The world of tourism and hospitality has experienced a significant shift in recent years due to increased research and technological development. To ensure that a firm in this industry keeps up with the competition, it is essential to develop new concepts that facilitate the satisfaction of all stakeholders and travelers. This paper proposes the development of an E-commerce business that aims to personalize the travel experience according to personal preferences and tastes.
E-commerce business idea
The E-commerce business idea in the hospitality and tourism industries used in this study is creating a personalized travel experience network that ensures customers experience their preferred travel experience. The Platform aims to shift the travel experience away from personal preferences, thus revolutionizing how people travel and enjoy their journeys. This Platform empowers travelers to create memorable and unique journey experiences in the comfort of their homes using a website developed for the operation. In recent years, there has been a transformation in the field of hospitality and tourism due to the varying dynamics in the contemporary business world (Buhalis et al., 2019). However, considering the technological advancements over the past decade, there is an opportunity to improve the niche of hospitality and management using the Internet. With the personalized travel experience network, travelers can easily access a vast range of information while planning their travels.
Industry background Information and Service to be launched
The specific services to be launched via the establishment of this Platform include accommodation recommendations to offer travelers various options for accommodation and living in their destinations. The Platform will use the traveler’s profile to understand their preferred lifestyle, thus recommending accommodation sites that align with their desires. In addition, the Platform also provides travelers with a local place experience to give insight into the nature of the environment of their destination. It will act in line with locals and tour guides to understand the destination’s experiences and thus share this with the travelers to ensure it aligns with their preferred experiences. Also, using the travelers’ preferences, the Platform will give personalized itineraries to ensure that the travelers are in charge of planning their entire journey using the travel options available on the Platform.
Potential Business Opportunity in the Personalized Travel Experience Platform
The personalized travel experience platform has significant business opportunities, such as increased demand and, thus, growth in the market. Cobanoglu (2007) argued that the demand for personalized travel services has increased due to globalization. Thus, a gap exists that must be filled by the travel industry to fully satisfy consumers. Therefore, with growth in travel and demands for personalized travel, there is an opportunity in increased demands of personalized travel experiences online platforms.
In addition, there is an opportunity in this initiative as there is the chance to collaborate with travel partners, thus ensuring the availability of resources to ensure the growth of a personalized travel experience platform. Collaboration in the travel industry increases the credibility of the Platform as a provider of authentic and sustainable experiences.
Another opportunity evident in the personalized travel platform is reaching a vast number of people locally and globally. A study by Cobanoglu (2007) shows that technological advancement in communication is the primary influencer of globalization, and therefore, creating an online platform increases the outreach serving both global and local foreigners via websites and apps.
Also, there is an opportunity for a personalized travel experience through customer loyalty, and retention is assured once the desired travel experience is delivered to the customers. It can retain travelers when they have memorable travel experiences courtesy of the Platform.
Also, there is an opportunity for the Platform in that it has a higher competitive ability than other agencies offering travel services. This is because most travelers would prefer to use the website to personalize their travel instead of dealing with agencies and firms offering these services physically.
Current Issues Impacting the Business
One common issue affecting the business is the data privacy and security of the platform users. As an online platform, it collects a large amount of data, mainly from the profiles of the users, both related to travel and personal desires. One of the major threats to online businesses and networks is the risk of going against the site’s privacy policies via sharing users’ information with third parties (Kaynama and Black, 2000). Therefore, mishandling users’ information in the personalized travel experience platform is problematic for the business as it may lead to legal actions against the company.
Another area for improvement in the business is quality assurance and the challenges of partnership with the necessary parties. Creating and retaining partnerships with local bodies in tourism and hospitality is a critical process that requires a lot of consideration and effort to make the partnerships work. Partnerships are primarily affected by one of the parties failing to deliver their part of the agreement, which fails the entire project despite one party acting according to their roles (Kaynama and Black, 2000). With problematic partnerships, there is a possibility of poor quality delivery as certain aspects of the business fail the entire project; therefore, maintaining partnerships and assuring consistency in quality is a problem related to this business.
The other problem in this business is the diversity of the destinations, which offers a dynamic environment for travelers. Factors such as global pandemics, political instability, and natural disasters can halt the initiative when most travel recommendation areas are affected by such issues. Therefore, the Platform should be resilient and flexible enough to handle sudden disruptions and offer counter-travel options.
