Premium Essay

Pacific Brand Notes

In:

Submitted By CamillaY
Words 2173
Pages 9
Pacific Brands
1. How has the organization performed in its implementation of the strategy?
Customer perspective: Low performance
 No detail about customer satisfaction, repeat business, market share, product loyalty in case fact. However, sales in cornerstone brand Bonds fell, Kmart replaced Bond with its home-brand might indicates the decreasing of customer loyalty.
 Troubled footwear, outwear & sport business

Internal process perspective: low to medium performance
 Profit margin and EBITA improved strongly indicate that the focus on simplify business operation and cost saving has delivered results. This is despite Pacific Brands exposed the impact of rising costs for cotton, Chinese labour and freight in the weak sales retail environment.
 Dividend reinstated in the 1st half year of 2011 also indicates ROE has improved. Learning and growth perspective: low to medium performance
 Downsize from 900 labels, 350-odd brands & 8000 staff to less than 100 brands; cut down 1800 jobs with 1200 made redundant in manufacturing
 Recruited talent top management team to ensure strategy capacities are developed to achieve future strategy goals.
 Strong market focus to ensure future sustainability and growth

Financial perspective: low performance
 Debt level has been reduced, dividend has been restated, profit margin & EBITA have improved 30.1% to $104.5m
 3-year restructuring program is on track to deliver net cost savings of $150m.
 However, sales decreased, and the $175m write-down in footwear, outerwear and sport division pushed the company to a loss of $166m, which raised concern whether Pacific Brands has the ability to generate medium-term growth.

Summary
Bearing in mind that Pacific Brands is an ASX listed company, the overall performance is assessed as low.
 PB is two-thirds of the way through its 3-year restructuring program after

Similar Documents

Free Essay

The Company

...At Pacific Brands we touch the lives of everyday people. We are accessible. We are iconic. We are everyday! Pacific Brands has come a long way from manufacturing Dunlop bicycle tyres in 1893. Today, Pacific Brands is famous for marketing iconic everyday brands our consumers love including Berlei, Bonds, Clarks, Dunlop, Everlast, Grosby, Hard Yakka, Holeproof, Hush Puppies, King Gee, Mooks, Mossimo, Razzamatazz, Sheridan, Slazenger, Tontine, and Volley. With our headquarters in Melbourne, Pacific Brands has operations throughout Australia, New Zealand, United Kingdom, Malaysia, China and Indonesia. The passion of our 5,000 employees is the driving force behind our success. Last financial year Pacific Brands generated sales of over $1.6 billion. Our participation in an extensive range of product categories, coupled with our strong and diversified customer network, underpin our position as a market leading supplier of everyday brands to the Australasian retail marketplace. We make in excess of 300,000 different products and sell over 200 million units per year. We leverage the benefits of our scale to increase efficiencies and generate innovation across the entire company. Ultimately, we seek to improve our speed to market and deliver quality products to our customers. Our brands have become iconic household names with the support of Australian sporting legends such as Sir Donald Bradman, Ken Rosewall, Evonne Goolagong Cawley, Margaret Court and Mark Waugh. Current identities...

Words: 272 - Pages: 2

Premium Essay

Australian Beverages

...CASE STUDY 2 : PACIFIC BRANDS : Re Building Brands Module 3: Internal Environment Pacific Brands Limited (Pacific Brands) is an Australia based provider of everyday essential brands. The company manufactures, sources, markets and distributes underwear, hosiery, socks, intimate apparel, workwear, corporate uniforms, bed linen, quilts, pillows, mattresses, foams, footwear, carpet underlay, fashion apparel, and sporting apparel and goods markets. Business Strategy Pre-2009 The company was established with private equity funding and corporate strategy, which was aligned, was to achieve growth by a continuous introduction of new brand with the manufacturing base in Australia. The company was host to over 900 labels, 350 brands and had about 8000 staff. Consequences: $ 800mn debt and market cap. down to $100mn. Due to the globalization the local manufacturing base became redundant. It was far too complex a strategy with the kind of existing capabilities of the company. Pacific Brands was yet another large company that went on a spending spree at the top of the market when debt was cheap. Operationally, Pacific Brands has also demonstrated some peculiar strategies. It was strange that it had retained any manufacturing in Australia as most in this industry decided years ago the economics of producing such goods here did not stack up. Post -2009- major restructuring plan. - Shifted Mfg base to China – to offset high local mfg costs. - Reduced/streamlined...

