The franchisor of Primark Menswear must make reasonable efforts to promote and maintain the network. These efforts include maintaining the good
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.
Primark meets the corporate social responsibility to environment at large. Firstly, Primark establishes a partnership with CottonConnect aiming to improve the farming technique that growing cotton with fewer resources. In this way, the farmers can earn more money for themselves. Secondly, in order to promote a green production
Primark, which was build up in Ireland, is one of the fast fashion leaders in the UK retail market. The all 181 stores spread over Ireland, Spain, and the UK. The competitive advantage of the group is producing volume clothes and selling them in cheap price. Primark sell different catalogue product, women clothing, men clothing, shoes, accessories, baby clothing, children clothing, underwear, swimwear and nightwear. Nearly cover all variety of the clothing. According to Primark website figure, “Primark Stores Lt is a subsidiary of Associated British Foods. Associated British Foods is a diversified international food, ingredients and retail group with global
From 2014 Annual Report of Primark, it reveals that the store still lags behind in term of investment in staff facilities and its investment in store themselves. Beginning in the year 2013, the company was able to invest in ‘constructing an encouraging and motivating working environment’, and the reports highlighted major improvement in reductions in paid absence and staff feedback (www.business2000, 2016). The major role played by Primark’s HR team is as follows:
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.
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
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.
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.
Primark offers a diverse range of products, stocking everything from baby and kid, to women, men, home, accessories, beauty products confectionery and household textiles. The company aims to target their customers by offering the various products with a good quality in the affordable
This is due to the fact that it has been able to attract an assortment of customers to its brand. Primark also boasts of a high number of employees as a major strength. Due to the fact that the company is known for rewarding its employees well for their efforts, most of them put immense effort in their work to ensure the success of the company (Associated British Foods, 2012; Key Notes, 2012). Furthermore, Primark’s strength seems to be guaranteed for a considerable period of time since it is evident that the company has made efforts to ensure improvement of its various products and services. Other strengths associated with the company includes; distinctive products as well as the company’s background, a wide range of strategic moves that the company has made in the future and continues to make even presently, and the company’s indisputable workforce diversity among other strengths (Associated British Foods, 2012; Key Notes, 2012).
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).