The Management of Myer Company - Case Study Example

Name: Tutor: Course: Date: University: Management report Ms. /Mr. /Mrs. (First Name, Last Name), Expert management consultant, Myer Company, Docklands VIC 3008, Melbourne, Victoria . Myer Support Office, 800 Collins Street, Docklands VIC 3008, Phone: +61 3 8667 6000. Ref: MANAGEMENT REPORT Its pleasure in forwarding this report on the management of Myer Company. Myer Company is implementing a number of strategies to help it achieve its set objectives. SWOT and Michael porter's competitive 5 forces analysis the strengths, weakness and opportunities and threats by Myer Company. .According to SWOT analysis, Myer Company has a strength of implementing the strategy of an Omni-channel, a new plan on adding exactly 15 new stores in a duration of five years as from the year 2009. The other strengths Myer Company has is, carrying out its business online. This helps it reach many clients globally. The other strengths of this company according to SWOT analysis is that, in terms of finance the company is making a significant profit each year. . Myer company several weakness according to the SWOT analysis. One of the weakness is that, the company fails to leverage the owned channels first, and then paid followed by events. Failing to maintain a strong and flexible balance sheet, is the other weakness Myer Company has from the trend analysis in the previous years by SWOT. For the opportunities and threats, Myer Company can be the best company in the market according to the analysis by both Michael porter's competitive 5 forces and SWOT. For example, in comparison with some other companies, it has a P/E ratio of 10.33 whereby in the market it is at 16.6. For the P/B ratio, it has a figure of 0.93 while in the market is at exactly 1.31. The company has a P/E growth of 10.00 whereas at the market is at 2.41. The P/S ratio of the corporation is 0.31, whereby 1.61 is the figure in the market. If this company can exploit this opportunity, it can be the best in terms of making profits. The other opportunity this company has is marketing trends, whereby if it can adopt a marketing strategy like online marketing, it can be able to reach high number of clients thus making higher profits. I would like to thank Myer Company CEO, Bernie Brookes for giving me an opportunity to work with him on this report. Any question the company, CEO may have regarding this report is highly appreciated at the scheduled meeting next time. Michael Porter's Competitive 5 Forces According to Michael porter's competitive 5 forces, Myer Company also has a strengths in leadership ability whereby it embraces eight leadership styles based on the theories of Isabel Briggs and C.G.Jung. Michael porter's competitive 5 forces has it that, Myer Company has a weakness of lacking social furculum for their communications strategy whereby it fails to attract many customers as expected Analysis made by Michael porter's competitive 5 forces, shows that Myer Company also has a goal of strengthening their commitment as well as setting their course. This goal that is under sustainability 2015 goals of this company, it refers to sustainability as conducting their business to assist them make profits in their business. Michael porter's competitive 5 forces suggests that Myer company has an opportunity of marketing trends, whereby if it can adopt a marketing strategy like online marketing, it can be able to reach high number of clients thus making higher profits Yours sincerely Signature Name Expert management consultant As an expert management consultant with a main objective of helping Myer Company improve their performance, operating primarily throughout the analysis of all the already existing problems and growth of plans for advancement in this particular company is required. Being aware of the company best practices it becomes easy to analyzes this company to ensure it is the best as compared to the other companies dealing with the precisely the same products Myer Company deals with. This company believes that on its strategy of online, it has to be landing real goals. It targets that in the next year or two, it will be able to demonstrate whether the department store retailers can hold to be the leading players in the new space. This strategy has an aim of making the company be able to reach the customer worldwide. To implement this strategy, Myer company has a plan of spending approximately $30 million on coming up with the online business in the next 12 years after launching its E-Commerce Store. Restricting is the current strategy this company is using to help revive its business after a number of years of underinvestment. It has a current plan of adding exactly 15 new stores in a duration of five years as from the year 2009. These new sites had a target of emerging metropolitan regions growth corridors and regional cities that are initially under-representation by the department stores. The new hubs required to be driven by the population and the earnings growth. For the long term plans, this company aims at expanding the store to