Financial reporting Essay
United Rentals, Inc (United Rentals) is a company that deals with renting of equipment. United Rentals was founded in the year 1997. This organization was founded by eight entrepreneurs. Research shows that this Company is the largest in the world that offers equipment rentals services. It owns more than seven hundred locations in Canada, Mexico and in the United States. Their customers include home owners, utilities and industrial Companies. There are over 20,000 rental equipment classes that are rented from this Company. Handy Rent-all Centre assets were acquired by United Rentals in March 2006.
In the year 2007 this Company also acquired assets from D. Larry Carter, Inc. This paper is dealing with an analysis of the strengths, weaknesses, opportunities and the threats that exist in United Rentals, Inc. This paper is also dealing with the current strategies that exist in this Company. There are also suggestions to solving the problems that exist in this Company. The firm’s main strengths The strengths in an organization refer to internal factors that make the organization to have a competitive advantage over its competitors.
One of the strengths that this Company has is that it contains more than seven hundred locations in Canada, United States
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This has led to the Company saving a lot due to reduced investment that would be incurred in recruitment costs. This is a big strength for this Company as employee turnover has been greatly reduced. Using Kenexa solution there has been isolation of manager behaviors which has helped in improving sales profit. This has also reduced turnover this has created standards for best practices. An analysis shows that these practices have placed competitive advantage of United Rentals over other Companies. The firm’s main weaknesses
According to auditing carried out in United Rentals, Inc in December the year 2004 it showed some weaknesses in the running of the Company. A management assessment shows that the Company does not maintain an effective internal control of its finances. This is a big weakness for this Company because it shows that there are loopholes in the finance sector and hence the Company has lost a lot due to this ineffectiveness. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. There is insufficient communication in regards to high standards. This is a weakness in this Company since it has resulted to some employees not meeting the required standards which create room for loss. Research shows that the other weakness that exists in this Company is the poor maintenance of personnel that are experienced.