Strategic Management of the Next PLC Coursework Example | Topics and Well Written Essays - 750 words

Strategic Management of the Next PLC - Coursework ExampleThe present study would focus on Next as a UK based seller offering exciting, beautifully designed, excellent quality fashion and accessories for men, women and children together with a full range of homewares. Analyzing the 2010 and 2009 financial reports of Next PLC it shows that the self-colored has been earning constant revenue and wherefore the profit for both the stratums has also increased by almost 21%. Accordingly, the firm has also increased its base and diluted earnings per share. The basic earnings per share in 2009 and 2010 were 156 and 188.5 pound per share. In 2010, the nub assets of the firm stood at 1693.5 while in 2009, the total assets of the firm stood at 1760.4. In 2010, the total liabilities of the firm stood at 1560.1 while in 2009 the total liabilities were 1619.9. The total assets of the firm decreased by 3.8% in 2010 as compared to 2009 similarly the total liabilities also decreased by 3.8%. Nex t is a UK retailer whose principal activities are excellent quality clothing and home products. The primary financial objective of the group carcass the delivery of sustainable long term growth in earnings per share. The industries in which Next plc competes are mainly the departmental stores, the retail sector, the brake shoe and the apparel industry. While next plc has a number of competitors, its main competitors are Arcadia Group, ASDA group, Body shop, Marks & Spencer Plc etc. Arcadia group has more than 2540 stores operating only in the UK. The one year growth of the firm as on August 2010 has been nearly 33% while the increase in net profits has been around 11%. Body shop PLC has also declared 44.9% of its profits as dividend in the year 2010 while in the year 2009, 43.9% has been declared as dividends. comparability the two years 2009 and 2010, body shops assets and liabilities had grown by around 3.2% in 2010 as compared to 2009. Recommendations Among its competitors Next Plc has suffered negative profits in the year 2010 as compared to the year 2009 but yet Next Plc has an established market in comparison to its competitors. The Internal Analysis of strengths and weaknesses focuses on internal factors that give an plaque certain advantages and disadvantages in meeting the needs of its target market (Internal Analysis 2010). The firm is recommended to increase its profits through increasing its sales. External analysis rival (Existing Firms) There is no such rivalry between existing firms other than capturing the market share. External analysis consist of the Porters five forces in analyzing the firm which let in the firms rivalry between the existing firms, the firms bargaining creator among its suppliers, buyers. The threat of new entrants into the market and the threat of the product motley are also included in Porters five forces. The industry forces take the form of competitive rivalry, barriers to entry, threat of substitutes, buyer power, and supplier power (Lynch 2003). Bargaining Power of Suppliers Supplier power is increased if there is a high degree of rivalry between companies trying to obtain the supplies (Porters Five Forces n.d.). The firm has a number of suppliers and in 2009 10 there were 463 suppliers while in 2010-2011 the supplier base has increased to 492. Next works directly with it suppliers and monitors the suppliers progress. The firm uses six tier rating system as a supplier management tool. Bargaining power of buyers Next Plcs buyers are its retail customers. Next provides excellent customer service and lays high importance in maintaining good relation and