To domestic furnishing products in Australia through physical

To discuss whether  investors should invest Adairs or not. There
are several accounting and financial analyses according to Adairs 2016/2017
annual report. For this report, there are three sections will be discussed  which are business strategy analysis, financial Analysis
and Accounting
Analysis respectively.

For business strategy
analysis ,this part  pays attention to
discuss Adairs industry and company analysis. Then using the five forces framework
to narrate the competitive forces. After that, company’s competitive and
corporate strategy will be discussed .At last, SWOT analysis
would be evaluated for the company’s strategy.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

For accounting analysis, in
this part,there are several questions will be  explained. First,
identifying  the accounting policies and the application of Adairs Limited. Second , Why Intangible Assets
 considered
as the key accounting policy for
Adairs? What the relationship between the accounting policy and the business strategies of Adairs? Thirdly, which parts should be used judgement of management. At last, what the advantages
and disadvantages compare Adairs and competitor by using accounting policy regarding intangible assets.

For
financial analysis, to begin with Ratio
Analysis, including profitability, assets efficiency and financial Management. Then, analysing the impact of  macro
factors
and performance for Adairs. Finally,
there is a cash
flow
analysis and discuss a number of  cash flow
management problem.

 

 

 

 

Business Strategy Analysis

This section performs a business strategy analysis for
Adairs Ltd. This section shall analyse both the industry for Adairs and the
company. From the industrial perspective, this section shall analyse the macro
environmental factors following the PESTEL model, and the competitive
environment using the Porter’s Five Forces model. From the company perspective,
this section shall analyse the strategy of the company and performs SWOT
analysis of the company. This section shall discuss the prospect for growth for
the industry and the company.

Industrial Analysis

Adairs Ltd is a major supplier of domestic furnishing
products in Australia through physical stores and online channels. The company operates
more than 150 stores across Australia and New Zealand with recent expansion
into foreign market (Adairs Limited, 2017). From a broad level of
classification under the GICS industry group, Adairs falls in the retailing
industry (ASX, 2017). On a narrow classification based on Adairs’s main product
and target market, the company falls in the Manchester (linen) retailing
industry (Lo, 2016). This section shall discuss the environmental factors and
competitive forces focusing primarily on the narrow industry where possible.

Macro Environment Factors

This section shall discuss the impact from
political, economic, social, technological, environmental and legal factors on
the industry in which Adairs operates. The international political factors do affect
the industry because different steps in the value chain of the industry locate
in different regions in the world. The primary growing and manufacturing
suppliers locate in Southern East Asia. The recent unstable political
environment in Thailand, Myanmar, and Philippine are likely to increase the
cost of the industry. The economic factor is not favourable, yet stable for the
industry. The industry performance is closely linked to household discretionary
income, which grows slowly for