Words: 744 - Pages: 3

Premium Essay

Accounting Transaction and Analysis

...is the core business of Pacific Brands Ltd? |Pacific Brands Ltd is marketing a series of brands, covering Underwear, Hosiery, Work | |wear, Home wares, Footwear, Outerwear and Sport. Its main concern is on how to allocate | |the limited resources efficiently among these brands in order to generate the most profit from | |them. | [2 marks] 1.2 What is the core business of Country Road Ltd? |Country Road is an Australian Fashion Retailer, whose main products cover clothing, | |footwear, accessories, home ware and furniture. Its main concern is on development of the | |brand Country Road and Trenery by increasing its customer base, improving its products, | |providing better shopping environment etc. | [2 marks] 1.3 What did the “Strategic Review” highlight in terms of structural changes for Pacific Brands Limited? (Refer to the Chairman and CEO Review on page 3 of the Pacific Brands Limited 2009 Financial Report)...

Words: 3368 - Pages: 14

Premium Essay

Company Financial Analysis

...Financial Analysis Pacific Brands Release Date: 30th September, 2011 Table of Content 1. Ratios Summary 1 2. Financial Analysis 2 3. Recommendation 9 Appendix I: Calculation Illustrations 11 Appendix II: Further Calculation Illustrations 17 Appendix III: Figures 18 Appendix IV: Executive Summary 19 1. 2. Ratios Summary Ratios | Pacific Brands, 2010 | Industry | Unit | Liquidity | | | | Current Ratio | 2.69 | 2.67 | times | Quick Ratio | 1.66 | 1.92 | times | | | | | Activity | | | | Days Inventory | 98.93 | 50 | days | Days Receivables | 51.12 | 25.78 | days | Days Payables | 60.38 | 58.83 | days | Total Asset Turnover | 0.81 | 3.17 | times | Fixed Asset Turnover | 13.33 | 5.26 | times | | | | | Profitability | | | | Net Profit Margin | 3.05 | 2.45 | % | Return on Assets | 5.91 | 7.77 | % | Return on Equity | 4.03 | 16.8 | % | Quality of Income | 254 | 7.03 | cents | | | | | Leverage | | | | Times Interest Earned | 2.64 | 64.72 | times | Assets/Equity | 1.63 | 2.16 | times | | | | | Dividends | | | | Dividend Yield | 0 | 4.75 | % | Price/Earnings Ratio | 15.44 | 12.16 | times | | | | | Note: Calculation in details is available in Appendix I 3. Financial Analysis 2.1 Tests of Liquidity 2.2.1 Current Ratio | Pacific Brands Ltd | Industry Average | Current Ratio | 2.69 | 2.67 | The current ratio for Pacific Brands Ltd in 2010 was 2...

Words: 3771 - Pages: 16

Free Essay

Case

...Melissa Roberts 9610377 Global Strategy & Leadership S2 2013           Case  Scenario  1   Pacific  Brands     The  aim  of  the  restructuring  strategy  of  PacBrands  is  to  refocus  the  business  on  brands  and  move  away  from   manufacturing.    It  requires  a  major  restructuring  including  cost-­‐cutting;  reorganizing  capital  management  and  debt   financing,  simplifying  logistics  and  operations,  sourcing  production  offshore  and  developing  capabilities  required  as  a   brand  marketer.   Question  1  –  4  Marks   Question  2  –  8  Marks   Question  3  –  6  Marks         Page 1 of 23 Melissa Roberts 9610377 Pacific Brands Global Strategy & Leadership S2 2013 Module  1:  An  introduction  to  strategy  and  leadership     The  global  context  of  business  (Drivers,  challenges,  benefits  of  globalisation,  value  of  localisation)  Page  1.28   Drivers  of  Globalisation   • Competitive  Forces  -­‐  The  ability  to  effectively  offshore  manufacturing  to  reduce  costs  has  been  possible  because  of  globalization.    The  pressure...

