Analysis Of The Financial Ratios Of David Jones - 2086 Words

The following financial report provides an analysis of the financial ratios of David Jones with its close competitor in the retail sector, Myer. The financial ratios analyzed include profitability ratios, leverage ratios, efficiency ratios and market ratios for the two companies. The analysis utilizes individual company time-series analysis as well as industry cross-sectional analysis with the aim of determining the competitiveness of David Jones relative to its close competitor Myer. Introduction Financial ratio analysis is a valuable tool that allows one to assess the success, potential failure or future prospects of the company (Bazley 2012). The ratios are helpful in spotting useful trends that can indicate the warning signs of†¦show more content†¦Profitability ratios are used to measure the overall efficiency of thebusiness, as well as management effectiveness. Examples of profitability ratios include the gross margin ratio and the net margin ratios. Gross profit margin The gross profit margin measures the amount of profits that a company generates from its operations without consideration of its indirect costs. Thehigher thegross profit margin, the greater the efficiency of a company’s operations (Besley Brigham 2007). It means that the company is generating enough income to cover its operating expenses. On the contrary, a lower gross profit margin indicates that the business is not generating adequate income to cover its operating expenses. The formulae for calculating gross profit margin is David Jones’ gross profit margin for the past three years has remained stable with minimal fluctuations. The following calculated figures are for the year 2010, 2011, 2012, and 2013; 39.73%, 39.10%, 37.50% and 37.8% respectively. Such an observation is desirable as it is indicative that the company is financially stable as it is generating enough income to cover its operating expenses and make savings. It suggests that the industry in which the company operates has not experienced drastic economic fluctuations that can affect the company’s cost of goods sold. However,Show MoreRelatedSwot: Strategic Management and David Jones Limited1137 Words   |  5 PagesDavid Jones Limited (DJS) - Financial and Strategic SWOT Analysis Review Phone: +44 20 8123 2220 Fax: +44 207 900 3970 office@marketpublishers.com http://marketpublishers.com Phone: +44 20 8123 2220 http://marketpublishers.com David Jones Limited (DJS) - Financial and Strategic SWOT Analysis Review Date: Pages: Price: ID: SUMMARY David Jones Limited (David Jones) is a department store retailer in Australia. The company carries out the operations of department stores. Its product portfolioRead MoreDavid Jones Case Study3251 Words   |  14 PagesComparative Financial Analysis for the financial year 2012 for DAVID JONES Word Count: words Members of the Group (surname underlined): LIM EWE LEE 30109302 WONG MEI LIN 30109335 TEH KONG CHENG 30111788 Executive Summary David Jones, an Australia base company with its core business of operate departmental store in Australia, the company focus are beauty and cosmetic products, women’s wear, women’s accessories and footwear, menswear and accessories, food products, toys,Read MoreDavid Jones analysis3197 Words   |  13 Pagesï » ¿ A RATIO ANALYSIS COURSE CODE LECTURER STUDENT EXECUTIVE SUMMARY In this paper, we demonstrate the use of actual financial data for financial ratio analysis, namely: liquidity, profitability, assets, capital and market. We construct a financial and industry analysis for David Jones Limited in comparing the company’s behavior between 2011 and 2012. The objective is to show exactly how to compute ratios for an actual company. This paper also demonstratesRead MoreBvfa1610 Words   |  7 PagesContents 1. Perspective analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.2 2.1 Forecasting†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.2 2.2 Valuation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 2.3 Sensitivity analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 2. Application†¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 3.4 Challenges and opportunities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 3.5 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 Reference List†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.6 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.7 1.Prospective Analysis Based on the reformatting financial statement, this report willRead MoreFinancial Ratio Analysis Performance Report Essay3416 Words   |  14 Pages0 Executive Summary This report provides an analysis and compare of the current profitability, efficiency and financial stability of Premier Investments Ltd and David Jones Ltd over last 2 years.  Methods of analysis include trend, horizontal and vertical analyses as well as ratios such as Gross Net profit margin, Inventory turnover and Current ratios. All calculations can be found in the appendices.  