W. Woolworths, a subsidiary of its US parents, was found in UK in 1909 as part of its parent company’s global expansion plan. The first store opened in Liverpool, and than spread throughout UK. F. W. Woolworths was afterwards listed on the London Stock Exchange (LSE) with its US parent retailing a majority shareholding. The merchandise was concentrated on selective ranges, which remain at the core of the Woolworths product range today. During 1980s, management rationalised the offer further into clearly defined categories: entertainment, home, kids (toys and clothing) and confectionery.
In the 1990s, the management extended the Woolworths brand into other retail formats and alternative channels to accelerate growth by taking advantage of changing retail trends. This resulted in the opening of the first big ‘W’ store in 1999 and Woolworths General Store in 2000. 2. Woolworths business activities and its position in retail market. Woolworths Group plc is principally a UK retailer focused on the home, family and entertainment. It offers its customers value-for-money on a comprehensive range of products.
Woolworths main-chain, which comprises 808 of the Group’s 911 retail stores, is a high street retailer for consumers everyday general shopping requirements. Its strategy is to tailor its product ranges and store sizes to meet the distinct market needs of customers in different locations. The group also operates the entertainment businesses like E. UK, VCI, MVC and Streets Online E. UK is Britain’s largest wholesale distributor of home entertainment products whilst VCI is an audio-visual publishing group. MVC is a specialist high street retailer of entertainment products with 85 stores.
Street Online, one of the UK’s leading specialist online entertainment retailers, was acquired in December 2000 to add to the MVC high street store chain. The aggregate wholesaling, distribution and retail turnover for these entertainment businesses was in over ? 1 billion for the financial year ended 3 Feb 2001. The Group operates in the UK general merchandising market, which is both large and highly divided, with participants of varying sizes and covering different category mixes. The overall market in the UK targeted by the Group was estimated to be worth over ? 30 billion in 2000.
General merchandise category Category size % Compound 2000 annual growth rate (? Billion) 2000 – 2005 Entertainment 4. 9 8. 2 Toys 2. 5 5. 9 Home/ house wares 9. 5 5. Confectionery 10. 5 3. 5 Children-wears 3. 5 1. 5 The Group is the UK leader in retail entertainment in terms of consumer expenditure. Entertainment is a high growth category driven by music and multi media, in particular, the rapid growth of DVD as a new format and the launch of new games consoles and related software’s. 2. 1. Woolworths status on stock Market
Woolworths Group plc began trading as a listed company on the London Stock Exchange on 28th of August 2001. In a highly competitive UK market, which proved a tough trading environment, Group’s sales were up by 4. 5 per cent to ? 2. 7 billion. The share price closed down approximately at 30. 2p(appendix1) The markets focus more on like-for-like sales growth of just 1. 2 per cent, where as analysts forecast had ranged from 1. 0 per cent to 2. 8 percent? Woolworths has been cutting costs, improving stock management and focusing on making the firm “famous for kids and celebration” to turn around years of underperformance.
In the six weeks period to 11 January 2003, like-for-like sales at Woolworths high street stores rose 1. 5 per cent, where as sales at out-of-town big “W” stores, reported by some analysts, rose 6. 2 per cent. Total Groups for the six-week periods grew 5. 8 per cent. (The Scotsman, Fri 16 Feb 2003) The trend below shows the, 2 years, share price performance of Woolworths Group plc. , in All Share Index (ASX): [pic] Source: www. advfn. com PART-B 3. Estimation of the cost of sources of finance of Woolworths group plc 3. 1. The cost of equity capital (KE) The cost of equity capital can be calculated by using the Dividend Growth Model.
The UK has what is referred to as an Imputation system operating as far as corporation tax is concerned. Dividends are not allowable expense against corporation tax, and their only effect in terms of KE is to bring forward in time of payment of part of the corporation tax liability. This portion of company’s overall tax liability is known as Advanced Corporation Tax (ACT). With dividends expected to grow at a constant rate in perpetuity, and assuming that the mainstream corporation tax liability is paid twelve months in arrears, the dividend growth model can be stated as:
Leadership and Governance
Leadership and Governance.
Assignment: Leadership and Governance
Assignment Content Write a 700- to 1,050-word paper that evaluates the difference between leadership and board governance in establishing strategic planning for a health care organization. Cite 3 reputable references to support your assignment (e.g., trade or industry publications, government or agency websites, scholarly works, or other sources of similar quality). Format your assignment according to APA guideline
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