StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Bunnings Warehouse Property Trust Opportunities and Threats - Essay Example

Cite this document
Summary
Intelligent forecasting regarding mergers: Bunnings warehouse property trust which was formed in 1998 has its roots in a mother company called Wesfarmers Limited which has conglomerated with its strong competitor…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
Bunnings Warehouse Property Trust Opportunities and Threats
Read Text Preview

Extract of sample "Bunnings Warehouse Property Trust Opportunities and Threats"

International Business Organisation Report (SWOT Analysis Only) Bunnings Warehouse Property TrustOpportunities and ThreatsOpportunities: Intelligent forecasting regarding mergers: Bunnings warehouse property trust which was formed in 1998 has its roots in a mother company called Wesfarmers Limited which has conglomerated with its strong competitor i.e. Harvard Smith Limited in 20011 which was a strategic merger. As it eliminated the competitive threat and opened opportunities for organization in terms of meeting the market demand.

Sustainability in growth and development:The organization had only 20 ware houses at the time of its joining the stock exchange and has been successful in expanding its units to ten times (230 = 131 warehouse stores + 99 smaller outlets) by purchasing the units distributed through out the Australian territory2 so that it is able to serve diversified clients efficiently. Strong opportunity lies in expanding its growth.Its commitment to social and community interests:The company has made sure that in addition to its monetary achievements it also takes care of community interests i.e. encouraging legal way of collection of timber3 and avoiding unnecessary wastage of electricity4 etc.

By doing so its image among the customers has been strong. For example, to help those struggling families affected by fire accident in Norply factory in Kyogle recently , Bunnings Warehouse in Lismore conducted a special auction5.Aggressive publicity campaigning:In today’s competitive market, advertising about the product is very crucial which has been followed strictly by the Bunnings ware house Property trust which resulted in creating an opportunity not only in maintaining the present level of customers (20% of the Australian poulation)6 but also in enhancing the customer number for future.

Excellent customer satisfaction : The customer representatives are well versed with product details and explain in simple manner to the customers which opened opportunity for higher customer satisfaction.Diversified business activities: To compete with big firms like K Mart and Big W7, it has entered in to garden and nursery services in addition to its hardware activities. Its parent organization Wesfarmer has been earning considerable net profit from coal mine business due to hike in coal export prices which will make opportunities in investing good amount for renovating the business of Bunnings warehouse property8.

-------------------------------------------------------------------------------------------- Bunnings Warehouse Property Trust, 2 Bunnings Warehouse Property Trust, 3 Wesfarmers, Bunnings, “Social Responsibility Report 2005. 4 Ibid.5 Make a bid for Kyogle workers. The Northern Rivers Echo Main news. 2005. Issue 1142 dated 20.10.2005. http://www.echonews.com/1142/index.html.6Better Homes and Gardens, “Brand Review”, < http://bhg.com.au/transient/mediakit/mediakit_brand.html> 7 National Australia Bank, “Wesfarmers”, Credit Research, August 2002, p. 14. 8 Stephen McMahon, “Coal price fuels Wesfarmers’ growth”, The Age, August 10 2005 < http://www.theage.com.

au/news/business/coal-price-fuels-wesfarmers-growth/2005/08/09/1123353317424.html> Threats:Non uniform reflection in its sales growth and its infrastructure creation: It is really worrying to find that the rate of jump in net profit of the company has been restricted to 1.1 % against 24 % jump in previous year which is big threat. Inefficient cost minimization programmes: The company could not maintain optimum debt to equity ratio due to economically unviable exrcises9.It could not maintain its word of introducing new schemes of reinvestment of dividends which may take the customer confidence away and poses a severe threat.

Another threat is in the form of absence of proper plan to invest in options and futures market10. Down turn in the housing or property market in Australia severely affects the prospects of this trust.Threat also operates in the form of difficult trading conditions in Victoria, Queens land and NSW made its trade sales diminished by 1.9 % against the previous year. Maintaining a prudent interest rate hedging position may not be feasible in long run11.Acquiring properties with long term leases to substantial tenants is risky and may result in poor liquidity and capital evasion.

