Business Strategies And Objectives Of Next Economics Essay

Business Strategies And Objectives Of Next Economics Essay Next is a UK based retailer with its Headquarters in Leicester, UK and offer wide variety of brilliantly designed, outstanding quality of trend and accessories for men, women and children collectively with a full variety of home ware (Next Plc). In 1864 it was founded by J. Hepworth & Son under the name of Gentlemanà ¢Ã¢â€š ¬Ã‚ ²s Tailors (Next Plc 2011) Next is the oldest company which has been trading for nearly 150 years and was initially created in 1982. Most recently Next was established as authorized Clothing and Home ware supplier to the London 2012 Olympic and Paralympics. Next will also supply outfit for Team GB for the opening and closing ceremonies, and will fabricate uniforms for 4,500 technological officials and suits for reception staff and will deliver bed linens and other home textiles for the athletes’ village (Next Plc 2011) . Next owns more than 500 stores in UK. Next has franchises more than 180 stores and active in continental Europe, Scandinavia, Russia , India, Japan and the Middle East. Next provides a directory, it is a home shopping catalogue and website with nearly 3 million active customers and also has an international website capability in more than 30 countries worldwide (Next Plc). Next Plc is listed on the London stock exchange and is part of the FTSE 100 Index. Total revenue for the year ended January 2011 were  £3.5 billion with pre tax profits of  £551 million (Next Plc). Next’s other business groups include (Next 2010): Ventura: Clients wishing to subcontract their consumer contact management and accomplishment activities Venture provides customer service management to them. Lipsy: Through wholesale, retail and internet channels, Lipsy create and sell its own labelled younger women’s trend product. Next sourcing Ltd (NSL): Design sources and buy Next’s products. Business Strategies and objectives of Next The prime financial objective of Next group is delivery of sustainable long term growth i n earning per share (EPS). Next believes the following strategies will help achieve the objectives at its best (Next Plc , january,2011): Maximising the amount of Next Directory consumers and their standard spend. Maintaining group’s financial power through a well-organized balance sheet and financing composition. Managing gross and net margins by continues cost control, well-organized management of stock levels, working capital and improved product sources Developing and improving next product ranges, achievement in which is reflected in total sales and sales performance. Cancelling and Purchasing Next shares while it’s earning are attractive and in the interest of shareholders generally. New stores review must meet challenging financial criteria prior to the investment is ready and achievement is precise by calculating achieved sales and profit contribution against appraised goals (Next Plc , january,2011). Marketing and Marketing Mix Place: Operates in UK and Europe , Middle East (reportlinker 2009,february ). Also operates in Scandinavia, Russia, India and Japan (Next Plc). Next sources operate in mainland China, Honkong, Srilanka, India and UK (Next Plc , january,2011). This show, Next stores are spread globally. Product (or services): Includes womenswear and accessories, menswear, home interiors, childrenswear, Next flowers, NX sports, electrical, designer branded fashion and baby boutiques (Next Plc). Improvement in customer service by introducing initiatives such as next day delivery for orders placed before 9 pm (Next Plc , january,2011).