Use the information you have learned about your company's (HomeGoods) business model, industry, competition, and target market in conjunction with the feedback you received on your work in the previous two topics to assist you in addressing the following.

1. In the Strategic Alternatives Assessment, you evaluated potential growth opportunities and strategies for your firm, using a SWOT analysis to assess the advantages and disadvantages of each. Recapitulate your findings here and identify how you determined your proposed strategic alternative(s) and calculated potential inhibitors to each. Expand upon your initial proposed alternatives to include financial considerations.
2. Throughout the course, you have developed and submitted reports for your firm based on information that you and your CLC group have acquired and assessed. However, it is equally important to consider what other information, had you been able to locate it, would have been of value in formulating recommendations. What information are you lacking that might assist you and your team in developing and suggesting value-enhancing strategic alternatives? What information are you lacking that would assist you and your team in better assessing and managing possible risks of the proposed alternatives?
3. When it comes to making strategic recommendations to management, financial considerations weigh significantly on the feasibility and viability of the available options. Revisit the Financial Analysis assignment and, reiterate your findings on the financial condition and performance of the firm respective to the risks and benefits of forming a strategic alliance, profitability ratios, and possible value-enhancing strategies.
4. Considering how the financial markets have changed since you submitted your Financial Analysis assignment, how would you refine or update your assessment of the organization's current performance and financial strategies?
5. How would you use a decision matrix to determine the risks of your suggested strategic alternative and the potential financial implications for your company of pursuing this alternative? Is the decision matrix an effective tool for predicting risk? Why or why not? How does the application of the decision matrix alter what you previously chose as the most advantageous strategy?
6. Utilizing a risk matrix, identify a minimum of 10 unique risks associated with the strategic alternative you believe will provide the most significant opportunity for your firm to add value. Choose two or three of the most critical risks and discuss their potential impacts on your selected alternative.

https://www.forrester.comewsletters/

https://www.pmi.org/learning/library/strategic-measurement-management-organizational-improvement-7433

https://www.scoro.com/blog/12-business-metrics/

https://gothamculture.com/2017/07/20/measure-impact-transformational-change/

https://strategicmanagementinsight.com/tools/

https://www.wrike.com/blog/what-is-risk-matrix/#How-do-you-calculate-risk-in-a-risk-matrix

Benchmark- Strategic Alternatives Assessment Benchmark- Strategic Alternatives Assessment 3 HomeGoods has a competitive edge. It has a strong web presence and reaches a bigger audience than its competitors. Its extensive selection of furniture, home decor, and kitchen There are several potential growth opportunities for HomeGoods. One is to focus on equipment gives them a competitive edge. Third, HomeGoods is known for its superior brand online sales, as more and more consumers are shopping online for home goods. This would and products. Finally, HomeGoods has a dedicated client base that will likely continue shopping allow HomeGoods to reach a larger audience, but it would also require significant investment in with the firm when the pandemic ends. technology and infrastructure. WEAKNESS: Another opportunity is to focus on international expansion, as there is potential for HomeGoods may improve various areas to compete with its rivals. First, it might growth in markets outside the United States. This would provide HomeGoods with access to new improve its website's usability and accessibility. Second, it may provide more deals and markets, but it would also be risky due to political and economic instability in many parts of the discounts to attract and retain customers. Third, it may provide more products that appeal to world. Finally, HomeGoods could focus on increasing its product offerings, as this would allow more consumers. it to attract more customers. OPPORTUNITY: Each of these growth opportunities has advantages and disadvantages. For example, HomeGoods has various industrial opportunities. HomeGoods is well-positioned to focusing on online sales would allow HomeGoods to reach a larger audience, but it would also benefit on the increasing online retail market. As the housing market rebounds, the home require significant investment in technology and infrastructure. Focusing on