The Abercrombie and Fitch and Burberry Australia Assignment

The Abercrombie and Fitch and Burberry Australia - Assignment Example The paper "The Abercrombie and Fitch and Burberry Australia" talks about fashion retail marketing. The globalization of modern business has necessitated the use of different modes of retail marketing, with retailers exploiting any available opportunity. Currently, the internet is robust with fashion items being advertised by different companies. It is due to these developments that this paper sought to look at two leading fashion companies that operate retail outlet stores in Australia, Burberry and Abercrombie and Fitch. This paper is generally concerned with how the retail outlets of these two companies have strategized themselves to reach their customers. The fashion industry is a very dynamic industry, due to the many changes that keep taking shape in the business. The uniqueness of this business form other businesses is the fact that the manufacturers of fashion items, inclusive of clothing and other items of fashion is the common ideology of change. Contrary to the traditional perception of the fashion design as a means of fulfilling needs, the modern perception is different, with its intention purpose being lined in conception, production, promotion and the marketing styles in the basis of the customer’s desires. While people’s tastes keep on changing over and over, the manufacturers keep on inventing new fashions with time. With the changes, old fashion items become obsolete and cannot be. Fashion is defined by the key players who are involved in it. The interwoven web of the individuals .who are part of the industry including designers, stores, factory workers, seamstresses, tailors, embroiders of garments, the press for publicity, fashion analysts and critics, the various models involve in showcasing the garments such as fit models and runaway models, textile manufacturers, pattern makers and sketch makers, and most importantly the customers. The changing tastes and customer wants are what determine the fissionability of the fashion indu stry. Customers’ wants change by virtue of their attire, or through the icons’ standards. It is with this knowledge that anybody who considers investing in the fashion industry ought to be ready for the dynamics in the market. Losses are inherent and more probable if a retailer do not understand the exact needs of customers, while keeping an eye on the changing market trends in the fashion designs. This paper looks at the two major fashion retail outlets in Australia, the Abercrombie and Fitch Australia and Burberry. The Abercrombie and Fitch Australia Men and women love fashion, and especially the Abercrombie and Fitch garments. â€Å"Abercrombie and Fitch† (2012) observes that the young and the youth are willing to spend any amount of money just to expand their collection of the Abercrombie and Fitch. Fashion is classified in terms of class, with the high class setting standards and assuming iconic status in the society, and this is exactly what the company do es to its customers. It elevates the customers’

Taxation in UK Essay Example | Topics and Well Written Essays - 3000 words

Taxation in UK - Essay Example The paper tells that the Largest source of revenue collection for government is income tax. Everyone in the country has an income tax personal allowance below which he does not have to pay tax in a particular tax year. For people aging below 65 years have a tax allowance of  £6,475 in 2010-11. However, in June 2010, this figure has been increased by  £1,000 by the Chancellor therefore the tax personal allowance is  £7,475. If anyone has an income below the income tax personal allowance, he is not supposed to pay any tax however if the earnings of an individual is above the tax allowance then he is supposed to pay according to his earnings above this level. There are different tax bands and every tax band has a different tax rate. Corporation tax refers to the tax on the profits made by the organizations in United Kingdom along with profits made by permanent establishments of companies owned by non-UK residents as well as associations trading in European Union. Collection of cor porate tax is the fourth largest source of revenue collection of government. Before April 1965, both the corporate tax rate and individual tax rate were charged at the same rate though corporations were supposed to pay an additional profit tax. However, with the passage of time, there have been several changes to the corporate tax and since 1997, the laws have modified several times and now the tax rates of corporations and individuals have changed. (Tax Law Rewrite). Calendar year is a period of 12 months beginning from the starting of January and ending on 31st December whereas on the other hand, fiscal year is a period of 12 consecutive months ending on last day of any month except December (Tax Years). In United Kingdom, government financial year is a period of twelve months from April 1 to March 31. Corporations are allowed to adopt any year for their accounting purpose however any changes in the tax rate, the tax is charged on the basis of government’s financial year (I ntroduction to Corporation Tax). Taxable and Tax Rate An individual earns income from different sources. Some of these sources are taxable whereas some income is tax deductable. Some of the sources from where an individual earns is salary, profit from any business, rent income, dividend income, income on loan or any security including bonds etc. On the other hand, the income of corporations is the profits. Taxable bands and tax rate for the year 2011 – 2012 is as follows: Taxable income Rate of tax 0 - ?2,560 10 per cent (starting rate for savings  only) 0 - ?35,000 20 per cent (basic rate) ?35,001 - ?150,000 40 per cent (higher rate) Over ?150,000 50 per cent (additional rate) (Source: Income tax rates) Relevant Tax period Tax period is the period of 12 months in which the individual earns income from different sources and if all these sources accumulate to more than personal tax allowance then he is supposed to pay tax. importance of direct and indirect taxes Direct and i ndirect taxes are very important for every government as tax collection is one of the main sources of the government to collect revenues. Direct tax is defined as the tax that an individual pays directly to the government and this kind of tax is directly imposed on the individual or the organization by the government. On the other hand, indirect tax can have different forms like sales tax, value added tax (VAT), or goods or service tax (GST) and indirect tax is collected by another party or an intermediary. The intermediary initially takes the burden of this kind of tax and afterwards takes the amount of tax from the government by filling a tax return, therefore the tax is paid eventually to the government through another party. Therefore, indirect tax is indirectly collected by the government but with the involvement of an intermediary. Differences between Direct Tax and Indirect Tax Direct Tax Direct

