...INTRODUCTION David Jones was founded in 1838 by David Jones, a Welsh immigrant, and is claimed to be the oldest continuously operating department store in the world still trading under its original name. David Jones Limited is an ASX 100 Australian retailer with FY10 earnings of AUD 204.8 million from its core department store business and a further AUD 44.4 million from its complementary financial services business. The Company employs between 8,500-10,500 people and operates 36 department stores in key metropolitan and suburban centres in and around Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra. David Jones is uniquely positioned in Australia’s retail sector, with a loyal customer base and a broad range of national and international brands across categories, including: women’s wear, menswear and childrenswear; shoes and accessories; fragrances and beauty; home wares, bedding and furniture, appliances, home entertainment and home office; and a high-end food and liquor offer in selected stores. In addition, David Jones’ financial services business continues to grow shareholder value through its strategic alliance with American Express. As a good corporate citizen, David Jones is committed to managing its operations in an environmentally sustainable manner, through investment in efficiency measures that reduce the impact that the business has on the environment, and by developing robust management systems to ensure transparency and confidence in environmental reporting...
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...Comparative Financial Analysis for the financial year 2012 for DAVID JONES Word Count: words Members of the Group (surname underlined): LIM EWE LEE 30109302 WONG MEI LIN 30109335 TEH KONG CHENG 30111788 Executive Summary David Jones, an Australia base company with its core business of operate departmental store in Australia, the company focus are beauty and cosmetic products, women’s wear, women’s accessories and footwear, menswear and accessories, food products, toys, home products, and products for babies and children. This report has been prepared with the objective of examine financial health of David Jones. The achieve the objective, five key financial ratio analysis: Profitability, Liquidity, Asset Efficiency, Capital Structure has been use throughout the report David’s Jone’s profit margin has declined by 9% in year 2012 with $0.8 cent of net profit derived from every dollar of total sales in year 2012. Declined result in Return on Equity (ROE), Return on Asset (ROA) and gross profit suggest that company having hard time during this financial period and is not able to optimized its resource to support revenue growth. From the liquidity perspective, the company has weaker liquidity compare to year 2011. Cash flow ratio indicates 7% declined from previous year, which could impact the company’s cash flow to meet the short term liabilities. The current ratio also show dropping by 01.7 time compare to year 2011, suggesting slowdown in inventory...
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...Abstract Before selecting the proper financing sources Knowing the costs of financing is a prerequisite. This assignment is regarding the financing issues of business. it is very necessary to have proper knowledge over the financing terms and methods to obtain requisite financing for the organization. One has to know the costs of financing as a prerequisite before selecting the proper financing sources. In this assignment, several advantages and disadvantages are discussed for different financing methods, cost of finance, financial planning and information and many other issues that help to gain a proper knowledge about the financing in organization. Different books and journals have been used to prepare the assignment. Contents Introduction 3 Requirement 1 3 Task 1.1 : Business needs finance and available sources of finance to a business 3 Equity financing 4 Debt Financing 4 Lease Financing 4 Task 1.2 : Accessing and comparing the implication of the different sources of finance 4 Implication of equity financing 4 Implication of debt financing 4 Implication of lease financing 5 Task 1.3: evaluation of the appropriate sources of finance for the above mention businesses. 5 M1: Critically evaluate each available sources of finance to that particular firm. Evaluation should include the pros and cons, and legal aspects of each source. (Merit M1). 5 Case study 1: An engineering firm 5 Equity financing for this firm 5 Debt financing 5 Lease financing...
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...1. Summary of activities and strategies of David Jones David Jones Limited trading as David Jones and listed on the Australian Stock Exchange is a high end department store chain. The principal activity for David Jones is retailing of different brands under various categories such as fashion, cosmetics, home wares and electronics. David Jones retails its products via departmental stores and have recently transformed itself as an Omni Channel Retailer taking advantages of on-line retailing as a strategy to compete globally. Further, David Jones also has a financial services activity through alliance with American Express. 2. Strategies David Jones had developed and implemented their strategic direction plan in March 2012 and is seen to have remarkable progress on its plans addressing the challenges and having intentions of growing via its three point strategy as follows: A. Addressing Retail Structural Changes David Jones is noted to have invested resources to transform itself from a ‘brick and mortar’ retailor into Omni Channel Retailor. This strategy is implemented as a result of the changing face of traditional retailing into online in the trend to globalize the retailing sector. B. Strengthening Core Business David Jones strive to strengthen its core business via investments into better customer services and engagement. This was noted by better inventory management and investment in technology through the roll out of new POS (point of sales) systems to its...
