Analyzing Financial Performance in Retail Supply Chains

The collection of research articles addresses different facets of improving financial performance in the retail sector. Key themes include the use of RFID technology for enhancing supply chain operations (Vlachos, 2014; Shin & Eksioglu, 2014), the impact of omnichannel strategies on consumer satisfaction and sales (Piotrowicz & Cuthbertson, 2014), and sustainable practices in fashion supply chains (Shen, 2014). Financial performance evaluations are also discussed using models like fuzzy TOPSIS for shipping companies (Wang, 2014) and resource-based perspectives on marketing capabilities (Yu et al., 2014). Furthermore, consumer trust and behavior in online shopping are analyzed to understand their effects on retail success (Patten & Zhao, 2014; Piotrowicz & Cuthbertson, 2014). This literature review synthesizes findings from these diverse studies to provide insights into effective strategies for financial improvement in the retail industry.

Running head: ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF
OCADO PLC
Analysis and Evaluation of the financial performance of Ocado Plc
Name of the Student:
Name of the University:
Author’s Note:

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
Declaration
I hereby disclose that the research paper entitled “ANALYSIS AND EVALUATION OF
THE FINANCIAL PERFORMANCE OF OCADO PLC” submitted by me to the college in
partial and completion of the obligation for the degree of “ “. I hereby declare that the work
provided is a work of my own and does not have any resemblance with any other research paper.
Date: Signature of the Candidate
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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
Abstract
This project paper involves discovering the financial performance of Ocado Plc, a
renowned super market chain that operates mainly in United Kingdom. The aim of the paper has
been to identify how the company has been functioning in the UK market and what has been
their financial performance for the past 10 years. This has been done by investigating the various
events and functions that the company has been operating. On the examination of such events it
becomes clear and lucid that Ocado Plc has tried to operate their company with respect to the
international and the domestic guidelines set forth by the government and therefore their
financial performance has been in an ethical manner. This research therefore highlights the
factors that have an effect on the financial characteristic of Ocado Plc and the strategies and
policies that have been followed by the company in order to maintain their competitive edge and
in that manner maintain their level of profit. The paper has looked to identify whether the
company has been able to maintain profit or losses during the various accounting years.

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
Acknowledgement
I would like to thank my advisor [title] [Name Surname] of the [Faculty name] at
[University name]. He/She has consistently allowed this paper to be my own work, and guided
me in the right the path whenever I required assistance.
I would also like to acknowledge my parents who have assisted me and have been by my
side during the completion of this paper. I would even like to thank the almighty for being by my
side and keeping to strong in times of array so that the paper could be completed within the
stipulated time period.
Thanking You

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
Table of Contents
1.0 Introduction................................................................................................................................6
1.1 Background............................................................................................................................6
1.2 Research aims and Objectives...............................................................................................7
1.3 Rationale................................................................................................................................7
1.4 Scope of Research..................................................................................................................8
1.5 Project Outline.......................................................................................................................8
2.0 Literature Review....................................................................................................................10
2.1 Introduction..........................................................................................................................10
2.2 Overview of Ocado Plc........................................................................................................10
2.3 Firm Performance................................................................................................................12
2.3.1 Financial Performance..................................................................................................13
2.3.2 Non-financial Performance...........................................................................................15
2.4 Ratio Analysis......................................................................................................................16
2.5 Summary..............................................................................................................................17
3.0 Research Methodology............................................................................................................19
3.1 Introduction..........................................................................................................................19
3.2 Research Philosophy............................................................................................................19
3.3 Variables measurement and definitions...............................................................................21
3.3.1 Research Approach.......................................................................................................21

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
3.3.2 Research Design...........................................................................................................21
3.3.3 Research Strategy.........................................................................................................22
3.4 Sample Selection, Sample Size and Data Collection Process.............................................22
3.5 Analytical Procedure...........................................................................................................24
3.6 Ethical Issues.......................................................................................................................24
3.7 Summary..............................................................................................................................25
4.0 Conclusion...............................................................................................................................26
4.1 Limitation of the Research...................................................................................................26
Reference List................................................................................................................................28

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
1.0 Introduction
1.1 Background
In the modern era, there are several companies that are functioning in the market with
different kinds of aims and objectives. With the advent of time and development of science and
technology there has been development of online stores and this has enhanced the lifestyle of
individuals. This paper concentrates on understanding the financial performance of an
organization and in that understands the aims and objectives of the company that has been taken
into consideration. The online retail industry in United Kingdom is conquering the demands that
are in respect to the regulatory and technological transformations during the time of emphasising
the transparency and bringing in innovation in the market as well as for the customers (Pappas
2016). The nature of online retail industry in United Kingdom has the capability to deliver
products online over a distance and it comprises of logistics, distributors and warehouses. This
paper therefore has selected Ocado Plc as the organization and their financial performance for
the past ten years would be assessed and analysed.
Ocado is an online supermarket that functions in Britain. The firm like their rivals does
not have chain of stores and undertakes home deliveries from their warehouses. This
organization has been voted to be the best online supermarket in United Kingdom. The company
is even listed in the London Stock Exchange and has their headquarters in Hatfield, Hertfordshire
in United Kingdom. This firm primarily provides kitchen, pet and dining and beauty products
under the name of Ocado, Sizzle, Fetch and Fabled names. The organization even engages in the
monetization and development of intellectual technology and property that is utilised due to
online logistics, retailing, grocery distribution and consumer goods. Furthermore, it is associated
in the insurance organization as well. The firm was established in the year 2000. The key

