Thorntons PLC Strategic Analysis Assignment Example | Topics and Well Written Essays - 4000 words

Thorntons PLC Strategic Analysis - Assignment Example Thornton's PLC has 230,000 employees world-wide and operates 520 factories in 82 countries. Thornton's PLC fundamental social impact is to improved standards of living among millions of people through creation of productive, sustainable economic development. Thornton's PLC brands showed the strongest growth, currently posting sales close to 700 million liters in over 20 countries. Thornton's PLC leadership is concentrated in Europe (regions where economic risk is limited, incomes are high and growth prospects are robust) through the development of strong brands, the HOD business, and acquisitions that offer real opportunities for synergy. In 1999 Thornton's PLC operated from 509 factories worldwide, 424 are in special chocolates and toffee products. Special chocolates accounted for 28% of 1999 revenues; 26%; chocolate and confectionery, 54% are in toffee. With a net profit of 4.724 million, up 12.3 percent over last year, and with significant, broad-based improvement in all major performance indicators, Thorntons PLC looks back on a record year 1999. The net profit margin reached 6.3 percent (5.9 percent in 1998) on consolidated sales of 74 660 million (1998: 71 747 million). The trading profit of 7 914 million increased by 11.8 percent, a margin of 10.6 percent of sales (9.9 percent in 1998). EBITA (Earnings Before Interest, Taxes and Amortization) improved by 12.4 percent to 8 298 million (1998: 7 382 million). These substantial improvements reflect a series of measures taken over the past years, touching virtually all activities (Mitchell, 2002). Streamlining the business portfolio, increasing operational efficiency, industrial restructuring and progress in purchasing and supply chain management enabled the Group to achieve higher profits, margins and return on invested capital. Thornton's PLC also made the necessary investments to ensure future top-line growth by investing in new products and strengthening its brands and market shares. During the first half of 2000, Thorntons PLC achieved a significant increase in both sales and profit margins. Table shows that consolidated sales grew by 9.9 percent to 38.8 billion, with real internal growth accelerating to 4.5 percent, compared to 2.1 percent in the same period of 1999. Trading profit amounted to 4296 million. This represents 11.1 percent of sales against 9.8 percent for the 1st half of 1999. Net profit increased to 2798 million or CHF 72.7 per share, resulting in a net profit margin of 7.2 percent (5.9 percent in the first half of 1999). The strong sales performance reflects the Group's emphasis on internal growth. The margin improvements result from progress achieved in enhancing operational efficiency, the streamlining of the Group's product portfolio, industrial restructuring and some lower raw material prices which were able to offset higher packaging costs. Internal Growth and Currencies Push Up Sales Consolidated sales, at 38.8 billion, were up 9.9 percent. At comparable structure (excluding acquisitions and divestitures) and at constant exchange rates, sales rose by 4.9 percent (see table 1). Table 1. Thornton's PLC Figures for 1999-2002 Thornton's PLC Annual Report 2002 2001 2000(e) 1999(f) In millions of CHF (except for per share data) Consolidated sales 89 160 84 698 81 422 74 660 71 747 EBITA 10 940 9 987 9 911 8 700 7 606 as % of

Impact of internet on travel agencies in UK Essay

Impact of internet on travel agencies in UK - Essay Example This essay "Impact of internet on travel agencies in UK" outlines the whole changes that the Internet brought in the travel industry. The travel agencies have a very hectic service to provide to its customers. Traveling to a new location is a very hectic and risky enterprise. The tourists have to take into account very small details in traveling which they might not consider when at home. These include travel and mode of travel, the costs and expenditures, the number of days that the tourists plan to stay, locations where they want to travel and the times set for that, food and accommodation, good maintenance services for clothing, dining, eating etc., and recreational spots etc. A travel agent therefore, not only has to help the tourist decide where he or she should go for the vacation but also has to take care of these essential and miniscule details. The more thorough the travel agent is in planning the whole trip for the client, the better ranked the company is. But all these arr angements cannot take place without the essential ingredient of money. The client’s choice of tourism spot is largely dictated by the amount of money he or she can spend on the trip. Again it is the travel agent who should have the ingenuity of choosing travel spot that is right for the client, is able to provide the necessary services required and lets the customer think that he or she is getting a great deal. So where does the internet help in all this? The internet simply stating, has become the tool that organizes and categorizes this vast information. into a form that is both comprehendible to the client and that is able to provide the necessary information to the reader, without encroaching too much (Deimezi and Buhalis, 2003, np)