Thursday, December 12, 2019

Revenue Generation Capacity and Operating †MyAssignmenthelp.com

Question: Discuss about the Revenue Generation Capacity and Operating. Answer: Introduction: Woolworths is mainly identified as one of the largest and biggest company Australia, which directly revolve in retailing industry. Furthermore, the company was established in 1924, where the company started with stores all around Melbourne, Sydney, Perth, and Brisbane. The company's operations for the period mainly resulted in accumulation of more and more stores and multiplex, which led to higher income. The company from 1970 have been provide adequate discount department stores, which helped in attracting more and more customers into their vicinity. The company in the current scenario is facing irrelevant launched in 2016 of 1.2 million dollars.Nevertheless, in 2017 the overall financial statement indicated a profit of 1.5 million dollars. This relevant decline in profit was mainly due to the reduction in revenue generation capacity and operating income of the organisation Furthermore, in Australia Woolworths is mainly identified as one of the biggest retailers with an overall empl oyee strength of 202,000. Different types of wishing that is currently being rude Bible words under the supermarket, which is used in increasing revenue how are you feel it. However, in 2017 the overall revenue directly increased, which indicates in improvement in operational feasibility of the company (Woolworthsgroup.com.au, 2017). Woolworths CEO is Brad Banducci and Chairman Gordon Cairns, which helped in improving operational capability of the organisation. Woolworths under the leadership was able to withstand loss of 1.2 billion and generate a 1.5 million in revenues the next fiscal year. Growth prospects of the company: WOOLWORTHS LTD Growth rate Fiscal year ends in June. 2016-06 2017-06 Revenue -4.26% -4.47% Cost of revenue -3.76% -6.88% Gross profit -5.60% 2.12% Operating expenses Sales, General and administrative 212.40% 1.55% Other operating expenses -66.53% -17.77% Total operating expenses 5.85% -2.97% Operating income -56.35% 56.80% Interest Expense -3.61% -21.17% Other income (expense) -1.25% -12.00% Income before income taxes -55.68% 56.84% Provision for income taxes -44.16% 25.20% Minority interest -12843.02% 105.38% Other income -12843.02% 105.38% Net income from continuing operations -60.70% 76.41% Net income from discontinuing ops 103.49% Other 12843.02% -105.38% Net income -157.54% 224.19% Net income available to common shareholders -157.54% 224.19% From the evaluation of the above table the growth rate of Woolworths could be identified, which represents the profits that was made by the organisation in 2017 in comparison to 2016. There is a relevant shift ok 224.19% in net income of Woolworths, which indicates the overall control of financial damage conducted by the organisation. However, a relevant decline in revenue half moon words could be identified from the above table, which directly indicates that company's overall sales value declined in 2017. The gross profit rules by 2.12% indicating the profitability, which might increase returns from operation. Previously in 2016 the gross profit was negative 5.6%, while in 2017 it rules to positive 2.12%, which directly indicates the relevant measures taken by the organisation to control marriage. There is different SWOT of Woolworth, which could be identified for detecting viability of the project. Strength Being the market leader in Australia Reducing the expense on packaging Being a well known investor Woolworths is mainly identified that Well now re1tail wet 800 stores and 202,000 employees. Strong brand name and high valuations. Opportunity Using adequate promotion such as advertisements, sponsorship to increase the overall retune from investment. In addition, the company could directly use the franchising models and strategic acquisitions method to improve its assets calculation and generate higher return from investment. Weakness Operations of the competitors are relatively high, which is constantly threading the expenses of Woolworths The company has established its online activities, which led to the presence in the online market at very slow pace Threats Rising cost in materials and other products that are demanded by the consumer. Increment in internal competition, which could hamper growth of Woolworths The evaluation of the above SWOT analysis table mainly represents the current the company operation is adequate but is not able to compete with internal companies. Hence, the other measures need to be conducted, which might help in generating higher returns. The overall SWOT analysis could mainly help in identifying the overall future prospects the company. However, in future the company is mainly goofing to face competition due to the involvement of international players in Australia. This could directly increase threat opportunity of the company and generate higher return from investment. Therefore, in the current circumstance the company is not facing any dire consequences. Nevertheless, the future growth of the company overall growth prospect in very low due to the competition imposed by international retailers (Bloomberg.com, 2017). Reference and Bibliography: Bloomberg.com. (2017).Woolworths Limited: Private Company Information - Bloomberg.Bloomberg.com. Retrieved 15 October 2017, from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=874687 Woolworthsgroup.com.au. (2017).Woolworthsgroup.com.au. Retrieved 15 October 2017, from https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/Woolworths

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