Financial Report Degree Case Study Example | Topics and Well Written Essays - 2250 words

Financial Report Degree - Case Study Example Monsoon plc deals in branded variety of clothing, footwear and accessories comprising two major chains i.e., Monsoon and Accessorize. The company caters to a wide range of customers young and old, male and female, babies and children. Apart from clothing and accessories, the company also deals in home ware for instance, bed and bath lines, curtains, and other home products (Company Info, accessed 06.04.2006). Blacks Leisure plc is a high street chain of superstores engaged in outdoor clothing and footwear business all over the United Kingdom having around 104 stores across the country. The company has a diversified customer market and its store design reflect this orientation. It provides clothing and travelling products to a wide range of customers of all ages and kind. It deals in several brands and provides a range of products relating to the outdoor activities and adventure most specifically clothing, tents, outdoor equipments, accessories and instruments The comparison and evaluation presented in this report is significant in the sense that it practically employs a wide variety of financial ratios to assess the financial position and performance of both the companies. ... This comparison would assist these users in forming a rationale for their major decision-making i.e., strategic planning, investment and funds lending etc. RATIO ANALYSIS- BLACKS LEISURE GROUP PLC & MONSOON PLC Ratio analysis is the best tool to evaluate a company's performance and identify problems (Meigs & Meigs, 1993). Riahi-Belkaoui (1998) comments that financial ratios are meant to make the information in financial statements interpretable for the various users of financial statements. Similarly, we will assess and analyse the financial position and performance of the two companies Blacks Leisure plc and Monsoon plc using a broad array of financial ratios from the viewpoints of management, lenders and investors separately. Analysis For Management Management needs to analyse its performance and efforts put into the corporate affairs through the company's financial results so as to realise their strengths and weaknesses. Riahi-Belkaoui (1998, p11) says, "the profitability ratios portray ability of the firm to efficiently use the capital committed by stockholders and lenders to generate revenues in excess of expenses". Therefore, the analysis from the management aspect has been done with the help of following profitability ratios: Ratios Blacks Leisure Plc Monsoon Plc Gross Profit Ratio 53.07% 61.51% Net Profit Ratio 6.54% 15.66% Return on Capital Employed 20.23% 42.76% The Gross Profit Margin Percentage evaluates the percentage of profit earned by a company on sales after the production and distribution activities (Mcmenamin, 1999). It shows how well the company manages its expenses so as to attain maximum profit out of its total sales. Monsoon plc's gross profit ratio of 61.51% reflects that the company

Research W. Edwards Deming's 14 points and identify at least one of Essay

Research W. Edwards Deming's 14 points and identify at least one of those 14 points which resonates with you personally - Essay Example His efforts caught the attention of the Japanese emperor, who gave him an award for his role in the country’s industrialization (Anderson, 12). Upon returning in United States of America, Deming wrote a book by the title Out of a crisis. This book was published in 1982, and it outlines 14 points which if used in the United States manufacturing sector, then there will be an industrial boom in the country. The 14 points advocated by Deming may seem to be a bunch of radical ideas; however, to effectively understand these ideas, it is important to understand Deming’s explanations of the concept of variance. According to Deming, variation was the problem that presented a great threat to the manufacturing industry of United States of America. Deming reasoned that if there was a variation in prices, times of delivery, work ethics, then companies were wasting their resources (By, 23). On this basis, Deming identified 14 points of management that people and companies ought to fo llow. These points are (Deming, 7); 1. Creating a purpose of constancy in order to improve the operations of the business organization. It is therefore important to replace the short term objectives of an organization, with long term goals. 2. Adoption of the management’s new policy. ... 4. The industry should identify a single supplier for one product. This is because many suppliers’ will always produce different quality of products, and this leads to a variation of the product under consideration, and this results to a variation of the products supplied. 5. There must always be a need of improvement, and this is in regard to reducing variation. 6. On job training is a necessity if the organization wants to achieve efficiency in its work force. Inadequate training will make people inefficient, leading to an increase in variation of the products produced. 7. Deming advocates for institutional leadership. In his opinion, there is a difference between leadership and supervision. He denotes that supervision involves setting up of targets, and it is quota based. 8. The eighth principles that Deming develops, relates to fear. Deming denotes that developing business policies out of fear is counter-productive. As such, managers ought to drive out fear for them to ach ieve success in their endeavors. Fear also prevents workers from effectively serving the interests of the organization. 9. The ninth principle is in regard to breaking down the barriers that exist between the various departments of an organization. Under this principle, the idea of the internal customer emerges. This idea denotes that the various departments within an organization serve each other. They do not serve the management. This is a very central idea in TQM. 10. Deming also proposes the concept of eliminating slogans within an organization. Under this idea, the mistakes that people make, does not arise because of their faults, but because of the various processes within the organization that they are working for. On this basis therefore, it is not wise to harass