The Assignment on Management Accounting

Running head: MANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

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MANAGEMENT ACCOUNTING
MEMORANDUM
DATE: 21st January, 2020
TO:
FROM:
SUBJECT: MANAGEMENT ACCOUNTING ISSUES ON DAVID JONES
From certain official sources, it has been seen that because of the recession, the high end
department store has been cutting their jobs across the head office. This is being done so that
the organization can cut some of the expenses as the sales has been decreasing for the
organization. David Jones is the Australian departmental store that has been owned by South
African retail group Woolworths Holdings Limited from the year 2014. Some of the
departmental stores has been shut, as they are not earning profit and for this it cannot afford
to keep that much of employees and keep the stores open.
The implementation of strategy is not easy as it can affect the functioning in the operations of
the organization. The change can always be accompanied with the lower output and also
slowdown of the overall process. If David Jones wants to overcome the issues that they are
facing related to the management, it is very much important to change the strategy and to
follow some solutions. It is important for the management to encourage certain staffs so that
they can come up with some problem solving ideas and also to listen back to the feedback
upon that. The management firstly should found out the problem upon which they should
work upon and solve it. It was really a shocker for everyone as David Jones announced the
closure of more than 30 stores to close over the period of thirty years.
The SWOT analysis of David Jones has been presented below related to the management.

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MANAGEMENT ACCOUNTING
Strengths: As David Jones is one of the oldest departmental store in Australia, it does have a
goodwill in that region. The consumers do have loyalty upon the organization and the goods
that they deliver. They do offer a wide range of high quality products of the international
brands related to the fashion, living and beauty. They do offer products through multiple
channels like website, stores etc., but still the prices that they offer are competitive. The
market position has been helped in acquisition with the Woolsworths Holdings.
Weakness: Due to the global financial crisis, the David Jones is suffering from weak
financial crisis as it has a difficulty in the trading conditions and also in changing the
sentiments of consumer. The sale of the David Jones is also decreasing day by day due to the
online retailers internationally. The capital that is being invested because of refurbishment of
store can lower the cash flow.
Opportunities: The merger helped David Jones to become one of the largest departmental
store that offer highly value proposition. The store always deliver the fashion focused items
that does have a really good market presence.
Threats: David Jones does have the threats from the retailers internationally that have some
of the established sector which has been in the region of Australia. One of the biggest threats
that David Jones is facing is the international retailers which is in the sector of online
retailing.
The financial position of David Jones is usually due to the global financial crisis, this
happened because of the difficulty in the trading conditions and change in the sentiments of
consumers. The revenue of David Jones has decreased over the years as there has been
challenge in the trading environment and also there should be change in the strategy so that
they can improve the revenue margin rather than closure of the several stores in the coming
years.