Strategic Audit
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Objectives of presentation
To critically analyse Homebases (ARG group) mission/vision statement
The BCG matrix and the different subsidiaries of the ARG group
We will discuss the recent changes made to the structure/leadership of Homebase ARG group
Homebases current strategic objectives
We will report on the recent financial performance of the company by using trends and benchmarking
Conclude based on our views on strategic issues/ challenges.
Mission and Vision Statement
Mission = “Enduring statements of purpose that distinguish one business from other similar firms” (David, Fred, R., 2004)
Answers question “What is our business?”
Vision = considered first step in strategic planning.
Answers Question, “What do we want to become?”
Organisational Structure
(www.gusplc.com) 21/10/05
Strategic Objectives
To improve the existing core business
By maintaining their store opening program, Homebase believes there is scope for up to 350 stores by 2009 and 450 ultimately.
To enhance and extend its home furnishings offerby the introduction of a new furniture catalogue, “Furniture Direct” this offers products from both Argos and Homebase ranges.
To deliver synergies by leveraging the scale and expertise of ARG. Product sourcing through ARGs Far Eastern offices has proved particularly successful in areas such as garden, power tools and garden furniture helping Homebase to keep down cost prices.
Financial Performance
Homebase
2004
2003
2002 2001
2000
ROC % 10.80 9.76 10.33 42.05 1.13
Current ratio 1.79 1.87 1.98 1.76 1.11
Gearing ratio % 18.34 13.59 19.34 19.03 36.18
1. Homebase
4. Topps Tiles
2.Wilkinson Hardware
5. Robert Dyas Holdings
3.Screwfix Direct
1. Homebase
4. Topps Tiles
2.Wilkinson Hardware
5. Robert Dyas Holdings
3.Screwfix Direct
CONCLUSION
We feel that there is room for Homebase to expand into other markets such as the furniture market. A move away from