Results of data analysed show that David Jones Ltd have better performance and is more stabilityRead MoreDavid Jones4645 Words   |  19 Pages3344346 Tu Lan – 3282178 Bo Qiu - 3308317 DAVID JONES - BUSINESS ANALYSIS AND VALUATION May 2012 ASB INVESTMENT RESEARCH T A B L E O F CONTENT 1. EXECUTIVE SUMMARY 2. DAVID JONES’ PROSPECT AND THE RETAIL INDUSTRY 2.1 INDUSTRY ANALYSIS 2.2 COMPANY ANALYSIS 3. ACCOUNTING AND FINANCIAL ANALYSIS 3.1 ACCOUNTING ANALYSIS 3.2 FINANCIAL ANALYSIS 4. FORECAST AND VALUATIONS 4.1 FORECAST ASSUMPTIONS 4.2 COST OF CAPITAL – WACC 4.3 VALUE OF DAVID JONES 5. CONCLUSION 6. REFERENCES AND APPENDIX ASBRead MoreDavid Jones5318 Words   |  22 Pagespurpose of this report is to analyse David Jones’ business performance and to determine whether it is a worthwhile investment. Two main points will be closely examined: classification of non-recurring items and recurring items, and ratio analysis. First, clarifying the generation of income made by ordinary activities and extraordinary activities will enable us to estimate the firm’s real earning power. Second, analysing historical financial data, using ratios, will enable us to understand the qualityRead MoreValuation of David Jones Essay4937 Words   |  20 Pages|BUSINESS ANALYSIS AND VALUATION | | | |DAVID JONES LTD | | | | | |BY SENIOR FINANCIAL ANALYSTSRead MoreFinancial Report for David Jones Essay7398 Words   |  30 PagesFinancial Report Analysis for David Jones Ltd Table of contents 0.0 Introduction ------------------------------------------------------- 1 1.0 Strategy Analysis ------------------------------------------------------ 1 2.0 Accounting Analysis --------------------------------------------------------- 4 3.0 Financial Analysis --------------------------------------------------------- 9 4.0 Prospective Analysis --------------------------------------------------------Read MoreAccounting Analysis Essay2047 Words   |  9 Pagesï » ¿1. Accounting Analysis Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits. Financial statements are used to determine the business activities of a firm and the role of accounting analysis is to determine the accuracy and quality of the information provided. This analysis would look into the degree of its accounting figures captures its business reality

Essay on Taking a Closer Look at the Modernization Theory

MODERNIZATION THEORY The invention of the concepts of development and underdevelopment is attributable to the former U.S. President Harry Truman, in a speech in January 1949, stressed the need to help the underdeveloped countries. In an international context of profound change following the Second World War and the process of decolonization that followed, the United States , then became superpower , proposed to establish a new world order in which the conflicting worldviews stand down mutual development ; The aim is to enable all countries to achieve a high level of economic well-being and social development. As the Cold War began and the risk of Communist expansion increased, the U.S. decided to study the Third World countries in†¦show more content†¦Thus, according to this theory, underdeveloped countries are perceived as backward compared to developed countries as models for having reached the final stage of development presented by Rostow [2]. As highlighted sociologists modernization Talcott Parsons (1951) and Alex Inkeless (1964), changing values and social structures is a fundamental basis of the process of economic development of a country factor. Indeed, the traditional values of a country need to be replaced by modern Western values , emphasizing individualism and rationality, because without this change of mentality, traditional societies cannot develop modern institutions it are needed to promote progress and economic growth, the ultimate goals of modernization, a nd ensure the maintenance of order can be challenged by the changes that cause the development [3]. Theories of modernization have therefore concentrated on the overall internal blockages Third World countries on the advent of mass consumer society and the general, economic changes as political, and cultural to be made to achieve this goal. In response to modernization theories developed at the same time the Current of Raul Prebisch dependendistas worn by CEPAL (Economic Commission for Latin America and the Caribbean) and influenced by the neo-Marxist theories.Show MoreRelatedPromises Not Kept : Poverty And The Betrayal Of Third World Development1969 Words   |  8 Pagesregarding third world poverty can be grouped into 3 different Schools; Modernization, Dependency and Marxism. These schools hold their own theories made up of the answers that the scientists of each school have contributed to help answer the questions of persisting poverty. (Isbister, 2006) Personally the modernization theory is the one that I side with the most and therefore I will go to greater lengths to describe it. I feel that this theory does a great job at going back through time and tracing the successRead MoreNations Should Promote Localization, Not Globalization Essay1590 Words   |  7 PagesDetermining the precise costs and benefits of bot h globalization and localization can be difficult. The difficult part is deciding which has the most beneficial or disturbing affect upon a country. If a country implements either theory - the outcomes will vary depending on the actions taken to implement them. Granted if the wrong concept is attempted in the wrong country, the affects it will have in the long run can be extremely harmful to the citizens of the country and all of its aspects. AndRead MoreEvolution Of Social Marketing From Kotler And Zaltmans 1971 Definition2139 Words   |  9 PagesIntroduction The purpose of this essay is to answer the following question: â€Å"Critically evaluate the evolution of social marketing from Kotler and Zaltman’s 1971 definition through to modern-day theory and practice.