UNIVERSITY OF PORTSMOUTH | Report for Primark’s IPO purposes | Financial Analysis Assignment | | Student ID: 635281, 636484, 640073 | 11/28/2011 | | ------------------------------------------------- Table of Contents I. Introduction 4 II. Primark’s business and financial situation 5 2.1. Primark’s business and financial analysis 5 2.1.1. Business analysis 5 2.1.2. Financial situation (trend analysis) 6 2.2. Industry sector 11 2.2.1. Overview 11 2.2.2. Cross-sectional analysis 12 2.2.3. Summary of Primark’s strength and weakness 16 III. Financial ranking and forecast 17 3.1. Financial ranking 17 3.2. Forecasted 2011 post tax profit 18 IV. Corporate Governance Structure 20 …show more content…
Finally, the last section is the conclusion, which summarizes the report and evaluate of the techniques applied in the analysis. II. Primark’s business and financial situation 2. 3.1. Primark’s business and financial analysis 3.2.1. Business analysis Chesbrough (2006) suggested that Business model emphasizes how business can use technological potential to create economic value and suggested that its main functions are: value proposition, market segment, value chain, cost structure and target margin, value network, competitive strategy. According to a case study of Primark (The Times 100, 2010), the business model which is based on “high sales volumes” and “lower retail margins” with minimal advertising enables Primark to offer value and low price products. The economies of scales resulting by buying large quantity of items help Primark to keep costs down. Moreover, retails prices are kept at considerably low level through “lean operation” and efficient operational practices (e.g. off-season factory time, flat management structure, effectiveness of distribution network and supply chain). This business model has created and enhanced Primark’s competitive advantage which is the vital key to survive and grow in its industry sector. 3.2.2. Financial situation (trend analysis) In recent years, thanks to meeting customers’ need and expanding stores, Primark has grown rapidly year by year [ (The Times 100) ].
This report is based on the marketing techniques/ skills of Primark and Oxfam based on their products/services.
The government of Europe and Japan started to decentralize and weaken, with the use of feudalism. To protect their empires, Europe use knights and Japan used samurai as their warriors. The knights and samurai were more different than they were similar. Knights and samurai excelled in different areas. The samurai and knights had different roles in the feudal system. Lastly, the samurai and knights believed different things.
The company that I chose to analyze is Tootsie Roll. Throughout my life I have always had somewhat of a sweet tooth and have been very intrigued in the process of business. Now I have the opportunity to look further into such a great company such as Tootsie Roll and really find out how the business is run and what type of work is invested in such a well known business.
Life insurance is meant to provide funds to replace a breadwinner's to protect and support dependents. Chad and Haley are dependents, not income providers. Therefore, the purchase of life insurance is unnecessary and not recommended. The Dumonts should use the money they would spend on policies for the children to increase their own coverage.
Primark, an Irish clothing retailer company was set up and headquartered in Dublin in 1969. Nowadays, there are over 250 stores across the United Kingdom, Ireland, Europe and the United States. Moreover, Primark operates with about 700 suppliers in China, India, Bangladesh, Turkey and Eastern Europe. Primark takes corporate social responsibility for the shareholders, owners, customers, suppliers as well as employees. Corporate social responsibility is that a company not only creates profits for the shareholders, but also undertakes the social responsibility for customers, employees and environment, including complying with business ethics, rights of workers and the rules of environmental protection. In order to develop continuously, corporate social responsibility plays an significant role in a company, which drives stakeholders have reliance on the company. This essay focuses on the ways in which Primark taking its duty to society and the ways in which the company should have done better.
Primark Stores Ltd. Is a value fashion retailer that was founded in 1969 and operates as a subsidiary of Associated British Foods plc. Primark sell a wide variety of product from
Topshop in terms of gaining the competitive advantage inside UK’s fashion market tries to differentiate itself by promoting its online business, its international brand position and its collaborations with popular celebrities. The company’s objectives are following the SMART framework. The objectives are oriented on increasing UK’s market share, re-positioning the brand name in UK and following a tighter stock management. The Topshop marketing mix strategy is based on its STP strategies and is shaped by the UK’s external environment. However, the company is still strong focused on its digital performance and international expansion. Finally, the company in terms of examine the effectiveness of its strategies and objectives should implement, control and evaluate its strategies in depth.
In United Kindom the economical contribution of the Primark is very important, and the primark followed business rules and regulation.
One of the most important objectives of the curse is that as students we should be able to make better financial decisions. Have a better understanding and ability to process and implement strategies and make successful decisions.
Though Primark has major strengths that have seen it grow over the years, it also has its share of weaknesses. One of the major challenges that Primark has faced in the past few years is the increased rivalry from other companies such as Esprit that have produced clothes lines that are a close replication of its products, hence impacting on its profits in a negative way. This made Primark to react in a rather spiteful way because it knew exactly how this would impact on its
Secondly we found out Primark makes a good choice about location. Almost each branch store locates in the high street. From the diagram which we have researched, it could be concluded that location is also one of the most important factors which motivate customers to purchase and make Primark successful. percent of customers would like to consider the location of garment stores when they go shopping. Convenience and easiness are the expectations during each time customer’s purchase. Few customers are willing to spend extra time going to a remote place merely for the purpose of buying clothes. Furthermore, Primark is sensible; it hardly locate the
According to Primark, the cheaper the clothes, the more shoppers will buy. This is reflected in its sales. Primark is able to sell on low prices because Primark enjoys economies of
The relationship of free speech to that of hate groups, and the protection of hate speech under the first Amendment is a much debated topic of ethics and civil liberties. Although affirmative action protects against discrimination of race, religion, gender, and disabilities, it only protects from discrimination in educational institutions and employment. So how can a society that claims to protect civil rights allow the production of speech that opposes those same fundamental rights?, because this form of speech, although hateful in nature, are ideas, and “hateful ideas are just as protected under the First Amendment as other ideas” (McGough, 2015).
Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.
Table A demonstrates that in 2015, Primark’s 325 retail stores generated £5.347 Billion in sales representing an 8% growth over 2014 (£4.95 Billion). This 8% growth in sales resulted in an additional £11 Million in operating profit. Primark’s annual revenues have steadily increased over the past six years, from £2,730,000,000 in 2010 to £5,400,000,000 in 2015 (97% growth). This growth can largely be attributed to Primark expanding and opening more stores as well as entering new market like the US. In 2010 Primark had 205 stores as opposed to the 325 they now have. It is however to see that there is an almost 4% drop in gross margin percentage, which indicates that their profitability is shrinking significantly. Simultaneously the inventory turnover has steadily decreased. This could be due to having more sq. feet of selling space available. It should however be kept in mind that for the year 2016 Primark still has to face currency losses. As the CEO stated “if the current euro weakness against sterling and the US dollar persists, this will have an impact on the group’s operating profit for the remainder of this financial year and a greater impact next year” (Kollewe/Butler).