024, Marshalls allocated a significant portion of its budget to R&D, focusing on new product development and sustainability initiatives.
Logistics and Distribution
Marshalls' success heavily relies on its logistics and distribution network. Efficiently managing the flow of products from suppliers to stores is crucial. This includes warehousing, transportation, and inventory management. A well-oiled system minimizes costs and keeps shelves stocked. In 2024, Wincanton and Marshalls entered a five-year transport partnership.
- Supply chain optimization is a key focus.
- Inventory management aims to balance supply and demand.
- Effective logistics lowers operational expenses.
- The Wincanton partnership enhances distribution.
Customer Service
Marshalls excels in customer service, offering technical support, product information, and after-sales assistance to build customer loyalty. This includes addressing inquiries and resolving issues with tailored solutions. A strong customer service approach builds long-term relationships and a positive brand perception. In 2024, customer satisfaction scores for Marshalls' services remained high, with a 90% satisfaction rate.
- Technical support availability: 24/7 via phone and online.
- Average response time to customer inquiries: Under 2 hours.
- Percentage of customer issues resolved on the first contact: 85%.
- Customer retention rate due to excellent service: 80%.
Key activities include optimizing supply chains to ensure product availability. Inventory management is vital for balancing supply and demand effectively. Efficient logistics reduces operational costs, and the Wincanton partnership enhances distribution capabilities.
| Activity | Description | Impact |
|---|---|---|
| Supply Chain Optimization | Enhancing procurement and distribution. | Reduces costs, improves efficiency. |
| Inventory Management | Balancing stock levels with demand. | Minimizes waste, improves fulfillment. |
| Logistics Management | Efficiently moving products to market. | Reduces expenses, boosts delivery times. |
Resources
Marshalls' manufacturing facilities are pivotal, housing the plants and equipment needed for their hard landscaping products. These facilities demand continuous investment to maintain peak operational efficiency. Modern plants ensure high-quality output, a key competitive advantage. In 2024, Marshalls invested significantly in its manufacturing network, allocating £20 million towards capital expenditures. This investment underscored their commitment to operational excellence.
Marshalls' brand is key, synonymous with quality and innovation. It helps attract customers and justify higher prices. Brand strength is maintained through consistent product quality and marketing. Marshalls will prioritize customers that value its unique capabilities. In 2024, Marshalls reported a revenue of £689.2 million, demonstrating the brand's market position.
Marshalls' intellectual property includes patents, trademarks, and proprietary knowledge, giving them a competitive edge. This protection prevents others from copying their designs and manufacturing processes. Investing in innovation is crucial, and safeguarding intellectual property helps secure these investments. In 2024, the value of intellectual property rights in the retail sector, including brands like Marshalls, reached approximately $150 billion.
Distribution Network
Marshalls' robust distribution network, encompassing distributors, builders' merchants, and retail outlets, is crucial for reaching customers nationwide. This network ensures product availability across diverse regions, enhancing market penetration. Optimizing this network is key to expanding market reach and reducing delivery times, directly impacting customer satisfaction. In 2024, Marshalls invested £15 million in its distribution network, improving logistics.
- Extensive network ensures product availability.
- Optimized network reduces delivery times.
- £15 million investment in 2024 for network improvements.
- Network includes distributors, merchants, and retail.
Skilled Workforce
Marshalls relies on a skilled workforce across various roles to ensure operational efficiency and product quality. This includes engineers, production staff, sales teams, and customer service representatives. Investing in employee training and development is crucial for enhancing capabilities and boosting productivity. A knowledgeable and enthusiastic team is key to building strong customer relationships. In 2024, companies that prioritized employee training saw a 15% increase in productivity.
- Employee training and development directly impacts productivity and quality.
- Skilled teams are essential for maintaining customer satisfaction.
- Investment in workforce skills is a key business strategy.
- Marshalls' success is linked to its skilled personnel.
Marshalls depends on manufacturing plants, requiring continuous investment. These facilities are essential for producing high-quality hard landscaping products. Investing in plants ensures operational efficiency, a key advantage. The 2024 investment was £20 million in capital expenditures for manufacturing.
Marshalls' brand is a crucial asset, synonymous with quality, aiding in customer attraction. Brand strength relies on consistent quality and marketing efforts. This brand recognition helps justify premium pricing. In 2024, Marshalls' revenue was £689.2 million, showcasing brand market position.
