Profitability Analysis Essay

1556 Words Sep 1st, 2013 7 Pages
BAE Business report on Woolworths Limited

Student name: Can CAO (Phil) Student number: 32174 Class: BAE 5 Date: 18 June 2013 Word count: 1307
Table of contents
Executive summary--------------------------------------------------------1
1 Introduction----------------------------------------------------------------2
2 Evaluation of ethical behavior---------------------------------------3
3 Evaluation of profitability analysis---------------------------------4
4 Conclusion and recommendation----------------------------------8
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However, the company rejected to participate in the gambling reforms, which made it impossible to help addicted problem gamblers (Willingham 2012, para 1).
It is an indisputable fact that Woolworths’ behavior is extremely unethical due to the ignorance of social responsibility, which is an important factor in running a business. Woolworths certainly can make massive profits from gambling machines in the short term, but in the long term its unethical behavior will damage enterprise image and harm the company’s reputation. This unethical behavior of Woolworths made their customers lose confidence, by which meant it may be in danger of losing its business. Moreover, it will have a huge influence on young teenagers, especially those under 18 years old, as most of them are not self- disciplined. As a socially responsible company, Woolworths limited should take into account this unethical behavior and take immediate steps to correct it. The primary goal of the ethical investor is to get profit from ethical investment, but Woolworths did not perform well in ethics.

3. Evaluation of profitability analysis
Making profit is the major goal of all business entity. Without profitability the business entity will not survive in the long term. Measuring the profitability of Woolworths is helpful for an ethical investor who wants to achieve the best return on investment.

Chart 1: Growth rates of
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