The Current Financial Position of Super Retail Group Essay

6836 Words Jun 14th, 2013 28 Pages
Objectives of the report
The objective of this report is to analyse the current financial position of Super Retail Group (SUL) and to determine whether the company’s organization structure, equity and assets are efficiently managed. This report will introduced the current status of the company and will examined several analysis used to determine if the company would be a good financial investment and where the future of the company looks like. Finally, report will examine the recommendations suggested and will present a summary if the company is deemed as a good investment.
Company Identification
The company started in 1972 by Reg and Hazel Rowe as a retailer of auto parts, auto accessories, auto tools and equipment and began expanding
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Growth across the consumer goods market will be negatively affected by a rise in the number of consumers choosing to shop online due to the vast product range, competitive pricing and lack of GST payable on goods purchased from overseas retailers. IBISWorld (2012) reported that the largest product segment is clothing, footwear and accessories. This segment has contracted by 0.7% per annum in the five years through 2011-12. Sales growth in the clothing retailing industry is affected by fashion fads and consumer preferencesIndustry Analysis will be done using Porter’s ‘Five Forces Framework’ to analyse the profitability of this industry as a whole and the current position of SUL in the industry
Force 1: Rivalry among existing firms The rivalry in the retail industry is fierce where a large number of firms compete for the same customers and resources, leading to struggle for a market leadership. As a major player in the retail industry, SUL has the upper hand in the market for being a cost leadership firm and successfully able to diversify its business into several different segments such as auto parts provider, leisure retailing, logistics and sporting goods retailing. This allows SUL to minimise the risks of being in a fiercely competitive market and is be able

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