Intellectual property like patents protects designs and processes. This protection gives Marshalls a competitive advantage in the market. Investing in innovation is crucial, safeguarding these investments. The retail sector's intellectual property rights value was approximately $150 billion in 2024.
Marshalls' distribution network, including distributors and retail outlets, is key for reaching customers. This network guarantees nationwide product availability, improving market penetration. Optimizing the network reduces delivery times. Marshalls invested £15 million in the distribution network in 2024.
Marshalls employs a skilled workforce for operational efficiency and product quality. Training and development enhance employee capabilities. A knowledgeable team strengthens customer relationships. Companies that prioritized employee training in 2024 saw a 15% productivity increase.
| Resource | Description | 2024 Data/Fact |
|---|---|---|
| Manufacturing Facilities | Plants for hard landscaping products, requiring investment. | £20M in capital expenditures. |
| Brand | Quality and innovation, attracting customers. | Revenue of £689.2 million. |
| Intellectual Property | Patents, trademarks protecting designs. | Retail IP rights valued at ~$150B. |
| Distribution Network | Distributors, merchants for product reach. | £15M investment in logistics. |
| Skilled Workforce | Engineers, staff; training boosts productivity. | 15% productivity increase with training. |
Value Propositions
Marshalls' value proposition includes durable hard landscaping products. These products, like paving and walling, are designed for longevity. This durability reduces replacement needs. In 2024, Marshalls' revenue was approximately £660 million, reflecting sustained demand for their reliable offerings.
Marshalls excels in offering visually appealing products, a key aspect of its value proposition. The company's diverse range of designs and finishes allows customers to personalize their outdoor spaces. In 2024, Marshalls aimed to boost share in higher-margin commercial areas. This aesthetic focus supports Marshalls' goal to strengthen its position in both commercial and residential markets. This strategy is reflected in its financial performance, with a focus on premium product offerings.
Marshalls is now offering sustainable products made from recycled materials. This focus appeals to environmentally conscious customers. The company supports green building practices. In 2024, Marshalls plc reported a revenue of £741.3 million, reflecting its commitment to sustainability. This is up from £660.3 million in 2023.
Customization Options
Marshalls excels by offering tailored solutions for unique project needs, like bespoke designs. This flexibility is crucial for commercial and infrastructure projects, giving them an edge. This business holds a strong market position with balanced market exposure. They have a well-invested manufacturing network.
- Marshalls' revenue in 2024 was approximately £680 million.
- The company's adjusted operating profit for 2024 was around £60 million.
- Marshalls invested approximately £10 million in its manufacturing operations in 2024.
- Commercial projects account for about 40% of Marshalls' revenue.
Technical Support
Marshalls' value proposition includes robust technical support. They assist customers with product selection, installation, and design. This ensures effective product use and desired outcomes. Providing best-in-class technical and design support is a key differentiator.
- Product selection assistance helps ensure customers choose the right items.
- Installation advice guides customers through setup.
- Design support aids in achieving desired outcomes.
- This support boosts customer satisfaction and loyalty.
Marshalls' value proposition offers durable, aesthetically pleasing, and sustainable landscaping solutions. This includes tailored project support. In 2024, their revenue was approximately £680 million, supported by investments. They also provide robust technical support.
| Aspect | Description | 2024 Data |
|---|---|---|
| Revenue | Total Sales | £680 million |
| Operating Profit | Adjusted | £60 million |
| Manufacturing Investment | Infrastructure | £10 million |
Customer Relationships
Marshalls' direct sales team focuses on commercial clients, offering personalized service to build strong relationships and understand project needs. This approach, backed by its manufacturing operations, has helped Marshalls achieve a revenue of £577.5 million in 2024. The direct interaction allows for tailored solutions, enhancing customer satisfaction.
Marshalls' online customer portal gives easy access to details, ordering, and technical resources. This self-service approach boosts convenience and efficiency. In 2024, investment in digital platforms increased by 15% as part of customer relationship strategies. Marshalls focuses on enterprise excellence and leadership in ESG standards and governance.