† The question is about the growth social marketing has made since the definition from 1971 and how social marketing is still changing and developing while facing different challenges. Social marketing is an academic discipline that is being applied to improve public health, strengthenRead MoreIr The Iranian Identity3660 Words   |  15 Pagesstruggles with identity construction in regards to the international and national influences. I will analyze Iranian society, with reference to postcolonial theories employing different approaches. First, I will explain the general idea behind postcolonial theory, specifically orientalism, as it is one major approach in postcolonial studies. Then I will look at some historical aspects of Iranian identity development, discussing various events that have affected the psyche of Iranians as a community. I willRead More Birth Of Communication Essay4825 Words   |  20 Pagesalways changes because of internal or external influences, even our own cult ures and values change over time. Our world today is a world in which people from different nations and cultures are getting closer and closer because of economical and political reasons. Because cultures are becoming closer, communication is the most important quality for anyone to work on if they want to work in the international society. The history of communication and the relationships that were formed in the early partRead MoreEssay on African Colonialism1870 Words   |  8 Pages World Influence on the Modernization of Africa Developing Political Systems nbsp;nbsp;nbsp;nbsp;nbsp;The way countries, nations or states act and base their policies on many times reflect what their past was like. This is very true in the case of Africa. The only problem is that Africa is said to have no history. This just means that Africaamp;#8217;s many cultures did not affect the way imperialists and other influences acted towards the huge continent. Everything was based on their interestsRead MoreThe Growth And Development Of A Free Market3553 Words   |  15 Pagescorporate ownership trough investments. Private decisions, prices, production and distribution of goods are determined by the competition in a free market. All of this in turn decides the path of aforementioned investments. Neoliberalism is the academic theory behind the development model being currently pursued for economic growth and development. This model of development propagates economic policies that promote a free flow of trade and free market capitalism sans barriers across the globe. Till a fewRead MoreGlobalization and It Effects on Cultural Integration: the Case of the Czech Republic.27217 Words   |  109 Pagesdependency theory saw that the political-territorial boundaries remain intact and will disappear under a future proletarian supremacy. This is seen because, immediately after his death on 14th of March 1883, his ideas began to invoke a major influence on workers revolts in the world such as, Bolsheviks movement also known as the October revolution in Russia in October 25 1917. Wallerstein (1974) is another diamensionalist, who focuses on the economic view on the definition of globalization. Taking fromRead MoreLiving Demands An Identity : A Global Power On The World Essay2095 Words   |  9 Pageswar, the U.S. felt that Germany and Japan required a new and American perspective on society in order to be successful. Never did it cross the mind of America to consider the long heritage and cultural values that would be diminished by Western modernization. In Japan, the U.S. vastly altered the traditional society ranging from politically diminishing the emperor to a figurehead, granting women equal rights, and removing militarism from schools, to socially introducing American films, television showsRead MoreThe Media And Its Impact On The World2278 Words   |  10 Pagesnot what encourages bombings and suicide because there are various forms of jihad and what it truly means is â€Å"the struggle of one’s own soul to be a better person, to do the righ t thing, follow ones conscience and God’s commandments and develop a closer relationship with Allah.† There are many conferences worldwide of united Muslims against terrorism; however, the media does not acquaint it to the public and instead of fighting terrorism they fight the religion. Lastly, the idea that Muslims do

Marketing Strategy and Operations Plan †Free Samples to Students

