Group Report on Mothercare

2777 WordsApr 14, 201312 Pages
GROUP REPORT ON MOTHERCARE SUBJECT: MANAGERIAL FINANCE AND ACCOUNTING TABLE OF CONTENTS PART B 3 INTRODUCTION……………………………………………………………………………………………………………………………………….3COMPANY HISTORY…………………………………………………………………………………………………………………………………4 PRODUCTS………………………………………………………………………………………………………………………………………………4 STRATEGIES: 4 Growth strategy 4 MARKET COMPETITION AND CUSTOMERS: 5 Top Competitors for Mothercare plc 5 PART B 6 STRENGTHS (Internal) WEAKNESSES (Internal) 6 ANALYSIS: 8 1) Profitability ratios: 8 2) Liquidity ratios: 8 3) Efficiency ratios: 8 4) Financial ratios: 8 5) Investment ratios: 9 PROFITABILITY RATIOS: 9 Liquidity ratios 11 Efficiency ratios: 11 FINANCIAL GEARING RATIOS: 12 Investment ratios:…show more content…
It also offers its merchandise, including the in-house MODA maternity clothing line, through catalogs and its website. Mothercare serves the retail toy market with its Early Learning Centre (ELC) unit. While the company has struggled at home, it has been increasingly successful overseas, particularly in Russia and India. Top Competitors for Mothercare plc * Marks and spencer’s group plc * Hamleys of London * Toys r us limit STRENGTHS AND WEAKNESSES After a study of the external (macro) and internal (micro) factors was undertaken, a SWOT analysis was conducted to assess Mother Care’s current situation which aided in the process of determining its major weaknesses (internal), and its major strengths (internal). STRENGTHS (Internal) | WEAKNESSES (Internal) | • Established brand position (40-years experience) • Baby products / clothing : speciality retailer • Ability to adapt itself to the needs of its customers in international markets • Wide variety of products and services | • No product diversity • The cost of commission payment to sponsors and affinity groups. • Not targeting the teenage market • Fall in sales due to recession | CORPORATE GOVERNANCE Corporate governance refers to ‘the ways suppliers of finance to corporations assure themselves of getting return on their investment’ (Shleifer and Vishny, 1997: 736). Corporate governance discusses the set of systems, principles and processes by which a
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