Financial Strategies of Blackmore Company Sample for Students

Question: Give a Breif Introduction of Blackmore Company. Answer: Introduction of Blackmores Company Blackmores is one of the leading natural health companies that are based in Australia (Blackmores.com 2017). The Founder of Blackmores, Maurice Blackmore was passionate regarding natural health as well as used to inspire people for taking control and devote in their welfare. Blackmores offers products as well as services that bring natural approach to wellbeing on the knowledge in minerals, herbs, nutrients and vitamins. Financial Strategies of Blackmores Company From the annual report on Blackmores in Australia, it can be noted that Directors reports an increase in sales that amounts to $341.4 Million as it is reviewed by the auditor (Blackmores.com 2017). Blackmores in Australia had involved in use of various financial strategies for gaining continued sales growth in and across the segments that leads to operational leverage as well as progressing the delivery of given strategic priorities (Pratt 2013). Blackmores in Australia uses various strategies and some of these are as follows: Consumer Centricity- Blackmores majorly believes in supporting the Australia business as well as improving the connectivity to customers through expansion of digital presence (Henderson et al. 2015). Growth- Blackmores made strategy for increasing the level of investment in and across the region so that they bring sustainable continuing enlargement for the Group as a whole (Blackmores.com 2017). Product Leadership- Blackmores believes in leveraging the knowledge so that they drive product leadership as well as innovation in order to get recognized as Authoritative Voice in Natural Health (Hoskin, Fizzell and Cherry 2014). Operational Effectiveness- Blackmores believes in improving the operational effectiveness as well as leveraging the size into scale (Deegan 2013). Blackmores in Australia sales for the year 2016 was $237.6 Million with 73% increase in the EBIT (Blackmores.com 2017). For the country Australia, Blackmores works best for the enhancing the performance as it reflects strong relationships with the retail partners as well as focusing on consumer connectivity as a whole. Blackmores balance sheet shows a healthy financial situation with a cash exchange rate at 112%, working capital at $46 Million as well as operating cash flow at $60 Million after comparing to the previous time. Net debt shows positive cash flow at $23 million with a net awareness cover with 50 times in comparison to 21 times as it was recorded in the previous period. This company has high presentation in Asia counterbalance as it has the possible collision of the weaker Australian dollar for making the purchase of raw materials that supports $0.5 Million net benefit on foreign exchange (Weil, Schipper and Francis 2013). References Blackmores.com. 2017.Blackmores vitamins and supplements- Australia's most trusted. [online] Available at: https://www.blackmores.com [Accessed 28 Mar. 2017]. Deegan, C., 2013. Financial accounting theory. McGraw-Hill Education Australia. Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU. Hoskin, R.E., Fizzell, M.R. and Cherry, D.C., 2014. Financial Accounting: a user perspective. Wiley Global Education. Pratt, J., 2013. Financial accounting in an economic context. Wiley Global Education. Weil, R.L., Schipper, K. and Francis, J., 2013. Financial accounting: an introduction to concepts, methods and uses. Cengage Learning.