...Introduction David Jones is a well established Australian high-end department store with 36 stores nationwide. Its focus is to deliver an exclusive, high-class shopping experience, supplying luxury goods at competitive prices to meet the high standards of their consumer base. David Jones continues to be successful in a country that suffers inescapably from ‘Tall Poppy Syndrome’, while also preferring to exude an air of wealth and status. Analysing the External Environment The General Environment Demographic Australia’s population is over 20 million and the gross household income per week for the fourth highest quintile is over $1096.00. Twenty per cent of Australian households are represented in this category. Economic The Australian economy has experienced a number of recessions that have affected the retail industry and this has shaken shareholder confidence. The current interest rate is at 3 per cent and the AUD is much stronger on a global scale. Because Australian’s are getting more for their dollar overseas, many are opting to shop online. Socio-Cultural Australians are brand conscious and many wish to appear wealthy. Ninety per cent of Australians view themselves as being part of the middle income bracket. Also, the retail industry is dominated by women’s fashion. Australians prefer to shop in a department store format. Political-Legal In many cases, online shopping does not attract the GST, and this encourages Australian shoppers to turn to online sources...
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...ASX AND MEDIA RELEASE Page 1 of 13 For Immediate Distribution 21 March 2012 DAVID JONES ANNOUNCES ITS FUTURE STRATEGIC DIRECTION DAVID JONES HAS MANY EXISTING STRENGTHS: It has a distinctive positioning in the Australian market, a loyal customer base, a strong service ethic, a profitable and well positioned store portfolio, a strong Balance Sheet, robust cashflows and a high dividend payout ratio - all of which position the Company well to leverage the many opportunities that exist for future growth outlined below. DESPITE ITS STRENGTHS THE COMPANY FACES CHALLENGES • • • Structural Changes – the internet is globalising & changing retailing; Macro Economic Headwinds –retail sales have been flat and rents, labour, utilities & financing costs are increasing; Challenging Australian Consumer Credit Markets - the Company’s card portfolio is exposed to prevailing weak discretionary retail spending. This could result in a halving of EBIT contribution from this business in FY14 when the alliance with American Express converts to a share of underlying profits. DAVID JONES WILL ADDRESS THESE CHALLENGES & GROW VIA A “3 POINT STRATEGY” 1. Transformation: The Company is in the process of transforming: • into an Omni Channel Retailer (OCR) modelled on international department store best practice. The Company is investing in technology and realigning its processes & structures. The Company will increase its online SKUs from 9,000 to 90,000 before Christmas...
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...1. Summary of activities and strategies of David Jones David Jones Limited trading as David Jones and listed on the Australian Stock Exchange is a high end department store chain. The principal activity for David Jones is retailing of different brands under various categories such as fashion, cosmetics, home wares and electronics. David Jones retails its products via departmental stores and have recently transformed itself as an Omni Channel Retailer taking advantages of on-line retailing as a strategy to compete globally. Further, David Jones also has a financial services activity through alliance with American Express. 2. Strategies David Jones had developed and implemented their strategic direction plan in March 2012 and is seen to have remarkable progress on its plans addressing the challenges and having intentions of growing via its three point strategy as follows: A. Addressing Retail Structural Changes David Jones is noted to have invested resources to transform itself from a ‘brick and mortar’ retailor into Omni Channel Retailor. This strategy is implemented as a result of the changing face of traditional retailing into online in the trend to globalize the retailing sector. B. Strengthening Core Business David Jones strive to strengthen its core business via investments into better customer services and engagement. This was noted by better inventory management and investment in technology through the roll out of new POS (point of sales) systems to its...
