Question

Question 2 (i): Undertake an industry and company analysis for Woolworth Ltd. This question asks you to consider the factors which influence Woolworth's share price.

Answer 1

Woolworth is a major Australian company with retail interest expanded throughout New Zealand and Australia. It is the second largest company of Australia when it comes to revenue generation and it is also the second largest in the New Zealand.

Factors which influence the woolworths share price are as follows-

1.Consumer demand pattern in both Australia and New Zealand that will affect the sales of woolworth and it will also affect the share price.

2.Inflation rates in both Australia and New Zealand will also affect the prices of woolworths because it will decide the demand pattern of both the countries as increase in inflation would directly lead to to decrease in consumer disposable income.

3.Monetary policies of both the countries are equally important for this company as it will directly affect the share price of the company because monetary policy is one of the major factor of macro environment

4. Taxation rates and political intervention also affect the share price of woolworths limited.

5.Quarterly earnings reported by the company would also be affecting share price of woolworths limited to a very large extent.

6.Investors sentiment as well as current pattern of share market would also affect the share price of this company to a large extent.