Solid Financial Footing Analysis
Among the fundamental areas of consideration during the determination of the financial health of an organization is the availability of a steady source of income. Being a luxury store chain, Nordstrom provides the kinds of services that communities find necessary even when their finances are down. This includes fashion and beauty products, restaurants, home furnishings and interior design products as well as wedding paraphernalia (Nordstrom, 2017) . The above-listed items are essentials to the community on a permanent basis, giving Nordstrom an advantage from a perspective of income in and out of season. This advantage is prevalent in the USA where the company is well established and will not change, even after venturing into the new UK market. Further, from the said income, the company has already exhibited an ability to consistently rake in a profit and also augment profits over the last five years. Between 2012 and 2016, the company’s gross profits have been US$4.3M, 4.4M, 4.7M, 4.9M and 5.0M respectively (Nordstrom, 2017) . This shows a steady growth in profits in spite of the many challenges that the global and American economies have faced over the years, a fact that solidifies the notion that the company is financially secure and healthy.
Among the strategies that have ensured the continued success of the store chain is variety. The company annually selects the best marketable brands and products within the market segment and only sells the same (Reuters, 2017) . This makes it dynamic to specific markets enabling it to thrive consistently. Finally, the concept of expansion has consistently proven to be a forte and not a weakness for Nordstrom, a company that has grown from one store to the major chain store that it is today. The company has therefore mastered the concept of expansion and the contingencies kindred thereto. The healthy outlook that the company possesses today as reflected hereinabove will, therefore, not be affected by the expansion.
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Trustworthiness
Among the acceptable yardsticks for trustworthiness for a company is based on how a company treats its members of staff. Due to the company’s good performance in Fortune Magazines "100 Best Companies to Work For" list, the company has been inducted into its hall of fame. Among its best performances was number 24 in 2007 and number 53 in 2012, with the five-year difference in the two aforementioned years entrenching constancy within the company (Reuters, 2017) . Secondly, Nordstrom is well trusted by its consumers, hence its revenue and stock consistency. The greatest test for this came in 2017 when the company dropped the Invanka Trump label from its fashion stocks. President Trump attacked the company on twitter, a happening that had proven ominous to many a company (Sarlin, 2017) . By the end of the same day, however, the company closed at a 4% advantage at stock prices. A trusted chain store will always be a high and consistent earner in whichever market it ventures into. From an ethical perspective, Nordstrom has grown as a family-based business from the beginning, having been mainly managed by members of the family of its founder John W. Nordstrom (Nordstrom, 2017) . It has developed the reputation for seeking to do the right thing always, not just when expedient, a fact that has to endure it to its clients as well as regulators. Finally, from a legal perspective, Nordstrom has managed to avoid major legal tussles that have been visited upon many chain stores in America, based on subjects such as industrial relations, sub standard commodities or discrimination. In the limited number of times when the company has found itself embroiled in legal issues, the company has managed to have the same resolved expeditiously and when possible amicably (Reuters, 2017) .
Question and Answer Segment
Does Nordstrom expect to replicate its financial success in the USA to the anticipated United Kingdom market?
The key to the Nordstrom success including in their expansion program lies in variety and dynamism. From the perspective of variety, the chains store is not specific to what it sells but rather selects the most marketable brands. From the perspective of dynamism, Nordstrom does not stick to specific brands unless research shows that the market needs that product (Lutz, 2014) . Therefore, Nordstrom will not go to the UK to tell customers what to buy but rather to sell what the customers want to buy. This ensures that the chain stores will succeed in the UK markets just as it has in very different.
How does the company expect to overcome the low liquidity challenges in the European Market?
It is a fact that being customers tend towards purchasing necessities and not luxury products when liquidity is low. However, the Nordstrom has managed not only to survive but also thrive in times of economic problems and low liquidity spanning across decades. Among the key and effective solutions to this has been liaising with credit companies (Lutz, 2014) . It is exponentially easier to buy an attractive luxury item when the funds don’t have to be availed immediately. Providing credit facilities is one of the core strategies for the company and one that will enable it to thrive in spite of the liquidity problems.
Can the company provide a worthy collateral for the financial instruments to be requested for?
As at the close of 2016, the company had assets amounting to US$ 7.8M against a debt of US$ 2.7 million (Nordstrom, 2017) . A major cross section of the assets is held in real estate which makes for good collateral for any financial instruments extended. Further, among the major utilization of the borrowed funds will go into stock, which will provide further collateral for the monies borrowed.
References
Lutz, A. (2014, December 30). How Nordstrom became the most successful retailer . Retrieved August 14, 2017, from http://www.businessinsider.com/nordstroms-business-strategy-is-working-2014-12?IR=T
Nordstrom, (2017). Annual report pursuant to Section 13 or 15 (D) of The Securities Exchange Act Of 1934. For the fiscal year ended January 28, 2017 . Retrieved August 14, 2017, from https://materials.proxyvote.com/Approved/655664/20170307/AR_315670/
Reuters. (2017). Nordstrom company profile . Retrieved August 14, 2017, from https://www.reuters.com/finance/stocks/companyProfile?symbol=JWN
Sarlin, B. (2017, February 10). Donald Trump's feud with Nordstrom sparks warnings from ethics experts. Retrieved August 14, 2017, from http://www.nbcnews.com/politics/white-house/donald-trump-s-feud-nordstrom-sparks-warnings-ethics-experts-n719141
