The Evaluation Based on Sports and Fashion Stores’ Financial Conditions

MSCI 110    Coursework: Michaelmas 2014  

The evaluation based on sports and fashion

stores’ financial conditions

YI RU

Student  ID: 33668418

                                                                                             February 2015  

Executive Summary

This report provided an analysis and evaluation of the sport or fashion stores in 26 cities in terms of last year profitability, the connection between store area or the number of employees and the annual profit. Patterns of data presenting include table, stacked bar chart, box-plot and scatter plot with the analysis of mean, median, standard deviation, and correlation coefficient etc. And the relative questionnaire can be found in the appendices. Results of data analyzed shows that sport stores had a better profit than those fashion stores; there is a strong correlation between store area and city population; the disproportion in employees as a problem needed to be solved among the given 26 stores.  

Recommendations discussed include:

• Improving the annual profit by reducing the store area in certain cities and decreasing the number of employees to some extent.

• Changing the type of stores from fashion to sport or vice visa depend on the annual profit and the revenue generation index.

• Exchanging the well-performance employees and let them pass on the skill and experience of selling.

The report also investigate the fact that the analysis conducted has limitations include:  there may so many aspects affect the annual profit, but not enough detail information is provided.  

Contents                                                                               Page

Executive Summary                                                      2

Contents                                                                 3

1.        Introduction                                                                4

2.        What was done?                                                                    

    2.1 Last year profitability                                                             5

    2.2 Over-capacitated stores.                                                        6

          2.2.1 Decrease the area                                                           7

          2.2.2 Over-capacitated stores                                                8

          2.2.3 Under-forming stores and marketing actions        9

3.         Conclusion                                                                                 10

4.        Recommendation                                                                    10          

5.        Appendices                                                         11

1. Introduction

The popularized Davichams Store consists of 26 stores in rang of cities with fashion or sport style. The managing director Emma Morgan require us to analysis the given Excel done by their financial manager and pay attention to last year profitability, over-capacitated stores, underperforming stores as well as marketing actions. Therefore, this report will calculate and compare the annual profits of each store through annual revenues and annual costs; analysis the relationship between the area of store or the number of employees with annual profit and give the recommendation of the certain stores to change or improve the marketing actions. Besides, in order to make the further marketing action more reliable and flexible, we will design a questionnaire about the customers’ condition and attitude on fashion and sport stores.