H & M Financial Statement

The mind-set of the company is to put sales and profit second to creating a special style that can change the world through fashion.

Corporate values are ‘the operating philosophies or principles that guide an internal conduct of the organization and its association with its clients, partners and shareholders’. It is also a fundamental and long-lasting belief that specific mode of conduction highly valued by the organization’s membership’ according to IBM corporate responsibility report (2002, What is the value of company).

The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99)

The purpose of this paper is to advise analyze the financial statements of Dillard’s, Inc. in order to recommend whether or not my client should invest $1 million in the large retail company. I will compare the financial statements of Dillard’s, Inc. its competitor, Kohl’s Corporation. Investing in retail can be risky because a retail company’s performance is very heavily influenced by factors that have nothing to do with the actual company such as the overall performance of the economy or the weather during the holiday shopping season. There is, however, potential for profitability within the retail sector. Based on my analysis, I recommend that the client should not invest in Dillard’s, Inc. for the following reasons. First, Dillard’s has experience a decline in net income in the last three years. Second, liquidity ratios indicate that they could face possible liquidity constraints in the future. Third, long-term debt paying ability ratios indicate that the company could have trouble paying off the principal of its current debt obligations. Fourth, the profitability ratios are well below industry averages, suggesting that there are more profitable companies to invest in within the industry. And finally, Investor analysis ratios provide mixed opinion of the future performance of the company. I conclude that retail can be a profitable industry to invest in if an investor has the risk tolerance and risk capacity to withstand the uncertainty, but neither Dillard’s

Another business requirement is the timely delivery of quality modules and equipment by the suppliers. The main task of the project team is to install the modules and equipment on the trains. It is therefore essential that the products are procured in good time. It is the task of ECO-Trans to ensure that quality equipment is delivered in time for the completion of the project. The delivered components should be inspected for quality at the time of delivery to ensure they match the client’s quality needs and recommendations (Burke, 2013). Any defective components should be noted and returned to the supplier. This would help

Critically analyze the organization from the systems approach. You should consider the inputs, transformation and output elements of the operation and consider how the system creates value.

Even though H&M follows a strategy which differs significantly from Inditex’s approach it is the closest competitor from the financial point of view. H&M differs from Zara because it outsources all of the production, it is more price oriented and spends more money on advertising. But both companies are based in Europe, are fashion forward at lower price retailers, and have a strong international expansion strategy. Exhibit 6 indicates that the financial results of Inditex and H&M seem to

Hennes & Mauritz (H&M) is one of the largest clothing retailers worldwide. Their target market range age group is about 0-40 years old, but is most popular for those 15-30 years old. The brand reputation has achieved the assumption that their goal is to offer fashionable clothing at a reasonable price. Their clothing is always on trend, and sold at an affordable price from about $0.80 to $450. H&M buys stock in large columns to keep prices affordable for their average consumer. They partake in many collaborations with designers and celebrities, such as, David Beckham, Alexander Wang, and the most recent, Kenzo, as well as many more. They have worked to achieve a quick and well established system with stores all around the world, and a large consumer variety. H&M is regularly featured in respectable fashion magazines, such as Vogue and Elle. The following shows all of the countries a customer is able to shop from on the online website.

In order to be competitive, companies have to satisfy customers’ requirements. They have to provide a fast and dependable service at reasonable price. There are five performance objectives that lead companies to competitiveness. They are:

This paper reviews the Cash Flow Statements of Yum Brands, Inc., Panera Bread, and Starbucks documented by case study 10-10 in our textbook for the purpose of analyzing financial health based on cash flow data. (Gibson, 2013).

The H&M guarantees value for their low pricing. This strategy of low prices has made the company very successful in emerging markets, according to Jepeson (2014). From the research conducted H&M seems to be practicing a cost based pricing model. The two major constituents of the brand pricing is the high fashion and the lower cost. The company collaborates with renowned designers in order to offer innovative product design but manages to keep prices low through the manufacturing

Darden takes its suppliers very seriously, prior to doing business, the supplier must be qualified and a Total Quality Management Team assigned to that vendor. Product tracking occurs with inspection teams that identify the lot ID, atmospheric packaging, and the ability to track the order from origin to receipt of goods. For their many restaurants, Darden structures its supplies from 5 continents and thousands of suppliers, but insists on independent and accurate assessments in order to maintain relationships. Everything must be JIT inventory except smallware.

Wal-Mart is the highest revenue generating organisation in the world (Forbes, 2014). According to WalMart’s annual report (2014), the company owns 6,100 stores in 27 countries. It employees 2.2 million

Founded in 1947, H & M Hennes & Mauritz AB has become one of the major competitor in the fashion industry (Alexander, 11). H&M produces clothes and accessories for men, women, teenagers, and children. The clothing-retail company has its headquarters in Sweden. The company has more than 4,000 stores in over 60 countries globally. The number of employees has surpassed 132,000 dues to the increased market expansion. Currently, the company faces stiff competition from other retail companies such as the Wal-Mart, Zara, Nordstrom, and Primark.

3.2 High Price-High Quality Fashion ClothingPreviously, for quite some years, Top Shop had to experience low revenues and even lower profits primarily because of its excessive focus on price competitiveness. Later a shift its strategy helped the bottom line to sore up. The major factor contributing to such a result was the chain's new focus on female fashion clothing and accessories that it brought into the market before its competitors even if it had to pay more to the suppliers. Such a strategy assisted it in becoming a market leader where it came to the latest trends and fashion in the women-ware.