Costs Involved in Running Online Business
The cost of running an E-commerce business varies depending on the firm’s size and the operation’s technicalities. However, the primary and everyday expenses include website hosting and development, which cost approximately $3000-$10000; a digital marketing fee is also included and ranges from $500-$5000; software and technology may cost up to $5000 annually, and customer services cost $2000 per month (Baršauskas et al., 2008). Other fees, such as legal fees, range between $2000-$5000, thus making the overall cost of online commerce at least $50000 per year.
The general budget requirement for the personalized travel experience can be briefly expounded and expressed in percentage form as:
Software Development- 40%
Marketing the business-20%
Security and data protection- 10%
User interface design- 15%
Customer care and help- 10%
Collaborations and Partnerships- 5%
Legal requirements- 5%
|Operation||Cost ($)||Percentage (%)|
|Security and Data protection||100,000||10%|
|User interface design||150,000||15%|
|Customer care and operations||100,000||10%|
The proposed budget for this initiative is meant to cover the essential areas that require expenses to ensure a successful launch of the personalized travel experience platform. The most demanding areas are software development, data security, and interface design development; thus, a large part of the total budget is dedicated to covering these areas. Marketing is also adequately financed to acquire more customers and a broader user base, while customer care services and operations are considered to ensure smooth operations in the business. Also, a security fund is meant to help the company navigate specific sudden challenges.
Information System Requirements to Run Online Business
The information system required for the personalized travel experience platform will comprise a website and a mobile app to offer travelers consistency in accessing the services at any place and time. The website will be the primary Platform for accessing personalized travel experiences. It will feature a friendly interface with ease of operation, thus allowing users to customize their profiles in line with their travel desires. The website’s key features include users’ profiles and registration, where travelers can create their preferences and travel history to aid the system in giving more accurate recommendations for future destinations. In line with the study by Huang and Benyoucef (2015), the website also must have personalized questions that allow the user to fill in their information so that the systems can automatically determine their preferences. More importantly, the personalized travel experiences website will offer itinerary customization options to allow travelers to modify their preferences and destinations. Another key feature of the website will be booking options that allow the user to book their destination online after they finalize their customized settings. The website will feature a chatbot as a customer care representative to assist and resolve issues immediately.
On the other hand, the mobile app is also a supplement to the website and automatically syncs with it, enabling users to access their preferences and itineraries across various devices. The app will also push notifications to inform users about booking confirmations, itinerary updates, and travel-related details. Moreover, the app will feature an offline mode for travelers with limited internet connectivity, ensuring access to saved itineraries and travel information. Also, the app will provide recommendations regarding locations and real-time updates on nearby attractions and activities. Additionally, users will readily share their personalized itineraries and travel experiences with loved ones by integrating social media into the app. This enhances the overall user experience, allowing travelers to stay connected and informed while embarking on their dream adventures.
Suitable Software Requirements for the New Business
One crucial software requirement for the personalized travel experience platform is actual time communication software, allowing users to get messages on time and quickly interact with customer care, thus enhancing the general user experience. Receiving timely messages makes the Platform effective in recommending destinations and also makes it more engaging, thus retaining travelers. Another software requirement for the project is a content management system that allows administrators to add more destinations and update new destinations and services easily. This is important as it ensures the site is updated and thus has current information, thus more options for travelers, which aids in attracting and retaining more travelers using the firm.
In conclusion, the proposed Personalized Travel Experience platform is a concept in the tourism and hospitality industries that aids in keeping up with the competitive environment. By addressing travelers’ individual preferences and desires, the Platform aims to change how people experience their journeys. It focuses on accommodation recommendations, local place experiences, and personalized itineraries, offering travelers a sense of control and personalization in planning their trips. The potential business opportunity is evident in the growing demand for personalized travel services and the opportunity to collaborate with travel partners. However, the Platform must overcome challenges related to data privacy, quality assurance in partnerships, and adaptability to dynamic travel environments. A budget should be efficiently allocated to software development, marketing, customer care, and legal requirements, ensuring the Platform’s success and competitiveness. By integrating real-time communication tools and a user-friendly content management system, the Platform can achieve communication with users and maintain up-to-date travel information, thus managing to attract and retain travelers with an assurance of quality.