international furnishings sector should rebound. This gives HomeGoods a chance to expand. As more people expansion would provide HomeGoods with access to new markets, but it would also be risky due grow environmentally conscious, they may buy HomeGoods' eco-friendly products. to political and economic instability in many parts of the world. And increasing its product THREATS: offerings would give HomeGoods a competitive edge, but it could also lead to higher costs. Wayfair and Ikea are HomeGoods' competitors. Wayfair's size and resources represent a Ultimately, the best growth strategy for HomeGoods depends on several factors, threat. Ikea's strong brand and inexpensive costs pose a challenge. Both companies threaten including the company's resources and capabilities, the needs of its target market, and the overall HomeGoods' market share. economic environment. Internal growth strategies: SWOT Analysis 1. Product development: This includes developing brand-new products as well as enhancing STRENGTH: existing ones. The benefit of implementing this strategy is that it offers the possibility of assisting the organization in entering new markets and developing new streams ofBenchmark- Strategic Alternatives Assessment Benchmark- Strategic Alternatives Assessment 5 revenue. On the other hand, it can be expensive and time-consuming, and there is always A decision matrix is a tool that can be used to identify the leading alternative. In this the possibility that the new product won't be a success. case, the analyst would use the decision matrix to compare the different options for home goods 2. Market expansion: This requires an increasing presence in new markets. The benefit of retailers. The analyst would determine the values used to distinguish between each option by using this strategy is that it has the potential to assist the organization in expanding its looking at factors such as online presence, variety of products, customer service, and price. The customer base and developing other streams of revenue. On the other hand, this strategy matrix may be limiting in its use value to an analyst or decision maker because it only provides a can be dangerous because the company could not be familiar with the new market and snapshot of the options and does not consider other factors that may be important in deciding. might not have an advantage over its competitors. There are several potential factors that could inhibit the success of the optimal strategic 3. Diversification: This involves growing into new businesses that are in no way connected alternative. First, if the global pandemic continues or worsens, this could negatively impact to the activities that the company is already engaged in. The benefit of using this strategy consumer spending and decrease demand for home goods. Additionally, if other competitors is that it offers the possibility of assisting the organization in diversifying its risks as well enter the market or if existing competitors become more aggressive, this could also cut into as generating new sources of revenue. However, there is a possibility that the company TJX's market share. Finally, rising costs could eat into profits and make it difficult to invest in does not possess the level of skill or understanding required to be successful in the new growth initiatives. business. This presents a risk. To address these potential issues, TJX should continue to focus on providing value to External growth strategies: consumers through low prices and a wide variety of product offerings. Additionally, TJX should 4. Mergers and acquisitions: Buying or merging with another company. The advantage of focus on efficient operations to keep costs down and continue to invest in digital initiatives to this strategy is that it can help the company to quickly expand its operations and market drive growth. share. However, it can be costly and there is always the risk that the two companies will There are a few things that can help an organization grow, even if expansion is not the not be compatible or that the acquisition will not be successful. focus. One is to improve efficiency and effectiveness. This can be done by streamlining 5. Joint ventures: Developing or marketing a product or service with another company. The processes, implementing new technology, or improving communication and collaboration among ability of this strategy to assist the organization in accessing new markets or technologies team members. Another is to focus on customer satisfaction and retention. This can be done by is one of its potential benefits. However, there is always the risk that the partnership will providing excellent customer service, offering competitive prices, or developing new products not be successful or that disagreements between the partners will arise. and services that meet customer needs. Finally, another way to grow an organization is toBenchmark- Strategic Alternatives