Italian Market Entry By Superior Chocolate Marketing Essay

Italian Market Entry By Superior Chocolate Marketing Essay Superior Chocolate (SC) is a UK based producer of high quality organic chocolates. The firm has three product lines, namely (a) block chocolate, (b) chocolates for special occasions and (c) speciality chocolates. All chocolates are produced with high quality organically grown ingredients. Whilst the company is far smaller in size than the global and regional market leaders, the firm has established market presence in the UK, the USA and Australia and production facilities in the UK and Australia. The company has adopted a comprehensive marketing strategy for (a) improvement of competitive advantage by improvement of financial strength, and (b) expansion into other markets, in both emerging and developed countries. SC is now actively examining the potential of different foreign markets for entry and expansion, from various business perspectives. Objectives This study aims to investigate and analyse the potential of the Italian market for entry by Superior Chocolate. The study entails the conduct of a focused situation analysis of the Italian market and an examination of the various routes for entry. Such analysis and examination is followed by appropriate recommendations and a concluding section. 2. Analysis of Italian Market The analysis of a national market for purposes of entry and expansion by foreign business organisations is a complex and multi-dimensional task that involves assessment of various market factors, environmental conditions, extent of competitiveness and existing opportunities and threats (Gilligan Wilson, 2005, p 48-51). This study focuses on important market factors in order to produce a representative snapshot of existing conditions and to thereby facilitate decision making on entry and expansion options. Market Analysis Whilst Belgium and Switzerland are globally known for the excellence of their chocolate making skills, chocolates are extremely popular in most European countries and both the UK and Italy have strong chocolate markets (Mintel, 2010, p 1-2). Chocolate consumption in the UK at approximately 600,000 tonnes per year is however much more than that of Italy, which consumes approximately 215,000 tonnes every year (RTS Resource Ltd, 2010, p 1-2). The consumer expenditure on chocolates in European countries in 2007 is detailed in the chart provided below. Consumption of Chocolates in Europe (RTS Resource, 2010, p 1) Information obtained from various surveys and reports lead to the following conclusions about existing market conditions in Italy and other European countries. Expansion of the chocolate market in the immediate future appears to be limited because of low population growth forecasts, depressed economic conditions and competition from other snacks and indulgences. The market is reaching saturation level and much of its growth is coming from market segments rather than from total expansion. The market is in a state of maturity and growth is less than 1% every year. Marketing experts feel that European chocolate sellers should try to improve their market shares by (a) exploiting the health properties of chocolate, (b) engaging in product differentiation through use of shapes, ingredients and packaging, (c) increase in brand diversification, (d) introducing low calorie and low sugar products, and (e) developing the super premium sector. Whilst opportunities do exist in the chocolate market, they are becoming increasingly difficult to find because of increasing market competition and fragmentation (RTS Resource, 2010, p 2). Environmental Analysis Careful environmental analysis of target markets enables prospective market entrants to understand the various environmental features that are different, in small or large measure, in such target markets from those of their existing markets. An understanding of such differences helps organisations in shaping their entry strategies (Hooley, et al, 2008, p 81-86). Such environmental analysis is normally carried out through the examination of political, economic, social, technological, environmental and legal aspects in line with the well known PESTEL format (Hooley, et al, 2008, p 81-86). It is however unlikely that any significant political, environmental and legal issues could cause concerns about the entry of Superior Chocolate in Italy because both Italy and the UK are governed by EU regulations and norms. SC should thus, for purposes of environmental analysis, focus mainly on economic and social issues (Mintel, 2010, p 1-2). Italy is an advanced and affluent nation with an annual GDP of 1.74 trillion USD and a per capita income of 29,900 USD. The ongoing economic recession has however hurt the Italian economy significantly and both annual GDP and per capita income have reduced significantly from 2007 levels. Future growth prospects are also not very optimistic and the country expects to face bleak economy conditions for some years to come. Such depression in economic conditions has obviously led