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Financial Performance Analysis Of Boohoo.com Using The Core Framework
This individual report focuses on evaluating the financial performance of Boohoo.com for the years 2022 and 2021 using the CORE framework, which includes Overview, Context, Ratios, and Evaluation of financial information. This report depicts Boohoo.com’s comprehensive financial performance analysis of Boohoo.com for 2022 and 2021 using the CORE framework, entailing Overview, Context, Ratios, and Evaluation. Boohoo.com, a fashion online shop established in 2006, has experienced rapid growth due to its social media marketing and innovative approach. The report’s context evaluates the market trends, competitive fashion retail industry, and macroeconomic factors affecting Boohoo.com’s performance.
The overview offers Boohoo.com’s business model, history, and significant financial highlights. Ratios analysis explores vital financial metrics, such as operating profit margin, return on shareholders’ funds (ROSF), return on capital employed (ROCE), and gearing ratio. The analysis discloses efficiency challenges, declining profitability, and fattened reliance on debt financing in 2022.
The evaluation of financial information outlines liquidity concerns, weakening economic performance, and low investment attractiveness. The report stresses the urge for potential investors to carefully assess these indicators before making investment decisions. CSR practices and corporate governance at Boohoo.com are evaluated, emphasizing the benefits of executive compensation, board composition, and sustainability initiatives to maintain investor confidence.
To sum up, Boohoo.com’s financial performance in 2022 compared to 2021 presents major obstacles and calls for careful monitoring. Potential investors should seriously evaluate the company’s deeds to address identified concerns and improve efficiency and profitability. The report suggests vigilance and prudence while considering Boohoo.com as an investment opportunity.
Boohoo.com, an e-commerce fashion shop, has gained significant attention in recent years due to its innovative approach and rapid growth in the retail industry. The company was established in 2006 by Carol Kane and Mahmud Kamani and has since expanded to over 100 nations (Nassar et al., 2023). Boohoo.com offers a broad range of fashion products for women, men, and children at fair prices. The company’s success has been propelled by its investment in social media marketing, low-cost production model, and ability to quickly adapt to changing fashion trends.
This report intends to perform a comprehensive financial analysis of Boohoo.com for 2021 and 2022 using the CORE framework. The CORE framework entails four key sections: Overview, Ratios, Context, and Evaluation of financial information. We can gain a broader understanding of Boohoo.com’s financial performance and health by digging into these aspects. This analysis will be critical in offering valuable insights to potential investors considering an investment in e-commerce retail.
The CORE framework is a comprehensive model used for the financial evaluation and analysis of businesses. It comprises four key components: Context, Overview, Ratios, and Evaluation. The Context section analyzes the market, industry trends, and macroeconomic factors affecting the company’s performance. In the Overview section, the report offers a brief history of the company, its business model, and significant financial outlines. The Ratios section calculates and interprets selected financial ratios to assess the company’s performance compared to industry benchmarks. Lastly, the Evaluation section critically evaluates the financial statements to determine weaknesses and strengths, leading the recommendation for potential investors. ` ` `
Context of Boohoo.com
To comprehend Boohoo.com’s financial performance, it is essential to study the company’s context. A thorough industry analysis will be conducted to understand the potential risks, market trends, and competitive landscape. Furthermore, macroeconomic factors such as interest rates, inflation, and economic growth will be examined to evaluate their impact on the business.
Boohoo.com operates in the highly dynamic and competitive fashion retail industry. The fashion industry is marked by fast changes in short product lifecycles, consumer preferences, and massive competition among various players (Mykhalchuk et al., 2021). Boohoo.com faces competition from brick-and-mortar retailers and traditional and other e-commerce fashion platforms. Boohoo.com must continually offer trendy and affordable products to keep its competitive edge, engage effectively with its target audience, and be innovative.
Market Trends and Competition:
Online shopping has gained popularity in past years, particularly among the younger population. Boohoo.com has successfully leveraged social media influencers and platforms to push traffic to its website and engage with its clients. However, it must stay vigilant to competitors’ strategies and changing market trends to sustain its growth momentum.
Overview of Boohoo.com
Understanding the company’s background and business model is fundamental to financial analysis. This section will provide an overview of Boohoo.com’s history, growth trajectory, and strategic direction.