Assessment 5 Benchmark- Strategic Alternatives Assessment 6 A decision matrix is a tool that can be used to identify the leading alternative. In this develop new markets. This can be done by expanding into new geographic areas, targeting new case, the analyst would use the decision matrix to compare the different options for home goods customer segments, or developing new channels of distribution. retailers. The analyst would determine the values used to distinguish between each option by looking at factors such as online presence, variety of products, customer service, and price. The matrix may be limiting in its use value to an analyst or decision maker because it only provides a snapshot of the options and does not consider other factors that may be important in deciding There are several potential factors that could inhibit the success of the optimal strategic alternative. First, if the global pandemic continues or worsens, this could negatively impact consumer spending and decrease demand for home goods. Additionally, if other competitors References enter the market or if existing competitors become more aggressive, this could also cut into Board of directors. TJX.com. (n.d.). Retrieved September 10, 2022, from TJX's market share. Finally, rising costs could eat into profits and make it difficult to invest in https://www.tix.com/investors/governance/board-of-directors growth initiatives. Kenton, W. (2022, August 23). Organizational structure for companies with examples and To address these potential issues, TJX should continue to focus on providing value to benefits. Investopedia. Retrieved September 10, 2022, from consumers through low prices and a wide variety of product offerings. Additionally, TJX should https://www.investopedia.com/terms/o/organizational-structure.asp focus on efficient operations to keep costs down and continue to invest in digital initiatives to The TJX Companies, Inc.. strengthens management structure for succession planning. The TJX drive growth. Companies, Inc. Strengthens Management Structure for Succession Planning | Business There are a few things that can help an organization grow, even if expansion is not the Wire. (2011, February 1). Retrieved September 10, 2022, from focus. One is to improve efficiency and effectiveness. This can be done by streamlining https://www.businesswire.comews/home/20110201006568/en/TJX-Companies- processes, implementing new technology, or improving communication and collaboration among Strengthens-Management-Structure-Succession-Planning team members. Another is to focus on customer satisfaction and retention. This can be done by The tixcompanies, inc. 2021ANNUALREPORT. (n.d.). Retrieved September 11, 2022, from providing excellent customer service, offering competitive prices, or developing new products https://www.tix.com/docs/default-source/annual-reports/tix-2021-annual-report-and-10- and services that meet customer needs. Finally, another way to grow an organization is to k.pdf2 3 CLC -Environmental and Industry Analysis that focuses on innovation such as becoming an online retail market company rather than just having in-person stores. This will help reach more customers. The following is a Strategic Management group-project environmental scan and industry analysis of Home Goods, a unit of The TJX Companies, which includes TJ Maxx, Marshalls, and Five Forces of Competition Home Goods operations in the United States, TJX Canada, and TJX International (The TJX The first competition force is new entrants which consists of distribution channels. Companies Annual Report, 2021, Part 1, Pg 13) HomeGoods is a store that sells home products such as furniture, rugs, decorations, etc for less. Discounted store companies are in high demand HomeGoods "company sources its merchandise globally from a vast vendor network comprising which results in high competition. HomeGoods has resulted in a competitive advantage over more 21,000 vendors [..] enables it to maintain exceptionally low inventory levels at its stores other discounted store companies. We will identify how external and industry environmental driving faster inventory turns and higher merchandise margins"(The TJX Companies, 2022). factors impact the operational and competitive landscapes of Home Goods as well as macro Second, is the threat of substitute products based on customer desires. Home Goods sees and trends, impact of trends and issues of the company. listens to customers where they have limited inventory in stock so suppliers can send in new stock with the changing trends and fashion. Third is rivalry of existing firms that consists of External Environment Sectors product service characteristics of what makes HomeGoods unique from competitors. HomeGoods puts products on the shelf at the right time by focusing on trends which increase Economic sector for HomeGoods is the nature of competition where the "economic sales and brings new and existing