to reduction of discretionary incomes, losses of jobs and decrease in consumer spending (Central intelligence, 2010, p 2-3). The consumption of chocolates has however not been affected, even though the segment has not shown any significant growth in the last two years (Mintel Snapshotà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ã‚ ¦, 2010, p 4-9). Whilst such trends provide reason for some optimism, continuance or worsening of economic conditions could well lead to reduction in demand and consumption of chocolates in Italy. Italy is an ageing society and with the death rate exceeding the birth rate, the population of the country is decreasing steadily. The average age of the country, at approximately 44 years, is higher than the average European age and significantly higher than that of the UK. With consumption of chocolates being associated with children and young people, the growing average age of the country could lead to stagnation or even reduction in demand for chocolates in future. Italian society is also culturally very different from that of the UK (Central intelligence, 2010, p 2-3). Italians are fiercely proud of their history, society and culture and tend to be ethnocentric in their choice of products. This is even more pronounced in personal preferences like clothes and food. Research has conclusively revealed that greater levels of ethnocentricity by and large lead to preferences for local products, thereby making it difficult for foreign companies to enter and expand in such markets (Arvi dsson, 2003, p 34-39). Porters Five Forces Analysis Porters Five Forces Model provides a useful tool for the analysis of the extent of competitiveness in a particular industrial or sector. Such analysis is done by investigation of five specific market forces, namely (a) the extent of rivalry between market participants, (b) the power of buyers, (c) the power of sellers, (d) the potential threat from new entrants, and (e) the threat from substitutes (Porter, 2008, p 7-15). The extent of competition between market participants is intense. As a strong consumer of chocolates and cocoa products, the Italian chocolate market is crowded by global, regional and local suppliers. With Belgium and Switzerland being geographically proximal, numerous chocolate producers from these countries service the Italian market. The power of buyers is very high because of the numerous choices available to them. The power of suppliers is however low because the ingredients used for production of chocolates are essentially generic in nature and freely available. Chocolates are an easy entry business area in terms of investment and technology and the threat from new entrants, especially those of local origin is high. With new developments in foods and snacks occurring frequently, the threat from substitutes is also high. It is evident from the above analysis that the market for chocolates in Italy is not just sophisticated, mature and slow growing, but also intensely competitive in nature. Areas of Opportunity Whilst the market for chocolates in Italy is undoubtedly slow-growing and intensely competitive, the popularity of chocolates among western populations is an undeniable fact. Italy, with a consumption of more than 200,000 tonnes per year is the fourth largest consumer of chocolates in Europe (Mintel Snapshotà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ã‚ ¦, 2010, p 4-9). Such a strong market undeniably provides opportunities for new entrants. Superior Chocolate, with its range of high quality chocolates produced with organically grown ingredients will essentially target the premium segment of the product. It should be able to find strong niche opportunities through careful differentiation of product qualities and carefully chosen marketing and distribution strategies. Consumption of chocolates is now being associated with a range of medical benefits and chocolates could in future become a strongly recommended consumption product for ageing populations (Stibich, 2009, p 1-2). Such changes in consumption patterns could be significantly important for the ageing Italian population and lead to strong growth in chocolate consumption in future. It is important to note that Italy just about one third of the chocolate consumed in the UK, even though its population is practically 80% of that of the UK. Increase in per capita consumption levels of chocolates in Italy to those of the UK can lead to significant market expansion and cr eate substantial market opportunities for Superior Chocolate. Entry Routes International expansion and marketing not only requires very careful analysis of market situations and business environment but also an appropriate choice of entry strategy. Business firms wishing to enter new markets can choose from a range of alternatives starting with direct export of products to importers in target markets to appointment of franchisees, setting up of joint ventures or investment in fully owned facilities (Kotler, et al, 2008, p 71-77). The choice of entry routes is shaped by a number