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...ASX AND MEDIA RELEASE Page 1 of 13 For Immediate Distribution 21 March 2012 DAVID JONES ANNOUNCES ITS FUTURE STRATEGIC DIRECTION DAVID JONES HAS MANY EXISTING STRENGTHS: It has a distinctive positioning in the Australian market, a loyal customer base, a strong service ethic, a profitable and well positioned store portfolio, a strong Balance Sheet, robust cashflows and a high dividend payout ratio - all of which position the Company well to leverage the many opportunities that exist for future growth outlined below. DESPITE ITS STRENGTHS THE COMPANY FACES CHALLENGES • • • Structural Changes – the internet is globalising & changing retailing; Macro Economic Headwinds –retail sales have been flat and rents, labour, utilities & financing costs are increasing; Challenging Australian Consumer Credit Markets - the Company’s card portfolio is exposed to prevailing weak discretionary retail spending. This could result in a halving of EBIT contribution from this business in FY14 when the alliance with American Express converts to a share of underlying profits. DAVID JONES WILL ADDRESS THESE CHALLENGES & GROW VIA A “3 POINT STRATEGY” 1. Transformation: The Company is in the process of transforming: • into an Omni Channel Retailer (OCR) modelled on international department store best practice. The Company is investing in technology and realigning its processes & structures. The Company will increase its online SKUs from 9,000 to 90,000 before Christmas...
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... Local and Global Economic Conditions | 5 | Stock Price Movements | 7 | Summary of the Financial Statements | 9 | Analysis: Profitability | 11 | Analysis: Operating Efficiency | 15 | Analysis: Liquidity and Financial Risk | 20 | Investment Decision | 25 | Appendix 1: Financial Statements Note | 28 | Appendix 2: SWOT | 29 | References | 31 | | | Total Word Count (excluding appendix/tables) | 5,404 | Executive Summary This report is an analysis of 2 companies: JB Hi-Fi and David Jones for the purpose of making a sustainable long term investment in either company. The analysis that was undertaken includes understanding the history, current operations and differences between both companies. While both operate within the Australian retail sector, JB Hi-Fi is a speciality discount retailer of branded home entertainment products and David Jones is an upmarket department store chain with a diverse offering including cosmetics, fashion, home wares, furniture, electrical, food and toys. To add context to the operations of both companies, analysis was undertaken to understand the retail sector within Australia as well as influences of local and global economic conditions such as the impact of the Global financial crisis, movements in the Australian dollar and consumer confidence. The financial statements for both companies from 2008 were examined to understand the financial performance of the companies looking at key decisions made or events that have occurred over these periods...
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...Balanced Scorecard or Triple Bottom Line Financials Assess its financial situation including comparing the main financial ratios with others in the industry. Put the financial ratios and other calculations in appendix. Your conclusion about the company’s financial health is in the report. SWOT Analysis . Internal Factors | Strength | Weakness | | * Good location with high crowds * Provide good quality product for the customers * Diversity of products brand offered * Big brand and good reputation in Australia. | * Sales decline * Due to many options available, brand switching is high and low brand loyalty * Not really globalization outside the Australia. | External Factors | Opportunities | Threat | | * Develop a new market place outside Australia. * New customer group | * Currency Risk * Other competitors- Myer, Westfield, introduce similar products with David jones * Global economic downturn * Increasing domestic competition as new brands coming constantly. | Value Chain Analysis David Jones has an extensive planning phase to value chain analysis of the organizational review. This approach helps to David Jones to develop their own competitive advantage. The process is supported by the main activities and the number of activities, marketing and sales to increase product value. . Activities are divided into four main functions, research and development, production, marketing and sales, and services allow organizations to be more...