customers to the store. Fourth is the bargaining power of downturn has been a boon for discount stores, and off-price retailers have benefitted from the buyers. HomeGoods offers discounted products, so customers know if they searched that product inclination in consumer purchase behavior towards frugality" (The TJX Companies, 2022). online, it would cause more, resulting in customers bargaining to shop at HomeGoods than Demographic sector is urban and surrounding markets because retailers, such as Home Goods, somewhere else. Lastly, is the bargaining power of suppliers. Not every supplier will be willing providing discounted housewares, thrive in such populated areas. The physical/ sustainable sector to sell to any company, but with popularity and reputability, suppliers will make a trustworthy is based on sustainability by setting a goal to produce 0% of greenhouse gas emissions by 2040 and long term commitment with a company and which is why HomeGoods has no problem with in its operations. The Sociocultural sector focuses on Stakeholders because more customers want finding suppliers. to be frugal and HomeGoods is giving that option to customers. Global and political sector focuses on political trends that the company is making most of its revenue from the U.S. and not Macro Trends other countries which is causing "business risks by exposing it to the economic and geopolitical risks associated with the country"(The TJX Companies, 2022). Lastly, is the technology sector5 Being affiliated with TJ Maxx and Marshalls, HomeGoods specializes in home decor/ The impact of the macro trends on HomeGoods' business unit has been mixed. The trend fashion and has allocated space for its products within its sister company. In their March 2020 towards online shopping has hurt the company, but the current economic climate has actually press release, Home goods Director of Communications Debra Mcconnell stated that immediate been a boon for Home Goods, as consumers have been more inclined to shop at discount stores. changes were being made to "strengthen its financial position and balance sheet, and maintain The company has had to make changes in order to stay afloat during the pandemic, and that has financial liquidity and flexibility." They took the following actions to ensure TJX Companies continued with the ever-changing landscape of the home-related merchandise industry in general. viability during the unprecedented pandemic: Drawing down $1 billion from its revolving credit Relevancy to Company facilities, Suspending its share repurchase program, Evaluating its dividend program, Reviewing all operating expenses, and Reducing capital expenditures. There were government protocols to The macro trends and issues identified in this analysis are relevant to HomeGoods be put in place, as well as health policies by the CDC. Even though it had several locations it had because they have a direct impact on the company's sales. The trend towards online shopping to shut down globally as they do not offer its products online. The pandemic forced a lot of has hurt the company, but the current economic climate has actually been a boom for Home people to stay inside, and once there were safety protocols in place HomeGoods put them into Goods, as consumers have been more inclined to shop at discount stores. The assessments action and opened their doors back to the public. conducted in this report are relevant to HomeGoods because they provide insight into the company's competitive landscape. The assessments help to identify the company's strengths and Impact of Trends and Issues on Corporation weaknesses, as well as the opportunities and threats that the company faces. The assessments are One of the biggest trends that corporations deal with is turning from in-store purchases to also relevant to the company because they help to identify the trend and issues that are impacting online. While many companies hopped on to the online marketplace, HomeGoods initially failed the home-related merchandise industry as a whole. to adapt. Pre-pandemic, eighty percent of home purchases were made in brick-and-mortar Conclusion locations. Once the CDC produced regulations and guidelines, consumers were more inclined to make purchases in stores. There has been slow and steady revenue growth, but the likelihood of Economically, both the 2020 shutdown and the current downturn has produced an an oncoming recession, and new surges makes consumers apprehensive and cautious regarding increase in customers seeking current home goods trends at a lower price. During the pandemic, purchases that are not immediate necessities. many households choose to complete home improvement and decorating projects, and to ultimately change their work life balance with the ending of the pandemic. This macro trend is Impact of Trends and Issues on Business Unit good for the home decorating industry, and HomeGoods specifically. The HomeGoods