of external and internal considerations like existing production capacity, distance of target market from current production centres, cost of investment in production facilities in target locations and local environmental considerations (Kotler, et al, 2008, p 71-77). Most organisations that supply non-perishable products to proximal countries choose direct exports as the favoured mode of entry and support such exports by strong local marketing and distribution facilities (Hooley, et al, 2008, p 81-86). Whilst direct exports could facilitate the entry of Superior Chocolate into the European market, the additional freight and cold chain costs could well make the firmà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s products uncompetitive in the long run, especially in comparison with competitors in proximal countries or those who have local production facilities. SC must essentially aim to establish its captive production facilities in Italy, even though it can initially enter the market through direct exports. Such a medium term strategy will not only enable it to be more competitive in terms of costs and prices but will also enable it to adapt and customise its products in line with local preferences. The company must, if such a strategy is adopted, decide between putting up its own facilities and entering into a joint venture with a local business firm for production and manufacture of chocolates. The decision to set up own facilities in foreign countries, whilst keeping full control of the business within the organisation, is however far more difficult to implement because it calls for detailed environmental and cultural knowledge of the target market. The adoption of the joint venture route on the other hand entails entering into a partnership with a local organisation for sharing of investments, management control, responsibilities and profits of the proposed business (Adcock, 2000, p 35-42). Whilst joint ventures require mutual understanding, collaboration and a spirit of give and take and beneficial partnership, they enable foreign companies to associate with local business organisations and take advantage of their knowledge of local environmental, social and cultural condit ions (Adcock, 2000, p 35-42). 3. Recommendations The foregoing analysis of market and environmental conditions leads to the inescapable conclusion that the Italian market for chocolates, whilst strong and with potential for good future growth, is at present increasing very slowly and is furthermore fragmented and intensely competitive. With the Italian economy experiencing a prolonged period of economic downturn, Superior Chocolate will have to face and overcome intense competitive challenges and difficult market conditions in order to establish and expand its product line. The demanding market and environmental conditions, coupled with the ethnocentric social and cultural environment, call for the careful selection of entry strategy. It is recommended that the firm should engage in planned market activity and enter into an agreement with a strong, reliable and well known local business firm for production and sale of chocolates. Such a strategy will enable SC to obtain extensive information about local market realities and customer preferences and adopt appropriate business strategies. Market leaders like McDonalds, KFC and Mark and Spencer are using the joint venture route successfully to expand their operations in foreign locations. Superior Chocolate will also benefit from adopting such an entry route. 4. Conclusions Superior Chocolate is a UK based producer of high quality organic chocolates. The firm has three product lines, namely (a) block chocolate, (b) chocolates for special occasions and (c) speciality chocolates. The company has adopted a comprehensive marketing strategy for (a) improvement of competitive advantage by improvement of financial strength, and (b) expansion into other markets, in both emerging and developed countries. This study investigates and analyses the potential of the Italian market for entry by the company. The analysis makes use of a focused situation analysis of the Italian market and an examination of the various routes for entry for its final recommendations. The analysis of market and environmental conditions leads to the inescapable conclusion that the Italian market for chocolates, whilst strong and with potential for good future growth, is at present increasing very slowly and is furthermore fragmented and intensely competitive. The demanding market and environmental conditions, coupled with the ethnocentric social and cultural environment, call for the careful selection of entry strategy. It is recommended that the firm should first enter the market through direct exports and thereafter enter into an agreement with a strong, reliable and well known local business firm for production and sale of chocolates. Such a strategy will enable SC to obtain extensive information about local market realities and customer preferences and adopt appropriate business strategies.