Words: 10728 - Pages: 43

Free Essay

Pirelli

...Million €, Percent Key Facts 2008 yoy Q1 Q2 31 Q3 76 Q4 74 ∆ Price/Mix +7.3% Profit & Loss Revenues EBITDA (before restructuring costs) % ∆ Exchange Rate -2.8% FY '07 4,162 549 13.2 358 8.6 358 FY '08 4,100 443 10.8 250 6.1 150 ∆% -1.5 -19.2 ∆ Volume -6.0% Impact of raw materials 14 103 88 41 18 EBIT (before restructuring costs) % EBIT (after restructuring costs) -30.2 EBIT +191 ∆ Commercial ∆ Efficiencies -4 ∆ Unit costs & other -295 A dramatic increase in all input costs (raw materials, energy, etc.) A collapse of the OE market, driving sales down by 10.2% in Q4 (5% organic) The decision to provision in 2008 results restructuring initiatives and costs worth 100 ml € Note: unaudited results, pre-closing | 2 Pirelli Tyre 2008 operating and financial performance Million € Raw materials: Labour / energy / other: (72) -195 -73 EBIT bridge (before restructuring costs) 358 263 (268) (268) (5) (15) (11) 250 EBIT 2008 EBIT 2007 Price & mix Volume Cost of inputs Efficiencies Exchange rate Depreciation / other NFP evolution * of which stock: -212 PBIT: Investments & Depreciation: ∆ NWC: Other variations: Financial / fiscal charges: +250 -106 -156* +8 -172 ( ) (175) 14 1,266 560 (452) (93) NFP 2007 Minorities repurchase and debt restructuring Dividends Net Cash Flow before dividends Other variations NFP 2008 | 3 ...

Words: 2589 - Pages: 11

Free Essay

Strategy Formulation

...Globalization Versus Normative Policy: A Case Study on the Failure of the Barbie Doll in the Indian Market Priti Nemani* INTRODUCTION .......................................................................................... 97 I. GLOBALIZATION AND THE MULTINATIONAL ........................................ 99 A. Globalization Defined ................................................................ 99 1. The Key to the Kingdom: The Globalized Brand ............. 100 B. Barbie in the Global Economy ................................................. 102 1. Barbie‘s History................................................................. 102 2. Corporate Philosophy and Marketing Strategies behind Barbie ................................................................................ 105 II. MATTEL‘S BUSINESS VENTURES IN INDIA ......................................... 107 A. The Late 1980s: Barbie’s Tango with the License Raj ............. 107 1. The Licensing System ....................................................... 109 2. Limits on Foreign Direct Investment .................................110 3. Mattel‘s Joint Venture ......................................................... 111 B. India’s Economic Liberalization and Mattel’s Second Chance at Success...................................................................................113 1. India, the IMF, and the World Bank ...................................113 2. Mattel in India from 1993-2010 ...............................

Words: 13156 - Pages: 53

Premium Essay

Psun Annual Report

...;6 6L ILNHU  ^P[O H U\TILY VM JYP[PJHS JOHSSLUNLZ Z[PSS [V MHJL ;OL KPZWHYP[` IL[^LLU V\Y OPNOLZ[ HUK SV^LZ[ WLYMVYTPUN Z[VYLZ OHK ILJVTL L]LU TVYL WYVUV\UJLK WYVTV[PVUZ PU [OL THSSZ ^LYL YLHJOPUN \UWYLJLKLU[LK SL]LSZ HUK H ULHY KV\ISPUN PU JV[[VU WYPJLZ JV\WSLK ^P[O H U\TILY VM VYNHUPaH[PVUHS JOHUNLZ [OH[ OHK `L[ [V [HRL YVV[ HSS TLHU[ [OH[ ^L RUL^ ^L OHK [V JVU[PU\L [V ^VYR ^P[O H OPNO KLNYLL VM \YNLUJ` PU THRPUN JOHUNLZ [V V\Y I\ZPULZZ 6\Y [LHT TL[ LHJO VM [OLZL JOHSSLUNLZ OLHK VU HUK ^L LU[LY  PU H Z[YVUNLY WVZP[PVU [OHU ^OLYL ^L ^LYL H `LHY HNV (Z [OL `LHY WYVNYLZZLK Ä_PUN V\Y YLHS LZ[H[L WVY[MVSPV ILJHTL HIZVS\[LS` LZZLU[PHS [V Z[HIPSPaPUN V\Y I\ZPULZZ HUK [OL WYVZWLJ[ VM NL[[PUN IHJR [V WVZP[P]L JHZO ÅV^ >L ^LYL HWWYVWYPH[LS` JOHSSLUNLK I` LHJO VM V\Y RL` SHUKSVYKZ [V HUZ^LY [OL X\LZ[PVU ^O` ZOV\SK [OL` JHYL HIV\[ Z\WWVY[PUN 7HJ:\U HUK THRL JVTWYVTPZLZ VU SVUN [LYT SLHZLZ ^OPJO [OL` ZLSKVTS` KV (Z ^L ZOHYLK ^P[O [OLT V\Y WSHUZ MVY [OL M\[\YL HUK V\Y JVTTP[TLU[ [V ILPUN H ILZ[ PU JSHZZ ZWLJPHS[` YL[HPSLY JVUULJ[LK [V *HSPMVYUPH SPMLZ[`SL ^P[O H \UPX\L JVSSLJ[PVU VM IV[O V\[ZPKL HUK WYVWYPL[HY` IYHUKZ ^L WLYZ\HKLK [OLT [OH[ ^P[O [OLPY OLSW ^L JV\SK VUJL HNHPU IL H JV]L[LK HUK WYVK\J[P]L YL[HPSLY PU [OL ILZ[ THSSZ HYV\UK [OL JV\U[Y` *VPUJPKPUN ^P[O V\Y YLHS LZ[H[L YLZ[Y\J[\YPUN ^L ZLJ\YLK  TPSSPVU VM TLaaHUPUL ÄUHUJPUN ^P[O .VSKLU .H[L *HWP[HS HUK H  TPSSPVU ^VYRPUN JHWP[HS MHJPSP[` ^P[O >LSSZ -HYNV )HUR .VSKLU .H[L *HWP[HS PZ VUL VM [OL WYLLTPULU[...