Segment6 of The TJX Companies has added strength to the company, and continues both in-store and on- References line strategies to continue that trend. The most recent being homegoods.com which launched in Jennifer Bringle, (August, 9, 2021) SourcingJournal.com the third quarter fiscal 2022, (Yahoo!, n.d. 2022) a move they may have further delayed if not for Will the Pandemic Home Goods Boom Last? Here's What the Data environmental forces put into play in 2020. Competitively, The TJX Companies are listed on the Suggests - Sourcing Journal National Retail Federation Top 100 List, settling in at number fifteen (nfr.com, 2022). Specifically, HomeGoods increased their U.S. locations from 809 to 850 in the two-year period The TJX Companies, Inc. SWOT Analysis. (2022). TJX Companies, Inc. SWOT Analysis, 1-7. from February 2020 to January 2022 (TJX Annual Report). Overall, the company reacted to the recent environmental and competitive forces in a manner that has kept their place, and improved The TJX Companies, Inc. Provides COVID-19 Update | The TJX Companies, Inc. their competitive advantage in the home goods sector for now and the future years. The TJX Companies, Inc. (2021). Annual Report https://www.tix.com/docs/default-source/annual-reports/tix-2021-annual-report-and-10- k.pdf Yahoo! (n.d.). The TJX companies' (TJX) HomeGoods Unit Strong, costs high. Yahoo! Retrieved August 20, 2022 https://www.yahoo.com/video/tix-companies-tix-homegoods-unit-125512904.htmlcompany's record of internal promotion proves to be a strong attribute to their organizational structure. Essentially, "having an organizational structure in place allows companies to remain CLC- Organizational and Operations Plan efficient and focused" (Investopedia.com). HomeGoods track record supports this assessment. It HomeGoods, A TJX company is a discounted retail store that sells name brand products appears there is no impedance of the firm's success that could be contributed to their operational for less. This company creates value for customers by giving them trendy and unique products system. HomeGoods is a solid division within The TJX Companies, which states in its annual that can't be found at other stores. HomeGoods has grown in popularity, increased its suppliers, report (2022) as "the leading off-price apparel and home fashions retailer in the United States and has become a well-known discounted store in the U.S. and abroad. This company has and worldwide". learned to make strategies and decisions that will create value and a competitive advantage for Strategic Alliance: Benefits and Risks themselves. This paper will go over how they have created value for themselves through competitive advantage, strategic alliance, partnerships, business level cooperative strategies and The benefit of a strategic alliance is to gain competitive advantage. Two main points of joining organizational operational structure. an alliance is gaining value that couldn't be gained by a company acting alone and companies lacking the full set of resources needed to establish all opportunities. TJX Company came out Organizational and Operational Structure: Benefits and Challenges with a credit card that gives rewards for every purchase. This credit card was created with a Organizational structure defines the hierarchy within an organization. "It specifies the partnership with Synchrony Bank and TJX Company. Risks include a firm acting a certain way firm's formal reporting relationships, procedures, controls, authority and decision-making where its partner thinks is opportunistic and when a firm misleads the resources it can offer to processes" (Hitt et al 2017). The corporate governance of an organization provides the the partnership. For a partnership not to lead to opportunism, the firms must know clearly and framework for attaining the company's objectives. It specifies the set of rules, controls, and exactly what a firm wants from each other. For no misleading to occur, a firm should "ask the policies to direct corporate behavior at all levels; from the Board, to the CEO, and all the way to partner to provide evidence that it does, in fact, possess the resources (even when they are largely each employee. The TJX Companies operate under a divisional multidivisional (M-form) intangible) it will share in the cooperative strategy (Hitt et al, 2017). structure, which structures its leadership team based on the products, projects, or subsidiaries Business Level Cooperative Strategies they operate. Within TJX, the HomeGoods chain has its own Group President in John Ricciuti. Both Carol Meyrowitz, Chairman of the Board, and Ernie Herrman, CEO of The TJX Due to heavy competition, one may find it challenging to maintain market power. Market power Companies (TJX.com) were promoted from within the company (businesswire.com), as the might be reduced due to improved competition norms. Market power might be reduced due toenhanced