Global Management Report - Assignment Example

The company uses the number to strategize on long-term sustainable growth. The annual report of 2014 indicated a 4.3% market share above top competitors such as Kantar Grocery Market (Johnlewispartnership.co.uk, 2015). Operating margin is measured in percentage and often expressed as a part of the revenue (Marr, 2012). John Lewis uses operating margin to measure or indicate its overall profitability. The company uses the data to evaluate the pricing strategy and operating efficiency. The company generated an operating margin of 5.

2% in 2014 due to pension operating and restructuring costs. John Lewis uses this measure to know the amount of profit left after cost and expense deductions are made. The deductions must be made before partnership bonus, tax and exceptional item. The company knows its trading strength when it utilizes profit before partnership bonus, tax and exceptional item. John Lewis struggled with increased pension cost in 2014 and generated $375.9M. Group profit margin is a percentage of revenue and is expressed through profit before partnership bonus, tax and exceptional item (Marr, 2012).

John Lewis uses group profit margin measure to know how its profitability is changing with different revenue levels. The company generated a group profit margin of 3.6% after exceptional item was included (Johnlewispartnership.co.uk, 2015). Measuring the amount of cash generated through group business operation is essential for John Lewis. John Lewis group uses cash flow from operations measures to ascertain if there is adequate positive cash flow to sustain its operation and indicate the need for external financing.

The cash flow is generated from Group business operations. Normal pension contributions went high in 2014 and contributed to $784M cash flow. The figure was also attributed to low improvements in the company’s working capital. The company’s process of acquiring physical and intangible assets such as