205321153 Woolworths PAST JOB 1 Essay

6928 Words May 29th, 2015 28 Pages
University of Technology Sydney
Graduate School of Business
22743 BUSINESS VALUATION AND FINANCIAL ANALYSIS
Group Assignment

OCTOBER SESSION
Report to: PROFESSOR ZOLTAN MATOLSCY

Case Study: Woolworths

Prepared by:
Student Name
Student Identification
Brent HENLEY
10388039
Peter HOWE
02130033
Christian ORITZ
03005802
Zhiming YE
10669428

ASSIGNMENT DUE 21 October 2009

Table of Contents
Woolworths Limited: Case Study 3
Executive Summary 3
Restating Financial Statements 3
Industry and Business Strategy Analysis 4
1. Industry Analysis 4
2. Business Strategy Analysis 5
Accounting and Financial Analysis 6
Measuring overall profitability 6
Assessing Operational Management 7
Woolworths Limited Profit and Loss and Balance Sheet
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For Woolworths Limited’s reformatted financials for the period 2006 to 2008 please see Appendix 1.

Industry and Business Strategy Analysis

Strategy analysis is an important starting point for analysis of the financial statements of Woolworths as it allows you to probe the economics of a firm at a qualitative level so that subsequent accounting and financial analysis is grounded in business reality. In analysing a firm’s profit potential, one has to first assess the profit potential of each of industries in which the firm is competing because the profitability of various industries differs significantly over time. As such the following is a detailed industry and strategic analysis of the Woolworths business.

1. Industry Analysis

Woolworths’ is perceived to be in a recession-proof industry in both the global and local economies in which it operates. The company has maintained steady growth during the current economic downturn and it is likely to maintain steady growth in the future.1 (See Appendix 2 for full details)
Five Forces Analysis

The below “five forces” (Porter, M. (1979)) will be used to analyse the industries in which Woolworths’ operates.
Force
Factors
Rivalry Among Existing Firms
Fierce competition exists in the industries in which Woolworths’ operates as customers are price sensitive and the core products supplied

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