Comparing Debt Financing and Equity Financing Essay -- Financing Finan

There are two basic ways of financing for a business: Debt financing and equity financing. Debt financing is defined as 'borrowing money that is to be repaid over a period of time, usually with interest" (Financing Basics, 1). The lender does not gain any ownership in the business that is borrowing. Equity financing is described as "an exchange of money for a share of business ownership" (Financing Basics, 1). This form of financing allows the business to obtain funds without having to repay a specific amount of money at any particular time. There are also a few different instruments that could be defined as either debt or equity. One such instrument is stock options that an employee can exercise after so many years with the company. Either using the debt or equity method, or a combination of the two methods can be used to account for stock options or other instruments with the similar characteristics. There are pros and cons to deciding to use either of these methods. First I will discuss the pros of using the debt or equity methods. One pro of using the debt method is that it "does not entail 'selling' their equity, but instead works by 'borrowing' against it" (Financing Using, 1). So the company could account for future stock options by assuming that employees will cash the option in, and, in the books, it will look as if they simply have a liability. Another pro with the equity method is that the company is receiving money, and it does not have to pay the money back. In the end the investing company will normally make money on the investment, but it will come in the form of dividends and/or selling the stock back. There are also a few cons in accounting for these instruments are either debt of equity. "Excessive debt financing may impair your (the company's) credit rating and your ability to raise more money in the future (Financing Basics, 1). If a company has too much debt, it could be considered too risky and unsafe for a creditor to lend money. Also with excessive debt, a business could have problems with business downturns, credit shortages, or interest rate increases. "Conversely, too much equity financing can indicate that you are not making the most productive use of your capital; the capital is not being used advantageously as leverage for obtaining cash" (Financing Basics, 1). A low amount of equity shows that the owne... ...n Shares 400 This would be a very efficient way of accounting for the stock options. There will not be many changes in amounts when the employee has the option. This would be the entry for five years, and then the employee will have their option. Below is the journal entries for both decisions: Employee takes the cash Common Shares 2000 Accounts Payable 500 Cash 2500 Employee takes the stock Accounts Payable 500 Common Shares 500 Again, both methods clear out the accounts payable. Also the employee is receiving the cash or common shares in the right amount. Debt and equity methods are important decisions when deciding what to do with an instrument like stock options. All three methods, debt, equity, or a combination, are helpful in keeping the books correct and fair until the employee exercises their option. The best method in my mind is the combination of methods. It best shows were the money will go on average before the option is decided on. However the other two methods are also important considering the pros and cons of each decision. No clear answer, however, will ever be known as long as accounting exists.

Philosophy and Engineering Essay

Study is not only learning the facts but rather it is a practice the mind to think. This is my values in concerning Engineering course in my life not only do utilize the scientific knowledge to build something, but you also utilize philosophical wisdom in figuring out what to build, so that it will be valuable and new. The range of philosophical studies there is without limit of facts, thoughts, ideas and knowledge beyond existence or do without exist and act being exist. For us soon to be engineer, the first principle of high metaphysics is very important and significant for innovation. The first cause principle of all things is GOD. Without him we can’t innovate out which something is made, through which something is made, is that which something is made and on the account which something is made. In the act of â€Å"esse† the values is being mannered, through this we give respect, loyalty and wisdom in everything we do. We have to attain the highest form human achievements â€Å"the most universal science† since all reality is its object of study. Metaphysics relates the knowledge (truth) and to the will (Goodness). Aesthetic sense (beauty) is necessary for innovation. Beauty is imagination, without imagination you can’t create something is entice. Imagination is greater than knowledge. Connected values is based on interactivity, dialogue and participation. It connects people on a personal level, while recognising the importance of the values of the institutions they represent. It uses a cyclic, reflexive and action-learning methods. â€Å"I appreciate people who are electric and all engineering level, whether they mean it or not. I think: Be electric!. Do not cherish your opinion over my feelings. There’s a vanity to candor that isn’t really worth it. Be kind†¦

