Annual Reports of firms group - free sample - MyAssignmenthelp.com

Questions: Discuss about theFirms Annual Reports. Answers: The Prada is a recognised Italian luxury fashion house that is renowned for its specialization in leather bags, travel accessories, shows, men and womens clothing, perfumes and other types of fashion accessories. The success achieved by the company is on the basis of its creative business model developed through combination of its efficient production process with artisanal skills (Prada Group, 2016). It can be stated from the Chief Executive review of the year 2016 that the company has made strong plans for supporting its brand development. The company is emphasising on enhancing the geographic expansion of its retail business for ensuring its long-term growth. However, the company has faced significant challenges for achieving its business goals and objectives due to uncertainty in the global market. The company has done some of the changes in its operational activities for strengthening its production processes and meeting its new business objectives. The company has also develope d and implemented the cost reduction strategies by simplifying its business operations for enhancing its profitability (Prada: Annual Report, 2016). The operational expenditure of the company has reduced in the year 2016 as compared to the previous year by Euro 206.7 million despite of the key measures adopted by it to enhance its profitability position. The income statement of the company has reflected a decline in the EBIT of 71.7 million in the year 2016 as compared to the year of 2015. The balance sheet of the company also reflects a net increase in the financial figures of its non-current assets of property, plant and equipment. The net income of the company in the year 2016 is reported to be Euro 278.3 million as compared to the Euro 330.9 million in the year 2015. The non-current assets has reported an increase from Euro 2,586.8 million to Euro 2599.6 million due to capital expenditure incurred by the company for supporting its expansion plans . There is also an increase in the current assets of the company due to reduction in the tax payables. The working capital of the company has reported a reduction due to finishing of the product inventories and reviewing of the business strategies for replenishing the retail stores. Besides, the key strategies developed by the company for supporting its growth and development it are not able to achieve improved growth. The net cash flows from the operating activities have also been declined in the year 2016 as compared to the previous year. The reduction in the profitability despite of the initiatives taken for improving the operational processes is a matter of main concern for the company. The company is not able to increase its sales in the new geographical locations and therefore requires the development of new strategies for attracting customers (Prada: Annual Report, 2016). The company for ensuring the success of its long-term plan of business expansion in diverse geographical area is planning to take several initiatives. The major initiatives taken by the company in this regard is developing new and innovative products for the customers with high quality and best prices. The company has designed new products in several categories such as leather goods and handbag designing. In addition to this, it is also placing large emphasis on renovating its retail stores for providing better shopping experience to the customers. The company has developed a global vision of strengthening its brand image in all parts of the world in the coming period of time (Prada Group, 2016). The company is incorporating the use of advanced digital technologies and tools and developing highly qualified team for empowering its brands in diverse geographical areas. These efforts of the company will ensure it to achieve sustainable growth through providing high quality products based on creative ideas. The digital technologies will help in distributing the products to the customers in a short interval of time. Also, the use of new technology devices will help the company to interact with large customer base in a short span of time and thus providing knowledge about their products and services. The company for achieving its business objectives of providing innovative styling products to the customers is facing the major challenge of reducing its operational expenditure. The significant increase in its operating expenses is the major reason for its reduction in profitability position in the year 2016 (Prada: Annual Report, 2016). However, it can be said from analyzing the annual report of the company that the presentation of its financial results is different from other major retail companies such as Woolworths, Tesco and others. There is no segregation in the annual report of the company such as directors or remuneration or the financial report as can be clearly seen in the annual reports of other companies. It is very interesting for me to review the financial position of such a company that is based on central idea of creativity and innovation. It has helped me to understand the importance of creativity for gaining customer satisfaction and its significance for gaining a unique position in the marketplace (Prada: Annual Report, 2016). Blog Post about My Company My company is Prada Group, a well-renowned Italian luxurious retail company. The company has achieved a distinctive position due to its unique styled products mainly in categories of handbags, fashion accessories, footwear, perfumes, men and women clothing. I am extremely happy for gaining an opportunity to analyse the business functions and activities of this company. This is because the company has achieved a distinctive image in the marketplace due to its creative and innovative products. I myself have a large interest in developing of products based on creative ideas that is the main theme of this company. The company emphasizes mainly on achieving customer attraction through providing them unique styled products in fashion accessories. The analysis of the financial statements of the company for the year 2016 has revealed that despite of its strong efforts for gaining customer attention it is not able to increase its revenue generation in the new foreign markets. However, as per the financial reports for the year 2017 the company profitability position ha significantly improved showing that its new business strategies are proving it to be successful for improving its performance in the long-term. References Prada. 2016. Annual Report. [Online]. Available at: https://www.pradagroup.com/system/pdf_ens/280/original/e-Annual%20Report%202016.pdf [Accessed on: 7 September 2017]. Prada Group. 2016. [Online]. Available at: https://www.prada.com/en.html?cc=AP [Accessed on: 7 September 2017].