Company History and Background:
Boohoo.com was established in 2006 by Carol Kane and Mahmud Kamani as an e-commerce fashion retailer. Since its establishment, the company has experienced fast growth and expanded its operations to several international markets (Ahmed et al., 2023). Boohoo.com’s ability to adapt quickly to fashion trends and its fair pricing strategy has propelled it to succeed.
Boohoo.com’s growth trajectory has been good, with its customer base and revenue steadily increasing. The company’s expansion into product categories and new markets has led to its revenue growth. However, the recent decline in specific financial ratios raises questions about its profitability and growth sustainability.
Boohoo.com’s strategic direction entails targeting new customer segments, continuing its global expansion, and investing in technological advancements (Nassar et al., 2023). The company targets to improve customer experience and enhance its digital infrastructure to remain competitive in the online fashion industry.
Ratios are indispensable tools for evaluating a company’s financial performance and health. We will select the relevant ratios studied in the module and calculate them using Boohoo.com’s financial statements (Boohoo Group plc. 2022).
Total Assets=Total Equity+ Total liabilities
Total Equity=Total Asset-Total liabilities
Total equity = Share capital + Share premium + Hedging reserve + EBT reserve + other reserves + Retained earnings
In 2022, boohoo group plc’s total equity was £464.3 million. This was made up of share capital of £12.7 million, share premium of £922.8 million, hedging reserve of £10.2 million, EBT reserve of £-75.6 million, other reserves of £795.5 million, and retained earnings of £357.8 million.
In 2021, boohoo group plc’s total equity was £472.5 million. This was made up of share capital of £12.6 million, share premium of £922.8 million, hedging reserve of £10.2 million, EBT reserve of £75.6 million, other reserves of £795.5 million, and retained earnings of £337.8 million.
Return on capital employed (ROCE)
Operating Profit÷ (Share capital + Reserves + Non-current liabilities) ×100
2022: ROCE = Operating profit / (Share capital + Reserves + Non-current liabilities) × 100
= £45.2 million / (£12.7 million + £357.8 million + £534.1 million) × 100
2021: ROCE = Operating profit / (Share capital + Reserves + Non-current liabilities) × 100
= £93.4 million / (£12.6 million + £337.8 million + £303.4 million) × 100
Return on ordinary shareholders’ funds (ROSF)
(Profit for the year less any preference dividend÷Ordinary share capital + Reserves) ×100
2022: Profit for the year | £ million | 25.0 |
| Preference dividend | £ million | – |
| Ordinary share capital | £ million | 12.7 |
| Reserves | £ million | 357.8 |
| Total ordinary shareholders’ funds | £ million | 370.5 |
| ROSF | (25.0 – 0) / 370.5 x 100% | 0.67% |
2021: | Profit for the year | £ million | 93.4 |
| Preference dividend | £ million | – |
| Ordinary share capital | £ million | 12.6 |
| Reserves | £ million | 337.8 |
| Total ordinary shareholders’ funds | £ million | 350.4 |
| ROSF | (93.4 – 0) / 350.4 x 100% | 26.6% |
Operating profit margin
(Operating profit÷ Sales revenue) ×100
2022: £25.0 million÷£1,982.8 million= 1.3%
2021: £93.4 million ÷£1745.3 million= 5.3%
Gross profit margin
Gross profit: Gross profit÷Sales revenue=× 100
|Year||Revenue||Cost of sales||Gross profit||Gross profit margin|
|2021||1,745.3 million||800.1 million||945.2 million||54.0%|
|2022||1,982.8 million||941.7 million||1,041.1 million||52.5%|
Average inventories turnover period
|Year||Average inventories held (£ million)||Cost of sales (£ million)||Average inventories turnover period (days)|
The average settlement period for trade receivables
Average trade receivables = £58.0 million
Credit sales revenue = £1,982.8 million
Average settlement period = (£58.0 million ÷ £1,982.8 million) × 365 = 36.5 days
Average trade receivables = £40.6 million
Credit sales revenue = £1,745.3 million
Average settlement period = (£40.6 million ÷ £1,745.3 million) × 365 = 30.6 days
The average settlement period for trade payables
Average trade payable = £534.1 million / 365 days = £1,463,000
Credit purchases = £1,982.8 million
(£1,463,000 / £1,982.8 million) × 365 = 74.4 days
Average trade payable = £461.7 million / 365 days = £1,272,000
