10-K Integration Project - Analyst Preparation Assignment

10-K Integration Project - Analyst Preparation Assignment
1. Political: Changes in geopolitical and geo-economics conditions.

Ross 10-K didn’t really discuss any political influence in the PESTEL theory instead it acknowledges the risks that affect the large retailers operating in the USA.

2. Economy: Ross target customers are primarily from middle income households.

Ross stores are mostly located in the urban and suburban areas and since their target is primarily from middle income household, they have a price stability of selling their merchandise 20-60 percent below other retail markup prices which gives them a competitive advantage in the market.

3. Sociocultural: Ross believe nationally recognized name brands sold at compelling discounts will continue to be an important determinant of our success.

It is important for Ross stores to have this name brands at this discounted price to appeal to the trend and create more opportunities for the company. Although there are substitute merchandise out there, today’s society still want that brand name at the best affordable price.

4. Technological: Invest in new information systems and technology to provide a platform for growth over the next several years.

Their growth in technology is important in the growth of their platform; today’s society is fast paced when it comes to technology. Everyone is tapped into the information and technology highway and in a society where everything and everyone is face paced if the company is unable to keep up they would be left behind.

5. Environmental: Ross has no environmental issues addressed in their 10-K to analyze.

6. Legal: Ross are also party to various other legal proceedings arising in the normal course of business.

This Legal proceedings has no effect of the company's financial conditions or their strategy or result of operation. It is important to know this, because most, if not all department stores, has some legal issues. Most of these legal issues does not affect the company's cash flow or result of operations.

7. Current Competitors: Nevertheless, the retail apparel market is highly fragmented and competitive.

It is a perfectly competitive industry, characterized as fragmented and ease of entry, especially in todays society, with the use of internet, retail stores are all over the place, over the net as well as different locations. This is important to know, for Ross to make better competitive decision.

8. Threat of new entrant: The retail apparel and home-related businesses may become even more competitive in the future.

There is no entry barrier, anybody can sell retail from anywhere in today's society especially with the use of internet. most retail stores now uses the web to make it affordable, and so does individuals buying and selling as well.

9. Suppliers: We purchase the vast majority of our merchandise directly from manufacturers

The fact that Ross Purchases later in the buying cycle than department, specialty and discount stores gives them the advantage of buying those product at a price that allows them to sell and still maintain profit at the price they sell it.

10. Buyers (and their bargaining power): Changes in the level of consumer spending on or preferences for apparel or home-related merchandise.

In a market where there are lots of different retail stores, and other substitutes, Ross is aware consumers will always go for the cheaper price or a substitute and that is why their strategy of selling to consumer at the price they are, helps with the bargaining power of the buyers.

11. Threat of Substitute products/services (and their influences on the company): Ross compete to some degree with retailers that sell apparel and home fashions through catalogs or over the internet.

With the growth of internet sale and catalog sale, Ross deals with the threat of substitute every day. Their current consumers as well as new consumer have found that they can get similar or almost the same price without having to leave their home with the power of the internet and other catalog offer with shipping.

12. Strengths: No emphasis on their strength in 10-K.

Their inner strength would be their purchasing ability and the way it allows them to be able to sell their product at 20-60 percent below other department stores.

13. Weakness: None addressed

14. Opportunities: No new opportunity addressed in the 10-K

15. Threats: None addresssed.

Their threats however will be the ease of entry in the industry and the use of technology to compete in the industry.

16. Overall Strategy: Maintain an appropriate level of recognizable brands, labels, and fashions at strong discounts throughout the store.

This is an intended strategy and everything they do from the way they buy, the location of their buyers as stated in 10-k and the location of their stores to deliver their good to the consumers. They maintain their strategy in providing brand name merchandize at a strong discounted price.

I was able to locate Edgar online article that talks about the 10-k of Ross Store Inc from the business side of things rather the financial side. Every other article I found for the 10-K, was talking about the financial part, how it affects investments and how there numbers look. In the Edgar online article however, there are no contrast or compare it just pretty much analyze everything as stated in the actual 10-K. The way Ross Store inc views itself as I see it, is as a departmental store that continue to provide brand name merchandize for men, women, children and home furnishing at a discounted Price. They continue to cater to the middle class and meet these needs on a local basis. Their Pricing standard make them very competitive in the departmental store industry, however they seem to have a big threat with the growth of internet sales. Internet sales provide substitute at a competing price and at the convenience of the consumer. Consumers can now order the same brand name merchandize without having to leave their home and at an affordable price and also have it shipped to their home if need be without having to leave. However Ross Store inc opening their retail stores closer to urban and suburban areas competes by providing a point of sale convenience to consumer and same day purchase and also a chance to see and try out merchandize before taking them home. Even though they are open to legal issues just like any department stores, it hasn't deferred them from their strategy and the way they do their business. Overall with the article and their actual 10-K report, the PESTEL or the Porter's five forces though the company is aware of it, doesn't seem to affect or cause a change in the core business strategy.

10-K Integration Project - Analyst Preparation Assignment 9.3 of 10 on the basis of 1828 Review.