PROFITABILITY

Profitability of low cost clothing brands: Primark London as a Case Study

By

Olusegun Adetayo ADEDIBU

Business Studies and Administration

Cardiff Metropolitan University

January 2013

Table of contentsOutline of the study4

Background of the study4

Problem statement5

Justification of the study5

Research objectives6

Research questions6

Literature review6

Primark6

Profitability7

Strategies to enhance profitability7

Reduce costs8

Continuous improvements8

Increase turnover9

Manage inventory9

Improving product mix9

Theories of profitability10

Dynamic theory of profit10

Innovative theory10

Risk theory10

Methodology11

Research philosophy11

Research design11

Data collection methods12

Data analysis12

Time scale12Outline of the study

This thesis proposal is based on the topic “Profitability of low cost clothing brands: Primark London as a case study. The first chapter will provide details and explains the introduction of the topic, which will highlight the background, aims and objectives of the present study. The second chapter will discuss the prior researches that will be based on the various peer-reviewed articles. The literature review will be extracted from the journals and libraries. The literature review will focus on the prior work from the researchers and will emphasize on the extracted information with respect to the several theories that signifies the importance of this particular field. The third chapter of this study will elaborate the methodology, guided by the information and the theories. The fourth chapter will examine and analyze the findings and discuss all the parameters that involves in this study. The fifth chapter will focus on the conclusion, which will be given and based on the findings. The sixth and the last chapter will be consisting of the recommendation and implication for the further studies.

Background of the study

The term “profitability” can be defined as the financial benefits that are usually realized at the time of revenue that is generated through the particular operation and activities of a business, in other words, when the revenue is greater than the taxes and the expenses that has occurred in the business operations throughout the process. According to the prior studies, the profitability can be measured through the increase in wealth of the respective investor after a certain period, since he had invested into the business. The Primark London is known as one of the leading stores throughout the London. It is considered top most company among all the manufacturer and retailers of clothing. It has a unique combination of its operations and has various lean operations that follow a sufficient functioning in order to provide quality to their customers (Barney, 2001, pp 45).

According to the official website of Primark London, it shows that they are one of the leading and successful retailers in their industry. They have their physical existence in Germany, Ireland and Austria, where they are operating and leading with their market share. The company's headquarter is located in Dublin. Moreover, the company is also a subsidiary to the food processing company of England. The first store opened in the year 1969 and with the passage of time, many stores were added to the chain. With the passage of time, many stores were developed and they were expanded and are now considered one of the largest stores in England.

Problem statement

The problem statement is defined as the concise and precise description ...