competition norms when utilizing a cooperative technique. The concept of mutual functioning efficiently, figures are properly reported, and managers are working in the best forbearance refers to conditions in which firms do not engage in aggressive behavior with interests of their staff. These two internal governance collaborate to ensure that corporations are competitors across several markets. Joint ventures and strategic alliances might be formed when continually striving for the ideal and are transparent and honest with their stakeholders. More resources are not available for proper competition while seeking a competitive advantage. These precisely, when managers are audited, they are exposed to criticism that they may not have resources are then viewed as complementary. gotten from subordinates or even supervisors. This will also help a corporation to determine how well a specific executive handles being audited. A corporation must constantly be able to expand The four Business-Level Cooperative Strategies include competition-reducing, uncertainty- and advance in their industry. If CEOs are hesitant to accept feedback or are unable to fulfill reducing, competitive response, and complementary strategic alliances. Homegoods has their tasks adequately, this may generate future problems or serve to conceal current problems in benefited from and will continue to profit from strategic relationships. For years, HomeGoods a company. Through auditing and oversight, a manager can begin to observe how their decisions has established these collaborations at the heart of HomeGoods' commercial plans. These are influencing the organization and either grow or decrease their positive and/or negative habits alliances take different forms, such as the collaboration with TJMax that enabled the usage of and deficiencies. their location and its well-known brand. There is also product development and information sharing. Understanding consumer behavior is incredibly valuable since they allow HomeGoods Strategy and Structure: Reciprocal Relationship to expand and improve in all areas. Due to HomeGoods experience and competency with these Value creation at HomeGoods can be traced back to the company's competitive alliances, risk has not been a problem. However, there is a risk of expansion, from brick-and- advantage, strategic alliances, partnerships, business-level cooperative strategies, and mortar sales to online sales. organizational/operational structure, demonstrating the symbiotic nature of strategy and Internal Governance Mechanisms: Decision Making structure. HomeGoods' performance and competitive advantage have both increased thanks to the company's successful adjustment of these factors. As a result of its competitive advantage, Internal governance is the process by which an organization regulates and directs authority inside strategic alliance, partnerships, business-level cooperation tactics, and organizational and itself. Another way to look at it is that if we let corporate leaders do anything they want, conflict operational structure, HomeGoods has been able to produce value for itself. It differentiates itself will follow. Oversight and audits are the most effective ways to curb this tendency and have from rivals in the market by stocking goods that are both on-trend and one-of-a-kind. Because of leaders and managers make better decisions for a company via internal governance. Oversight this, HomeGoods has been able to rise in popularity and become a recognized bargain retailer in bodies give information, manage disagreement, and ensure that a corporation is meeting the the United States and around the world. needs of its stakeholders. An auditor can check that systems are operational, people areBy joining forces with TJMax, HomeGoods has gained access to TJMax's storefronts and References name recognition. Due to their collaboration with Synchrony Bank, they are now able to issue a Board of directors. TJX.com. (n.d.). Retrieved from https://www.tix.com/investors/governance/board-of-directors rewards credit card to their customers. Further, it has been able to extend its operations and gain a deeper understanding of consumer behavior because of its cooperative initiatives at the Chen, J. (2022, August 26). What is corporate governance? Investopedia. Retrieved from https://www.investopedia.com/terms/c/corporategovernance.asp corporate level. