Premier Investments Swot Analysis

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3. SWOT Analyses An analysis of the Premier Investments position will help to see which are the strength and the weakness, which are the threats and the opportunities that Premier Investments has and will face in the future. This will help managers to determine what needs to be done. a. Strengths a. It is a global company – Premier Investments’ is operating globally. It has opened more than 100 stores in Australia, New Zealand, Singapore and more than 200 stores in the UK (Business Insider Australia, 2015). Smiggle is going global which is expected to open up 50 new stores across Hong Kong and Malaysia over the next five years (Business Insider Australia, 2015). After the decision to go global and online sales, sales for Premier investments’ …show more content…

Balance scorecard is a tool that is used to measure the organisation performance across the organisation is four prospective: financial, customers, internal business processes and learning and growth (Kaplan, R., Norton, D.,1996). Balance scorecard suggest financial and non-financial measurement. Some of which are below: Financial measures: a. Inventory turnover - measures the number of times inventory was converted into sales during a time period (Elias, 2010, pp. 179 -280). A high inventory turnover indicates that Premier Investments sales are generated. It can be calculated: Inventory turnover = Sales ÷ By Average Inventory b. Return on assets ROA – which measures how profitable is a company in relation to its total assets (Elias, 2010, pp. 179 -280). This ratio will help Premier Investments to make an analysis of how efficiently they are using their assests. ROA = Net Profit ÷ Average Total Assets c. Gross Profit Margin - measures how much is left from every dollar revenue after paying cost of goods sold (Elias, 2010, pp. 179 -280). This is a ration that Premier Investments should monotone constantly to make sure that gross profit is covering selling and administrative expenses. It is measure as: Gross Profit Margin = (Gross profit ÷ Sales revenues) x

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