Wesfarmers : Financial Analysis Essay

According to Pettinger(2004) The Company extends its pillar of service not only by aiding clients in making decision to shop in stores, but also making it easy for them to drop by the stores and shop. There are two potential competitors existing in the market .There is Woolworths which has an 8% stake of the vast Australian market share and uses its subsidiaries such as Home Hardware and Timer, Thrifty Link, and Masters Home Improvement. There is also Metcash which has a 7.3% market share and uses its two subsidiaries: True Value Hardware and MITRE 10. Bunnings is currently the market leader in Australia (see Appendix figure1.1).Australia’s largest and most profitable home improvement retailer with (9,012,000) customers who shop at Bunnings over period of four week July 2014. This numbers was up in July 2012/13 which was 8,435,000. Bunnings potential competitors are Mitre 10 (1,789,000) and Masters (1,217,000).

Beattie, A. (2017, May 4). FYI on ROI: A Guide to Calculating Return on Investment. Retrieved from Investopedia: http://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp

Coles Myer Limited (CML) and Woolworths Limited (WOW) are two major Australian companies with extensive retail interest and listed on the Australian Stock Exchange. They are Australian public companies which operate a number of retail chains.

Horizontal analysis allows side by side comparisons on a year to year basis to determine the performance from one year to the next. The company decides on standards to compare the results of the analysis. Standards are researched by checking competitors, internet research of general industry guidelines or standards created from past experience in the company.

Given the Commonwealth Bank Group’s franchise position, the organisation aims to capture the opportunity to generate growth domestically and outside of Australia by identifying and meeting more of the needs of its customers.

The retail industry is one of the largest industries in the world, by business numbers and employees. Plunkett Research Ltd. As of 2011 Wal-Mart was still the giant of the retail market. As Wal-Mart nearest competitor Target heats up the market, Target seems to be gaining in customer loyalty and has picked up on Wal-Marts grocery strategy. According to the Plunkett report, recession ravaged consumers not only want dry goods at a discount, but they also want groceries discounted (PlunkettResearch.Com, 2012). Target also has been gaining customers who want stylish well organized stores that appeal to their senses.

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.

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

New South Wales, Victoria and Queensland are the regions contributing over 75% of the 18.9 billion industry revenue. Westfarmers (Target and Kmart) and Woolworths (BigW) are the two largest companies competing on low-cost strategies (Porter, 1980). Myers and David Jones, holding 15.3% and 10.5% market shares respectively (Figure 1), compete on differentiated strategies targeting the upper consumer market (Porter, 1980). Over 10% of the total working population are employed in this industry (Productivity Commission, 2011).

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.

American retailer Kohl’s has become a prevalent fixture for the purchase of discounted clothing and home goods in the mid-west for over twenty-five years. The history of the company however has roots much more modest than present day market dominance would suggest. Dating back to a Wisconsin supermarket in 1946, founder Max Kohl grew his small business to the most successful chain of supermarkets in the Milwaukee area (12). By 1962 Kohl opened his first department store in Brookfield, Wisconsin where an eclectic selection of merchandise, from sporting goods, motor oil and candy, was sold (11). In 1972, the Kohl’s Company which by then consisted of 50 grocery stores, six department stores, three drug

Coles thrive to make itself a better shopping and working place, therefore they lay stress on achieving the goal i.e.

Bunnings is the market leader in this industry who gains 64% of total market share, followed by Mitre 10 with 13.0%, and Masters with 8.0% of market share (The Australian, 2016). The company’s revenue continuous increased since they started the business in 2011 to 2014, they gained total revenue around $1527 million in 2014 (Woolworths, 2015) but the company still got the loss from their operation expenses. Moreover, the sales dropped by 16% in 2015 that was the main reason for Lowe’s to delist the joint venture in the beginning of 2016 as it claimed that Masters has poor profit performance (IBIS, 2016). In the meantime, Woolworths publicised its intention either to selling the business or shutting it down (ABC, 2016, para. 15). Thus, there are several causes of these problems that Masters should solve in order to survive in this business and compete with its competitors.

In order to grow Best Financial’s business steadily in the future and make it become a leader in the Sarnia market, it has to address the following:

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.