Words: 18315 - Pages: 74

Premium Essay

Chocolate

...(Australia and New Zealand) and Western Europe were the two biggest regional confectionery markets in 2010, with Australasia‟s sales increasing by almost 25% over 2009 figures. North America, Asia Pacific and Latin America confectionery markets have also maintained increasing sales of these products despite the global economic downturn. The recession has caused many consumers to sacrifice volume rather than quality, and to use confectionery as a reward or as a means to help alleviate stress. However, sugarized gum, milk chocolate tablets and boiled sweets confectionery are all being adversely affected by mounting consumer health concerns. Obesity and diabetes are major health issues that are increasingly affecting both the young and aging populations. In particular, the United States (U.S.), United Kingdom (U.K.), and Japan will stand to benefit the most from reduced calorie and low/no/reduced sugar content. When it comes to “healthy” confectionery, consumers tend to look for products benefiting dental and cardiovascular health, as well as low-calorie products that help assuage guilt over indulgence. We see this trend playing out with sugar-free gum which has been performing well globally, and is predicted to continue, particularly in emerging countries. Gum is a strong favourite in Asia Pacific and Latin America because of its relatively low unit price. Finally, the premium segment will continue to offer some of the best prospects in global confectionery, with all major players either...

Words: 4019 - Pages: 17

Premium Essay

Mc Ds

...Zaheer Notes Share Analysis * Right then, on the screen is a graph showing the share prices at different points during the last 5 years. * As you can see, share prices peaked during 2011 and 2012. * Now we can translate this graph into some ratios to look what it actually shows * So, the earnings per share figure has continued to grow since 2011 * However we need to look at the price to earnings ratio to fully understand what’s going on. * In 2011 there was a big increase in the price to earnings ratio * Share prices were high, and the demand had increased * But why? Investors were expecting a big growth in earnings in the future Geographical Segments/SBU’s * McDonalds segmentation focuses closely on its franchises and its McCafe brand. * Now, well all know about that cliché where Americans are known for their love for massive burgers right? So let’s look at what the actual numbers say about this... * The US has the largest fast food market in the world, estimated of produced $191billion * So how are McDonalds performing in the states compared to the rest of the world * First of all, as mentioned earlier more than 80% of McDonalds restaurants are franchises * So, because of the limited time we have today, I will be focuses on the revenues of franchised restaurants rather than the company owned ones. * If we take a look at the bar chart on the screen, almost half of the sales are coming from America, followed by Europe...

Words: 381 - Pages: 2

Free Essay

Ferretti Group

...sector, and in particular the luxury nautical sector represents a specialization of the Italian economy and it has developed, in the course of time, strong ties with other important sectors, for example that of furnishings, of mechanics, of technology and of services. It is interesting to note that Italy boasts world leadership in 2000 in the production of Super Yachts. We can also note that three Italian companies, Azimut-Benetti, Ferretti Group and San Lorenzo hold the top 3 positions at world level for the construction of luxury ships During the opening press conference at the 38th edition of the Cannes Yachting Festival which is currently being held in the French Riviera, the Ferretti Group presented a review of the first eight months of the 2015 financial year. Reporting strong growth for the Italian company, CEO Alberto Galassi announced positive EBIT and cash flow and a 105% increase in orders intake, amounting to a total of €253,000,000. The initial review of the key figures achieved this year are fully in line with the targets announced at the presentation of the Group’s development and growth strategic plans for 2015-2017, focusing on the further development of the Group’s core brands. Galassi noted this is largely due to Product Research & Development investments totaling €50,000,000, which are supporting the launch of as many as 27 new models. Furthermore, geographically, in the first eight months of 2015, the Group has continued its sales growth on an...