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...MGSM 840 ACCOUNTING FOR MANAGEMENT Group Assignment Khalid Mousa 43251528 Sharmila Barua 43095135 Amarise Saini 41193814 Sheree Barbat 43216609 Alex Nicholas 43359280 Jennifer Harwood 43160816 Table of Contents | Executive Summary | 3 | Background Information | 4 | Local and Global Economic Conditions | 5 | Stock Price Movements | 7 | Summary of the Financial Statements | 9 | Analysis: Profitability | 11 | Analysis: Operating Efficiency | 15 | Analysis: Liquidity and Financial Risk | 20 | Investment Decision | 25 | Appendix 1: Financial Statements Note | 28 | Appendix 2: SWOT | 29 | References | 31 | | | Total Word Count (excluding appendix/tables) | 5,404 | Executive Summary This report is an analysis of 2 companies: JB Hi-Fi and David Jones for the purpose of making a sustainable long term investment in either company. The analysis that was undertaken includes understanding the history, current operations and differences between both companies. While both operate within the Australian retail sector, JB Hi-Fi is a speciality discount retailer of branded home entertainment products and David Jones is an upmarket department store chain with a diverse offering including cosmetics, fashion, home wares, furniture, electrical, food and toys. To add context to the operations of both companies, analysis was undertaken to understand the retail sector within Australia as well as influences of local and global economic conditions such as the impact of the Global financial...
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...5 Reference List…………………………………………………….6 Appendix………………………………………………………….7 1.Prospective Analysis Based on the reformatting financial statement, this report will use the forecasting template designed by Nissim and Penman (2001) to forecast the future financial performance of David Jones. The valuation of the firm is provided subsequently and the underlying key assumptions are considered for sensitivity analysis. 1.1 Forecast on Future Finance Performance This section explained the forecasting bases and detailed forecasts are illustrated in Table 1. * Sales Growth The sales revenue is expected to have an average growth of 3% in the forecasting years. Due to the overall macro-economic factors such as a decline in consumer confidence or an increase in household savings rates, DJS is unlikely to boost the sales growth rate. Although the company is reducing the price of the international stocks, as the company faces increased competition in online retailing, which has resulted in greater transparency of global pricing, there is a risk the price deductions will not be offset by higher volumes. (DJS Annual Report, 2013) However, DJS’s strong market position and the strategic initiatives being implemented will push the growth rate back to positive and become stable in the later forecasting years. * Asset Turnover It is forecasted that ATO will tend to be continuously stable and maintain 2.0 during 2014 and 2018. This is based on the historical data...
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...loyalty * Not really globalization outside the Australia. | External Factors | Opportunities | Threat | | * Develop a new market place outside Australia. * New customer group | * Currency Risk * Other competitors- Myer, Westfield, introduce similar products with David jones * Global economic downturn * Increasing domestic competition as new brands coming constantly. | Value Chain Analysis David Jones has an extensive planning phase to value chain analysis of the organizational review. This approach helps to David Jones to develop their own competitive advantage. The process is supported by the main activities and the number of activities, marketing and sales to increase product value. . Activities are divided into four main functions, research and development, production, marketing and sales, and services allow organizations to be more competitive than other department store brands. David Jones has a great reputation and marketing of high quality products, as a kind of fashionable clothes and home furnishings retailer. I. Marketing and sales: The marketing sales are very important for the organization. The organization needs always focus one the marketing trend. David Jones can able to do the promotion at season’s...
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...Organizational Theory, Design, and Change Jones 6th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! http://solutionsmanualtestbanks.blogspot.com/2011/10/organizational-theory-d esign-and-change_18.html ----------------------------------------------------------------------Organizational Organizational Organizational Organizational Theory, Theory, Theory, Theory, Design, Design, Design, Design, and and and and Change Change Change Change Jones Jones Jones Jones 6th 6th 6th 6th Edition Edition Edition Edition Test Test Test Test Bank Bank Bank Bank -------------------------------------------------------------------------***THIS IS NOT THE ACTUAL BOOK. YOU ARE BUYING the Test Bank in e-version of the following book*** Name: Organizational Theory, Design, and Change Author: Jones Edition: 6th ISBN-10: 0136087310 Type: Test Bank - The test bank is what most professors use an a reference when making exams for their students, which means there’s a very high chance that you will see a very similar, if not exact the exact, question in the test! - The file is either in .doc, .pdf, excel, or zipped in the package and can easily be read on PCs and Macs. - Delivery is INSTANT. You can download the files IMMEDIATELY once payment is done. If you have any questions, please feel free to contact us. Our response is the fastest. All questions will always be answered in 6 hours. This is the quality of service we are providing and we hope to be your...