Question: Discuss about the Marketing Strategy and Operations Plan. Answer: Introduction: Funky Punky Hair operates as a sole proprietorship firm with the owner, Nerida operating as the Principal Stylist. The operations team is further constituted by two senior and one junior stylist and also by one second and first year apprentice. Further, Nerida also appointed her daughter to work as the Salon manager. She also appointed a bookkeeper that would take care of the accounts books and payroll for the staffs. Funky Punky Hair operates as a Salon based in the Strathpine region of Queensland. It serves the needs of different categories of customers like men, women and children in meeting their beautification needs and also sells different types of hair care merchandises. Moreover, Funky Punky Hair also provides walk-in customers with Quick Salon services. The Quick Salon services rendered by Funky Punky Hair ideally contributes in attracting large number of customers to the Salon centre. The analysis of the marketing performance for Funky Punky Hair against the set marketing objectives reflects that the Salon Centre had failed to meet the targets concerning sales revenue, repeat business and also customer satisfaction. The evaluation of the marketing performance against objectives however reflect that the firm had gained the potential regarding reducing the level of cost or expenses compared to that of the forecasted figure. The forecasted revenue for the year amounted to $238,914 while the amount of revenue generated was recorded to be $105,122. In terms of Repeat Business, it was observed that only 210 customers out of the total 1,752 customers returned to the salon along a six month period. Regarding customer satisfaction, marketing surveys reflected that the customers visiting the salon generated different complaints like non-interest of the hairdresser to customers specifications and needs. Moreover, the customers also complained that the colours rendered by the salon failed to aptly meet their colour requirements. The customers also rendered complaints regarding longer waiting times, improper and inadequate etiquettes and customer greets, overpricing of services and also lack of effective management of kids. A fewer number of customers however reflected that they were satisfied in that the hairstyle provided ideally matched their requirements and encouraged them to revisit the salon. The expenses incurred for the year by the salon however was observed to be lesser than the forecasted figure. Forecasted expenses for the annual period amounted to $28,670 where month-to-date expenses incurred amounted to $22, 363. Evaluation of Business Progresses Strategically speaking, the salon though worked on development of Quick Salon services for attracting customers yet failed to generate any type of market hype owing to the absence of a grand opening and also owing to dependence only on two hairdressers that belonged to another region. The lack of grand opening created problems regarding the availability of an effective entrance in reaching the salon. The lack of effective proximity and also needed hype failed to attract potential customers in that they lacked knowledge of its existence in the region. Moreover, depending on hairdressers belonging to a foreign region also created a handicap in developing an existing database of potential clientele. Further, the salon also suffered from lack of In terms of milestones set, the salon business of Nerida failed to achieve the set targets regarding revenue, repeat business and customer satisfaction. Only the milestone regarding expenses was duly achieved by the salon. The performance figures reflected that the salon failed to surpass and even match the budgeted figure for the revenue. The budgeted revenue for the annual period was taken as $238,914 where the revenue gained till date amounted to $105,122. Regarding the expenses budget, the Cost of Sales for the annual period amounted to $28,670 where month-to-date expenses were recorded at $22,363. Evaluation of the Success of Marketing Mix Products: Funky Punky Hair has a product mix constituted by hair products that are retailed to customers along with salon services that are provided tom customers either based on appointments or to walk-in customers. The salon however suffered from the lack of effective product mix regarding the right and best quality hair colours, conditioners and shampoos(Curtis, 2012). Customers complained regarding the colour stating that the colour provided did not meet their requirement. Price: Funky Punky Hair entering the salon market was required to set a standardised price for the products and services and was also required to work based on a penetrating price strategy for attracting customers. Subsequently it could have used the skimming price strategy in terms of charging premium prices for premium services and branded products used (Stimpson Smith, 2015). The customers however complained because of lack of standardisation of the prices where for the same service or colour product one customer was charged less and the other more. Further, the services offered by the salon were also identified to be costly in nature. Place: Funky Punky Hair Salon is observed to operate based on franchisee outlets, upscale salons and other salon chain stores. However, of late due to failure in meeting of sales targets, the salon was required to close down a salon chain store rendering Quick Salon services to customers. Moreover, customers had lack of knowledge of the store owing to the unavailability of an effective entrance and also because of an unattractive signage. The salon was required