Words: 726 - Pages: 3

Premium Essay

Starbucks Analysis

...greatest potential for impact include working with farmers for ethically sourced coffee beans, pioneering sustainability economically, socially, and environmentally, and creating career opportunities for young people (2015). Starbucks Newsroom reported on March 18, 2015 that their seven strategies would grow market capital to $100 billion (2015). Revenues are currently at $16.4 billion and the U.S. comp growth averaged 7% (Starbucks Newsroom, 2015). Starbucks 2015 annual meeting of shareholders report announced seven strategies for growth (Starbucks Newsroom, 2015). These strategies are 1) Be the employer of choice, 2) Coffee leadership, 3) Grow the store portfolio, 4) Create new occasions to visit store, 5) Consumer packaged goods brand growth, 6) Build Teavana teas, and 7) Extend digital...

Words: 3900 - Pages: 16

Premium Essay

A Marketing Research on the Segmentation, Targeting and Position of Different Brands in Marriott International

...segmentation, targeting and position of different brands in Marriott International Course: Principles of Marketing Faculty responsibility: D. Sleeman Program: PGD2 Name: YAO Feng (Emma) Words Count: 2632 Date: 02.10.2008 Statement of Authorship “I certify that the totality or assigned portion of this assessment is my own work and contains no material which may have been used for the award of any degree or diploma in any institute, college or university. Moreover, to the best of my knowledge and belief, it contains no material previously published or written by another person, except where due appropriate reference is made.” YAO Feng Table of Contents INTRODUCTION 3 Aim & Objectives 3 Limits of research 3 Methodology 3 SEGMENTATION 4 Market Overview 4 Market Segments 4 TARGETING 6 Segment Strategy 7 POSITIONING 8 Product and branding strategy 8 Pricing 14 Promotion 15 Marketing Channels 16 CONCLUSION 16 REFLECTIVE COMMENT 16 REFERENCES 18 APPENDICES 20 INTRODUCTION In the following report I would like to focus on Marriott International, Inc. (NYSE:MAR), a leading lodging company with over 3,100 lodging properties in the United States and 66 other countries and territories (Marriott International, Inc. Corporate Headquarters, 2008). My key task is to critically analyze the segmentation, targeting and positioning strategies of the company with the following brands: “Marriott Hotels & Resorts” and “Courtyard...

Words: 2979 - Pages: 12

Premium Essay

Harley Davidson

...implies the company connection with customers helps create superior value, Harley Davidson still needs to formulate a way to measure customer service. The company uses surveys to collect data relating to customer service, customer experience, and customer opinion. One method Harley Davidson uses for data collection is a panel of owners. Harley Davidson has an exclusive target market ranging in mostly men, although it is expanding out to woman and teens. Middle aged men possibly going through a mid- life crisis or just in need of some type of unity, are their target market. Interestingly, women and now younger generations of the population are becoming more and more interested in motorcycles and Harley Davidson being a recognized brand can enter these markets (Harley Davidson). As the price of oil and gasoline increases domestic demand for bikes in United States is also on...

Words: 1255 - Pages: 6

Premium Essay

Market Research

...the majority of developed countries experienced a significant reduction in their FDI inflows, by 32% on average, those to developing economies remained relatively resilient, declining by only 4% on average. More importantly, for the first time developing economies alone absorbed more FDI than developed countries, accounting for 52% of global FDI inflows (figure 3.1). Asia-Pacific Trade and Investment Report 2013 FIGURE 3.1 1400 1200 Billions of United States dollars 1000 800 600 400 200 0 2003 Foreign direct investment inflows to developed and developing economies, 2003-2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Developed economies Developing economies Source: ESCAP calculations, based on UNCTADStat. FIGURE 3.2 2000 Billions of United States dollars 1800 1600 1400 1200 1000 800 600 400 200 0 2003 2004 2005 2006 Foreign direct investment outflows from developed and developing economies, 2003-2012 2007 2008 2009 2010 2011 2012 Developed economies Developing economies Source: ESCAP calculations, based on UNCTADStat Note: Due to their small share, transition countries are not shown in the figures. In 2012, for the first time, developing economies absorbed more FDI than developed countries, accounting for 52% of global FDI...

Words: 7178 - Pages: 29