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...Flexible Products and Samuel Jones Ltd had very different sales cultures and operate in different markets, therefore have different customers. Ridnour goes on to state a marketing orientated organisation not only wants it keep its customers happy, it also wants to grow existing relationship and create new ones. It is evident that Tickford Flexible Products wants to grow and create new relationship as they want to merge with Samuel Jones Ltd, the managing director of Tickford Flexible Products says that “put our expertise in moulding technology alongside their distribution network, and it could be one of our main product lines”. The managing director sees the merger as an opportunity to create relationships and strengthen existing relationships. Ridnour proposes several variables which can indicate a strong or weak sales culture, these are; sales training, performance pay, selling activities customer service and commitment. At Samuel Jones Ltd employees were paid a commission on top of their salary, this promotes employees to work harder to be rewarded and a high sales culture. Although, at Tickford Flexible Products employees were not paid a commission just a salary, this promotes a low sales cultures. From the case we can reasonably infer that Samuel Jones staff were trained in sales, received performance pay and therefore committed to the company. When staff are committed to the company they have a high level of sales culture. The staff of Samuel Jones are much like the staff of...
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...Comparative Financial Analysis for the financial year 2012 for DAVID JONES Word Count: words Members of the Group (surname underlined): LIM EWE LEE 30109302 WONG MEI LIN 30109335 TEH KONG CHENG 30111788 Executive Summary David Jones, an Australia base company with its core business of operate departmental store in Australia, the company focus are beauty and cosmetic products, women’s wear, women’s accessories and footwear, menswear and accessories, food products, toys, home products, and products for babies and children. This report has been prepared with the objective of examine financial health of David Jones. The achieve the objective, five key financial ratio analysis: Profitability, Liquidity, Asset Efficiency, Capital Structure has been use throughout the report David’s Jone’s profit margin has declined by 9% in year 2012 with $0.8 cent of net profit derived from every dollar of total sales in year 2012. Declined result in Return on Equity (ROE), Return on Asset (ROA) and gross profit suggest that company having hard time during this financial period and is not able to optimized its resource to support revenue growth. From the liquidity perspective, the company has weaker liquidity compare to year 2011. Cash flow ratio indicates 7% declined from previous year, which could impact the company’s cash flow to meet the short term liabilities. The current ratio also show dropping by 01.7 time compare to year 2011, suggesting slowdown in inventory...
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...Strategic & Financial Analysis Student’s name Student’s affiliation Woolworths Business Analysis Woolworths Limited operates as a retail superstore giant within and outside Australia. Its current growth plans enlist extension of leadership in food and liquor, shareholder’s wealth maximization through improved portfolio management, building new growth businesses and responding to change in new era of growth. It envisions a dynamic business, flexible enough to respond to ever changing customer needs, which can introduce innovations in products and is backed by complete customer satisfaction(Woolworths Limited, 2013). Being in the retail industry,which is one of the largest employers in Australia, employing over 1.5 million people and an overall worth of AUD 329 billion, there is plenty of opportunity for growth, and due to increasing population, the demand is not expected to fall for the products Woolworth has to offer (About.com, 2013), especially when its corporate strategy is need-specific and revolves around satisfaction of the customer. For the purpose of economy-wide and industry-wide factors which may influence future performance of Woolworths, Porter’s five forces model has been utilized. It has been concluded as an appropriate model which can adequately analyze a firm’s internal and external forces which affect its current and future strategies(CIMA, 2007). The five forces are bargaining power of customers, bargaining power of suppliers, threat of new entrants...
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...Most companies understand that a happy employee is a productive employee. Pfizer understands that concept and that is why they have launched their new program, PfizerWorks; whereby shifting tedious and time consuming tasks offshore. PfizerWorks is the brainchild of Jordan Cohen, the architect and head of this new program. Cohen recalls seeing one of his recruits from the consulting firm McKinsey & Co., a new father stay late at the office one night to crunch number and search for information on the Web. To Cohen, it didn’t seem like the time best spent (Jones & George, 2011, p. 322). This observation brought about the creation of ‘PfizerWorks’ which is a tool that addresses the concerns of employees having to do tedious and time consuming tasks. An article in Business Week highlights the concerns of Pfizer’s employee, David Cain as noted in Essentials of Contemporary Management (2011): David Cain loves his job. Well, most of it anyway. Cain finds real satisfaction in...
