Pick’n pay hypermarket.ppt

1、Pickn pay hypermarket,Company background : The Pick n Pay Group is one of Africas largest and most consistently successful retailers of food, clothing and general merchandise. Pick n Pay is a family controlled business. Four small stores were purchased in 1967 and the Group was listed on the JSE Sec

2、urities Exchange South Africa in 1968 (as Pick n Pay Stores Limited).,Business nature,Consumer sovereignty A flat organizational structure Decentralisation of authority to enable local control Promoting form within Maintaining a discount image Fighting collusion amongst suppliers, and rejecting coll

3、usion between retailers Maintaining strong cash balances, buying forward on a rising market,Major development,A further capital investment in Australia A strategic focus on franchise Longmeadow Distribution facility in Gauteng Investment in operating efficiency,Companys strengths,The company has the

4、 reputation for quality and community commitment is well understood by the costumes The company has loyalty costumes The company has an effective franklins franchise system. great stores, great products, great service and great prices Stores in southern Africa and Australian. well trained employees

5、The company has a good social image because of the investment that put on to improve environment.,Weakness however the southern African had some unstable situation, like Zimbabwe had poor economics conditions.,Opportunities : The company has the plan to open new stores the introduce health and safet

6、y check The company has enough profit to invest in different areas, such as to improve environment. Add more new product line to attract mid-class or high-class consumer ,Social responsibility activities,Internal aspects: Employees welfare Working conditions Job design creation,Social responsibility

7、 activities,External aspects: Food safety & consumer health Promoting healthy living Management of HIV / AIDS Ensuring high level service and customer satisfaction Environmental control Corporate social investment (CSI) Supporting the local economy and promoting job creation,Financial Ratio Analysis

8、 of Pickn Pay,1. Profitability 2007 2006 Gross Profit Margin 3.27% 2.98% Return on total assets 11.3 10.8 Increased-every 1 asset makes 11.3 profit in 2007,2. Efficiency,2007 2006 Total assets utilization 20.59 19.52 Credit taken from suppliers 53.8days 50days Sales revenue per employee 799,535 715,

9、886 debtors managed 8.8days 7.8days,3. Liquidity & Stability,2007 2006 Current Ratio 0.68 0.74 Decreased. Every 1 borrowing turned into 0.68 assets. The lower the ratio, the less liquid the business is considered to be. It is normally prefer a higher current ratio than a lower one. However, for a supermarket will have a relatively low ratio, as it will hold only fast-moving stocks of finished goods and will generate mostly cash sales revenue. Gearing 88% 110% Normally, a very high gearing ratio is considered to be dangero