Managing Operations and Finance Essay Example | Topics and Well Written Essays - 2500 words

Managing Operations and Finance - Essay modelingMoving forward, the paper presents a comparison of the afoot(predicate) and last year monetary death penalty of the partnership through financial statement ratio compend. The master(a) reason to conduct a ratio analysis is to quantify the results of the operations of a guild and compargon them with that of the prior year(s) in order to assess several(predicate) aspects of the financial feasibility. The ratios are divided into profitability, liquidity and gearing ratios. The paper identifies the areas, through ratio analysis, where the company is execute well and where it needs improvements. In conclusion the paper presents a comparison of the financial and operational performance of mark and Spencer with one of its primary competitors, Debenhams. Major financial ratios are compared and in addition, historical share prices are also analyzed of both companies in order to identify which company has a better trade capitalization and better reputation from investors perspective. Operating Performance of the Company Marks and Spencer, an internationally acknowledge name considered analogous for high fashion and trend setting quality. Marks and Spencer is regarded as the premier retail merchant in the United Kingdom catering more than 21 million customers. Keeping in rate with the globalization, the company is planning to expand its business in other frontiers. As per the audited financial statement of the company for the financial year 2010, the company employees more than 76,000 and has its operations expanded to more than 41 countries in the world. Marks and Spencers well established business attracts a great deal of consumer base irrespective of demography. The primary business of the company comprises of selling general merchandise which mainly consists of womenswear, menswear and an expanding kids wear. The company, through its lively and effective marketing tactics, has able to capture market share of around 11.0% by value and 11.2% by volume. Another source from where the company earns a great deal of its revenue is through selling pabulum items. Marks and Spencer is the leading provider when it comes to selling fine quality provender. The company sells everything from fresh meals to canned food items, highly acclaimed and praised range of wines to other groceries products. The company has change its shelf availability and has adopted the strategy of vicissitude its food range. The proactive approach has resulted in an profit of 1.8% in sales revenue from food business. The financial year 2010 proved to be another progressive year for Marks and Spencer. During the current year, Marks and Spencers revenue increased by 5.2% during the current year to an impressive ?9.5 billion which has caused the operating profit to increase by 9.8%. The company, following its growth strategy, aspires transform its operation into multi channel business. The company has taken major trave l in investing its direct sales business which enhanced the revenue by 27% during the current financial year. In addition, the company is actively following its strategy of refurbishing its stores and giving them a new and improved look. The refurbishment has resulted in an increased storage space and has created a fashionable shopping environment. The following plug-in compares the financial results of Marks and Spencer, for