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
strategic objective of the firm has been to align with the interests of their stakeholders, investors
and the customers thereby delivering long term value of the shareholders (Chang and Tseng
2013).
1.2 Research aims and Objectives
The research aims and objectives have to be constructed in order to complete the research in
a precise manner. The objectives and aims of the research is a critical area with respect to which
the paper would move forward and thereby assess the various activities that has an influence on
the financial performance of a firm. The aims and goal of the research have been given as
follows:
 Understanding the financial and the non-financial factors that have an impact on the
performance of Ocado Plc.
 Analyse the operational activities of Ocado Plc with the help of which the financial
performance for the past ten years can be compared.
1.3 Rationale
The rationale of the paper has been a significant factor that looks to identify the reason
why this company has been chosen for this respective research. There are several companies in
the retail sector that are operating in UK. There has been an observation that most of the
researches that have taken place have been on the most renowned and branded companies.
However, with respect to this paper that looks to assess the financial performance of a firm it is
essential to select a firm on which very limited researches have been done so that a comparison
with the market leaders can even be undertaken.

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
Ocado Plc has been operating in the market for a long time and has been changing their
operational policies from time to time with respect to the evolution of time and technology. The
company has even diversified themselves in the online retail services for the past few years and
therefore undertaking a comparison of their financial performance for the past ten years would be
fundamental to understand how changes have made changes in their profit level as well
(Ramanathan, Bentley and Pang 2014).
1.4 Scope of Research
The scope of the paper involves the development of an effective research paper that
would be influential for understanding the financial performance for the last ten years of Ocado
plc. The scope of the research looks to understand the various changes that have taken place
during the course of ten years and how the operational activities have helped in the development
of the company.
1.5 Project Outline
The outline of the project consists of the course that would be followed in order to
complete the research in an effective manner. The outline of the project consists of
understanding the aims and goals of the research paper and the scope and limitations associated
with this paper. The review of literature would explain the various issues that have been
answered by other researchers in the previous time. The review of literature aids the researcher in
following the process and understanding the variables that are associated with the financial
performance of an organization. The research methodology explains the process with the help of
which the data are gathered and the variables that have been used for the assessment of the
financial performance of the firm. The sample selection and the data gathering process and the

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
assessment process of the financial data gathered from the annual report is even vital for the
completion of the paper precisely.

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
2.0 Literature Review
2.1 Introduction
This segment of the paper mainly explains the researches done by previous researchers in
similar topics with respect to online retail industry. This section will undertake a comprehensive
explanation on the practical and theoretical views of the earlier studies undertaken on online
shopping in the retail sector. This is inclusive of the attractiveness of the prices, saving of time,
risks that are perceived, excitement and enjoyment, increased interactivity and tangibility. These
factors will evaluate the purchasing intention of the customers that is seen in online shopping.
Vlachos (2014) explained the purchasing intention as the encouragement of the purchase of the
products. It is anticipated that the shoppers are more likely to relate the price attractiveness and
time saving with their purpose to shop and on the other hand, in offline shopping the customers
are more likely to relate with tangibility, enjoyment, increased interactivity with their purpose to
shop. Therefore, the online retailers need to be aware of the issues faced by the customers and
the risks to raise their intention to shop online. The designers require recording the needs of the
consumers as the usability being the initial point in order to gather confidence and assistance of
the consumers. The company has been striving towards growth and has their key strategies with
respect to their various products and services offered by them.
2.2 Overview of Ocado Plc
Ocado Plc is an UK based online retailer and the principal operations of the company hs
been retailing of the grocery and monetization and development of Intellectual Property and the
various technologies exploited for the intention of online retailing, distribution of grocery,
consumer goods and logistics that have been derived from the various aspects of United
Kingdom. The various aspects have been explained as follows:

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ANALYSIS AND EVALUATION OF THE FINANCIAL PERFORMANCE OF OCADO PLC
Grocery
In online aspect, it becomes vital to make sure that a optimistic experience of the
customers as the expense and the luxury of switching among the retailers has been significantly
low. In Ocado, the company has been concentrating on enhancing every aspect of the consumer
business with the help of quality of their services and the interface of the user, the freshness of
the product, the width and the availability of their level and the competitiveness of their product
prices (Amaro and Duarte 2015). This enhances the retention of the customers and aids in
capturing the market share.
General Merchandise
The centralised operating framework of the firm has assisted in expanding their offer into
the general merchandise categories (Safaei Ghadikolaei, Khalili Esbouei and Antucheviciene
2014). The general merchandise that are sold on Ocado.com and have dedicated a website that
concentrates on unique range of products like for instance the pet stores, Fetch, the dining and
kitchen store Sizzle and the new beauty offering Fabled which is partnership with Marie Claire.
Platform Business
The sustainable investment and innovation in the integrated software and solutions of
physical model that enhances a righteous growth cycle in the platform and retail businesses. The
future base for the consumers will gain an advantage from the years of development and learning
in a lively retail atmosphere in order to create a stable establishment or development to their
online activities (Chen, Wang and Jiang 2016).