Analysis of Commerce Sector in Thailand
Autor: Mikki • March 15, 2018 • 2,991 Words (12 Pages) • 634 Views
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ECONOMICAL
- Taxation specific to products, which increase specific product prices - prices increases reduce the product sales [18]
- Market trends, such as which product is popular at the time
- Economy trends, such as GDP growth -- increase in GDP increases the retails sales and profits [19]
- Economy trends, such as unemployment rate -- decrease in unemployment rate increases the retails sales and profits [20]
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- Exchange rate, such as Thai Baht vs. USD -- Thai baht strengthening makes import cheaper, and positively impact the retail sales [21]
- Minimum wage policy of 300Baht -- higher wages lead to higher retail sales [22]
Item
Sales
Profit
Cash flow
Increase Taxation
Negative
Negative
Negative
Market Trends
Uncertain
Uncertain
Uncertain
GDP Growth Increase
Positive
Positive
Positive
Unemployment Rate Decrease
Positive
Positive
Positive
Exchange Rate (Baht) Strengthen Against USD
Positive
Positive
Positive
Minimum Wage Policy
Positive
Uncertain
Uncertain
SOCIAL
- Consumer opinions and attitudes, such as changing attitudes towards shopping at hypermarket [16]
- Consumer retail buying patterns, such as how much they buy at one shopping trip and what they buy [26]
- Demographics, such as gender, age -- aging population buy less at retailers [27]
- Ethical issues, such as unethical food production method may impact sales at the retail outlet [28]
- Major sporting events such as world cup, etc., which positively affect some products promotion [29]
Item
Sales
Profit
Cash flow
Consumer Opinions
Uncertain
Uncertain
Uncertain
Consumer Buying Patterns
Uncertain
Uncertain
Uncertain
Aging Demographics
Negative
Negative
Negative
Ethical Issues
Uncertain
Uncertain
Uncertain
Major Sporting Events
Positive
Positive
Positive
TECHNOLOGICAL
- New Retail technology, such as payment technology which impacting many stages of the retail chain [31]
- Improved distribution channel
- Improved storage and packing technology
- Consumer buying mechanisms, such as online shopping -- More retail spending is moving online, thus we need and desire less bricks and mortar retail space. [30]
Item
Sales
Profit
Cash flow
Payment Technology
Uncertain
Uncertain
Uncertain
Improved Distribution Channel
Positive
Positive
Positive
Storage And packing Technology
Positive
Positive
Positive
Online Shopping
Negative
Negative
Negative
PART THREE – FINANCIAL ANALYSIS
Cross Sectional Analysis (For year 2015)
For the cross sectional analysis, we take the year 2015 to compare the financial ratio among the 4 companies in the commerce sector. The ratios are tabulated in Table 1. For the liquidity ratio, HMPRO has the highest current ratio and quick ratio, so HMPRO is in the best liquidity position.
For the asset management ratio, CPALL and MAKRO have the highest inventory turnover ratio. MAKRO has the highest Fixed Assets turnover ratio and Asset Turnover ratio. CPALL and MAKRO have the lowest DSO. In the overall, MAKRO has the best asset management ratio,
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