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Competitiveness and globalization: Concepts and cases (12th ed.). Boston, MA: Ultimately, HomeGoods has succeeded because of its well-organized business Cengage Learning. ISBN-13: 9781305502147 operations. The company's management is organized into divisions and multi divisions (M-form) Kenton, W. (2022, August 23). Organizational structure for companies with examples and benefits. Investopedia. Retrieved from depending on the different lines of business, or "divisions," they oversee. Because of this, https://www.investopedia.com/terms/o/organizational-structure.asp HomeGoods is able to make choices that will ultimately benefit the firm financially and give it a The tixcompanies, inc. 202 1ANNUALREPORT. (n.d.). Retrieved from leg up in the marketplace. https://www.tix.com/docs/default-source/annual-reports/tix-2021-annual-report-and- 10-k.pdf Conclusion The TJX Companies, Inc.. strengthens management structure for succession planning. The TJX Companies, Inc. Strengthens Management Structure for Succession Planning Business Wire. (2011, February 1). Retrieved from HomeGoods companies organizational and operational structure helps with dividing https://www.businesswire.comews/home/201 10201006568/en/TJX-Companies- Strengthens-Management-Structure-Succession-Planning duties among employees and having the company in order for success. This company has also Unglesbee, B. (2021, September 28). Homegoods launches e-commerce arm. Retail Dive. been able to have a strategic alliance which benefits them and their partners. Having strategies Retrieved from https://www.retaildive.comews/homegoods-launches-e-commerce- has helped this company with competitive advantage, growth, consistency, and happy customers. arm/607278/ HomeGoods has become a successful business because they listen to customer demand and Walton, C. (2020, November 30). TJX has the potential to make homegoods something special in e-commerce. Forbes. Retrieved from follow procedures that will ensure success. https://www.forbes.com/sites/christopherwalton/2020/11/24/tix-and-homegoods- have-the-potential-to-make-something-special-in-e-commerce/?sh=b7624204f8a5Net Profit Margin: HomeGoods net profit margin is low. It should reassess its business strategy and The ratios that provide the most key insights into the firm's current level of performance are the growth. gross margin, operating margin, and net margin ratios. The gross margin ratio indicates the firm's overall HomeGoods is known to be a well-organized company. The company's management should take profitability, while the operating margin ratio indicates the firm's profitability after accounting for its a few steps to reassess the strategies and corporate plans. operating expenses. The net margin ratio indicates the firm's profitability after accounting for all its Current Ratio: HomeGoods performed better in terms of its current ratio. It indicates that the expenses. All the ratios can be calculated by dividing the relevant income statement line item by the liquidity of the company is higher than the industry level. firm's total revenue. A positive result indicates a profitable firm, while a negative result indicates an . HomeGoods are product/inventory based. The harmony of making and finishing its unprofitable firm. inventory should match the aspects of the balance sheet. The company must be able to 2021 RATIO 2021 INDUSTRY RATIO GROSS MARGIN 23.66 47.9 distinguish the capacity and liquidity of certain assets. OPERATING MARGIN 1.81 5.9 NET PROFIT MARGIN 0.28 5.8 Quick Ratio: HomeGoods ratio indicates that the company has the capacity to quickly generate CURRENT RATIO 1.46 1.32 cash in case of need. QUICK RATIO 1.06 0.55 ASSET TURNOVER 1.04 1.12 . HomeGoods is expected to flourish through implementing strategic ways of operation. INVENTORY TURNOVER 5.33 4.16 PRICE EARNINGS 26.29 10.22 The company much be dedicated to arranging its cash assets in addition to determining Gross Margin: The gross margin of HomeGoods is lower than the industry margin, which the liquidity of certain assets. results in being a threat for HomeGoods. The current position of HomeGoods in the market is one of the largest discount retail There are several risks that could adversely affect the profitability ratios of a firm when forming a strategic alliance. These risks include the potential for increased competition, the possibility of new chains in the market. The company should be able to plan in terms of their sales to cost entrants into the market, and the potential for changes in consumer demand. The ratio to reveal immediate ratio to better produce a much favorable outcome. information for analysis of the alliance's effectiveness would be the gross profit margin. Operating Margin: HomeGoods operational margin should keep up at least 4 times to level up Risks of forming an alliance for the profitability ratio against the industry margin. Under the table money engagement The operational risks and rewards of HomeGoods should be reviewed and open for possible o Weakened management suitable revisions. This would help the company to maintain and meet the needs of its Less equity stakeholders. Poor resource allocation and distributionBuilding up a relationship with the alliance o (1) extending the duration of the alliance, since the level of embeddedness positively correlates with the alliance length; Gross Margin: The higher the margin the better. A gross margin of 