...“FINANCE” Course “PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION, AGAIN” case analysis Brief summary of the case with the emphasis on managerial problems that Prada faces. Prada currently requires a significant amount of capital both to re-finance debt that is maturing in the next six to twelve months and to finance its intended growth into the Asian (especially Chinese) markets. Since financial markets are aware of Prada’s pressing need to raise capital, it is important for the board of directors to develop a credible strategy for raising the necessary capital of at least €1 billion. Although the press has been suggesting that Prada will do an initial public offering, the company has tried this several times in the past with no success, mainly because of bad timing (9/11, the SARS outbreak, and the ongoing global financial crisis and European sovereign debt crisis). The board has approached Guido Santini of the investment bank Grupo Capo Milano to come up with a number of credible alternatives and a strategy for raising the needed capital. 1. What is the current and future outlook for the luxury goods segment over the next couple of years? How should Prada position itself to prosper in this market? Luxury goods segment proved to be resilient to the economic crises and had consistently grown from 1994 till 2010.The luxury industry grew approximately by 2% per year until 2007, and by 1% per year from 2007 to 2010. Beginning from...
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...□闭卷 ■开卷 双语教学： □是 ■否 修读方式： ■必修 □选修 □辅修 试卷页数 共 18 页 考试时间： 年级专业： 需计算器： 机考座位： 90 分钟 ■是 □否 号机 Case material: PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION, AGAIN It was January 25, 2011 and Guido Santini of the investment bank Grupo Capo Milano had just been asked to prepare a recommendation on how Prada should raise the money for its planned expansion in Asia and to pay the significant portion of its long-term debt that was maturing within one year. Although he had known this request would be coming at some point, he had expected a bit more time. His recommendation had to be presented to the Prada Board of Directors at their annual general meeting scheduled in two days, on January 27. THE MISSION The board requested that Santini prepare a report recommending and ranking alternatives for raising over 1 billion euros within the next six to 12 months. With more than €1 billion of debt maturing within 12 months (almost half in the next six months), Prada needed to have a credible plan in place to meet these obligations. In addition to the capital to refinance its existing debt, Prada had identified Asia as an area for future growth, and this growth also required capital. Asia was currently experiencing significantly higher growth than other parts of the world, and Prada wanted to be able to take part in and benefit from this. Consequently, Santini’s job was to recommend to the board how Prada could best secure the necessary capital to pay its maturing loans and start its expansion...
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... The PRADA Group Industrial activities Raw materials PRADA Group retail distribution channels Licensing agreements and joint ventures PRADA Group figures March 2012 PROFILE OF THE PRADA GROUP Prada was founded in Milan in 1913 by Mario Prada, Miuccia Prada’s grandfather, who opened in the prestigious glass-covered Galleria Vittorio Emanuele II arcade in Milan an exclusive shop selling leather bags, trunks, beauty cases and luxury accessories, soon becoming a favourite port of call for the more elegant and refined members of the European aristocracy and upper classes. In 1919 Prada was appointed Official Supplier to the Italian Royal Household; as such, it was entitled to incorporate the House of Savoy’s coat of arms and knotted rope design into its logo. In the late seventies, Miuccia Prada and Patrizio Bertelli started their collaboration, laying the foundations for the company’s subsequent international development. Patrizio Bertelli is the first in the luxury industry to introduce a new business model, applying uncompromised quality throughout the whole production chain and a constant, careful control over the entire process. Miuccia Prada’s creativity, able to infuse her work with thoughts linked to her day-to-day experiences and observations of the environment in an original innovative way – thus anticipating trends - never transcends the brand’s quality core-value and historic craftsmanship know-how. This skilful balance makes it possible for Prada to become...