about 100 sites nationally. Also, in order to counter online competition, Myer limited is rapidly implementing a strategy of an Omni-channel. This company is also focusing on increasing sources with a higher margin whereby it acquires brand products directly from the reliable suppliers they work together with a common goal. For the half-year that ended on 26 January 2013, Myer company holdings reported NPAT increase of 0.7% to 87.93 million. For the revenues resulting from ordinary activities, they were $1.73 billion which was an increase of 1.7% from the same passé in the previous year. The diluted EPS was about 15.0 cents as compared to 14.9 cents for the year 2012. The company’s net operating cash flow was initially at $228.71 million in comparison with $185.89 year 2012. Myer company interim dividend declared was exactly 10 cents as compared to the same figure in the previous year. In the market comparison of Myer Company with some other companies, it has a P/E ratio of 10.33 whereby in the market it is at 16.6. For the P/B ratio, it has a figure of 0.93 while in the market is at exactly 1.31. The company has a P/E growth of 10.00 whereas at the market is at 2.41. The P/S ratio of the corporation is 0.31, whereby 1.61 is the figure in the market. Myers Company has a variety of plans, whereby for example CEO Brookes being the ninth largest shareholder of the company achieved a 4% pay increase in as per the last reporting duration of the company while the company profits fell 14%. The company has come up with the new plan whereby the senior executives will take on and exclude the CEO. This is to help test and analyze if the company can make a higher profit. Analysis by SWOT shows that Myer Company has some leadership goals to enable it shines when it comes to doing business and competing with its competitors. This company embraces eight leadership styles based on the theories of Isabel Briggs and C.G.Jung. The approaches require that, in order to be a full filled and an effective, finding an appropriate balance is primary requirement by a company. For this company preference, its leadership profile is a unique combination of preferences for the eight styles whereby it focuses on ensuring that it balances all of them. In contextual demand, Myer Company chooses a leader according to their context and culture whereby a particular person can be able to lead a company towards meeting its goals[Man02]. Analysis made by Michael porter's competitive 5 forces, shows that Myer Company also has a goal of strengthening their commitment as well as setting their course. This goal that is under sustainability 2015 goals of this company, it refers to sustainability as conducting their business to assist them make profits in their business. Providing their customers with the highest standard of service and making sure that it consistently meets and exceed their customers shopping expectations being the Myer company mission and statement. This enables it to be among the best company in the market as it provides quality services and products to their customers[Sch11]. Since once goals and objectives are developed, the following step is to determine the best strategy to attain them. Growing a business may involve a strategy of reaching out to new segments, or it might even involve the development of new products and services or a change in pricing for their products and services the offer[Her07]. Some other goals and strategies I would suggest for this company is to maintain a strong and flexible balance sheet. It should also have a goal of investing within their growth platforms for value creation. It should also have a strategy of the drive since drive earnings tend to grow faster than sales growth. The last strategy is to focus on markets that already have a strong, sustainable profits and profitable potential. The other approach I would suggest for this company is to make social the furculum of their communications strategy. In this case, social refers to how the modern consumer has grown accustomed to communicating. The other strategy I would recommend for this particular company is to use paid and another media buttress the core social policy .for this case, paid offers a way to amplify qualified, relevant content that is desired and accepted with open arms by the consumer . Paid media strategy is informed by what the company learns regarding the brand audience through their consistent interaction with the customers on social thus maximizing the effect of every spend. The other strategy I am recommending for this company as the expert management consultant is to leverage the owned channels first, and then earned, and then paid followed by events. As the of the marketing strategy, this company putting whatever financial resources are significant towards fielding and operating world-class Facebook pages, Twitter feeds , interests among some other platforms as they may be the most appropriate for the brand the company is dealing with. References List Man02: , (applications, 2002), Sch11: , (Schermerhorn, 2011), Her07: , (Hero, 2007), Read More