Credit purchases = £1,745.3 million
(£1,272,000 / £1,745.3 million) × 365 = 67.7 days
Sales revenue to capital employed
|Sales revenue||£1,982.8 million||£1,745.3 million|
|Average trade payable||£263.1 million||£210.3 million|
|Share capital||£12.7 million||£12.6 million|
|Reserves||£464.3 million||£472.5 million|
|Non-current liabilities||£534.1 million||£303.4 million|
|Capital employed||£1,024.2 million||£892.8 million|
|Sales revenue to the capital employed ratio||1.92||2.01|
Sales revenue per employee
|Year||Sales revenue (£ million)||Number of employees||Sales revenue per employee (£)|
Current Ratio = (Current Assets ÷ Current Liabilities)
= (£460.7 million ÷ £461.7 million)
Current Ratio = (Current Assets ÷ Current Liabilities)
= (£279.4 million ÷ £222.9 million)
Acid test ratio
|Year||Current assets (excluding inventories)||Current liabilities||Acid test ratio|
|2022||£460.7 million||£461.7 million||1.03|
|2021||£580.7 million||£422.0 million||1.44|
Long-term (non-current) liabilities = £534.1 million
Share capital + Reserves = £464.3 million
(534.1 / 464.3) x 100 = 115.3%
Long-term (non-current) liabilities = £303.4 million
Share capital + Reserves = £472.5 million
(303.4 / 472.5) x 100 = 68.8%
Interest cover ratio
Operating profit = £45.2 million
Interest payable = £1.6 million
Interest cover ratio = 45.2 / 1.6 = 28.3 times
Earnings per share
Earnings per share = 25.0 million / 472.5 million
= 0.53 p
Earnings per share = 25.0 million / 472.5 million
= 0.53 p
Price/earnings ratio (P/E)
Earnings available to ordinary shareholders: £25.0 million
Number of ordinary shares in issue: 866.9 million
P/E ratio: 25.0 / 866.9 = 0.32
Earnings available to ordinary shareholders: £93.4 million
Number of ordinary shares in issue: 866.9 million
P/E ratio: 93.4 / 866.9 = 7.43
Each chosen ratio plays an important role in assessing Boohoo.com’s financial performance and offering valuable insights into its financial health and operations.
Explanation of Chosen Ratios:
Return on Capital Employed (ROCE):
ROCE measures how efficiently a company utilizes its capital to generate profits. A declining ROCE, as seen from 2021 to 2022 (27.8% to 7.2%), indicates a reduction in profitability relative to the capital employed. This could suggest that Boohoo.com needs help to generate sufficient returns on its invested capital.
Return on Shareholders’ Funds (ROSF):
ROSF evaluates the profitability generated for shareholders based on their investments. The significant drop in ROSF from 26.6% in 2021 to 0.67% in 2022 is alarming. It implies a decrease in profit available to ordinary shareholders, affecting their return on investment.
Operating Profit Margin:
Operating profit margin measures the efficiency of Boohoo.com’s operations by measuring how much profit it produces from its sales revenue. The decreasing trend in operating profit margin (5.3% in 2021 to 1.3% in 2022) suggests that the company is facing problems maintaining profitability and controlling its operating costs.
Gross Profit Margin:
The gross profit margin highlights the efficiency of Boohoo.com’s production process. The decrease in gross profit margin from 54.0% in 2021 to 52.5% in 2022 indicates that the company’s cost of sales has increased, impacting its ability to retain a higher percentage of revenue as gross profit.
Average Inventories Turnover Period:
This ratio reflects how quickly Boohoo.com can sell its inventory. The rising average inventory turnover period (181.0 days in 2021 to 302.2 days in 2022) indicates that inventory turnover has slowed, which may lead to increased holding costs and potential obsolescence.
Average Settlement Period for Trade Receivables:
This ratio measures the average time it takes for customers to settle their outstanding debts. The increase in the average settlement period for trade receivables (30.6 days in 2021 to 36.5 days in 2022) suggests that Boohoo.com is facing challenges in collecting payments promptly, potentially impacting cash flow.
Average Settlement Period for Trade Payables:
This ratio indicates the average time Boohoo.com takes to pay its suppliers. The rise in the average settlement period for trade payables (67.7 days in 2021 to 74.4 days in 2022) suggests that the company is taking longer to pay its suppliers, which might affect supplier relationships and could signal cash flow issues.