to develop its presence both physically and virtually for attracting potential customers(Weliver, 2017). Promotion: Funky Punky Hair Salon had very limited amount of promotional activities involving printed mediums like the Coastal Express and the Morton Bay Press. The use of limited amount of promotional activities affected its chances of appealing over to a larger audience regarding the products and services offered by it(Milady, 2013). People: Funky Punky Hair Salon suffered because of understaffing. The same accounted for growth of crowds and queues in the salon and also delay in the generation of effective customer services. Moreover, the hairdressers also rendered faulty services that contributed in growth of customer dissatisfaction(Coughlin, 2011). Process: Funky Punky Hair Salon required the presence of an effective process through which salon services can be offered to customers in a faster fashion and more effectively. The lack of effective operational and customer servicing processes affected the operational quality generating greater customer dissatisfaction(Weliver, 2017). Physical Evidence: Salons are required to render to the customers effective brochures and fashion portfolios such that the customers can effectively choose the hair designs and colours. Further, the salon is required to effectively service the customer by rendering the style chosen. The stylists and hair dressers at Funky Punky Hair Salon were criticised for their failure in rendering the styles chosen(Blythe, 2012). Evaluation of the Marketing Strategies for the Salon Funky Punky Hair Salon is required to develop its presence in the beautification market through using different types of promotional tools like broadcasting, digital and online, social networking and print media on a larger scale. The use of such promotional tools would help in cultivating greater brand awareness for the salon. Further, it is required to develop its front faade for attracting potential customers and is also required to enhance the level of store atmospherics in terms of incorporation of effective music and lighting. The salon is also required to sustain effective relationship with its potential customers through the generation of customised offers and rebates on different occasions like birthdays and anniversaries of its prospective client base. Surveys are required to be carried out through use of social networking and digital mediums and feedbacks are required to be incorporated for enhancing its customer focused image(BizPlanDB, 2014). The economy of Australia reflects needed growth and is taken to reach to about 3 percent by the end of 2018. The rate of inflation corresponding to economic growth is taken to hover around 2-3 percent. The GDP in terms of real-growth rate amounts to 2.5 percent during 2016 with the GDP Per Capita at $48,900. The services sector tends to comprise around 68.2 percent of the GDP in the region employing around 75.3 percent of population(CIA, 2016). Development of apps and websites for Smartphones and Tablets fostering greater interactivity with customers in terms of generating beauty suggestions and also generating sales. Use of social networking tools like Instagram, Facebook and also generation of blogs are made in an extensive fashion for sustaining relationship with customers. Development of relationships and collaborations with wedding planners Participating in trade shows and exhibitions(Salon Today, 2017). Social Trends and Impact of Demand for Quick Salons Australia reflects potential shortage of effective and skilled manpower for addressing the hairdressing needs of customers. The Metropolitan regions reflect increased demand for salon and hair dressing services with low amount of skilled human resources(Working Down Under, 2015). The beauty and cosmetics sector of Australia is becoming largely competitive owing to the entry of foreign players and also because of the development of the Australian currency rates. Moreover, the development and use of online and digital interface is also enhancing the competition level in the industry through helping customers in sorting and accessing different cosmetic and beauty solutions(Whitehouse, 2014). Product Mix: The salon rendered limited hair care and cosmetic product offerings with lack of effective quality. It only formulated the Quick Salon service for enticing customers. Price Mix: The prices of the products and services rendered by the salon lacked standardisation in terms of prices. They were charged affordably and expensively from case to case. Place Mix: The salon failed to reach mass market owing to lack of needed stores. Further, it had no effective entrance to its store outlet that lacked needed customer knowledge. Promotion Mix: The salon only depended on print marketing mediums for promotion and marketing. People Mix: The salon had lower number of staffs that lacked essential customer servicing skills. Process Mix: The customer servicing and operational process lacked effectiveness regarding quicker delivery of services. Physical Evidence Mix: The salon failed to match the hair styles as promised in pictures and catalogues. The marketing strategies of the salon lacked effectiveness owing to the presence of an unattractive