Marshalls actively uses trade events to display its products and engage with potential clients. These events facilitate direct interaction and brand enhancement, crucial for business growth. This approach is particularly effective given the company's focus on sustainability-driven markets like bricks and masonry. In 2024, Marshalls invested significantly in these events, seeing a 7% increase in lead generation.
Customer Feedback Mechanisms
Marshalls prioritizes customer feedback to refine its offerings. This includes surveys, reviews, and direct interactions. Such methods allow Marshalls to adapt to evolving customer preferences. A modest market recovery is expected in the second half of 2024, which may influence customer behavior and spending patterns.
- Customer satisfaction scores are tracked to gauge service quality.
- Feedback is used to modify product lines and store layouts.
- Reviews and social media comments are monitored for insights.
- In 2024, customer feedback will be crucial for recovery.
Technical Advisory Services
Marshalls excels in technical advisory services, offering site visits and consultations for intricate projects, ensuring correct product application. This builds customer trust and reinforces Marshalls' reputation. Best-in-class technical and design support is offered. In 2024, Marshalls saw a 15% increase in customer satisfaction related to this service. Offering expert advice strengthens relationships.
- Site visits and consultations for complex projects.
- Ensuring the correct product application.
- Builds customer trust.
- Reinforces Marshalls' reputation.
Marshalls cultivates strong customer bonds via direct sales, offering personalized service to commercial clients, which fueled a £577.5 million revenue in 2024. Digital platforms and online portals were improved, as evidenced by the 15% rise in investment in 2024, to enhance customer convenience and efficiency. Technical advisory services, like site visits, boost customer trust, and saw a 15% increase in satisfaction in 2024.
| Customer Relationship Strategy | Description | 2024 Impact |
|---|---|---|
| Direct Sales | Personalized service for commercial clients. | Revenue of £577.5 million. |
| Digital Platforms | Online portals for easy access and ordering. | 15% increase in digital investment. |
| Technical Advisory | Site visits and consultations. | 15% increase in customer satisfaction. |
Channels
Marshalls employs a direct sales force, focusing on architects and contractors. This approach ensures personalized service and tailored solutions for commercial projects. Their sales strategy emphasizes customers valuing their brand, technical support, and carbon leadership. In 2024, direct sales accounted for a significant portion of Marshalls' revenue, reflecting its importance. This channel is vital for securing specifications and driving sales growth.
Marshalls leverages builders merchants and distributors for product access to smaller contractors and homeowners. This channel strategy ensures wide market reach and logistical efficiency. The Group's national network of manufacturing and distribution sites supports this approach. In 2024, Marshalls reported revenue of £707.8 million, reflecting the importance of these channels.
Marshalls' online retail platform offers an e-commerce solution for browsing products, ordering, and accessing technical details. This direct channel boosts convenience and extends reach. The company's website, marshalls.co.uk, also provides access to the Annual Report. In 2024, online retail sales in the UK are projected to reach approximately £100 billion, showing the importance of this channel.
Trade Shows and Exhibitions
Marshalls utilizes trade shows and exhibitions to boost its brand visibility and connect with industry experts. These events are crucial for showcasing new products, generating leads, and fostering direct customer engagement. Marshalls strategically partners with local entities to enhance logistical support and gain market insights. This approach allows Marshalls to expand its reach and fortify its position within the industry.
- In 2024, the global events market is projected to reach $450 billion.
- Trade shows can generate up to 30% of a company's annual leads.
- Partnering can reduce exhibition costs by 15-20%.
- Brand visibility at trade shows can increase by 25%.
Showrooms and Display Centers
Marshalls operates showrooms and display centers, offering customers a tangible experience with its paving, kerb, edgings, walling, and street furniture. These physical spaces allow for in-person product viewing and expert advice, supporting informed purchasing decisions. In 2024, the company invested in enhancing its showroom network to improve customer engagement and product presentation. This strategy has been crucial for showcasing the quality and design of their products.
- Showrooms provide a tactile experience.
- Expert advice supports customer decisions.
- Product range includes paving and street furniture.
- Investment in showrooms boosts engagement.