The gearing ratio measures the proportion of debt in the capital structure relative to equity. Boohoo.com’s gearing ratio has increased significantly from 68.8% in 2021 to 115.3% in 2022, indicating a higher reliance on debt financing, which may increase financial risk and interest expense.
Each ratio provides essential insights into Boohoo.com’s financial position, profitability, efficiency, and risk profile. The declining trends and significant changes in specific ratios raise concerns and require further investigation to make informed investment decisions (Boohoo Group plc. 2022). Potential investors should carefully consider these implications when evaluating Boohoo.com as an investment opportunity.
Evaluation of Financial Information
The evaluation of financial information for Boohoo.com offers valuable insights into the company’s financial health and performance for 2021 and 2022. More critical financial ratios have been analyzed to assess the company’s efficiency, liquidity, profitability, solvency, and investment attractiveness.
The gross and operating profit margins show the company’s ability to produce profits from its operations. In 2022, the operating profit margin significantly decreased from 5.3% in 2021 to 1.3%, indicating decreased cost management and operating efficiency (Nassar et al., 2023). The gross profit margin decreased from 54.0% in 2021 to 52.5% in 2022, which could be due to the fattened cost of sales.
The average settlement period for trade receivables and payables and average inventories turnover period shows the company’s efficiency in controlling its working capital. In 2022, the average inventories turnover period indicated that inventory turnover had slowed since it had increased to 302.2 days from 181.0 days in 2021(Boohoo Group plc., 2022)). Furthermore, the average settlement period for trade receivables increased to 36.5 days from 30.6 days in 2021, and for trade payables, it increased to 74.4 days from 67.7 days in 2021. According to O’Regan, (2015), these increases may highlight delayed payments and inefficiencies in inventory management, affecting the company’s cash flow.
The acid test and current ratios evaluate the company’s short-term liquidity and ability to meet its obligations. The current ratio declined to 1.00 in 2022 from 1.26 in 2021, suggesting that the company’s current assets need more to cover its current liabilities. Moreover, the acid test ratio decreased from 1.44 in 2021 to 1.03 in 2022, which shows that the company’s ability to cover short-term liabilities without depending on inventory sales has weakened.
The gearing ratio assesses the company’s long-term debt concerning its equity. In 2022, the gearing ratio rose to 115.3% from 68.8% in 2021, showing a higher reliance on debt financing and increased financial leverage. This may lead to more significant financial risks for the company.
The return on ordinary shareholders’ funds (ROSF) and return on capital employed (ROCE) evaluates the company’s profitability in relation to its shareholder and capital investments. In 2022, both ROCE and ROSF significantly decreased compared to 2021. ROCE dropped from 27.8% to 7.2%, while ROSF decreased from 26.6% to a mere 0.67%. These drops raise concerns about the company’s ability to generate returns for creditors and investors.
In conclusion, the evaluation of financial information for Boohoo.com suggests that the company’s financial performance weakened in 2022 compared to the previous year. The decline in efficiency, profitability, and investment returns, along with an increase in debt and financial leverage, raises questions about the company’s prospects and investment suitability. Potential investors should carefully consider these financial indicators before making any investment decisions.
Corporate Governance at Boohoo.com
Boohoo.com’s corporate governance structure and practices are essential in maintaining investor confidence and establishing the company’s success. The independence and composition of the board of directors are critical in ensuring good governance (Von Berlepsch et al., 2022). An analysis of the board’s composition shows the expertise and diversity of its members, which can directly impact oversight processes and decision-making.
The board of directors at Boohoo.com maintains a vital role in strategic risk management and decision-making. Their involvement in setting the company’s direction and overseeing potential risks is essential to maintaining long-term sustainability and safeguarding shareholder interests.
Incentive structures and executive compensation are also important aspects of corporate governance at Boohoo.com. Evaluating the executive compensation packages will offer insights into how management’s interests coordinate with shareholders’ interests. Well-designed and transparent incentive schemes can encourage executives to focus on long-term value creation and performance, ultimately benefitting shareholders.
By thoroughly exploring Boohoo.com’s corporate governance practices in decision-making, risk management, board composition, and executive compensation, investors can gain confidence in the company’s dedication to sound governance principles. A responsible and robust corporate governance framework enhances accountability, ethical conduct, and transparency, fostering trust among stakeholders and shareholders.
