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Questions regarding Finance Assignment Help :  Provide detailed business operation of Woolworths Ltd which is in Australia and New Zealand

Executive Summary

This report of Finance Assignment Help presents the detailed business operation of Woolworths Ltd which is a giant retailer functioning in Australia and New Zealand. The researcher has described the various statements issued by the company during the financial year 2013 to analyze the operations, mission & vision, governance policies and the profitability of the company. The Chairman’s and Managing Director’s report are analyzed to discuss the essential factors of the company which has been the key point of emphasis for the company in the 2013. The key factors discussed are the social, legal and environmental factors.

The assignment determines the contribution of the company towards the economic and social development of the country. The Finance Assignment Help researcher has described the social corporate governance which has been followed by the company to govern the functioning. The statement also signifies the ethical business operation management help which has been the motto of the company for the time of inception.

At the end of the Finance Assignment Help report the financial statement of the company is used to derive the financial ratios. The financial ratios form the basis to deduce the advisable recommendation for the company. The ratios also highlight the strength and weakness of the company and the flaws in the efficiency of the company.

Finance Assignment Help

A: Description of the business:

The present report focuses on the dimensions considerations for investment in Woolworths Ltd. Woolworths Ltd which is a giant retailer of food & beverage, merchandises and special items retailer operating from Australia and has more than 3,000 stores spread across Australia and New Zealand. The company has invested a total of 1.5% of the sales for the relief program for people suffering from natural disasters (www.woolworthslimited.com, 2013).

  Total community investment ($ millions) Community investment for natural disaster ($ millions)
2010 36.3 0.06
2011 40.8 21.5
2012 36.6
2013 62.2 1.4

 

Figure 1: Contribution of Woolworths Ltd towards the community

(Source: www.woolworthslimited.com, 2013)

A.1: Mission and Vision

The company caters to the need of all in one requirement of the customers. The company aims to create shareholders wealth rather than profit maximization (Lewellen, 2008). The company was established in the year 1924 with the mission to create a place for the people where accessibility is easy and serves the needs of the customers at an optimal cost.

A.2: Operating activities

The operating activities of the company can be fragmented into sections like suppliers’ management, distribution centre management, inventory management and after sales service management.

Woolworths Ltd maintains a strong relationship with its supplier and has made provision to collect feedback from them and make necessary improvements to address their grievances. The company was the first to open up suppliers’ helpline to apprehend complains and suggestions. The company strives hard to maintain a balance between the interest of the suppliers and the customers. More stress is given on supplier retention as supplier forms the key role in the operation management assignment help of the company. The company sources farm fresh food grains to help 155 farmers of Australia (Merton, 2008). Woolworths Ltd has made available more than 10,000 brands to the customers. The wide range of Australian wine is the factor which has lured the customers towards the giant retailer. The employees of the company are well retained which indicates their job satisfaction and hence it is deduced that the company provides a convivial work culture. The employees are also progressing with the growth of the company.

B: A discussion on Chairman’s Report

The CEO statement shows areas of development for the year 2013. The statement highlights the functional areas where the company has focuses to contribute towards the national social economic development. The key areas and their respective contribution are discussed below-

B.1: Growing economy

Inventory of the company contains almost 100% of the local foods and wines sources from the local suppliers and hence it contributes towards the development of the national economy. The company has successful contributed by the value of 110 billion US$ towards the national economy (Ou-Yang, 2009). The gross domestic product valuation has enhanced as the company contributes towards the growth of the national production. The farmers of the country are benefited by the increase in the demand of their products. Woolworths Ltd has an addition requirement of around 650 hectors for vegetable production, thus it can be inferred that the production of quality food grains will result which will be beneficiary for both the customers and the farmers of the country.

B.2: Focus on value for money

Woolworth has taken initiative to reduce the prices of their products by an average of 3%, thus the products are now pocket friendly for customers. The company is sharing the part of the profit with the customers to reduce the financial burden of the customers.

