Wednesday, August 28, 2019

Management Strategy and Decision Making Assignment

Management Strategy and Decision Making - Assignment Example s main focus was made on the increase of returns to the shareholders, the achievement of the Just Group strategy could be partially evaluated based on the dividends payout. Thus, in 2013 the company informed about annual dividends increase up to 38 cents per share. This increase has comprised 2% comparing with the dividends for 2012 (Premier Investment Limited Annual Report 2013). However, taking into consideration the fact that for 2009 it was declared that dividends were 75 cents per share, the company’s performance could be challenged. On the other hand, this performance could demonstrate strong financial position of the company as the global financial crisis might have had more adverse effects on the shareholder’s value. In order to achieve its strategy of increase of returns to the shareholders, the company has identified six strategic focus areas, such as: expansion and growth of the business through the internet up to 10% of sales; reinvigoration of the five key brands; organization-wide cost efficiency program; two phase gross margin expansion; significant growth of Peter Alexander; and significant growth of Smiggle brands (Premier Investment Limited Annual Report 2013). By reviewing the company’s performance results reported in 2013 it is possible to state the there has been made a substantial progress towards achievement of the above listed strategies. For example, the company has reported that its e-commerce activity has grown significantly. To achieve this result, there were launched 1day delivery program (within Australia) and mobile sites for all brands of the company. In terms of the growth margin expansion strategy, the company has also achieved significant results as gross margin has been expanded by 117 basis points in 2013 (Premier Investment Limited Annual Report 2013). Growth of Peter Alexander brand was also significant in FY 2013, as the total sales have exceeded 17%. Taking into consideration that in 2009 this brand comprised 7, 7% of

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.