MORRISONS ANNUAL REPORT

Morrison Supermarkets Plc

Morrison Supermarkets Plc

Question 1 : What is / are the principal activity / activities of this business?

Morrison Supermarkets is the fourth - largest grocer in the United Kingdom, with about 12.6 % market share, according to Kantar World panel. The firm is vertically integrated and owns manufacturing and processing plants. As of December 2009, Morrison operated 425 stores ranging in size from 11,000 to 40,000 square feet throughout the country.

Question 2 : Comment on the outcome of the auditor's report for Morrison Plc. Briefly discuss the importance the auditor's report with respect to financial information.

This paper focuses on the financial status of Morrison Plc for 2 years that are from 2010 to 2011. This study will describe the importance of choosing the right strategy. Internal and external analysis of Morrison Plc is made in order to maintain the status as the low cost apparel, footwear and accessories. It includes the model of the strategy in use. The strategic choice of Morrison Plc makes the company a leader in the industry. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of Morrison Plc shows the set of managerial decisions and actions that determine the long run performance of a group. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control. Morrison Plc is one of the leading supermarkets which offer a various products at very reasonable price, making the company the leader in the market.

The financial performance of Morrison Supermarkets plc shows that the major portion of the assets is comprised of liabilities; which is a good indication for the company as the company's short term and the long - term debts are stable. In addition to this, the company's equity seems good or satisfactory, and it is high as compare to the liabilities. Moreover, the total assets per share and net assets per share reflect that the Morrison Supermarkets plc 's assets structure is in good shape which shows that the company can meet its financial obligations that is liabilities, if some sort of financial loss occur. In addition to this, past studies states that the financial analysis are to determine whether there are liquidity problems, the study of profitability determines the evolution of the company and return on invested capital, management and analysis of related variables involved in the short - term financing, obtaining rotations and time of collection and payment means.

Morrison Supermarkets is engaged in the grocery retailing in the United Kingdom. Through its subsidiaries, Morrison Supermarkets plc business activities involve the manufacture and distribution of fresh food products including vegetables; captive insurer; fresh meat processor; product packaging and wholesaler; bakery operations; property development; property investment; and grocery retailing. As of Jan 30 2011, Morrison Supermarkets plc had a total of 439 stores across the United Kingdom.

Question 3 : Compute the following ratios, using the table provided below as a template:

Ratio

Expression

2011

2010

2011

result

2010

Result

Industry

Average

ROE

12.22

12.67

19 %

Gross profit ...