...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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...| 4 | 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...
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...Executive Summary David Jones is an iconic Australian retailer, opened in Sydney 1838. This report considers the 2013 Annual Report and the financial performance for 2012 and 2013. The company operates in the retail trade sector with operations focussing on Department Stores (representing approximately 65% of earnings) and the associated Financial Services (representing approximately 35% of earnings). The department store sector is slowly declining as consumers move a larger portion of their household spending into online sales. Additionally, the incumbent stores (David Jones and Myer particularly) are being challenged by the arrival of well financed international competitors to the Australian market. The company has taken some strong leaps to maintain market share including building an Omni Channel capability, improvement in inventory management, reduction of its already low debt and working with suppliers to harmonising pricing. The report considers the financial performance of the company through the evaluation of financial ratios for profitability, efficiency, productivity, solvency and market performance. Overall the company currently is a profitable business with low gearing, high (but declining) sales and productive workforce. The Return on Equity improved from 37.5% in 2012 to 37.8% in 2013, positively confirming that many of the changes implemented by management during this period have been successful. During this same period revenues declined from $1.867bn...
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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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...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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...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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...------------------------------------------------- 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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...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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...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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...Introduction David Jones is a well established Australian high-end department store with 36 stores nationwide. Its focus is to deliver an exclusive, high-class shopping experience, supplying luxury goods at competitive prices to meet the high standards of their consumer base. David Jones continues to be successful in a country that suffers inescapably from ‘Tall Poppy Syndrome’, while also preferring to exude an air of wealth and status. Analysing the External Environment The General Environment Demographic Australia’s population is over 20 million and the gross household income per week for the fourth highest quintile is over $1096.00. Twenty per cent of Australian households are represented in this category. Economic The Australian economy has experienced a number of recessions that have affected the retail industry and this has shaken shareholder confidence. The current interest rate is at 3 per cent and the AUD is much stronger on a global scale. Because Australian’s are getting more for their dollar overseas, many are opting to shop online. Socio-Cultural Australians are brand conscious and many wish to appear wealthy. Ninety per cent of Australians view themselves as being part of the middle income bracket. Also, the retail industry is dominated by women’s fashion. Australians prefer to shop in a department store format. Political-Legal In many cases, online shopping does not attract the GST, and this encourages Australian shoppers to turn to online sources...
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...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 2012. Its OCR offering will integrate the...
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...Innovation- L’Oreal. INTRODUCTION In this essay I will propose an innovation audit for the cosmetic company L’Oreal. I will be acting as an innovation consultant and develop a proposal for conducting an innovation audit for the company. I will focus on the SWOT analysis of the company and analyse L’Oreal’s strengths, weaknesses, opportunities and threats. Then I will design a framework for conducting the innovation audit. My framework will relate to the company’s business activities and vision. The framework will also address the SWOT analysis that I have presented. I will then provide a description of my proposed research strategy , such as what type of data I will collect and how I will go about doing so. Then I will provide an outline of the key outputs that would arise from the innovation audit in the context of the proposed framework that I have provided. DESCRIPTION OF THE COMPANY For more than a century, L’Oreal has devoted itself solely to one business: beauty. L’Oreal(2012) The L’Oreal Group is the world's largest cosmetics and beauty company.(Jones, David 2010) L’Oreal has developed activities in the field of cosmetics. Concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological, tissue engineering and pharmaceutical fields.L’Oreal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety. It pursues this...
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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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...strategic framework of the premier Inn hotel chains .In order for the analysis to be successfully implemented, the report has embraced the current strategy position within the sub unit part of the company. The analytical tools that will be used are PESTLE, Five porters’, SWOT, and value chain analysis. The analysis tends to show a very competitive market structure; faced within the harsh economic times in the hospitality industry. The differentiation strategy, implemented to the company has enabled it to deliver unmatched services to the customers in the UK. This report also analyses the internal and external environment in which premier Inn carries its own business. It will in further analyze the value addition chain of the company in terms of services offered to customers and look at the resources and competencies of the company holds. The industry current and future strategy is analyzed on the prevailing market conditions and the consumer demand .At the end of the report recommendations on the premier Inn will be provided to enable the business to be in a better competitive edge as they solve the current problems. They will solve the current weakness and threats while maximizing on the strengths and opportunities. Table of contents 1. Introduction 4 2. External environment Analysis 4 2.1 PESTEL 5 2.2 Porter’s five forces model 8 3. Internal environmental Analysis 10 4. SWOT Analysis 13 5. Strategic clock analysis 13 6. Conclusion 14 References list 16 Appendices 18 1. Introduction...
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