Corporate Social Responsibility (CSR) in Boohoo.com
Boohoo.com acknowledges the increasing benefits of Corporate Social Responsibility (CSR) in the business landscape. The company has implemented several CSR programs and initiatives to show its commitment to social responsibility and sustainability. Through these initiatives, Boohoo.com aims to lower its environmental impact, contribute positively to its communities, and promote social well-being.
Regarding environmental practices, Boohoo.com has reduced its carbon footprint, adopted sustainable sourcing strategies, and implemented eco-friendly packaging solutions. Moreover, the company actively supports social initiatives by ensuring ethical supply chain management, investing in community development projects, and promoting fair labor practices(Perry & Wood, 2018).Boohoo.com greatly emphasizes stakeholder transparency and engagement, regularly communicating with its various stakeholders to understand their expectations and concerns. By being transparent and open, the company targets to build trust and maintain positive relationships with investors, suppliers, customers, employees, and other stakeholders.
Through its CSR efforts, Boohoo.com strives to positively impact the environment and society, aligning its business practices with sustainable and responsible principles. These initiatives enhance the company’s reputation and contribute to the well-being of the communities it serves.
Conclusion and Recommendation
In conclusion, the financial performance analysis of Boohoo.com using the CORE framework has offered crucial insights into the company’s operational efficiency and financial health. The to Nassar et al., 2023 decreasing profitability, investment returns, and efficiency raise concerns about the company’s performance in 2022 compared to the previous year (2021). Furthermore, the increase in gearing ratio and debt shows higher leverage and financial risk, which may affect the company’s long-term sustainability.
Based on the CSR evaluation, financial analysis, and corporate governance assessment, we recommend that potential investors critically consider the findings before making investment decisions. While Boohoo.com has CSR efforts and shown innovative growth, the increased financial leverage and decreasing financial performance raise concerns. Investors should closely monitor the company’s actions to address the problems outlined in the economic analysis and assess its ability to improve operational efficiency and profitability.
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HRM In The Business Environment
This paper provides a comprehensive analysis of the essential skills in the business context, including communication, interpersonal teamwork, and numeracy skills. In addition, the paper utilizes Kolb AND Gibb’s reflective cycles to engage in thoughtful self-audit and highlight areas of strengths and opportunities for advancement.
Twentyci’s transition from a warehouse support service to digitally-focused customer service to a digitally-focused customer intelligence provider presents a compelling case study of adapting work paradigms in response to external drivers. The PESTLE framework provides a structured approach for analyzing the factors influencing this shift and shedding light on the critical elements impacting the business. Therefore, this essay examines the political, economic, sociocultural, technological, legal, and environmental influences of Twentyci’s transformation. In addition, it will discuss the emergence of new work archetypes that will play pivotal roles in its digitalized operations. Furthermore, the paper will identify and justify two critical work archetypes, including the Data Guru and the Transformation consultant, as paramount for Twentyci’s successful transition. Finally, this essay will explore the necessary steps in talent management and workforce planning to support Twentyci’s transformation and guarantee long-term success in customer intelligence.
Among the critical elements affecting Twentyci’s’ business include Political factors, environmental factors, economic factors, sociocultural factors, legal factors, and technological factors.
In the context of customer intelligence, political factors, including data protection regulations such as GDPR in the EU, significantly impacts Twentyci’s business operations. Therefore complying with these regulations becomes imperative in collecting, storing, and utilizing customer data. Conversely, non-compliance with the regulations could present legal penalties, ultimately damaging the company’s operations and hindering its digital transformation efforts (Aseri, 2020).
Ideally, the post-Covid economic recovery in the UK has propelled businesses towards investing in data-driven customer intelligence to gain a competitive advantage. This economic demand has fostered a demand for work archetypes focused on data analysis and customer experience management. Therefore Twentyci stands to profit and capitalize on the opportunity presented by aligning its talent management strategies to attract skilled professionals capable of leveraging data to deliver valuable insights (Statista, 2022).
The societal shift towards digitalization and heightened value for personal experiences has created a need for customer intelligence and services. Therefore as many people continue to embrace the digital culture, new work archetypes will emerge in data science, customer experience design, and digital marketing. As such, Twentyci must take advantage of these emerging roles to remain competitive in the rapidly evolving landscape of customer intelligence (Berman & Bell,2011).