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...First mover vs. late mover theory Carzadean Lawton MGT-680 Strategic Management Dr. Leland Taylor July 14, 2013 Abstract There have been companies that have been successful at being the first to develop a new product and put it out before their competitors have a chance to copy. Some companies have proven that being the first is not always the best and the last sometimes has its perks but being last can also have its failures as well. In this report, we will analysis the advantages and disadvantages of both the first and late mover theory along with the pros and cons of the advantages and disadvantages. After the advantages and disadvantages are provided, an example of real firms who have been successful and those who have failed using each theory. Finally, a definitive and unbiased recommendation of which theory to use will be provided as well as specific attributes which constitute the most advantageous context in which the chosen theory operates. Introduction Companies today are very competitive when it comes to development of new products and putting them out in the limelight for consumer purchase. The number one question that should be asked before a company puts a product out in the market would be is following the first-mover theory an effective way to build new business or would creating a new version of the products with the later-mover theory be a better way to build a new business? First let’s define these specific theories. The first-mover theory is...
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...customers through excellence and a deep knowledge of our products and services and the world we live in.” Woolworths is a great believer in sustainability and a huge chunk of its resources is devoted to changing the environmental needs as well as social ones of South Africa. According to their website they live the Woolworths difference through our values: Quality and style | – deliver the best | Value | – a simple and fair deal | Service | – think customer | Innovation | – discover the difference | Integrity | – do what you say you will do | Energy | – be passionate and deliver | Sustainability | – build for a better future | David Jones on the other hand was founded in Sydney in 1838 by David Jones a merchant from Wales whose aim was to sell the best exclusive goods possible. DJ is said to be the oldest Australian department store still trading under its own name. It has also expanded and is now a national retail chain with Competitive strategies Woolworths South Africa modeled on United Kingdom's Marks and Spencer is one of the most successful chains in South Africa. Its main aim is to be a brand value -driven business. Each brand Woolworths sells is lined up/coordinated with Woolworths main brands. Woolworths are devoted to customer segmentation strategy and strongly follow shopping habit...
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...INTRODUCTION David Jones was founded in 1838 by David Jones, a Welsh immigrant, and is claimed to be the oldest continuously operating department store in the world still trading under its original name. David Jones Limited is an ASX 100 Australian retailer with FY10 earnings of AUD 204.8 million from its core department store business and a further AUD 44.4 million from its complementary financial services business. The Company employs between 8,500-10,500 people and operates 36 department stores in key metropolitan and suburban centres in and around Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra. David Jones is uniquely positioned in Australia’s retail sector, with a loyal customer base and a broad range of national and international brands across categories, including: women’s wear, menswear and childrenswear; shoes and accessories; fragrances and beauty; home wares, bedding and furniture, appliances, home entertainment and home office; and a high-end food and liquor offer in selected stores. In addition, David Jones’ financial services business continues to grow shareholder value through its strategic alliance with American Express. As a good corporate citizen, David Jones is committed to managing its operations in an environmentally sustainable manner, through investment in efficiency measures that reduce the impact that the business has on the environment, and by developing robust management systems to ensure transparency and confidence in environmental reporting...
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...of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad Reprint R0804E It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad COPYRIGHT © 2008 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. Can you summarize your company’s strategy in 35 words or less? If so, would your colleagues put it the same way? It is our experience that very few executives can honestly answer these simple questions in the affirmative. And the companies that those executives work for are often the most successful in their industry. One is Edward Jones, a St. Louis–based brokerage firm with which one of us has been involved for more than 10 years. The fourth-largest brokerage in the United States, Jones has quadrupled its market share during the past two decades, has consistently outperformed its rivals in terms of ROI through bull and bear markets, and has been a fixture on Fortune’s list of the top companies to work for. It’s a safe bet that just about every one of its 37,000 employees could express the company’s succinct strategy statement: Jones aims to “grow to 17,000 financial advisers by 2012 [from about 10,000 today] by offering trusted and convenient face-to-face...
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