Financial Management Master Case Study Example | Topics and Well Written Essays - 2250 words

Financial Management Master - Case Study ExampleIt prides itself in the following retail brands B&Q Castorama Brico Depot and Screwfix. Progressively, the company has been faring pretty well over the years, consequently scooping a pre-tax profit of terce hundred and eighty six million pounds generated from a total sale of over nine million pounds within the first quarter of the 2008 financial year (kingfisher.com).Investment pass on be re foregoingitized, targeting higher burial vault rates and faster payback periods. A key target is to stabilize debt at current levels, prior to reducing it in due course. A target of flat rate debt has been set for the current year.greater focus will be placed on generating higher cash returns from the retail businesses. Stretching targets for sales growth, margin improvement and cost reduction will be drawn (http//www.ekingfisher.com/managed_content/files/downloads/2008ar.pdf ).With these key priorities it is evidenced that the commission of k ingfisher are committed to the survival profitability and sustenance of the company which is a very good property of share prices increasing.The market for the product is very lucrative since home improvement is an attractive segment of retail, benefiting from essential long- term demand. Characteristics coupled with demand for more new housing and more frequent home renewal. The market also benefits from variety of products being common across international market, which gave rise to outsourcing and Economics of Scale scarcely within this market kingfisher is enjoying a large geographically diversified business. However, delivering these values to shareholders from this strong strategic identify ill require the charges which have been talked about.The number of shares undefended by the Company in various Countries will enhance the profitability base of kingfisher. This is enhanced by the centering by the practice of decentralized management approach which gives power to thei r retail businesses largely operating independently but participating in group- capacious programs for local advantage. This approach will enhance high turnover as local customers will conciliate to the products.Operating Review of Kingfisher PlcWith Retail profit growing rapidly for the past five years it has disgorge the company in a good position to expand its operations in various sectors of the business. For example in 2007/2008 report of kingfisher retail profit grew 13.2% to 237million pounds with both businesses delivering a good profit growth. Gross margins were up90 ass points due to higher own- brand sales penetration, a 25% increase in direct sourcing and an ameliorate sales and strong cost control. In France for instance kingfishers total sales grew 7.2% and eight new shares were opened and in the year six were