University of Technology Sydney
Graduate School of Business
22743 BUSINESS VALUATION AND FINANCIAL ANALYSIS
Group Assignment

OCTOBER SESSION
Report to: PROFESSOR ZOLTAN MATOLSCY

Case Study: Woolworths

Prepared by:
Student Name
Student Identification
Brent HENLEY
10388039
Peter HOWE
02130033
Christian ORITZ
03005802
Zhiming YE
10669428

ASSIGNMENT DUE 21 October 2009

Table of Contents
Woolworths Limited: Case Study 3
Executive Summary 3
Restating Financial Statements 3
Industry and Business Strategy Analysis 4
1. Industry Analysis 4
2. Business Strategy Analysis 5
Accounting and Financial Analysis 6
Measuring overall profitability 6
Assessing Operational Management 7
Woolworths Limited Profit and Loss and Balance Sheet …show more content…

(Appendix 4)
Threat of Substitute Products
Customers have the option to switch as competitor supermarket chains like Coles and Aldi offer similar products at comparative pricing.
Bargaining Power of Buyers
Consumers have very little bargaining power due to the significant market share held by the major supermarkets, however it must be noted switching costs between the major supermarkets is relatively low
Bargaining Power of Suppliers
Suppliers have relatively low bargaining power as all product lines within Woolworths have substitutes and suppliers compete on price to maintain market share and shelf space

Industry Analysis of Commercial Issues

The industry commercial issues will also be used to analyse Woolworths’ sales, COGS and long-term growth prospects. (See Appendix 5 for further details)

Commercial Issues
Sales
COGS
Long-term Growth
Cancellation of the anti-competitive leasing provisions in Woolworths’ leases.
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+
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Aldi, Coles and other competitors selling substitute products at lower prices.
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+
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Consolidation of Woolworth’s distribution centre’s
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+
Natural disaster in Australia
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+
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2. Business Strategy Analysis

Business Monitor International (2009) highlights that Woolworths plan to add 15-25