The progress made in data analysis, artificial intelligence (AI), and machine learning have revolutionized how businesses function. Therefore, harnessing these technologies is paramount for Twentyci’s success in customer intelligence ( Tapscott,2014).
As Twentyci continues to become a customer intelligence provider, it must prioritize adherence to data protection laws and make them the cornerstone of its operations. This is because compliance with data protection laws will be crucial for avoiding legal consequences, building customer trust, and enhancing the business’s reputation (Huerta & Jensen, 2017).
Although environmental factors may be overlooked and appear less relevant to business operations, the growing emphasis on sustainability permeates across all sectors and, as such, becomes significant to Twentyci’s customer intelligence services. Businesses with a positive reputation for environmental responsibility can cultivate customer loyalty and ultimately attract environmentally conscious customers (Kotter, 2012).
The Emergence of New Work Archetypes
Ideally, the rapidly changing landscape of customer intelligence has spurred the emergence of eight work archetypes that are essential to Twentyci’s business success, among them include; Data Guru, AI specialist, Customer Experience Designer, Digital Marketer, Legal Advisor ( Handy,2015), Cyber Security Expert, Sustainability Officer, and Transformation Consultant. However, Transformation Consultant and Data Guru are paramount for Twentyci’s transition from manufacturing support business to digitally driven customer intelligence. Accordingly, Data Guru is the primary driver for customer intelligence as it plays a critical role in harnessing the power of data. Succinctly, Data Guru is responsible for collecting, organizing, and interpreting customer data transforming it into actionable insights to drive informed decision-making. As such, Data Guru has the potential to enable Twentyci to deliver value to its clients through data-driven strategies, therefore, giving the business a competitive edge (Kotter,2012). On the other hand, a Transformative consultant plays a pivotal role in guiding the company through intricate change management and strategic planning ( CIPD,2022). Therefore, by providing insights into digital transformations and steering the business toward its goals and objectives, Transformation Consultant guarantees a seamless transition ( Berman & Bell,2011).
Transitioning to a New Staffing Profile
Transitioning to a new business model compels Twentyci to realign its HR and talent management strategies to support its digital transformation and meet its new operational requirements. Therefore, by utilizing the CIPD talent management factsheet as a guide, Twentyci may take steps such as; Talent Identification, Workforce planning, Upskilling and Reskilling, recruitment, retention, and success planning.
The first step the company needs to start with when transitioning to a new business model is talent identification (Morteza, 2018). The company must identify the essential skills and roles that align with the new business model, considering employees and new hires. By assessing the talent pool, the company can decipher the extent of upskilling and reskilling needed.
The next step after talent identification is workforce planning. A comprehensive workforce is essential in bridging the skills gap and facilitating a smoother transition. Accordingly, the most paramount components of workforce planning include identifying no longer relevant roles, determining areas for upskilling, and recognizing new talents ( Handy,2015).
Up skilling and Reskilling
After workforce planning, the third step entails upskilling and reskilling. Therefore, Twentyci needs to invest in capable programs to upskill and reskill existing employees and ensure they are well suited to adapt to the new demands of their new roles. Concisely, this approach fosters employee engagement and loyalty and ensures the seamless integration of talents within the transformed organization (Vinayan et al., 2020).
Ideally, there are instances where upskilling and reskilling cannot fill the skill gaps. Here Twentyci must focus on recruiting new talents with expertise in data analysis, customer intelligence, and digital transformation to ensure the business gains a competitive advantage.
To retain top talent, Twentyci must create an engaging work environment. Among the ways to achieve this includes providing competitive compensation packages, opportunities for career advancement, and a positive work culture. Furthermore, Twentyci can also retain top talent by providing flexible work arrangements, offering wellness programs, and giving back to the community. By doing this, the business will foster employee loyalty and also bolster its commitment to the company’s digital vision (Kumar & Reinarts,2012).
As the business prepares for future leadership change, it should implement succession planning to identify and develop future leaders to guarantee continuity and stability during the transition process.
Twentyci transformation journey requires strategic talent management and workforce planning to ensure long-term success in the digital era. Accordingly, by leveraging the PESTLE framework to analyze external factors and identify fundamental work archetypes, the business can proactively align its talent pool with the demands of the new business model. In addition, embracing upskilling, reskilling, retention, recruitment, and succession planning will also be fundamental in fostering a seamless transition to the digital space and unlocking the full potential of customer intelligence.
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