Regarding the finance part we decided to take into account the following three items: Strategy analysis, including financial impact of the main Porter's Forces and the company's competitive strategy, Trend & common-size analysis of the Balance Sheet to identify key items and Trend & common-size analysis of the ICS to understand the cost structure. The analysis of the sector and the industry of Tape à l'Oeil seemed essential to us in order to analyze the financial reports afterwards. We then analyzed the balance sheet and the income statement because we had a lot to say about it and because we could not see ourselves analyzing one without the other. The calculations were done exclusively with the help of trend and common-size analysis. 

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In the first part we introduced the subject by the stakes of the sector following the health crisis and raised the fact that consumers were more and more looking at the CSR policies of retail companies. Then we defined Porter's 5 forces for the textile industry. Finally we defined Tape à l'Oeil as a company with a "cost leadership" strategy, (i.e. focused on competitive prices and efficient production). In terms of openness we also indicated that the company was trying to make its strategy even more efficient by integrating differentiation actions through trendy and eco-friendly collections. 

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In the second part we were interested in the analysis of Tape à l'Oeil's balance sheet. We noticed that the company had taken on a lot of debt between 2019 and 2020 and that this was characterized by a large amount of available cash. In relation to our project, we concluded that this large cash availability was a positive point for our project which requires some financing. This is consistent with an economic recovery in which consumer attention is more than ever focused on products that are environmentally friendly and promote social responsibility. Thanks to a common-size analysis, we noticed that inventory occupied a large place in the assets. This is due to the large amount of inventory that the company has with its production pending consumption. Finally, even if the property plant and equipment have suffered a decrease of 3.6 percentage points between the years studied, our project will impact positively on these thanks to the investment in the equipment composing the recycling terminals at the entrance of the stores. 

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In the third part, we observed a drop in income of 11 million euros due to the health crisis. However, it seems to us that this decrease is limited thanks to online sales. We also observe a decrease in expenses related to personnel, which seems to us to come from the aid that the State distributed during the pandemic. Within the framework of the project, it is essential not to continue to make losses to the company. For this, we will have to keep a close eye on the discounts granted to the customers. Finally we have established that the cost structure will surely be modified by our project in the long run if eco-friendly productions develop in mass. 

 

Finally we would have liked to analyze the cash flows but the company did not provide us with them.