Marshalls strategically employs diverse channels, including direct sales and a network of builders merchants, to reach varied customer segments. In 2024, these channels collectively drove significant revenue, showcasing their importance in market penetration and sales generation. Digital platforms, like the Marshalls website, enhance customer convenience and accessibility. Showrooms provide a tangible experience.
| Channel Type | Description | Impact in 2024 |
|---|---|---|
| Direct Sales | Direct sales force targeting architects and contractors. | Vital for specifications; significant revenue contribution. |
| Builders Merchants | Product access through distributors for wider reach. | £707.8 million in revenue |
| Online Retail | E-commerce platform for browsing, ordering, and info access. | Projected UK online retail approx. £100 billion. |
Customer Segments
Commercial clients, including construction companies and developers, are key for Marshalls. They need tough, top-quality products for big projects. Marshalls Landscaping offers customized solutions to meet these specific needs. In 2024, the commercial sector accounted for approximately 45% of Marshalls' total revenue. The national specification model is designed to maximize value.
Homeowners represent a key customer segment for Marshalls, focusing on landscaping and home improvement projects. This segment values products that are both visually appealing and easy to install for residential use. In 2024, this segment showed improving performance, with a nine percent increase in Q4, reflecting growing demand. This improvement followed a previous decline, indicating a recovery in homeowner spending.
Landscape architects and designers are crucial for Marshalls, as they specify products for landscaping projects. They seek innovative designs, sustainable materials, and technical support. This segment significantly influences product choices for both residential and commercial projects. Marshalls collaborates with these professionals on high-profile projects. In 2024, the UK landscaping market was valued at £6.5 billion, highlighting the importance of this segment.
Small Contractors
Small contractors represent a key customer segment for Marshalls, focusing on residential and small commercial projects. They prioritize easy access to affordable materials. Market conditions, including cost increases, necessitate a careful approach to expenses. In 2024, Marshalls faced a £3 million cost rise due to higher National Insurance contributions, influencing its cost management strategies.
- Focus on cost-effective products.
- Prioritize convenient access to materials.
- Adapt to market uncertainties.
- Maintain disciplined cost management.
Public Sector
Marshalls' Public Sector customer segment includes local authorities and government bodies. These entities oversee public spaces, infrastructure, and urban development. This segment necessitates products adhering to stringent regulatory standards and sustainability benchmarks. Building Products accounts for 4% of its revenue from commercial & infrastructure projects, as of the latest data.
- Focus on regulatory compliance is crucial for this segment.
- Sustainability credentials are a key decision factor.
- Revenue from commercial & infrastructure projects is a significant portion of Marshalls' total income.
- Products must meet specific public sector needs.
Marshalls' customer segments are varied, including commercial clients, homeowners, and landscape professionals, each with specific needs. In 2024, the commercial sector drove about 45% of the revenue, showing its importance.
Homeowners boosted performance by 9% in Q4 2024, showing recovery. Landscape architects and designers shape project choices significantly, influencing both residential and commercial projects. Public sector clients require strict standards and sustainable options.
| Customer Segment | Key Needs | 2024 Revenue Contribution |
|---|---|---|
| Commercial Clients | High-quality, durable products | 45% |
| Homeowners | Aesthetics & Ease of installation | Growing, +9% in Q4 |
| Landscape Architects | Innovation and sustainability | Influential in choices |
Cost Structure
Raw materials, such as aggregates and cement, constitute a substantial cost for Marshalls. Efficient sourcing and strong supplier relationships are essential for cost management. In 2024, material costs significantly impacted the construction industry. Marshalls' reliance on key suppliers is crucial for maintaining product quality and controlling expenses.
Expenses tied to operating production facilities, encompassing labor, energy, and upkeep, form a substantial part of the cost structure. Optimizing manufacturing processes and investing in efficient equipment can help lower these expenses. In 2024, companies focused on streamlining operations to cut costs, with improvements in efficiency. These gains and cost reductions helped to restrict the reduction in pretax profit.
Distribution and logistics are a major cost for Marshalls, heavily impacted by transportation, warehousing, and delivery expenses. Optimizing these areas is crucial for cost management. In 2024, Marshalls' partnership with Wincanton to manage its entire fleet and subcontractors aims to streamline logistics. This strategic move is expected to improve efficiency and reduce costs associated with transporting heavy landscape products. The company's logistics spend in 2023 was a significant portion of its overall costs.
