BUSINESS AND FINANCIAL PERFORMANCE

THE BUSINESS AND FINANCIAL PERFORMANCE OF AN ORGANIZATION OVER THREE YEARS

THE BUSINESS AND FINANCIAL PERFORMANCE OF AN ORGANIZATION OVER THREE YEARS

PART 1 - Project objectives and overall research approach

This report is about the financial analysis of two retail companies, Wm Morrison Plc and J Sainsbury Plc. The aim of this report is to contrast both companies against each other to find out which business is doing better then the other. This report will start off with Wm Morrison's two years financial report and followed by Sainsbury's two years financial report and the conclusion will be on which company doing well and why is it doing well. The financial ratio analysis comprises of four parts, which are as follows (Anderson, 2005, 441):

i. Performance Ratios: It is utilised to assess the relation success or malfunction of enterprise performance.

ii. Working Capital Efficiency Ratios: It is used to assess the extent to which asset and liability items are well utilised and well managed.

iii. Investment Ratios: It is used to assess various items of particular interest to investors.

iv. Financial Status: It is used to assess the extent to which a business can comfortably cover its liabilities.

These ratios will be used to assess how both companies are performing.

Wm Morrison Supermarkets plc is one of the "Big 4" in the shopping centre chains of joined kingdom. The business is generally mentioned to as Morrisons and   is part of the FTSE 100 of businesses .Here efforts would be made to realise the natural environment that Morrisons functions in and what are the foremost matters that anxiety it. Also it would be endeavoured to propose what strategic administration accounting could verify helpful for the company.(Zahra, 2002,185)

Founded by William Morrison in 1899, primarily as an egg and dairy disperse merchant in Bradford, England, Morrison's has arrive a long way from being just "a stall" to become on of the large-scale achievement tales of up to date joined kingdom.. The business has about 360 shops giving paid work to 13000 persons employed in shops, manufacturers, circulation centres   and offices. An approximated 9 million clients visit Morrison's every weak.. Although Morrison's became a public business in 1967, Morrison family has been rather hardworking in its running over the years. Sir ken Morrison, child of William Morrison is the boss head individual of the business with   Morrison family owning 18% of the company.(Anderson, 2005, 441)

Supermarket string of connections Sainsbury's put IT at the forefront of its scheme with the designation of an IT and Change Director to its functioning board. Angela Morrison, actually controller of data services steps up to the role.

Morrison has been nominated along with three other older Sainsbury's administration to the functioning board to propel the business ahead as it follows market managers Tesco. Morrison is connected by Neil Sachdev as the new financial services director; John Rogers, actually controller of assembly investments will become house controller and Luke Jensen as controller of strategy.(Zahra, 2002,185) Sainsbury's now has 12 constituents on its functioning ...