The Demise of Woolworths

The dying of WoolworthsResearch Proposal Title The Demise of Woolworths Abstract This report focuses on the reasons for the declension of nearly century darkened sell Woolworths. This report volition deals with the monetary aspects of this ships company which light-emitting diode to much(prenominal) a tragic end. The financial aspects of Woolworths leave alone be evaluated with the help of separate fiscal Indicators and Ratios which provide be interpreted into consideration while arriving at a conclusion. The introduction to recognize Financial Indicators and Ratios and their calculations respectively, lead be demo as the research progresses. methodology and Analysis of this research will cypher on these Key Financial Indicators and Ratios of Woolworths and and then the conclusion of this report will be reached.Introduction An introduction to Key Financial Indicators and Ratios. Below are a few Indicators and ratios on which any companys finances are evaluated to reason out how healthy a pipeline concern or a company is. equipoise Sheet It is a financial statement that lists the assets, liabilities and equity of a company at a specific point in time and is utilise to calculate the net worth of a dividing line. (Source http//www.entrepreneur.com/encyclopedia/term/82186.html) usefulness Loss Statement The purpose of the Profit Loss Statement is to give way the income and expense items for a seam, grouped according to the nature of the transaction, in a manner that allows the user to easily review the income, expenditure and profitability of the business. (Source http//www.sasb.wa.gov.au) Key financial indicators and ratio are determined through the information contained in both Balance sheet and Profit Loss account.The Key Financial Indicators are Net Turnover This is the Net derangement against investment. Net direct Profit or Loss, as a parcel of net turnover Profit or Loss before Taxes as a percentage of net turnover Return on E quity Return on assets Equity to assets Return on Investment Return on smashing Equity Net Gearing Gearing Ratios(Source http//www.rahoitustarkastus)BackgroundAn Introduction to Woolworths heel Woolworths started a retail store in Britain 99 years ago i.e, in 1909 and called his store F.W Woolworths. He was an American retailer, who started his retailing career in 1879 in America. First retail outlet of Woolworths in Britain was on church service Street in Liverpool. The very concept of Woolworths was clear right from the arising it s ancient eachthing from merchandise to household from three pence onwards to six pence. The judgement behind the Woolworths pricing was to introduce a low cost retail store, where people can buy almost everything under one detonating device for as low as six pence. Woolworths was already a industrial-strength competitor to the existing retail stores in Britain. The Evolution of Woolworths then took sit and this retail store was an instant hit in Britain, after a decade there was a new store opening every 17 days. The separate speciality of Woolworths was the concept of pick n potpourri which was a completely new concept to British high streets, this was excessively a result to Woolworths becoming an instant hit in Britain. It was the start-off retail chain in Britain , and so it did keep the gradation with the cursorily growing consumer demand. It also constantly kept updating its fashion products, merchandise, and entertainment. From its origin inception till the very recent times, it had undergone numerous ups and downs in its business. In Late 90s Woolworths started to slip from its position in the London Stock Exchange, and the cover prices were decreasing constantly, giving a chance to its competitors in this new coevals to build a strong position in the market of retail chain. After this Woolworths failed to meet the changing customer demands and hence its market was taken over by a number of new competit ors in the market. Woolworths is as yet familiar and fondly remembered as a 99 year old retail chain but, as the customer demands changed which proved that Woolworths couldnt keep the pace with the changing customer needs and finally ended itself in an unretrievable position. This impact was even more than intense because of the credit crunch.Aims To investigate if business operations of Woolworths led to its last. To investigate if the financial set of Woolworths, led to its deathObjectives To indentify if there was an operational failure, that led to Woolworths demise To identify if the financial condition of Woolworths, led to its demise.Research Questions To what extent business operations of Woolworths influence its demise? Was the demise of Woolworths predictable from the companys financial situation before its demise?MethodologyThe data will be smooth from different sources like newspapers, journals, reports of the financial status of the company before the downfall. Companys Balance sheets will be collected to identify if there were any short comings in the companys finances that led to its demise. Key Financial Indicators and Ratios will be explained in brief and the formulae for calculate the ratios will be explained as they are in the theories. Also the articles on the same will be collected. The data collected will be purely financial data or the data which indicate the financial status of the company. Reports, journals and articles will be collected to understand how Woolworths failed as a business after 99 years of its first inception. Different views of the authors, writers and habitual will be taken into consideration while evaluating the data.Data will be collected to focus on the operations of Woolworths and its effects on Woolworths demise. Data will collected to break apart how Woolworths operated before the demise and nearing its demise. The overall aspects of operations that will be focussed are marketing, sales, business sc heme as a whole group in order to analyse the operations of Woolworths. AnalysisAfter the data has been collected from the above mentioned sources, it will be evaluated by comparing it with the concepts like Key Financial Indicators and Ratios in theories, textbooks and other journals, and then a conclusion will be reached. The analysis of the companys balance sheets of last three years will be depute through this rigorous comparison against the ideal financial situation draw in theories and textbooks and will be then evaluated to reach to a conclusion. The data from the reports and journals will be evaluated through different key business strategies and other aspects of business like Marketing etc to reach to a conclusion whether or not Woolworths could change itself to the changing needs to the consumers. The other reports from various authors will help us to investigate whether there were one or more reasons for its downfall. This will also help the argument in the case of Woo lworths downfall by authors and writers in different sources.The operations of Woolworths will be gauged in terms of business planning, customer service, marketing, competition, various sales techniques and overall business strategy. Definitions and the theories of the above mentioned topics by authors and textbooks will be used as the grapheme to evaluate the efficiency levels in operations of Woolworths. Woolworths operations will be studied in detail from the data sources and will be compared to the business operations theories by authors to evaluate the efficiency in operations of Woolworths and then a conclusion will be reached.ConclusionTo be Obtained.Bibliography street smart Financing the Small Business Raise Money for Your Business at Any Stage of Growth, By Charles H. Green. promulgated by Adams Media, 2003. Results How to Assess Performance, Learning, and Perceptions in Organizations, By Richard A. Swanson, Ed Holton, Elwood F. Holton. published by Berrett-Koehler, 199 9 Finance for Non-Financial Managers A Briefcase Book, By Gene Siciliano. produce by McGraw-Hill Professional, 2003 The Basics of Finance Financial Tools for Non-Financial Managers, By Bryan E. Milling. Published by iUniverse, 2003. 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