Measuring Large Apparel-Retail Performance Using Strategic Profit Model

The objective of the study is to recommend strategies for improving the performance of a large size Indian Apparel Company, by 10% ROA in the industry. In order to compute the peer average, data have been collected by scanning the annual and financial reports of 2007 three representative companies. The value of the peer average got thus, has been used as reference value for comparison with large sized apparel retail Companies. The study has indicated that large companies expect to increase sales by 1.5% and to decrease cost of goods sold by 0.5%. In line with research results, the company under study has currently invested heavily in new technologies to increase sales and to reduce cost of goods sold. It has brought its apparel section into the price band of US$8.88 and above to reduce expenses and to manage inventory. The study has been conducted with the unique approach of identifying the expected returns and its related proportion of costs in business operations. It has a decision tree model to achieve results, as return on networth branches out into financial leverage and return on asset.