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...Table of Contents 1. Perspective analysis ………………………………………….2 2.1 Forecasting……………………………………………….2 2.2 Valuation …………………………………………………3 2.3 Sensitivity analysis……………………………………….4 2. Application……...…………………………………………….4 3.4 Challenges and opportunities…………………………..4 3.5 Recommendations……………………………………….5 Reference List…………………………………………………….6 Appendix………………………………………………………….7 1.Prospective Analysis Based on the reformatting financial statement, this report will use the forecasting template designed by Nissim and Penman (2001) to forecast the future financial performance of David Jones. The valuation of the firm is provided subsequently and the underlying key assumptions are considered for sensitivity analysis. 1.1 Forecast on Future Finance Performance This section explained the forecasting bases and detailed forecasts are illustrated in Table 1. * Sales Growth The sales revenue is expected to have an average growth of 3% in the forecasting years. Due to the overall macro-economic factors such as a decline in consumer confidence or an increase in household savings rates, DJS is unlikely to boost the sales growth rate. Although the company is reducing the price of the international stocks, as the company faces increased competition in online retailing, which has resulted in greater transparency of global pricing, there is a risk the price deductions will not be offset by higher volumes. (DJS Annual Report, 2013) However...
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...Furthermore, there have been numerous attempts to define what constitutes ‘good corporate governance’ and to provide guidelines in order to enhance the quality of corporate governance. It must, however, be acknowledged that while everyone advocates and wants corporations to maintain ‘good corporate governance’, measuring the quality of corporate governance structures of the Australian companies has been, at best, very difficult. The major contribution of this report is to develop a simple and effective measurement model to rate the corporate governance structures of four companies. In effect, this report hopes to shed light on factors that should be taken into account in order to make sound investment decisions. The report concludes that David Jones would be the best investment decision amongst the four companies. The rest of the report is structured as follows. Section 1 details our ‘Corporate Governance Assessment Model’, comprising of six governance-related factors and associated measures. Section 2 outlines our assessment of the corporate governance quality of each of the four companies, as well a brief description of the company. Section 3 shows our firm’s conducted comparison of the four corporate governance structures. The final section includes the bibliography and appendix which supported our analysis. Corporate Governance Assessment Model Factor 1: Structure the board to add value Regardless of whether corporate governance is interpreted in its narrowest or broadest...
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...Strategic & Financial Analysis Student’s name Student’s affiliation Woolworths Business Analysis Woolworths Limited operates as a retail superstore giant within and outside Australia. Its current growth plans enlist extension of leadership in food and liquor, shareholder’s wealth maximization through improved portfolio management, building new growth businesses and responding to change in new era of growth. It envisions a dynamic business, flexible enough to respond to ever changing customer needs, which can introduce innovations in products and is backed by complete customer satisfaction(Woolworths Limited, 2013). Being in the retail industry,which is one of the largest employers in Australia, employing over 1.5 million people and an overall worth of AUD 329 billion, there is plenty of opportunity for growth, and due to increasing population, the demand is not expected to fall for the products Woolworth has to offer (About.com, 2013), especially when its corporate strategy is need-specific and revolves around satisfaction of the customer. For the purpose of economy-wide and industry-wide factors which may influence future performance of Woolworths, Porter’s five forces model has been utilized. It has been concluded as an appropriate model which can adequately analyze a firm’s internal and external forces which affect its current and future strategies(CIMA, 2007). The five forces are bargaining power of customers, bargaining power of suppliers, threat of new entrants...
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...------------------------------------------------- Strategic Management ------------------------------------------------- David Jones [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] Table of Contents Executive Summary 3 Introduction 4 Business Environment Analysis 5 Macro Environment 5 Economic Factors 6 Environmental Factors 7 Legal factors 7 Technology Factors 8 Societal values and lifestyles 8 Micro Environment 9 Bargaining Power of Suppliers 9 Bargaining Power of Customer 10 Threat New entrants 10 Rivalry firms 11 Substitute Products 11 Internal environment analysis 12 Core Competencies 12 Strategies and Implementation 14 E-commerce Strategy 14 Pricing strategy 15 Differentiating strategy 16 Location strategy 16 Challenges facing Business environment 17 Uncertainty 17 Unemployment 17 Recommendation 18 Conclusion 19 Executive Summary The purpose of this report is to identify and explain the core concepts of strategic management of a retail industry, David Jones. In conducting this research, academic journals, textbooks, David Jones’ company reports and online news are used as the sources of information. This report analyses the external environments such as macro-environment and industry environment as well as examine the internal core competencies, using PESTEL model and Porter’s Five Factors. Moreover, core strategies and their application will...
