Breville Case Study

6279 words 26 pages
Executive Summary 2
Business and Strategic Analysis 3
1. Economic Analysis 3
2 Industry Analysis 4
3 Competitive Strategy 6
4 Industry and company’s potential 7
Accounting analysis 9
Step 1: Identify Key Accounting Policies 9
Step 2: Accounting Flexibility 10
Step 3: Evaluate accounting strategy 11
Step 4: Quality of disclosure 12
Step 5: Potential red flags 12
Step 6: Undo accounting distortion 13
Financial Analysis 13
1. Profitability 13
2. Liquidity 14
3. Solvency 16
4. Efficiency 17
5 Cash flow analysis 18
Reference 20
Appendix 23

Executive Summary
Breville Group (BRG) is a market leader in the kitchen appliances industry according to the Investor Presentation of BRG in 2012. We had classified BRG as a
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Force 1: Industry rivalry: medium * International and local players competing
There are numerous competitors in the world kitchen appliances market. The international competitors include Allen Babour LLC, Whirlpool Corporation, Home retail group and LG. Local competitor is GUD Holdings Limited which produce and distribute kitchen electrical appliance, cleaning products, cabin air and fuel filters (GUD Holdings ltd website, 2012). * Non-price competition
Breville always put quality and safety in the first place. In order to provide superior service and products, Breville use good materials, and improving technology to extend useful life of each kitchen electrical appliance. Breville has a dominant place in the Australian kitchen electrical appliance market. Breville has a large group of loyal buyers, some of them have stay with BRG’s product many years, its product information is shared millions times on Facebook.
Force 2: Threat of new entrance: medium * Capital requirement
According to Black, A (2011), the cost for a new company to entry into this industry is not high if compare with automobile industry. Companies can pay high salary to hire skilled engineers and build production line. * Economies of scale
Generally, as an electrical appliance producer, the more units it produce, the lower per unit cost is. New companies will bear a high production per unit cost at the beginning because startup