faade and also reduced involvement of promotional and communication mediums for generating needed brand awareness among the target market. The marketing metrics like repeat customers, customer satisfaction, revenue and expense estimation and forecasting lacked needed innovativeness and potentiality. Recommendations Product Mix: The product mix can be enhanced through use of quality colours, shampoo and hair conditioners. Price Mix: The salon need to focus on the use of penetrating price strategy regarding selling its products and services. However subsequently it needs to incorporate skimming price strategy for generating greater returns. Place Mix: The salon needs to open up large number of stores through the use of franchisee networks. Further, it needs to develop an app and also an e-commerce site for generating an online presence(Curtis, 2012). Promotion Mix: The salon needs to promote its products and services through the use of broadcasting channels, print, online and social networking media to the larger market and generate needed brand awareness. People: Funky Punky Air Salon needs to effectively train and enhance the customer servicing skills of its internal people for providing quality services to customers. Process: The salon needs to increase the speediness of generating services for avoiding queues and delays(Salon Today, 2017). Physical Evidence: The salon needs to develop brochures and catalogues both printed and online for helping the customers in choosing hair styles(Milady, 2013). For Strategic Objectives Enhance the level of brand awareness by 20 percent through use of social media marketing. Enhance the level of market share by around 30 percent. Develop greater customer satisfaction levels through generation of customised offers. Enhance the level of technological competence through development of apps for Smartphones and other digital mediums. To focus on generating training to internal staffs and enhancement of stores through franchising options. Funky Punky Hair Salon needs to develop the entrance facility as well as the front faade of the store. It is also required to incorporate an effective CRM system for interacting with customers with also the use of social networking platforms. Customised offers are required to be rendered for entertaining the customers. Different types of marketing metrics like rate of customer conversions, ratio of leads to closed orders, growth in footfalls and also the rate of customer retentions are required to be incorporated by the salon. Development of a Communication Strategy Key message Target Audience Communication Channel Staff responsible Date/duration Budget Affordable and high-quality Salon experience Women, Men and children Television Sales and customer servicing 30-40 seconds slot AUD 3000 Affordable and high-quality Salon experience Women and Men Radio Sales and customer servicing 30 seconds slot AUD 2000 Offers, rebates, new service launches and products Women and Men Magazines and Newspapers Customer servicing and liaison Full and Half pager advertisements for alternative weeks for three months. AUD 80 Key launches, offers and rebates Women and Men Digital platforms Sales and Operational managers with IT Staffs Digital platforms are to be created for marketing of promos and other offers AUD 40 New launches, price offers, purchase options Women and Men Website IT, Operation staffs An effective website is needed to be developed and retained for attracting customers. AUD 40 Circulating news regarding new product and service launches, new stores and apps, customer testimonials, videos of customer servicing Women and Men Social Networks Subordinate staffs, managers and also customer servicing personnel Social networking platforms like Facebook, Twitter and blogs are needed to be created and updated to reflect new service launches and other new offers. AUD 50 References BizPlanDB, 2014. Hair Salon Business Plan. United States : BizPlanDB. Blythe, J., 2012. CIM Coursebook 08/09 Marketing Essentials. New York : Routledge. CIA, 2016. Australia. [Online] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/as.html [Accessed 6 October 2017]. Coughlin, P., 2011. Wedding Magic. United Kingdom : Penguin. Curtis, T., 2012. CIM Coursebook 07/08 Marketing in Practice. New York. Milady, 2013. Milady's Standard Esthetics: Advanced. United States : Cengage Learning. Salon Today, 2017. 9 Industry-Proven Ways to Market Your Salon and Build Your Brand. [Online] Available at: https://www.salontoday.com/article/82217/9-industry-proven-ways-to-market-your-salon-and-build-your-brand [Accessed 6 October 2017]. Stimpson, P. Smith, A., 2015. Business Management for the IB Diploma Coursebook. United Kingdom : Cambridge University Pres. Weliver, P., 2017. Mary Gladstone and the Victorian Salon. United Kingdom: Cambridge University Press. Whitehouse, L., 2014. Cosmetics arena getting competitive in Australia. [Online] Available at: https://www.cosmeticsdesign-asia.com/Article/2014/04/03/Cosmetics-arena-getting-competitive-in-Australia [Accessed 10 October 2017]. Working Down Under, 2015. Can you cut it in Australia? [Online] Available at: https://isagroupuk.co.uk/wp-content/uploads/2015/05/Hairdressing-in-Australia.pdf [Accessed 6 October 2017].