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...The Bell Method This is a visual display made by Chameleon Display for Louis Vuitton’s fall display window in London 2010. One could really like how simple they keep it, yet glamorous. It’s still the feeling of being expensive with the pink Chesterfield pattern and gold frames, gold background, and the golden legs and tail on the ostrich. The ostrich is very creatively made by going “through” the cage and ground and up on the outside. It kind of makes one feel like they’re expressing that they’re thinking outside of the box. Not everyone would think this window is perfect, it looks too much like a set-up, and there are no emotions like in Prada’s display. One could also think they shouldn’t be hiding the hat underneath her skirt, maybe they’d be better off putting it on her head when they are having it in the display anyway. And the mannequin should be in another color because it’s too alike the gloves on her leg. What someone maybe would like to add in this window is a couple of golden ostrich eggs, just to make a bit more of it. It is easy to see how one can be a fan of this window, especially with these modifications. I couldn’t find out who made this display, but it’s for Prada’s fall display window in London 2010. One would probably also like the simplicity in this display, but it doesn’t seem as luxurious as Louis Vuitton’s window. What one could like about this window is the pictures in the background. The intimacy one the photographs makes the display come...
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..."Coco Chanel wasn't just ahead of her time. She was ahead of herself. If one looks at the work of contemporary fashion designers as different from one another as Tom Ford, Helmut Lang, Miuccia Prada, Jil Sander and Donatella Versace, one sees that many of their strategies echo what Chanel once did. The way, 75 years ago, she mixed up the vocabulary of male and female clothes and created fashion that offered the wearer a feeling of hidden luxury rather than ostentation are just two examples of how her taste and sense of style overlap with today's fashion." Coco Chanel represented a shrewd businesswoman, who defined aspects of the entire fashion industry. As a designer, her business acumen was undeniably one of the best in the business, although her methods in many instances were questioned in the past, due to dalliances with married men and dealings with the Nazis. Born in Saumur, France in 1883, Gabrielle Bonheur "Coco" Chanel's life was far from ideal. If you examine her childhood and early years, the periods in no way reflect the image people think of, when they hear the name of the luxurious label. At the young age of 12, her mother died of tuberculosis and her father placed her in an orphanage. While living in the orphanage -- she learned a useful and important trade from the nuns who raised her -- that of a seamstress. Her skills as a seamstress would ultimately transform her destiny, and the toughness of her childhood is reflected in how she engaged with the world...
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...usually decide also to make and sell bras or evening gowns. Product element is fundamental to the fashion design industry. The continual process of new product development and resulting change drives the whole industry and answers the demand from consumers for a constant stream of new ideas and offerings. . Without the constant generation and introduction of new ideas, the concept of fashion may not exist, the seasonal fashion shows and collections may fade out. Axiomatically, if consumers were not constantly engaged in the process of looking for new products to satisfy their emerging needs, the fashion process could not function either. All of the three brands, H&M, DKNY and PRADA are at the maturity stage of the product life cycle. They all have a long brand history. Miuccia Prada designed Prada in 1988. DKNY was founded by Donna Karan in 1989 in New York. H&M was founded in 1947 in Sweden. At this stage, their products have achieved acceptance by most potential buyers. There is a slow down in sales growth in total. These companies may try to increase their advertising and sales promotion to remind and inform the public of their products and events. They can also increase budgets on research and development to find better quality of materials and new design ideas. They can try to extend their product life by attracting new users or changing the package size or quality of the products. For example, the brands may develop more choices of smell of the fragrances sold and try...
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...Melissa Learish Mrs. Rutt-Houser AP Senior English: Period 2 14 April 2015 The Devil [and I] Wears Prada It is every girl’s dream to graduate college, move to the big city, and risk everything in order to fulfill their dream. In fields such as writing, publishing, and editing, one must be willing to start from the bottom in order to claw their way to the top. One must take any job available to them that will potentially create powerful connections to help pursue their goals. Andrea Sachs is no exception. Fresh out of college, she acquires a job in New York City that every person trying to break in to the fashion industry would die to have: junior personal assistant to the editor in chief of Runway magazine, Miranda Priestly. Ironically enough, Miranda is anything but “priest”-ly. She takes advantage of Andrea, forcing her to complete humiliating, impossible tasks for her. To make matters worse, Andrea does not exactly fit the image of someone working at Runway magazine in terms of her mentality and her physical appearance. Awkward, a size six (practically obese in her line of work), and at the bottom of the corporate food chain, she is less than thrilled to be put into this position. However, she keeps her goal in mind, and this encourages her to put on a happy face as she absorbs the torment she receives from her colleagues. Outside of the office, Andrea lives with her boyfriend. The stress of Andrea (Andy)’s job takes its toll on their relationship...
