A historical review of the financial performance of the firm would suggest that its performance during last five years have remained consistent i.e. the overall revenue of the firm increased from $14.726Billion, in 2004, to $17.990 Billion in 2008- a growth of more than 22%. It is also critical to note however that the firm recorded negative growth in revenue during 2005 & 2006. (Hoovers.com, 2008). Operating Profit of the company showed an improved performance by recording a growth of over 65% during the same period i.e. Operating Income was $1.461 Billion in 2004, whereas in March 2008, it was 2.415Billion. The Net Operating Cash flows during last five years have been positive and have shown considerable growth from 2004 to 2008. Net Operating Cash Flows were $633.5 Million in 2004, whereas during 2008, Marks & Spencer recorded net positive cash flows of $2.133Billion. Return on equity remained consistent during last five years i.e. 0.6% in 2004 & 1.2% in 2008.
Equities are considered as the most risky investments due to the fact that shareholders get the residual value of the assets left after paying off all other creditors in case a company goes into liquidation. Thus investors often take into account different factors such as financial performance of the firm, historical dividend payout patterns, general economic conditions as well as the current performance of the industry within which the firm operates before making an investment decision to buy any shares…
Per your request a situation analysis of Marks and Spencer is enclosed. The report which includes a SWOAT analysis has been completed and is attached for your review and consideration. This situation analysis report examines the market conditions and the external and internal environment that led to the 1998 crisis for Marks and Spencer.
The future holds buoyant rise in profits through food sales and fall in profits due to an expected decline in womenswear sales. M&S is currently known more through its food side of the business which explains why more focus should be laid on clothing area.
It has been facing survival crisis amidst intense competition (Mellahi, Jackson and Sparks, 2002). In addition they have not been spending on marketing. Its competitors include the traditional rivals such as John Lewis and Next, and in addition very recently Primark, with its low-cost clothing has changed the face of British High Streets (Ruddick, 2012a).
The current ratios for both 2011 and 2012 are less than 1, which is financially unfavourable since it means that the company is likely to experience difficulties paying its short-term dues. Furthermore, this current ratio is less than the industry average, which suggests that the company is having serious liquidity problems in comparison with related companies.
Sales decline was 4.8 % in 2000.
The tools and frameworks applied to marketing in the UK do not differ to those used to market products in other countries. Identifying these issues and assessing their effect on strategy provides the basis for the M&S to analyse the causes of sales decrease and possibility to develop a new strategic plan in order to obtain a strong market position.
Everybody knows that retail is one of the most competitive economics sector. Shops, marketplaces, boutiques, super- and hypermarkets offer us great choice of different goods. That's why if any company has been taking the top positions for almost 10 years, - it is considered as a great success.
Also, companies such as Tesco Plc and Marks & Spencer have been analysed as regards their use of the long-term financing sources in order to give a better real-life insight into the discussion.
Seasoned equity offerings or SEOs are stock issues for companies
It is having about 2,000 suppliers and employs about 78,000 employees. M& S controls about 11.2 percent market share in retail clothing and about four percent of UK food market. The major financial risks encountered by the M&S group are funding, liquidity,