23.66 indicates the o (2) formalizing the relationship as much as possible because formalization leads to better company's management is generating revenue for each dollar of cost but since the gross margin control and of HomeGoods is lower than the industry's margin, this results in a threat for HomeGoods. o (3) entering into an equity alliance with investment from both partners, as this type of Operating Margin: The higher the operating margin the better. This indicates the company's collaboration increases the embeddedness of partners. operational efficiency in terms of generating profits from its core operations. HomeGoods Ratio that reveals immediate information for analysis of alliance effectiveness operational margin should keep up at least four times to level up against the industry margin. PROFITABILITY: It is evident that using the profitability ratio is a more appropriate measure to assess the firm's performance. Net Profit Margin: The higher the net margin the better. This indicates that the company is earning enough money from the business operations. HomeGoods net profit margin is low. It Given the current financial climate, HomeGoods could acquire capital appreciation as a primary should reassess its business strategy and growth. investment objective, rather than income or principal safety. For instance, the strategy employs that there Current Ratio: The current ratio should be at least in line with or higher than the industry should be an asset allocation with substantial weight and little or no allocation to bonds or cash. In terms average. The higher the ratio reflects a higher level of liquidity. A good current ratio is between of its financial ratio, the company must consider improving its sales account. 1.2 to 2.0, which means that the business has two times more current assets than liabilities to The interest rate that the company might adopt will depend on its creditworthiness. Interest rates cover its debts. HomeGoods performed better in terms of its current ratio. It indicates that the might start from 0 to 23% or higher depending on the current working set-up and eligibility. liquidity of the company is higher than the industry average. The liquidity ratios that will be impacted by the influx of capital are the quick ratio and current Quick Ratio: The higher the quick ratio the better. A higher quick ratio signals that a company ratio. Both ratios involve liabilities and current assets which both are impacted when the capital increases. can be more liquid and generate cash quickly in case of emergency. HomeGoods ratio indicates 2021 RATIO 2021 INDUSTRY RATIO GROSS MARGIN 23.6 47.9 that the company has the capacity to quickly generate cash in case of need. OPERATING MARGIN 1.81 5.9 NET PROFIT MARGIN 0.28 5.8 Asset Turnover: A much higher inventory turnover is better as this indicates strong sales. The CURRENT RATIO 1.46 1.32 QUICK RATIO 1.06 0.55 inventory turnover of HomeGoods is higher than the industry average, which is beneficial to ASSET TURNOVER 1.04 1.12 INVENTORY TURNOVER HomeGoods. 5.33 4.16 PRICE EARNINGS 26.29 10.22Price Earnings: Higer P/E suggests that investors are expecting higher earnings growth in the future compared to companies with lower P/E. HomeGoods P/E is better than the industry References average. https://mygcuedu6961- my.sharepoint.com/x:/g/personal/yabrew_my_gcu_edu/EQ81xSROVXFBm30eW85X8sABDNmJJj4cvX hedcyBmpY_A?e=JdYxNm Board of directors. TJX.com. (n.d.). Retrieved from https://www.tix.com/investors/governance/board-of- directors Chen, J. (2022, August 26). What is corporate governance? Investopedia. Retrieved from https://www.investopedia.com/terms/c/corporategovernance.asp Furniture & fixtures industry. Furniture & Fixtures Industry Efficiency, Revenue per Employee, Inventory and Receivable Turnover Ratios Q2 2022. (n.d.). Retrieved from https://csimarket.com/Industry/industry_Efficiency.phpfind=407 Home furniture, furnishings, and equipment stores: Industry Financial Ratios Benchmarking. (n.d.). Retrieved from https://www.readyratios.com/sec/industry/57/ Kenton, W. (2022, August 23). Organizational structure for companies with examples and benefits. Investopedia. Retrieved from https:/www.investopedia.com/terms/o/organizational-structure.asp Tix Balance Sheet 2009-2022: TIX. Macrotrends. (n.d.). Retrieved September 12, 2022, from https//www.macrotrends.net/stocks/charts/TJX/tix/balance-sheet The TJX Companies, Inc.. strengthens management structure for succession planning. The TJX Companies, Inc. Strengthens Management Structure for Succession Planning | Business Wire. (2011, February 1). Retrieved from https://www.businesswire.comews/home/20110201006568/en/The-TJX-Companies-Inc.- Strengthens-Management-Structure-for-Succession-Planning The TJX Companies, Inc.. strengthens management structure for succession planning. The TJX Companies, Inc. Strengthens Management Structure for Succession Planning | Business Wire