Essays on Business Plan of David Jones Limited Case Study

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The paper 'Business Plan of David Jones Limited' is a wonderful example of a business case study. David Jones Limited is a leading upmarket retailer with stores throughout Australia. The group operates 35 department stores and 2 warehouse outlets. The business was first established in 1838 by a welsh businessman, it is famous for its branding. a black-on-white hounds-tooth which is currently is a recognized corporate business in Australia. David Jones is believed to be Australia’ s favorite upscale and elite departmental store (Capiński and Wiktor, 2008, pp. 75). It is believed to be the oldest departmental store in the world that still trades under its original name.

In 2005, the company business strategic review was tested in a challenging retail environment. The business report delivered outstanding financial performance. The DJs financial reports reflect these achievements via the business comprehensive statement, statement of financial position, and cash flow statement. The business's main operating activities over the period from 2005 for a consolidated entity of DJS limited dwell on retailing through departmental stores and providing customers’ credit through the DJS business card. These activities in 2005 are reported to have contributed an estimated $77.862 million profit after income tax of $ 33.854 million. David Jones Limited Economic outlook for the five years 2005-2010When comparing the five years of performance in the market, it shows a significant increase of 19% on profit after tax for the entire period.

This can be accounted for according to the strong business implemented by the company (Meitner, 2006, pp. 28). For instance, the cost efficiency program, tighter inventory management, rigorous management of the capital expenditure and strong credit cards business are among the operational activity that has highly boosted the firm's performance over the period.

This is improved performance when compared to other previous business reports which anticipate that the firm recovery from the recession experiences a slower pace compared to that witnessed in the 1970s, 1980s, and 1990s. This is contrary to the reports released claiming improved recovery has been stronger when compared to the original forecast. With much contest on the annual reports, there is likely a rate of error in the assumptions and forecast.

The uncertainty surrounding their forecasts, the reality is that there have been forecast errors (Howard, 2007, pp. 112). Departmental StoresFor departmental stores, clothing represents a significant proportion of total sales. Australia’ s highly concentrated department store sector is dominated by two national firms operating in mainstream markets and two national firms competing in the discount sector. At the high end of the Australian market, David Jones Limited and Myer stores have competed for supremacy in fashion-oriented clothing markets. Both businesses have sought to attract local fashion designers’ to exclusive store within store concessions. On the contrary, David Jones’ s pioneered decision to favor edgy Australian and New Zealand designers have been positioned the business as the clear leader.

The store offers multiple price points. David Jones’ s most recent innovation is the introduction of the cheapest diffusion versions of Australian designs. It appears that in the department stores environment, local designers have been able to compete successfully against high- profile imported designer brands. In addition, the competition between high-end department stores has generated positive spin-offs across the industry through increased interest in fashion. This according to the business report s over the last years ending June 2010 reveals an improved position of department stores relative to specialty retailers when considering both sales and fashion status.


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