Ted Baker Financial Communications - Case Study Example

Ted Baker Financial Communications Assignment By Location Introduction Ted Baker plc. is one of the most renown industry established in 1988 which operates the apparel textile industry. Over time, the company has been and is famous for selling accessorizes and designer clothing. Ted Company has invested much in the digital world where the company advises stylish ladies and the refined gents. Additionally the company has become famous because of the use of the social media platforms and the website. The social media and the website have become one of the most important strategies used by this company in advertising their products. His products are of high quality and unique design. It is a global lifestyle brand with 252 concessions and 110 outlets in 24 countries (Mewis 2009, p. 83). They succeed because they focus on long-term development. Performance of the company for the last 52weeks The company has witnessed an increase in profits by 26.7 per cent. The retail part of the organisation has also performed exceptionally well over the period. The company has also continued investing in other countries where they see that their brand is going to give them more profits. The wholesale supply of the goods has increased by 35 per cent. The licenced income has also increased by 18.4 per cent (Mewis 2009, p. 103). The company has not only focused on the supply of goods, but also the infrastructure and people who will later give them long term benefits. The company has also coordinated with the Microsoft in order for them to support Microsoft Dynamics systems of the business. Through the system, the company will streamline its operations. Current trading and outlook Over time, the company has performed exceptionally well in the trading sector. They have performed well in a competitive market because they mostly focus on the long-term investment of the company. They have ensured that the brand has circulated in all parts of the world. Apart from introducing the brand in the market, Ted Baker focuses on product awareness. They come up with strategies to ensure that they introduce the brand to a wide audience (Plunkett 2007, p. 99). That is an important marketing strategy that enables the people to know the company well and the products they supply. The company also ensures that their commitments and costs are controlled. Retail aspect of the business It is important for the suppliers to know the retail aspect of the organisation. The company opens up new retail outlets every financial year. Ted Baker also opened up an e-commerce site to ensure that they serve all their customers over time. Through the website, customers get information about customer experiences. The website content is done according to the language of the specific country(Plunkett 2007, p.89). The sales in the e-commerce sector have increased by 55.7 per cent. The e-commerce platforms provide opportunities for future growth. The retail outlets have been important to different countries because the parties interested learn about the products in their specific countries. Regulations In January 2013, the company has become subject to the additional requirement of the UK corporate governance code. The code ensures that the chairman should by appointment meet the set criteria in the code. The code also outlines how the principles have been applied in any business set up. Through the application of the code, the company regulates the management and ensures that all the activities run in accordance with the set regulations. The code also manages how the people should relate to one another in the organisation. The code also shows how some groups such as the board meet and the specific days, which they meet (Gordon 2014, p. 52). The code is responsible for all the management activities in the organisation. Regulation of the operational risks is very important because the company deals with all its threats. The supply chain is diversified, and the company meets the needs of a wide population because of its effective supply chain. The suppliers are treated as one of the most important key contributors in the business. The operational costs are also closely monitored to ensure that the cost pressures are easily identified(Plunkett 2007, p.23). Through the identification of the cost pressures, they are quickly controlled to regulate the cost inflation. The business plan is continually checked on and updated by the risk committee. There is also a continuous upgrade of the security equipment. Additionally, the company is continually involved in the internal control of the business which is an important aspect to ensure that all the activities of the business are done appropriately. Through internal control, the company ensures that material misstatements or loss does not occur(Lewis 2000, p. 34). The board also ensures that all the risks faced by the groups are identified and done away with. Thus, the operations of the business become easy, and the companies are able to deal with all the risks of the businesses. All the internal activities of the company are continually reviewed by the board. Historical cost The financial statements are prepared and approved in accordance with the International Financial Reporting Standards. The financial statements are closely monitored because they may affect the future of the business(Plunkett 2007, p.45). Financial statements are determined by liquidity position and the cash flows. The company puts into account the reasonable changes in trading performance. The financial statements and consolidated are prepared under the historical cost convention. Matching The brand identity, family ethos and culture attract a high calibre of the candidates. The external agencies are actively engaged in recruiting staff for the specialist roles. For Ted Baker Company to attain its goals it ensures that all the activities of the business run effectively. The group ensures that it compensates an individual who leaves a certain employer to join their group. The committee is committed to matching any expected value of awards. Going concern The company adopts the going concern in preparing the financial statements. Through the process, the directors view the long term projections and the budgets. After carrying out the budget procedure, the company ensures that all the resources are available to sustain the future of the business. The future of the business mainly depends on the budget(Lewis 2000, p. 34). Prudence The activities of the company mainly focus on the future of the business. That is why the company takes into account the social responsibility of the company. The details in social responsibility mainly focus on social, ethical and environmental aspects of the organisation. All the factors focus on the sustainability of the business. Consistency The key performance measures are supposed to be consistent. The company ensures that it caters for the needs of all the people in the organisation. As a result, it considers aspects such as gas emissions, which may pollute the environment thus affecting the people. Thus, all aspects of the organisation are constantly checked. Profitability, efficiency and performance Ted Baker Company always aims at increasing their profits every year. Thus, they analyse all the trends to capture consumer loyalty and market share. They have built and ensure that they manage a quality supply chain that responds to all the customer needs. They focus on the forces of demand and supply to ensure that they meet all the customer need as they continually make profits(Balboni& Barbara 2006, p. 63). They ensure that there is efficiency by delivering a high level of product availability. They reduce the transportation costs and focus on efficiency across all the areas of the company. They optimize the marketing strategy to focus on investment to return on investment and to maximize their sales. The company introduced segmentation of the market to bring in efficiency in all its operations. Through market segmentation, the company is able to know the needs of a certain market. Through market segmentation, the company increases its profits because the marketing strategy is done according to a specific market and the needs of that market. The company has also improved collaboration with suppliers and the entire value chain(Balboni& Barbara 2006, p. 72). There are also procurement efficiencies that are carried out to ensure that all the needs of the consumers are met by the company. The company records a revenue increase of 26.5 per cent. That is from £254.5m to £321.9m. It has also recorded a retail sale of £259.1m from £208.0m which is an increase of 35 per cent. Additionally, the gross margin for the group has decreased by 61.7 per cent, which reflects the increase in proportion of the total sales. The administration expenses have also increased by 19.7 per cent. The net payable throughout the year has increased from £612,000 to £133,000. The increase has facilitated the expansion of the business activities and the requirements of the company at large(Balboni& Barbara 2006, p. 63). The profits of the company have increased due to the establishment of different retail outlets in most parts of the world. Conclusion Ted Baker Company provides their brands to a wide population. That is why they look into the aspects of the culture of the individuals to ensure that the supply of goods is done according to the needs of the consumers. The company does not only introduce a brand to a certain market, but also explains the use of the product. They have a specific marketing strategy for the supply of the goods and services in the organisation. In the workplace, they believe in respecting the rights of the individuals. There are rules that have been put in place to cover bullying and harassment in the company. The employees are provided a conducive environment where they carry out all their activities effectively. Bibliography Balboni& Barbara (2006).2007 Means Heavy Construction Cost Data. Robert s Means Co. Gordon, J. (2014). My dog, my friend: heart-warming tales of canine companionship from celebrities and other extraordinary people. Lewis, W. D. (2000).Airline executives and federal regulation: case studies in American enterprise from the airmail era to the dawn of the jet age. Columbus, Ohio State Univ. Press. Mewis, B. (2009). RS Means repair & remodeling cost data. Kingston, MA, R S Means. Plunkett, J. (2007). Plunketts apparel and textiles industry almanac, 2007. [S.l.], Plunkett Research. Read More