B.3 Cost reduction and environmental factors

The company has focuses towards the importance of the protection of the environment to make the world a healthier place to live. The company has make investment in new technologies to reduce the carbon emission from the operational activities. The company has succeeded to reduce the carbon emission by 13.5% (www.woolworthslimited.com, 2013). To achieve this company has contributed almost 1/50th of the revenue into development of proper infrastructure like low carbon technology; hence Finance Assignment Help shows the accountability of the company towards the environment.

C: A discussion on Managing Directors Report

The Managing Directors report reveals the opportunities available in the corporate and the contribution of the same towards the stakeholders’ wealth creation (Roll, 2009). The statement also indicates how the activities of the company affect the society and the nation as a whole.

C.1: Employment creation:

The company succeeded to create 7000 new jobs in the current financial year as mentioned in Finance Assignment Help. The increase in the work force of the company strengthens the service quality which will lead to greater customer satisfaction. New job creation resulted in the per capital increase of the nation as well as the service part of the gross domestic product value. The per capital increase of the country results in the economic development and hence the standard of living of the people is enhanced. The company has disbursed approx US$ 7 billion as wages for the current fiscal year (www.woolworthslimited.com, 2013).

C.2: Healthier products:

Some partnership has eventually taken place to inculcate healthy food habits among the customers (Stracca, 2006).  Steps have also been taken to introduce nutrition chart on the packaging of the products sold under the name of the own brands.

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D. A discussion on corporate governance statement

The corporate governance statement defines the policies and practices and the board of directors is responsible to abide to them (Wachter, 2009). The governance statement of this Finance Assignment Help defines the role and responsibility of each individual managerial division.

D.1: Corporate governance

Corporate governance explains the commitment of the directors for financial reporting in accordance to the acceptable financial principles. The board of directors evaluates the performances of the managers and obtains regular reports about the performance. The CEO of the company is accountable to the Chairman to report the performance evaluation report.   The chairman is responsible to review the governance policies and make necessary recommendation before the board of directors (Stutzer, 2007). The CEO of the company is responsible for the strategic planning by considering the external and internal environment of the company. The governance statement also provides guidelines regarding the social, political, legal and environmental impact of the operations of the company. It is the social responsibility of the company to comply with the corporate governance guidelines. The directors are responsible for conducting annual general meetings to discuss and review the issues of corporate governance.

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D.2: Risk management

It is the responsibility of the company to protect the interest of the stakeholders and make necessary decisions on behalf of the shareholders of the company. The risk management system involves the processes like Finance Assignment Help performance review, practicing budgetary control, regular reviewing of the financial statements (Torous et al., 2007). The transparency of the company is maintained by preparation of annual reports and publishing the same for the review of the stakeholders. Auditing of the financial report by an external auditor is an import method to analyze the performance of the company.

D.3: Resource management

People policy committee formed by the board of directors undertakes the responsibility of monitoring the human resource. It is essential to take care of the employees’ health and security to increase the productivity (Vuolteenaho and Campbell, 2008). Ethical and responsible sourcing of products is another dimension towards the resource management where the company stresses of the ethical treatment of the animals.

E. Recommendation

From the above ratio analysis it can be recommended that the company is having more reserve of assets which is not earning any return for the company. It is essential for the company to identify the assets which has not been utilized to the full capacity. The asset reserves show that the company can use the assets to increase the revenue of the company by expanding the operations. The ROC shows that the company is having booming sales and hence it is the best time to expand the operation of Woolworths Ltd. The fixed as well as the current assets should be deployed to cross over the breakeven point and decrease the fixed cost and maximize profit margin. This strategic will be helpful to price the products at a competitive rates.

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Conclusion:

The researcher has described the essential financial ratios to understand the performance of the company and suggest the best investment opportunities for the client.  The financial statements of the company form the basis for the strategic decision making. Various tools of financial analysis are employed to provide meaningful recommendation to the client.