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...Topic: “Devil wears Prada”- Runway fashion magazine: Aspects and types of culure I. Introduction “Devil wears Prada” was presented in 2006, based on the Lauren Weisberger's novel of the same name. This is the story about a girl named Andrea Sachs who want to be a real journalist. For her wish, she opted to become an assistance of Miranda, a tough editor-in-chief of Runway fashion magazine. From there, she had to overcome all the challenges and the lure of the luxury life which were brought by this job. Particularly, the film also mentioned impressively the organizational culture theory of Runway fashion magazine company. II. Aspect of culture in Runway fashion magazine company via “Devil wears Prada”. 1. The basic, underlying assumptions As the film shown, all decisions were made by Miranda, the editor-in-chief. Additionally, the employees even could not make mistakes. Their ideas were also considered strictly by Miranda. About the kind of people employed, the knowledge of the employees must be high in fashion. Moreover, they had to be passionate in fashion such as Emily, one of Miranda’s assistances or Nigel, an art director of Runway. One significant thing of this organization is that when the employees did something right, they would not be promoted or complimented. However, when they made mistakes, they could be scolded or even dismissed. 2. Overt belief Nigel, the art director of Runway said: “This is a place which product many excellent artists of...
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...Introduction The movie “The devil wears Prada” had a variety of characters with distinct personalities and perspectives to different situations. The characters that I will analyze in this paper include Andy Sachs, Miranda Priestly, Emily and Nigel. However I will also talk about Christian Thompson, Irv the owner of Runway and Andy’s boyfriend Nate. Reflective Portion The first situation that I think is worth mentioning is when Miranda is stuck in Miami due to a hurricane. It was crucial for Miranda to get back to New York because the “twins” had a recital. As a result of this situation, Miranda contacted Andy to look for another alternative to travel. Miranda looks at this stimulus in a way that I suppose no one else would, as she kept true to her dominant, dramatic and contentious communicating style. She remains dramatic by under-exaggerating the weather condition, dominant and contentious by not giving Andy any other option but to look for a flight on that vary same night. Andy on the other hand tried to get control over the situation by remaining calm at first however, when she realized that she was in a tough situation, she started to panic. As a neutral observer I was able to see a drift in Andy’s perspective and personality in this scene. In a way I believe that Miranda put her employees in a tough situation specifically because she likes to see work get done the way she want it and not how the other wants. I do not think the behavior that Miranda posses in this...
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...Unit 3 Project 1: Business Ethics in Film Ricardo Ramirez Steve Gant The movie that we have selected was The Devil Wares Prada. The movie was shown in 2007 with the Actors of: Meryl Streep, Anne Hathaway, and Stanley Tucci. The Producer and Director was David Frankel. The film was about a young woman trying to get a job in the publishing industry. She was sent for an interview to the fashion industry to work her way to the top. Little did she know that the powerful publisher of the fashion magazine; One and only Miranda Priestly (Meryl Streep) that is the only and last word of the fashion Magazine “Runway”. You see how Andy Sachs (Anne Hathaway) struggles to make it as she is pushed to her limits, knowing full well that if she can work for this woman for one year, she will be able to get any job that she desires. You see how and what decisions she takes to get where she wants. Sometimes by missing friends and family get together, to undermining the coworker just because deep down inside she really wants to get ahead. You see how she is somewhat manipulated to do things to prove her loyalty to her boss, by telling the coworker that she has been replaced on the trip to Paris and slowly taking over the loyalty of her boss Miranda Priestly. The most Reaction that one get to see is from two stands. First you can see the stand from Miranda Priestly (Meryl Streep). As the Department head of the magazine, she was the one to make the finale word of the company magazine....
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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...Ralph’s Grocery and United Food and Commercial Workers Union The case that I chose for the week 6 critical thinking assignment concerns Ralph’s Grocery Company, located in California. It applies to this week’s material due to the fact that the case involves unlawful suspension and discharge of an employee, as reviewed by the National Labor Relations Board. Background In May 2011, Vittorio Razi was an employee at Ralph’s Grocery and was suspended and terminated after he refused to take a drug test without first consulting with his UFCW Local 324 representative. The company (Respondent) says that on the day in question, Razi’s behavior was in question, acting nervous, anxious, agitated, and slurred speech. After a couple managers discussed the...
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