Financial Reporting For Users Essay Example | Topics and Well Written Essays - 2500 words

Financial Reporting For Users - Essay Example Burberry was founded in 1856 in the United Kingdom and since its inception they dedicated themselves to providing the clothing needs of the British citizens. The company is very success and during the 2006 fiscal year the company had revenues of 850.3 million pounds with a net profit margin of 12.96% (Burberry Annual Report, 2006). The enterprise has a solid business strategy with a trading operation with multiple strategic objectives and goals. The company core strengths are multiple product offerings, global reach, a solid management team and channel expertise in retail, wholesale and licensing (Burberry Annual Report, 2006). Their strategic plan for the near future is flexible and targets opportunities within the apparel and non-apparel industry. The leveraging the franchise means improving its products, marketing imagery and stores. The company has a competitive advantage in the United Kingdom luxury market which they will continue to exploit. Burberry plans to expand its overall product offerings of apparels while concentrating in its cash dog which is casual outerwear products. The company seeks to streamline its business processes and restructure its supply chain to better meet global requirements. The company seeks to strengthen its non-apparel business segment. The segment accounts for about a quarter of overall revenues and there is room to grow due to the fact that this segment is a growing market within the industry. The company is investing in R&D, marketing and its supply chain to increase sales of handbags, small leather goods and shoes (Burberry Annual Report, 2006). The company also expanded its non-apparel product line to include eyeglasses for the first time in the company’s history. Expanding the retail presence is a top priority for the company. The company wants to open new stores, but their main focus is to increase the overall sales