Wednesday, 26 February 2014

Introduction

 Welcome!

My name is Ivona Carusi and I live in a little town called Mareeba, Far North Queensland.

I am 28 years of age, happily married with 2 gorgeous boys. A 4 year old and a 2 year old.

I currently hold a  Real Estate Salespersons Licence. Loved my job and put it on hold while I raise my children. I am studying externally at CQU - Bachelor of Property.

When completing 'Using Accounting for Decision Making', it will bring me one step closer to completing my degree. Looking forward to it!

The business that has been assigned to me this term is 'Reece'



Company Information

 Reece is Australia's most successful supplier of plumbing and bathroom products. The business began in 1919 when Harold Joseph Reece started selling hardware products from the back of his truck. They currently own over 400 stores over Australia with over 3500 staff.

For the past 95 years Reece has provided products and a dedicated service to plumbers. Over that time they are very proud of the reputation that they have earned for 'Having what you need, when you need it, where you need it'

Reece has over 300 showrooms where retail customers have a huge range of bathroom products which include both Australian and International brands. Most showrooms also display a range of laundry and kitchen products.

Reece has expanded into the allied areas of HVAC-R Irrigation and Civil as well as Onsite which services commercial plumbers. Reece has quickly built a successful presence in these areas through its commitment to quality products and exceptional service.


Thousands of plumbers around Australia turn to Reece because of their reputation for 'Having what you need, when you need it, where you need it!' www.reece.com.au

Reece Australia Limited is a public company which is a company whose shares are traded freely with the stock exchange. The stock exchange is a place/system where shares of various companies are bought and sold. Not all businesses decide to have public shareholders. Businesses can choose to be privately of publicly held. In a privately held business, the shares of stock are all owned by a small group of people who know each other. they buy and sell their shares amongst themselves. A publicly held business is owned by thousands of people who trade their shares on a public stock exchange.

Why do business/companies have shareholders you may ask?
Shareholders are the people who own shares of stock in a company. They are the owners of the company since each share of stock entitles the owner to a say in how the corporation is run. Shareholders elect a board of directors to make the company's major decisions, such as the number of shares to be issued to the public.

There are 6 members included in the board of Directors at Reece:

Chief Executive Officer - Mr Peter Wilson
Executive Chairman - Mr Leslie Wilson
Non-Executive Director - Mr Ronald Pitcher
Non-Executive Director - Mr Bruce Wilson
Non-Executive Director - Mr John Wilson
Non-Executive Director - Mr Andrzej Gorecki

 Newspaper articles


The only news article I could find on Reece is dated back to January last year. 

Alan Wilson, now 72 has been the Chairman since 2001. He was initially appointed to the board in 1969. That's going on 45 years now and still going stong. Working hard by putting in 48 hours a week and no signs of slowing down even at the age of 71.

Despite many hurdles, like other businesses will/may experience, such as GFC and the slowdown in residential construction, Reece is seen as a leading quality player in the plumbing supply sector.

Looking through the Annual Reports as required for our assessment, I can see clearly that my firm is coping quite well, even with the economic changes worldwide. Their income seems to be increasing every year which is a great result for all involved. 

 Reece is a $3 billion business by market capitalisation, and reported its highest ever net profit after tax of $119 million in 2013. It controls 20% of the wholesale plumbing goods market.

 Reece announces that sales for the first quarter were up 8% on the prior year. As a result, profit before tax for the half year ending 31 December 2013 is expected to be up 5%-7% compared to the same period last year.

Reece has continued to invest and grow the network with 8 new sites opening in the first quarter of the year.

Business's Priority

'Customer service is our priority, customised service is our promise.'

Reece has continued to invest in the business through the refurbishment of their current outlets, opening new locations and increasing their range or products and service.

In a challenging market, Reece are driving performance by continually improving their service they provide to their customers. They are committed to understanding the individual needs of their customers and tailoring solutions to meet those needs.

 Without reputable customer service there would be no business. There would be a massive decrease in sales, and that would have a massive impact in the company, They need their customers to be loyal customers, long-term customers. They are continually looking for ways to work together with their customers' businesses and their own.

 'The customer is always right' something I learnt in year 9 Business class and it has always stuck in my head.


Top 3 Blogs

 In no particular order

 Ella Cameron - http://ella09.blogspot.com.au - I am particulary interested in this company as I am constantly on realestate.com. This blog is very easy to follow and informative.

 Jade Thomas - http://jadethomas1995.blogspot.com.au - Great attention to detail, great blog setup and very informative.

 Emily Aithchinson - http://emilyaitchinson.blogspot.com.au - Easy to follow and very informative.
KCQ's

Philanthropic Initiatives (Charity Assistance/Donations)
My company does an average of $495 000 a year. In the year 2011 they donated a whopping $150 000 alone to Red Cross Flood appeal after the massive flood come through south-east Queensland.

How much money does your company donate to charities each year?
Are all donations tax deductable?
What percentage/ if any will you get in return?

 What does 'Beneficial Interest in an entity' mean?
How or does this effect the business?

 Questions from Course Readings

 Chapter 1
Three Assets, Liabilities & Equity in my firm:

Asset - 
  • Cash and Cash Equivalents - cash and assets that are readibly converted to cash.
  • Receivables - claims to be collected in cash
  • Inventories - goods and materials that a business owns
Liabilities:
  • Payables - what is required to be paid (expense)
  • Short Term Borrowings - loans to be paid within 12 months
  • Provisions - providing or supplying something for use
Equity:
  • Contributed equity - the total value of stock that shareholders have directly purchased from the company
  • Reserves - shareholder's' equity
  • Retained earnings - the portion of net income that is taken by the business 


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