Wednesday, February 20, 2019
Oxford Brookes University Bsc in Applied Accounting
I result intention this accounting physical composition oopportunity to practice and practically implement my encyclopedism in evaluating headache and pecuniary exploit of a business organization which sp fills its activities from angiotensin-converting enzyme continent to another. 1. 3 Reasons behind choosing X&Y For me and for my familys fit come forward needs I shew X&Y as a better place to buy as it sells better and fashionable cloths at lower startlay. But, this is not what attracted my attention. I got interested on X&Y because in this time of recession and money crisis while all spicy street giants struggling to survive I found X&Y continuing to open rising gillyflowers in different locations in all(prenominal) few months.Not only that, Inter cross out ranked in their latest 2009 subject field card X&Y as the worlds 2X no. brand with 11% increasing brand value from last social class to 15,375m USD. Last year X&Y was ranked look 2X. X&Y is in the top posit ion as a lavishly street array brand. It seems X&Y is becoming more popular hence mearns greater market. 1. 3. 1 X&Y annals Present is the result of history I always enjoy it so decided to look back offbone where e precisething really begun. A former Swedish salesman, named Exxx Pxxxx, discovered an amazing uniform retail concept during his trip to the United States.He noticed high overthrow can be achieved by lowering the sales determine. After came back home in 1947, he opened a store all for womens habit in Vxxx, Sxxx. He named the store X. Swedish for hxxx. In 1968 Exxx Pxxxx brought mens concept in his retail store and changed its name to X&Y. He continued to add new concepts like garments for children, young people, trendy people and sportive people. To fire growth in home and abroad, X&Y went public with a listing in Sxxxx Stock Exchange in 1974.X&Y started its business development concept fashion at low price provided later developed to fashion and quality at b est price The Pxxxx family still 4 holding the largest share of the company stock, leaving chink securely in the familys hands. 1. 3. 2 XY at expose day Before you can really start setting pecuniary goals, you need to determine where you stand financially. Bach, David XY is a quick growing business. Every year it is expending its market, i. e. stores, steadily. According to XY annual report 2008 by the end of financial year 2008 XY assemblage had 1,738 stores globally.In the year 2008 XY opened 216 stores cosmopolitan and entered in five new different markets (Japan, Egypt, Oman, Bahrain and Saudi Arabia). In 2009 XY Group planning to open 225 new stores. Though XY brinyly provide clothing at competitive price but they in like manner energise PST range which offers exclusive and expensive clothing collection. Around 73,000 employees helping XY to run and grow. Source XY Group Annual Report 2008 1. 3. 3 Business to analyze I was thinking around which organization I shall c hoose to compare.I browsed through and through websites of top clothing retailers e. g. Primark, Gap, Topshop, and Zara. 5 Then I found Inditex Group (owner of Zara) as the most appropriate business for relation with XY Group as, in terms of revenue, Inditex is the top largest clothing retailer in the Europe and XY is the second. Though clothing ranges of Inditex mainly includes high priced items unlike XYs main ranges but both of them highly expended their operation beyond their originate country. Inditex have 4,430 stores in 73 countries while for XY the number is 1,738 in 34 countries.Inditex Group includes fashion brands Zara, Massimo Dutti, Pull and Bear, Bershka, Stradivarius, Oysho and Uterque. Zara is the most popular brand among others of Inditex Group. Interbrand, in their year 2009 report, ranked Zara in no. 50 check to brand value (6,789m USD) while XY ranked number 2X with 15,375m USD brand value. 1. 4 Aims and objectives The aim of this research and analysis project is to chip in an evaluation of the business and financial performance of XY Group based on financial reports, comments and projections made by board members and using the views of other stakeholders.My project volition evaluate the financial performance of XY over financial year-ending 2006 to 2008 and assess its future prospect. Economic decisions taken by stakeholders are highly dependent on the financial performance of the relevant company. Now-a-days stakeholders are getting more and more interested on managements performance and internal control. Managements king in taking effective long-term decisions is very important as taking efficient short-term decisions. Shareholders are concerned about short-term return e. g. ividend and share price but they are also very concerned about managements plan on future growth, expansion, roadmap on how to hatful with expected or not-expected adverse conditions. I will use discordant rations e. g. profitability ratios, efficiency ratios , investment rations during my report writing process. In addition, I will do SWOT analysis, as it is a key 6 instrumental framework to assess the overall business position, to identify the strength, weaknesses, threats and opportunities for XY. 2. INFORMATION As this report is the first of its kind I am doing so I had to start from the very beginning.I had to understand what type of report I was going to do, what type of format I shall use, how can I gather info and how can I use those in writing this report and on above all of these where will I take note relevant information. I discussed about the report writing techniques I shall use and information writer I shall use with my senior and fellow sstudents who already wrote this type of report for their university degree. I attended an introductory meeting in where Mr pointed out possible sources of information.I browsed through websites of XY and Inditex. I downloaded and printed out the annual report of last three years. I a lso read through the Chairmans report and CEOs report to understand business and financial performance from their point of view. I also read through newspaper reports on XY and Inditex. I utilize Google search engine and Yahoo Finance to find out news related to these two businesses. 2. 1 Source of information I divided my source of information in two groups primary source and secondary source.As far as this business and financial performance report concern I really not necessarily had to collect information through primary source. More importantly, the secondary source of information was so sthrong that it made using primary source insignificant. The main sources I used during preparation of this report are as follows 7 Published financial statements of XY Group and Inditex Group (Year ending 2006, 2007, 2008) I found financial statements as the main source of information as this gives us the financial knowledge of the both companies and very relevant to my chosen event area.But, more importantly financial statements are audited by independent auditors and provides high level of assurance and great deal of reliability. Chairman, CEO and Directors statements These statements gives information which highlights business performance, i. e. specific areas where the business done well or areas where business is finding difficulties. These statements also give future strategies and plans business willing to and going to feign and implement. These statements also ensure stakeholders on business plan on how they will adopt or eliminate expected or unexpected risks.