Burberry Essay Example | Topics and Well Written Essays - 1250 words

Burberry - Essay ExampleIt also has a prominent base of goods made of trounce and beauty products in the world. Burberry has a swell up diversified business model through which it sells apparel, accessories. It has well spreadhead network of Retail, wholesale and licensing and it operates mainly in Asia Pacific, USA and European region but also has stores in rest of the world. In case of product diversification it has a rich source of women, men and childrens apparel and accessories and beauty products. The group operates into different functional areas like designing and marketing of its apparel, store architecture, add on chain management, IT, HR, Corporate affairs and strategy and finance section. For the financial year 2012-2013 its retail sales consider earned 71% of total revenue and wholesale has earned 24%. Burberry has made a handing over in its make-up and fragrance business by transferring it into direct operating structure. Burberry.com an online store of the group delivers it serve to more than 100 countries in the world and further expansion of 84 more retail stores. Burberry is the close preferred luxury brand with more than 15 million fans on Facebook. It is also expanding its business in Middle East countries and has been listed as Top 100 Global Brands for consecutive four years by Interbrand (Burberry, 2013, pp. 17-26). Question 2. According to the auditors overlay of Burberry PLC, it was prepared by following the rules of IFRSs as adoptive by EU. The report includes opinions which were prepared for the members of the familiarity as per Companies act 2006. Auditors have analyzed all financial and non financial instruction of the company to identify whether it has any hooey misstatements with audited financial statements. Auditors report has given some opinion closely the groups financial statement that it has got a authentic view of the groups profit and cash flows for the financial year 2013 and it was prepared as per the requi rements of Companies get along 2006. Auditors report also has some matters like it has identified that directors earnings in some cases was not abide by law and auditors didnt receive all the information they required for audit. Auditors need to review the directors statement and the corporate governance statement which relates to the companys agreement with nine provisions in UK. Auditors report has some advantages relate to financial information like it provides the true view of the companys financial statements. It also identifies the material misstatements or frauds in the financial statements prepared by the company. It also indicates the areas on which the company can reform it and evaluates the strength and weaknesses of the company. It analyzes the firms financial data and helps the investors by giving them the clear picture about the financial position of the company. Question 3. Profitability 2013 2012 % change ROE 0.24 0.30 -0.18 Gross Profit Margin 0.72 0.70 0.03 me shing Profit Margin 0.13 0.14 -0.10 Profitability Ratio- Profitability Ratio can be defined as financial a tool which is used to justify a companys ability to ease up revenue which is compared to the businesss expenses and other operational costs which are incurred during a specific measure period and are compared to the same ratio of previous period. If the ratios are higher then it indicates that the company is doing well (Thukaram, 2007, p.99). From the above table we can see that Return on Equity for