Stage of Industry Life Cycle Samples †MyAssignmenthelp.com

Question: Discuss about the Stage of Industry Life Cycle. Answer: Stage of industry life cycle The term industry life cycle is used to identify the evolution of a business industry that is based on the characteristics of the industry in the market. As per Esteve-Prez, Pieri Rodriguez (2017) industry life cycle can be classified into four broad sections that justify the longevity of an industry. These include development, introduction, growth, maturity and decline. The development and introduction phrase is the startup phrase in which an industry develops a product or service with limited information available to the public. The second stage is associated with the understanding of the customers about the value of a product. A product reaches maturity during its slow growth with the focus shifting to new products. This ultimately leads to the decline of the demand for the product and it fades away from the market in a slow manner (Tavassoli, 2015). The case study analyses the industry life cycle of smart speakers and its importance in reputed companies like Apple, Google, Microsoft and Amazon. The analysis of the case study indicates the fact that the smart speakers are at a growing stage of development as the companies as well as the people are trying to come to terms with the product. Companies like Amazon and Google wants to remain with the roots of the business. Microsoft on the other hand felt reluctant to invest in the manufacturing of smart speakers. However, due to the competition and the change in time and technology, the use of smart speakers in phones, cars and at home has become significant. It has already been seen that the sale of the product is forecasted to be 62 million units by 2022. This is predicted to be a significant rise in the sale of the product since 2016. Hence, based on the evidence from the case study, it can be said that the companies need to deal with the challenges that may arise in the early sta ge of the industry life cycle. Recommendation In order to deal with the early stages of development of the product, companies like Apple, Amazon, Google and Microsoft need to understand the demand for the product in the market. The case study highlights an observation made by Watkins that shed light on the huge hype that products had witnessed at the early stages. However, it declined quickly as the products did not gain the potential recognition in the market. In the case of smart speakers, the demand for the product is unknown as most people would prefer useful technologies. Hence, the companies need to conduct a proper analysis of the market before launching the product. Furthermore, recent technologies also need to be added to the product in order to make it multi-functional and prolong the longevity of the smart speakers. The companies also need to use the reputation it has in order to promote the product in the market. Unlike other times, proper information about the product needs to be provided in order to increase the po pularity of the product. Bibliography Arikan, A. M., Stulz, R. M. (2016). Corporate acquisitions, diversification, and the firm's life cycle.The Journal of Finance,71(1), 139-194. Bakman, L., Hashai, N. (2017). Industry Life Cycle, Product Type, and Level of Exploration in Entrepreneurial Knowledge Intensive Firms. Inthe world scientific reference on entrepreneurship: Volume 3: Sustainability, Ethics, and Entrepreneurship(pp. 363-393). Esteve-Prez, S., Pieri, F., Rodriguez, D. (2017). Age and productivity as determinants of firm survival over the industry life cycle.Industry and Innovation, 1-32. Tavassoli, S. (2015). Innovation determinants over industry life cycle.Technological Forecasting and Social Change,91, 18-32.