Myer Holdings Limited
Myer Holdings Limited
Myer Holdings Limited
The Myer Holdings Company is an Australian-based retailer that manages the Myer Retail stores. Sidney Myer and his elder brother, Elcon Myer, started it in 1900 with the first store located in Bendigo, Victoria. (Dun& Bradstreet Corporation, 1999, 13) The retail stores offer a broad range of products including clothing, shoes, cosmetics, perfumes, furniture, toys, and stationery, food and travel commodities. The Myer Company has Australia’s largest chain of retail stores with 68, and has retail stores in all the Australian states. (Roth, M., 2014, 21). Here, we will see how the company has continued to operate for a long time while maintaining its name in Australia through current business strategies and how they are audited.
The Myer Holdings Limited principal activity was the activities of the Myer department stores. These include the opening of new stores and introduction of new products in the Australian market. (Dick, H. W., & Merret, D., 2007, 23). It has overseen the opening of 25 stores in the top 30 shopping centres in Australia. In May 2016, the company decided to close two stores in Wollongong and Orange. This was attributed to the new strategy they were adopting, which would focus more on improving productivity of the stores. The stores introduced new products for women and men, including brands like White Suede, Alex Perry, Calvin Klein, By Johnny, and many more. (Hoover, G., 1992, 21). With the appointing of a new CEO in May 2015, the company began focusing on the rapidly evolving market and how the company stores would continue to meet the customers’ expectations. The company created a five-year delivery plan to adapt to the ever-changing retail landscape that would evaluate a strategic direction for the company.
To form the strategy, the company focused on five key elements; enhanced customer led offers, focus on wonderful experiences, Omni-channel shopping, productivity encompassing and organizational capability. Each element had a focus of its own that would contribute to the new strategies. The first, enhancing customer offers, focused on the wanted customer categories and introducing relevant merchandise offers for the loyal, valued customers who were the main target. The second, wonderful consumer experiences would focus on service delivery and in-store presentation of the products. The Omni-channel element in comparison focuses on how the customer uses the various services as one whole integrated network. This would include an efficient click and collect system that would be used throughout the stores, with improved delivery systems also being put in place. The above elements were customer based, with the customer being the focus. The other two elements were in turn more focused on the company’s activities, the first being productivity encompassing. This entailed optimising the store network to serve the flagship stores that attracted premium customer bases. This would help in efficiency and operating costs. The last element, organizational capability, would focus on the norms and structure of the company. It entailed establishing a Transformation Office that would help in the prioritization of the store activities, allocation of resources and creating a robust governing structure. (Wanna, J., Lee, H.-A., & Yates, S., 2015, 21).
Auditing in the company
The Myer Holding Limited has an Audit, Finance and Risk committee that has mandate to carry out audits for the company. However, the company may employ an auditor externally for additional tasks where their experience in relation to the company is important. The board is advised by the audit, finance and risk committee on these non-audit services to protect the auditor independence requirements found in the Corporations Act. (Mann, R. A., & Roberts, B. S., 2015, 34). This is ensured for various reasons including the reviews given by the committee to the board to show the auditor is impartial and objective in his decision making. The company has employed PricewaterhouseCoopers as their external auditor, and the audit company has a declaration that shows that none of its activities are being affected by Myer Holdings Limited activities.
The audit committee has a certain composition, consisting of three board members, non-executive and independent directors. The chairperson is chosen from the independent directors, and should not be the chair of the board. The committee has various roles, with a major one being the preparation of the company’s financial statements and reports every year. It is the oversight audit unit, and usually links the board with the internal and external auditors. Since it is the major link between the external auditor and the company, the committee in turn has to be responsible for the external auditor’s activities. It will select and appoint an auditor and is also responsible for the termination of their contract. In this case, the committee chose PricewaterhouseCoopers, a well-known audit firm that has branches globally.
PricewaterhouseCoopers is a professional service network found in London. It is considered as one of the big accounting firms in the world. Despite there being a policy to change the external auditor every five years, Myer Holdings Limited has maintained a long relationship with PricewaterhouseCoopers, dating past 2010. As an external auditor, their professional view on the running of their client is taken into consideration. They are usually directed by the Audit, Finance and Risk committee on what their audit should focus on, and they in turn use their expertise and experience to conduct a comprehensive audit plan.
Dick, H. W., & Merrett, D. (2007). The Internationalisation strategies of small-country firms: the Australian experience of globalisation. Cheltenham, UK, Edward Elgar.
Dun& Bradstreet Corporation. (1999). Who owns whom. High Wycombe, Bucks, U.K., Dun & Bradstreet Ltd.
Hoover, G. (1992). Hoover’s handbook of world business. Austin, TX, Reference Press.
(1999). BRW. Melbourne, Vic, Business Review Weekly.
Mann, R. A., & Roberts, B. S. (2015). Smith & Roberson’s business law.
Roth, M. (2014). Top Stocks 2015 A Sharebuyer’s Guide to Leading Australian Companies. http://rbdigital.oneclickdigital.com.
Wanna, J., Lee, H.-A., & Yates, S. (2015). Managing under austerity, delivering under pressure: performance and productivity in public service. http://www.jstor.org/stable/10.2307/j.ctt19893n9.