-------------------------------------------------------------------------------------------9 Bunnings Warehouse Property Trust, < http://www1.bunningspropertytrust.com.au/company.asp?ID=1> 10 Dresdner Kleinwort, Glossary,

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Bunnings Warehouse Property Trust Opportunities and Threats Essay”, n.d.)
Retrieved from https://studentshare.org/business/1537765-bunnings-warehouse-property-trust-opportunities-and-threats
(Bunnings Warehouse Property Trust Opportunities and Threats Essay)
https://studentshare.org/business/1537765-bunnings-warehouse-property-trust-opportunities-and-threats.
“Bunnings Warehouse Property Trust Opportunities and Threats Essay”, n.d. https://studentshare.org/business/1537765-bunnings-warehouse-property-trust-opportunities-and-threats.
  • Cited: 2 times

CHECK THESE SAMPLES OF Bunnings Warehouse Property Trust Opportunities and Threats

Data Warehouse and State-of-the-art Application

The author of this essay "Data warehouse" casts light on the phenomenon of the data warehouse.... According to the text, in computing, the term data warehouse (DW) refers to a centrally managed and integrated database containing both raw and formatted data.... Many data warehouse applications achieve this by shortening the loading cycles using micro batch ETL.... Hallmark utilized the warehouse environment with data mart along with decision support system (DSS) to help his management to understand market environment to launch a major new product line....
5 Pages (1250 words) Essay

The Growth of Data Warehouse Business Plan

Data Business Plan Bridgette Scott American Public University System Date Data warehouse Business Plan Abstract Data warehouse Business Plan is essential in creating a clear understanding of the operations of a business, helping management establish potential risks and pitfalls of the business.... The company's data management and knowledge by its personnel and use of the internet in data warehouse are clearly explained.... Under internet use, web revolution in data warehouse has contributed towards the growth of many business organizations....
5 Pages (1250 words) Assignment

Property Law and Express Trust

Whether the agreement between the Botolphs Investments and Micawber is a license or a tenancy /lease can be decided from a detailed overview of the comparison of these aspects. A tenancy/lease is an "estate in land/buildings/property granted for a determined period of time.... An occupier under license has no right to remain in the property and can be removed very quickly.... Here it is to be noted that the main characteristics which differentiate an agreement as lease or license are exclusive possession of the property, period of occupancy and time span of serving notices....
4 Pages (1000 words) Essay

International Business Organisation Report (SWOT Analysis Only)

Intelligent forecasting regarding mergers: bunnings warehouse property trust which was formed in 1998 has its roots in a mother company called Wesfarmers Limited which has conglomerated with its strong competitor i.... Intelligent forecasting regarding mergers: bunnings warehouse property trust which was formed in 1998 has its roots in a mother company called Wesfarmers Limited which has conglomerated with its strong competitor i.... -------------------------------------------------------------------------------------------- bunnings warehouse property trust, 2 bunnings warehouse property trust, 3 Wesfarmers, Bunnings, "Social Responsibility Report 2005....
2 Pages (500 words) Essay

Management of the Bunnings Warehouse Property Trust

The bunnings warehouse property trust (BWPT) was established in 1998.... (bunnings warehouse property trust - BWPT website, 2006).... bunnings warehouse is one of Australia and New Zealand's leading warehouse chains for home and garden improvement products.... Today there are over 142 bunnings warehouse stores across Australia and New Zealand and around 84 small format shop fronts.... In 1994 the first bunnings warehouse was opened in Sunshine Victoria, some 52 years after becoming a public company....
9 Pages (2250 words) Essay

Warehouse Management Systems

Seeing the advantages and opportunities offered by these tools and technologies International E-Z Up has decided to implement a warehouse management system (WMS).... In the paper “warehouse Management Systems” the author analyzes the latest tools and technologies implemented in business organizations.... hellip; The author states that a warehouse management system is a software tool or application that is used by business organizations to manage their daily and usual business tasks in a warehouse....
13 Pages (3250 words) Research Paper

Optimal Distribution Pattern That Minimizes Shipping Costs

… In the plan, Shangai ships 1300 units to warehouse 2.... Shuzworld H ships 100 units to the first warehouse, 200 units to the second warehouse and 1800 units to the third warehouse.... Shuzworld F ships 2200 units to warehouse 1.... In the plan, Shangai ships 1300 units to warehouse 2.... Shuzworld H ships 100 units to the first warehouse, 200 units to the second warehouse and 1800 units to the third warehouse....
6 Pages (1500 words) Essay

Warehouse Automation Technology

This paper ''warehouse Automation Technology'' tells that In current warehouse management, most of the firms are dependent considerably on automated systems for functioning.... hellip; Soteriou, Hadjinicola, and Patsia (2007) noted that the warehouse activities' accuracy results in better customer service for organizations.... warehouse automation is one of the most followed trends in the contemporary operations management process....
16 Pages (4000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us