Company’s Growth Prospects and SWOT Analysis

Introduction

Every business seeking financing must demonstrate strong financial health through pro forma statements—projected income and balance sheets that help assess sustainability and growth. In
this analysis, I developed pro forma financial statements for Gurung Brothers Supermarket (GBS) for 2019 and compared them with past years (2017 and 2018). The findings indicate a
sustainable growth rate of 15%, signaling solid financial performance. Sales, earnings, equity, and cash flow have all increased consistently, making GBS an attractive investment option for potential investors. Alongside this financial assessment, I conducted a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) to evaluate the Company’s strategic positioning. This analysis has enabled GBS to set clear goals, modernize its operations, and align itself with the evolving trends of 21st-century retailing.

Understanding the Company’s Growth Rate

Growth rate is one of the clearest indicators of a company’s health and potential. Analysts often examine four key metrics: sales growth, earnings growth, equity growth, and operating cash flow growth. When these indicators move in tandem, they paint a picture of financial strength, suggesting that the Company is performing efficiently and sustainably. For Gurung Brothers
Supermarket (GBS), based in Omaha, Nebraska, the historical data shows consistent improvement across all four metrics. The Company’s estimated annual growth rate is 15%, supported by its
2017–2019 income statements and balance sheets. The performance 2019 statement also projects a need for an additional $50,000 in external funding, which will be directed toward modernizing traditional retail through e-commerce integration—specifically, an MLM (multi-level marketing)
A plugin that will expand merchandise options and customer reach.

Why External Funding is Essential

The retail landscape is undergoing rapid transformation. While e-commerce accounted for about 12% of global retail in 2018, consumers still value in-person experiences—especially for
perishable goods and products that require tactile inspection. Between 2017 and 2018, over 6,000 US storefronts closed, resulting in the displacement of millions of workers. Retail giants such as Walmart, Target, Home Depot, and Costco have expanded into e-commerce to remain competitive, while Amazon continues to dominate online retailing. To thrive in this hybrid environment, businesses like GBS must integrate storefront operations with digital platforms. Technological innovation—ranging from inventory systems and CRM software to online marketing and logistics tools—has become indispensable. As noted by Agrawal & Dixit (2017), e-commerce has revolutionized both global and domestic economies. For GBS, the integration of these technologies represents not only survival but expansion. Thus, the proorma statement for 2019 justifies seeking external funds to strengthen the Company’s infrastructure, blending traditional retail with modern e-commerce capabilities.

Growth Highlights: 2017–2019

The data comparison between 2017, 2018, and the projected 2019 statements reveals several key findings:

• Sales increased steadily, maintaining a 15% annual growth rate.
• Earnings, equity, and cash flow followed a parallel trajectory, showing operational balance.
• Income and asset accounts rose proportionally with sales, reflecting efficient resource use.
• Dividend payouts remained consistent, underscoring responsible financial management.
  In summary, GBS maintains strong and sustainable growth, offering confidence to both investors and stakeholders.
  

SWOT Analysis: Gurung Brothers Supermarket

A SWOT analysis helps identify both internal and external factors that influence business performance (Simoneaux & Stroud, 2011). Developed through extensive research and interviews
with Fortune 500 companies, the framework enables strategic alignment by recognizing an organization’s strengths, addressing weaknesses, seizing opportunities, and mitigating threats.

Strengths

Gurung Brothers Supermarket (GBS) is a dynamic Omaha-based importer, distributor, and retailer specializing in South Asian products. The Company also operates in e-commerce, restaurant, real estate, and healthcare services.
Key strengths include:

• Expertise in Asian merchandise and superior inventory quality
• Diverse services (money transfer, ATM, lottery, pharmacy, restaurant)
• Affordable pricing and expanding e-commerce presence
• Highly skilled and customer-focused workforce
• Regular employee training and continuous learning
• Prime location with over 115,000 vehicles passing daily
• Ownership of property, reducing overhead costs
• Minimal nearby competition and strong local demand for Asian cuisine.
  In 2019, GBS launched its e-commerce site (under development now), marking a significant step toward global accessibility and innovation.

Weaknesses

Despite strong performance, GBS faces several internal challenges:

• High VAT on imported goods leads to lower margins
• Limited product branding and financial resources
• Space constraints and insufficient parking for high traffic
• Rising inventory costs and wage expenses
• Lack of robust HR systems and English proficiency among staff
• Competition from major retailers like Walmart and No-Frills nearby While these weaknesses pose short-term hurdles, GBS continues to mitigate them through strategic expansion and staff development programs.

Opportunities

The digital era has opened vast possibilities for GBS:

• Expanding into global e-commerce markets and international delivery
• Adoption of advanced retail technologies to enhance competitiveness
• Relaxed government regulations and trade laws
• Market gap left by exiting competitors
• The Growing Popularity of Asian Cuisine in the US
• Strong business credit foundation for future investments.
  
  As technology continues to transform retail, GBS is positioning itself as a leader in hybrid retail operations, bridging physical and online shopping experiences.
  

Threats

No business is free from risk. GBS must stay vigilant against:

• Adverse or changing government policies (e.g., wage increases)
• Emerging local competitors
• Economic instability and market shrinkage
• Rapid technological shifts require constant adaptation
• Growing competition from large e-commerce and network marketing firms
  
  Past experiences have proven GBS’s resilience—when faced with nearby competition, strategic Pricing and loyalty programs helped reclaim market share and strengthen customer loyalty.
  

Conclusion

The SWOT analysis and financial performance review of Gurung Brothers Supermarket paint a clear picture: this is a company with strong fundamentals, disciplined management, and a forward-
looking strategy.
With a 15% sustainable growth rate, expanding ecommerce operations, and innovative retail Integration, GBS is well-positioned for continued success in an ever-changing global market. The Company remains committed to discovering new ways of thinking, innovating operations, and empowering both employees and customers—ensuring that Gurung Brothers Supermarket not only keeps pace with 21st-century retail trends but helps define them.