Paper on Determinants of Profit in General Retail Sector
Added on 2020-04-21
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Running head: DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTORDeterminants of profit in general retail sectorName of the Student: Name of the University: Author’s Note:
1DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTORExecutive SummaryThis paper has been framed in order gain the understanding about the impact of financial differences that is prevalent in case ofhome improvement retails of Kingfisher Company. The other three companies such as Home Depot Inc., Lowe’s Company Inc. andTESCO are also discussed here. The introduction of the paper discusses about the financial condition and its different aspects that areavailable in the home improvement retails. It is seen that there are various dimensions that have an impact on the financial conditionof the organization. With the advent of globalization, various employees enter the market of retail industry of Kingfisher. The problemstatement of the topic along with the aims and objectives of the research are even discussed in order to create a clear idea about thefactors that would be taken into consideration in this paper. The research questions would be answered in this paper and therefore areconstructed in this paper. The literature review reveals the suggestions that have been given out by the researchers who haveundertaken research on similar topics. The methodology of the research comprises of positivism philosophy, deductive approach andquantitative research design for the completion of the paper in an effective manner. Descriptive research design is even used in orderto understand the responses of the participants explicitly. The data has been collected with the help of questionnaire and comprises ofthe close-ended questions. Then, we start the secondary data research with the help of other three retail sectors of UK. The analysis ofthe data has revealed that there is an impact on the financial marketing from retail industry and with the implementation of variouspolicies that could be implemented. The comparative study of budget of four retail sectors is provided in the report.
2DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTORTable of ContentsChapter 1: Introduction................................................................................................................................................................................41.1. Background of the Study..................................................................................................................................................................41.2. Problem statement for the research...................................................................................................................................................51.3. Rationale for the Study.....................................................................................................................................................................51.4. Research Questions...........................................................................................................................................................................61.5. Research Aims and Objectives.........................................................................................................................................................61.6. Research Methodology:-...................................................................................................................................................................61.7. Structure of the Research paper........................................................................................................................................................7Chapter 2: Literature Review.......................................................................................................................................................................72.1 Introduction of objective of chapter:.................................................................................................................................................72.2 Subject Matter of Research................................................................................................................................................................82.3 Elaboration of Research Question1.................................................................................................................................................102.4 Elaboration of Research Question2.................................................................................................................................................112.5Elaboration of Research Question3..................................................................................................................................................112.6. Elaboration of Research Question4:...............................................................................................................................................122.7. Elaboration of Research Question5................................................................................................................................................152.8. Conclusion of Literature Review....................................................................................................................................................16Chapter 3: Research Methodology............................................................................................................................................................163.1. Introduction:...................................................................................................................................................................................163.2. Research Philosophies:...................................................................................................................................................................163.3. Justification of Research Philosophies:..........................................................................................................................................163.4. Research Design and Justification for choice:-..............................................................................................................................173.5. Qualitative and Quantitative data Collection: -..............................................................................................................................173.6. Research Methodology and Justification: -....................................................................................................................................183.7. Validity and Reliability of data: -...................................................................................................................................................183.8. Ethical Considerations: -.................................................................................................................................................................183.9. Limitations of the Study: -..............................................................................................................................................................183.10. Conclusion of the chapter: -..........................................................................................................................................................19Chapter 4: Data Analysis and Findings.....................................................................................................................................................194.1. Introduction and Objective: -..........................................................................................................................................................194.2. Sample Characteristics: -................................................................................................................................................................19
3DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTOR4.3. Data Analysis for Objective1: -......................................................................................................................................................194.4. Data Analysis for Objective2: -......................................................................................................................................................214.5. Data Analysis for Objective3: -......................................................................................................................................................214.6. Data Analysis for Objective4: -......................................................................................................................................................244.7. Data Analysis for Objective5: -......................................................................................................................................................244.8. Conclusion: -...................................................................................................................................................................................25Chapter 5: Conclusion and Recommendations..........................................................................................................................................265.1. Introduction and objectives.............................................................................................................................................................265.2. Review of Research Objectives......................................................................................................................................................265.3. Findings and Answers to the Research Questions..........................................................................................................................275.4. Recommendations...........................................................................................................................................................................27Annotated Bibliography:...........................................................................................................................................................................28
4DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTORChapter 1: IntroductionIn the present consistently changing worldwide business environment especially in Europe, the issues related with influence ofretail industries in home development for knowing about these numerous outputs have gained significance. The reason is that thecompanies operating in the economy have been able to attain success. The importance of culture and variations in types of homedevelopment has turned out to be particularly essential especially for the companies performing in the global markets and comprisingof employees (Moran, Abramson and Moran 2014). It has been viewed home improvement retails have a significant impact on theperformance of Kingfisher and therefore the company needs to look into various aspects that are associated with home improvementin their day-to-day activities in order to operate significantly in the worldwide economy (Burton 2004). Here, we are also interested inthree more home improvement retailing companies that are – 1) Home Depot Inc. (Home retail group). 2) Lowe’s Companies Inc 3)TESCOThe influence of retail marketing strategies on profit performance was investigated for a sample of four companies for theperiod of five years (2013-2017). Sales growth, market share, capital-to-labour-ratio and average inventory were found to besignificantly associated with profit performance as hypothesized (Burt and Limmack 2001). In this report, we are eager to evaluate thefactors and select retail-marketing strategies.This section of the paper therefore would introduce the topic that is under consideration by discussing the home developmentand even providing an elaborate idea about the background of the study. This would be influential for the construction of the researchobjectives and the identification of the problem statements that would lead to the construction of the research questions (Reynolds etal. 2005). The proper construction of the introduction of the paper would aid the researcher in completing the paper precisely. Thedetails of all four retail companies and their budget accounting factors are discussed below.1.1. Background of the StudyImpact of retail market has significant factors for every single company that are functioning in every kind of industries. Asclarified by Hemmert, Bstieler and Okamuro (2014), these perceptions have turned out to be considerably more fundamental for theconstruction of the paper with respect to the construction of the agreements, internationalization of the several procurements, jointventuring and collaborating in accordance to the retail industries. The retail market depends upon customer loyalty. Homeimprovement and furniture retailers have found the relation between customer loyalty and customer satisfaction with the help of extraefforts (Casadesus‐Masanell and Zhu 2013). Corporate social responsibility (CSR) of the retailer influences the retail industry in caseof service quality (Buzzell et al. 1975). Service quality of a product can be perceived as the outcome of the assessment whereincustomer compares the expected product quality to the actual product quality (Alrubaiee & Al-Nazer 2010). The financial assessmentis done based on functional, technical quality and image of the retailer. The functional quality of the product evaluates the behaviouristattitude and usability of the home furnishing. The technical quality relates to the end use of the products of Kingfisher. The image ofthe retailer is also taken into consideration to assess the quality of the furnishing (Pahl and Richter 2007). It has been viewed in accordance to the other industries there has been an ascent in the important coalitions in the retailindustries and this in a way has even raised the significance of the impact due to the interaction of the employees in the retailindustries. It can enhance the viability of the organizations and give the companies an effective edge in the economy. SWOT analysesof the retail companies compare the interrelationship and competitions.Kingfisher is one of the leading DIY retailers of UK employing about 27000 full time employees. In the UK, the group hasnearly 360 B&Q DIY superstores. It includes 29 former Focus stores and a rapidly expanding chain of 215 Screwfix trade counters.
5DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTORThe group is one of the UK’s most international retailers with extensive overseas DIY interests. Kingfisher has more than 950 storesin eight countries in Europe and Asia.Home Depot Inc. (Home retail group) owns Argos, the UK’s high street and catalogue retailer. The home-base have secondlargest DIY specialist chain. Home Depot Inc. has almost 750 stores employing more than 30000 staffs. Its home base has more than340 edge-town-superstores with about 19000 employees. Home Depot Retail also owns the Habitat brand that includes the UKwebsite and three London stores, and stocks its products in store and online at home base.Lowe’s Companies Inc. is the UK’s largest home improvement chain and employs almost 75000 staffs. The retailer has closeto 2500 outlets. A vital piece of the company’s strategy is its advantage card that is thought to be the world’s largest smartcard loyaltyscheme with more than 17 million active holders in 2013.The TESCO stores increased substantially over the period (2011-2017) to 3739 stores. The multinational operating grocery andgeneral merchandise retailer TESCO PLC founded in 1919, employs over 500000 people worldwide. The product portfolio of TESCOincludes food and beverages, home appliances and financial services. TESCO is one of the leading supermarket brands in UK,consistently ranking highest in terms retail market share. 1.2. Problem statement for the researchThe statement of the issues has been implemented the researcher to construct a research with respect to the topic underconsideration. It is observed that with the introduction of liberalization and globalization there has been entry of new retail companiesin the market of UK along with the financial gain is subjected to several obstacles. Therefore, determination of the effects of thesedeterminants is required to be detected in order to construct various strategies (Broeren and Mary Ann 1981). Retail industries are akind of industry that keeps on developing with the advent of new and improved technologies and mechanisms and hence themanagement of the retail companies requires analyzing each aspect of their business (Rees-Caldwell and Pinnington 2013). The effectof orientation system among the employees needs proper supervision so that the companies could make use their advantages and incase of any discrepancies, the issues can be resolved and a better working environment along with a better bonding among theemployees could be established (Bauer and Matzler 2014). The present research aims to examine means of profit amount to advancefurniture and home improvement retail sector of Kingfisher between competitors that would lead to better economical and financialbenefits for the retailer. Due to entry of new retailers, employees with expertise in the arena of furniture manufacture and homeimprovement in a state of dynamics hopping from one retailer to another (Padgett 2016).Various limitations and constraints are related with every research thesis. With respect to this paper, it has been observed thatthe restriction of time has been one of the key factors that have limited the analyst to collect the data from the respondents accurately.It is even seen that gaining in-depth knowledge about the financial management of the retail industries has been significantly difficultand obtaining the strategies that have been put forth by various retail organizations has been difficult (Ghobadi and Mathiassen 2016).Hence, data has been gathered with the help of selected respondents and authenticity of the data has not been examined as therespondents may be reluctant to share their personal feelings regarding any question and may have answered ambiguously to thequestions (Batjargal 2013). Hence, the recommendations for the future issues with respect to the financial management may not be anaccurate one and this may lead to discrepancies within the retail industries. 1.3. Rationale for the StudyThe rationale for the study has been discovering the various aspects that exist in home improvement of retail industry. UnitedKingdom is a developed country with a small amount of population. The country comprises of a population that has a variety of
6DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTORrequirements and therefore, undertaking the analysis with respect to the citizens of the United Kingdom would yield significant resultsfor the paper. With the advent of globalization and liberalisation of Europe, there has been entry of various multinational retailcompanies in the country as the country has a broad prospect for retail marketing (Baltas et al. 1997). The country is utilisingsegments in the home development industry and there is availability of sufficient and economical impacts that has influenced thecompanies to establish themselves in the country (Chen, Lin and Yen 2014). The multinational retailing companies even migrates employees from various parts of the world in order to fill the gap that isavailable in their business. Every individual has their own preferences and how they behave and react is according to the cultures theybelong country wise and sub-continent wise. Interaction and communication among employees lead to mixture of various preferencesof UK, France, Germany and Netherlands. Such orientation system has certain influences that would be discussed in this report. Retailindustries require employees from various backgrounds and therefore the impact of varieties of home improvement are mainlyobserved in this sector. Hence, the paper has been constructed with respect to this topic. 