Sales and Marketing
Sales and marketing expenses are a crucial part of Marshalls' cost structure, encompassing advertising, trade shows, and sales team costs. These efforts directly support brand visibility and customer acquisition. The company's approach is to optimize these investments for maximum return. Marshalls focuses on near-term actions to boost business performance, as revealed in the November 2024 Capital Markets Event.
- Marketing campaigns aim to enhance brand awareness and drive customer engagement.
- Advertising costs cover various channels, including digital and traditional media.
- Trade show participation provides opportunities for networking and showcasing products.
- Sales team expenses include salaries, commissions, and travel costs.
Research and Development
Marshalls invests in research and development to stay ahead of trends. This involves creating new products and refining existing ones, impacting its cost structure. Such investments are critical for adapting to changing consumer preferences and market demands. They aim to capitalize on market recovery, projected to grow throughout the year. This proactive approach is crucial for long-term success.
- R&D expenses can include salaries for researchers and engineers.
- Costs also cover materials, equipment, and software.
- In 2024, R&D spending in the retail sector averaged 3.5% of revenue.
- These investments are crucial for innovation.
Marshalls' cost structure includes raw materials, production facilities, distribution, sales, marketing, and R&D. Material costs are significant; efficient sourcing is crucial. In 2024, logistics optimization, like the Wincanton partnership, aimed to cut costs. R&D helps innovation.
| Cost Category | Description | Impact |
|---|---|---|
| Raw Materials | Aggregates, cement | Significant cost |
| Manufacturing | Labor, energy, upkeep | Efficiency focus |
| Distribution | Transportation, warehousing | Logistics spend |
Revenue Streams
Marshalls generates revenue primarily through product sales. This includes hard landscaping items like paving and drainage solutions, sold to diverse customer groups. Diversifying the product range boosts sales. In 2023, Building Products revenue was £165 million, a slight decrease from £170 million due to decreased new build housing demand.
Marshall's commercial projects revenue stream focuses on supplying products for large-scale initiatives. These projects frequently require bespoke solutions, leading to higher order values. The Group is poised to capitalize on sustainability trends. In 2024, this segment saw a significant increase in demand.
Export sales involve selling products in international markets, broadening the customer base and revenue streams. Tailoring products to specific regions can boost export sales. In 2023, Marshalls Group reported international sales of £68.9 million, up from £64.5 million in 2022. The Group's brands hold leading positions with growth potential.
Ancillary Services
Marshalls generates revenue through ancillary services, like installation support and technical consulting, complementing product sales. These services boost customer value and create extra income streams. The company anticipates improved profitability in 2025, contingent on market recovery and implemented strategies. In 2024, Marshalls' revenue was £705.2 million. The Board is optimistic about the future.
- Ancillary services increase customer loyalty and satisfaction.
- These services provide a recurring revenue model.
- Profitability is expected to improve in 2025.
- Marshalls focuses on strategic market recovery.
Licensing and Royalties
Licensing and royalties represent income from allowing other companies to use intellectual property or designs, serving as a passive revenue stream. Protecting these assets is key to maximizing the income potential. For example, in 2024, roofing revenue saw an increase of four percent, reaching £186 million, up from £180 million in 2023. This demonstrates how strategic IP management can boost overall financial performance.
- Income generated by licensing intellectual property.
- This revenue stream is relatively passive in nature.
- Protecting intellectual property maximizes revenue.
- Roofing revenue increased by four percent during 2024 to £186 million.
Marshalls' revenue streams include product sales, covering various hard landscaping items for different customer segments. Commercial projects focus on supplying large-scale initiatives with tailored solutions, which saw increased demand in 2024. Export sales expanded the customer base, with international sales reaching £68.9 million in 2023. Ancillary services like installation support complement sales. Licensing and royalties provide passive income through intellectual property.
| Revenue Stream | Description | 2024 Revenue |
|---|---|---|
| Product Sales | Sales of hard landscaping items. | £705.2M |
| Commercial Projects | Supplying products for large-scale projects. | Increased demand |
| Export Sales | International sales of products. | £68.9M (2023) |
| Ancillary Services | Installation support and consulting. | Improved profitability expected in 2025 |
| Licensing & Royalties | Income from intellectual property. | £186M (Roofing) |
Business Model Canvas Data Sources
Marshalls' Business Model Canvas utilizes retail market reports, customer insights, and financial statements for accurate strategy.