BP SWOT Essay

Strength Strong improvement in safety BP focuses on new research and product innovation, leading in new researcher and also improving in safety and procession in the work places. According to â€Å"Safer drilling† (n.d.), BP use Blowout preventer (BOP) technology to support safety in offshore rigs in Brazil. Using high technology likes digital radiography can evaluate and determine underground structure in the North Sea. BP also improves the new tools called Permasense corrosion probes to supervise wall’s thickness in refining process (â€Å"Robust research†, 2013). This equipment is an effective method to control and protect the probability in wall crake. Weakness Ecological impacts of oil spillage damage reputation BP experienced a reputation risk in terms of both public reaction and biological response. About 5 million BP raw oil spilled in 2010, causing a disaster on ecosystem. Dragovic (2013) stated that oil spill would constraint species of wildlife because residues of harmful substances could not be cleanup completely. It also disrupts the chain of wildlife. BP was deluged with blame and disappointment from the pubic. It would take BP quite some time to rebuild its brand-image. (Walt, 2010) Opportunity Growing demand on renewable energy The world has increasingly growing demand for renewable energy. The global renewable consumption will increase to 6.3% (2030) of energy demand from 1.8% (2010). BP is prepared to place emphasis on development of renewable energy (Morales, 2012). Consumers have a tendency to choose to use renewable energy. According to â€Å"consumer demand is growing† (2011), there are 48% of subjects who are willing to use renewable energy and 49% are prepared to pay additional cost for that. Threat Lack of oil and gas reservoirs Oil and gas businesses are high competition because companies gain high benefits. From long period in operation, the crude oil and natural gas around the world is declining that mean the fossil fuel in the future will run out. According to â€Å"OPEC share of world crude oil reserves 2012† claim that now OPEC has only 1,200 billion barrels in reserves global fossil energy In 2010 individual and organization used approximately 87 million barrels per day. The biggest fuel consumer is Asia and Oceanic region. They used around 27 million barrels per day and gradually every year from 2006-2010. Recently, people utilize oil and gas rather than producing. (â€Å"International Energy Statistics, n.d.) References Consumer demand for renewable energy is growing. (n.d.). Retrieved from http://www.windmade.org/for-companies/global-wind-study/consumer-demand-for-renewable-energy-is-growing.aspx Dragovic, D. (2013, March 19). Environmental impact of the BP oil spill. Retrieved from http://livinggreenmag.com/2013/03/19/energy-ecology/environmental-impact-of-the-bp-oil-spill/ International Energy Statistics. (n.d.). Retrieved from http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=5&pid=54&aid=2 OPEC share of world crude oil reserves 2012. (n.d.). Retrieved from http://www.opec.org/opec_web/en/data_graphs/330.htm Marketline. (2013, August 23). Company profile: BP Plc. Retrieved from Business Source Complete database. Morales, A. (2012, January 18). Renewable-energy growth to outpace oil, gas through 2030, BP Says. Retrieved from http://www.bloomberg.com/news/2012-01-18/renewables-to-grow-more-than-8-a-year-through-2030-bp-says.html Safer drilling (n.d.). Retrieved from http://www.bp.com/en/glob al/corporate/sustainability/safety/preventing-and-responding-to-accidents-and-oil-spills/safer-drilling.html The Gulf of Mexico oil spill: consequences for the oil and gas industry. (2011, February 15). Retrieved from http://uk.practicallaw.com/3-504-7901?service=crossborder#a684683 Wearden, G. (2010, April 27). BP profits jump after oil price rise. Retrieved from http://www.theguardian.com/business/2010/apr/27/bp-profits-jump-oil-prices-ris Walt, V. (2010, July 19). Can BP ever rebuild its reputation? Retrieved