1.4. Research QuestionsThe research questions that have been framed are in respect to the problems that have been discovered by the researcher withrespect to the improvement retails of the Kingfisher. The research questions would be utilized in order to course the research anddetermine the impact of financial analysis in retail industry of Kingfisher. The research questions are given as follows: Q1. How can financial analysis have an impact on the four retail industries in Kingfisher? Q2. What actions could be undertaken by the management in order to improve the impacts of financial analysis of four companiesexcept Kingfisher? Q3. What are the measures of finance of Kingfisher have inter-relationship over the years? Q4. What are the factors that influence of correlation in retail market year wise that help to undertake the market strategic variables?Q5. What are the strength, weakness, opportunities and threats of four companies (SWOT) in the future retail sector and thecorrelation between various measures?1.5. Research Aims and ObjectivesThe objectives and aims of the paper has been the key and essential factors that would be effective for the construction of thepaper as these objectives would be supportive to the researcher for the conclusion of the research paper in an effective way. The aimsand objectives with respect to this paper are given as follows: To determine the influencing factors that influences the financial market in the retail sector and the association in the retailmanagement between the employees and the management. To determine the dimensions of retail marketing that have an influence on the outcome of the industries. The actions undertaken by the retail management in order to deal with the issues related to home improvement make theproduct/service more attractive in the current market.To optimize the profit related to financial assessment of the Kingfisher from 2013 to 2017. To find the estimated size of the market, project market share, predictions under future trends and estimate the target market.1.6. Research Methodology:-The research methodology for the research study is quantitative with an exploratory approach. A deductive research approachis used in this study.
7DETERMINANTS OF PROFIT IN GENERAL RETAIL SECTOR1.7. Structure of the Research paperThis section provides a brief structure of the overall thesis paper that would be formulated later in this paper for the completionof an authentic research. It has been noticed that the first segment of the paper comprises of the introduction of the paper where a briefbackground about financial analysis and the meaning of retail management has been provided. The background of the country is evendiscussed after which the aims and the objectives of the paper have been put forth so that the researcher can move ahead with thepaper precisely. The research questions as well as the statement of the problem have been constructed as it aids the researcher toconstruct a course with the help of which the whole research paper would be completed effectively.The next segment of the paper consists of the literature review with the help of which the researcher has gained knowledgeabout the various processes and suggestions that have been put forth by researchers who have already undertaken similar researchespreviously and have provided various effective results (O'Reilly and Tushman 2013). The research methodology provides the coursethat the researcher has followed in order to complete the paper effectively and it has been seen that in this section that equipment andtools that are used for gathering the data and the method of selecting these tools are even discussed. Hence, the author would provideconclusive evidence for selecting these tools and how these tools would be used for gathering data that is essential for this paper. Thenext chapter would provide in-depth analysis of the data that has been collected in order to reach results that would be influential forthis paper. The last section of the paper discusses the conclusion and the recommendation that is essential in order to find out theresults and whether the identified problems have been answered and rectified. The recommendations gathered from this paper can beused by the retail industries for the improvement in their financial management. Chapter 2: Literature Review2.1 Introduction of objective of chapter:The “Kingfisher” retail industry comprises the businesses relating to development, maintenance and the publication offinancial management scheme. These are utilised and apprehended in case of different business models that may be maintenancebased. Financial development in terms of profit and management is a human centric as also a socio managerial activity that isinfluenced by factors like all other human practices, preferences, availability, furnishing choices (O’Reilly et al. 2014). The financialcondition of retail market has been affected more due to the nature of globalisation in the financial development. The retail industrybeing a very intensive industry related to the human capital is experiencing a new era in which the financial development personnelneed to adapt to the multicultural service environments. In order to get benefits from the advancements in technology as well as thefinance accounting and analyze, the multicultural scenarios should be adopted. In Kingfisher, there is the existence of a multicultural
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