205321153 Woolworths PAST JOB 1 Essay

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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…show more content…
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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