Financial Analysis

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Financial Comparison of Two Companies

Financial Comparison of Two Companies

Part A.


This report is in order to indicate the different performance of the two companies in the same business area. The analysis will be divided into both financial and non-financial parts. In the financial aspect, those two companies will be observed from ratio analysis. And in non-financial part, appropriate methods will be used to explore the operations for both two companies. The SWOT analysis will illustrate the strength and weakness of those companies, which could clearly identify what factors, makes the company so competitive in the industry area and where the most potential part of the company is could be improved.

This paper will compare the two companies in the retail industry, which are Marks & Spencer and John Lewis. Those two companies were chosen because both of them occupy a competitive market share as a retailer in U.K. And they even ranked the first two places as the most-trusted brand in U.K. The similarity performance in the retailer market of those two companies must lead to their financial and non-financial objectives are comparable with each other.

Part. B

Analysis of Marks and Spencer and John Lewis plc

Marks & Spencer was established in 125 years ago. Firstly the new stores were called Penny Bazaars, and the idea of it was in order to inspire customers to buy products without any hesitation. By 1900, Makes & Spencer had expanded to include 36 penny Bazaars and 12 High Street shops. In order to satisfy their customers, in the period of 1920 to 1940 Marks & Spencer started to sell more of daily essentials products, including underwear, which made them successfully survived above other competitors. In 1960 to 1970, Marks & Spencer invented the cold-chain process to selling fresh dairy products and meats, which enclose the connection between the suppliers and the retailer and also shaped their supply chain well. In 2010, Marks & Spencer is becoming one of the UK's leading retailers with Quality, Value, Service, Innovation and Trust. Those are the core values of Marks & Spencer, which are as important for the company as it was founded over 125 years ago. And there are over 76,000 people works for Marks & Spencer both in the UK and they also expend their business to overseas with 40 areas outside the U.K.(Hansen,Pp.67,2009)

John Lewis

The first shop of John Lewis was begun at London's Oxford Street in 1864. With the slogan of Never Knowingly Undersold, John Lewis attracted lots of customer to come cause their impressive brand image, which means the price of their selling products will always be the lowest around the neighbourhood. And this lasts for over 75 years. As John Lewis set up the Partnership, which are the employees participate as a partner of the company. The co-own business pattern encourage the employees serving customers with high quality goods and services as suppliers. In the department store they offer the best fashions, furnishings and household goods at competitive prices with excellent service and free delivery ...
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