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...STRATEGY ANALYSIS OF DAVID JONES – JUNE 2014 INTRODUCTION The purpose of this report is to identify and evaluate the strategy of DJs. Analysing the external environment, looking at what resources and capabilities give the organisation its completive position, assessing the organisations strengths and weakness and looking at DJs long term sustainability plan to see what recommendations can be advised and considered in the coming years as the organisation faces new challenges in the ever changing retail and financial sector. ENVIRONMENTAL ANALYSIS The Business environment is ever changing for DJs. The Business focus is its department stores and financial services. The business environment is anything that affects strategies, performance and decision-making in the business. It is vital that an external and internal business environment study and investigation is carried out before formulating the company’s position and direction to remain sustainable long term. Reviewing the Macro environment, this consists of issues at work that will directly affect DJs activities and markets in which DJs competes in. The PESTEL model will be used to analysis the macro environment effects DJs is currently facing; this will allow the company to predict situations and unforeseen circumstances that may occur in the future. (please refer to Appendix A for diagram) Economic Factors The most important economic factor in the retail industry that affects DJs is interest rates. The...
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...Individual Assignment – David Jones Limited 1. (a) DJS is a public company that issues shares to the general public and is a separate legal entity. (b) The income statement shows tax being deducted directly from company profit. The equity section show contributed equity instead of owners or partners’ equity. Also retained earnings after dividends or allocation to another equity account. 2. (a) Net assets and total equity have the same dollar value of $775,704,000. (b) Equity is the residual interest in the assets of the entity after deducting all its liabilities. 3. The finanical statements include the assets, liabilites and results of its subsidiaries incorporated in Australia. 4. The interest bearing liabilities comprises bank overdraft and unsecured bank loans. Overdraft and bank loan expiring in 15 December are reported as current liabilitis and bank loans expiring in 15 December of 2014 and 2016 respectively are reported as non-current liabilities. 5. (a)Contributed equity, reserves and retained earnings are reported under Company’s equity’s section. Contributed equity is the amount of total purchased ordinary shares. Retained earnings are the sum of profit retained in the entity after dividends payout. The share-based payment arises on the grant of share optons to employees and executives under share option plan and the cash flow hedge reserves. (b) Total equity of 775 millions in 2012 and 785 millions in 2011 are reported. (c)...
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...Organizational Theory, Design, and Change Jones 6th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! http://solutionsmanualtestbanks.blogspot.com/2011/10/organizational-theory-d esign-and-change_18.html ----------------------------------------------------------------------Organizational Organizational Organizational Organizational Theory, Theory, Theory, Theory, Design, Design, Design, Design, and and and and Change Change Change Change Jones Jones Jones Jones 6th 6th 6th 6th Edition Edition Edition Edition Test Test Test Test Bank Bank Bank Bank -------------------------------------------------------------------------***THIS IS NOT THE ACTUAL BOOK. YOU ARE BUYING the Test Bank in e-version of the following book*** Name: Organizational Theory, Design, and Change Author: Jones Edition: 6th ISBN-10: 0136087310 Type: Test Bank - The test bank is what most professors use an a reference when making exams for their students, which means there’s a very high chance that you will see a very similar, if not exact the exact, question in the test! - The file is either in .doc, .pdf, excel, or zipped in the package and can easily be read on PCs and Macs. - Delivery is INSTANT. You can download the files IMMEDIATELY once payment is done. If you have any questions, please feel free to contact us. Our response is the fastest. All questions will always be answered in 6 hours. This is the quality of service we are providing and we hope to be your...
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...Edward Jones, which includes the lack of an online presence, possible cannibalization from larger firms, and the inability to manage funds from institutional investors. I conclude that the most effective of all of the theorized strategies would be a combination of Edward Jones’ original business model with an online platform. This plan would allow Edward Jones to stay true to its fundamentals, as well as attract new clientele and provide better service to its existing clients. Introduction Edward Jones has become the fourth largest brokerage firm in the United States. By holding on to a fundamental business strategy based on the core concepts of close client relationship and long-term investment focus, Edward Jones was able to offer excellent service and performance. However, with the industry rapidly changing, Edward Jones must evaluate its core values to sustain its competitive advantage but in a manner that will allow them to expand its services, and continue to compete with the top players in the industry. Key Issues and Problems When observing Edward Jones Financial, I found three critical issues and problems with the firm. Edward Jones built its business model around creating an environment that would allow entrepreneurs to thrive and run their own businesses to a certain extent. This is what originally led to Edward Jones’ success when the company first started; however, it is also the catalyst for the issues of the firm that were present in 2006. Edward Jones’ three...
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