...Pacific Brands Case Study Contents Introduction 1. Problem Identification 1.1 Cost Reduction 1.2 Structural Reorganisation 1.3 Ethics and Social Responsibility 2. Problem Analysis 2.1 Cost Reduction 2.2 Structural Reorganisation 2.3 Ethics and Social Responsibility 3. Recommendations 4. Bibliography Introduction Pacific Brands is an Australian based textile retail business that operates throughout Australia, New Zealand, United Kingdom and Asia. Within the following report is an exploration of the change process which Pacific Brands began implementation of in 2009. This step change was driven by a number of internal and external factors. These included falling profit and share price, increasing costs and the pressure of the worsening Global financial crisis. Added to this was the need to stay competitive in a market that has significantly shifted to cheaper imports. (TCF Review 2008, pp. 9-10) Pacific Brands restructure and the sale/discontinuation of unprofitable brands generated a focus towards core brands and the implementation of a profitable, streamlined structure that would guarantee the most cost efficient model. The disadvantage of such an aggressive restructure was the immediate media backlash and ensuing reputation damage caused by the outrage of employees, politicians and general public. 1. Problem identification 1.1 Cost reduction As in all developed markets the Textile, Clothing and Footwear industry that Pacific...
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...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...
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...Pacific Brands: Segmentation Australian Brasserie Consumers Q1. For this case, involving some exploratory research, Exhibit 12a and 12b show the segmentation and descriptor variables used to collect data for the segmentation analysis. Comment on the appropriateness and comprehensiveness of these attributes. What would your team change in this questionnaire and what other segmentation and descriptor questions would you recommend to ask to respondents for a better segmentation and targeting strategy? 1.) The comprehensiveness and appropriateness in the data from exhibit 12a and 12b for the segmentation analysis are very accurate and on point. The questions asked in exhibit 12a, the segmentation variables, are really right to the point and they are getting as much information as possible form customers about their knowledge of fashion. Also, exhibit 12a segmentation variable questions are very helpful because they are finding out important information from the customers to help target their preferences with bras, as well as great information on how to better market for their bras. Exhibit 12b, descriptor variables, is also appropriate because it helps with targeting different segments of customers specifically. Also, this information helps to specify how to market, when/where to market, and to whom to market different information to different segments of customers. - My team would change from the questionnaire a few things that could help impact the segmentation...
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...the right retail petrol outlet to visit? Marketing plays an integral part of this question with the concept of the four P’s of the Marketing Mix on the petrol retail outlet of Shell Coles Express. A marketing mix is a combination of the product itself, the price of the product, the place where it is made available and the activities that introduce it to consumers that create a desired response among a set of predefined consumers. – (pg 21, Marketing 2 – real people, real choices. PRODUCT A product is considered to be a good, a service or a blend of both. It is not limited to just ‘physical goods’. The product area in the marketing mix is concerned with developing the right ‘product’ for the target market. The Shell brand is known for high performance through the motor sport industry from providing its products to the high powered vehicles. As such it is considered to be of high quality. Shell’s products include fuels, oils and lubricants. The fuel’s such as Shell V-Power, Unleaded and Unleaded E10, Diesel and Autogas provides consumers a variety to choose from. Their product has been made to enhance performance from high powered automobiles to air planes and Formula One racing. A recently launched...
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...How Pacifi Brands has performed to date? The Balanced scorecard is a systematic means of linking the strategy of the business to specific objectives and performance measures in four key areas. It provides managers with feedback on a "balanced' view of performance. The four key areas are linked and casual. The perspective of the scorecard means many objectives and measures of performance are non-financial. Performance rating (+tive, tive, neutral) Performance rating = Low, with low ,medium or High Medium, Strong impact Performance measures Financial Perspective: Increase in cashflow % Details (1) Avoided/stopped company from going into liquidation by Cost-cutting, (2) reorganising capital management and (3) debt refinancing and debt reduction using divestment funds to reduce debt (4) reduced subsidised manufacturing (1) Dividend payment to investors in 2010 after several years of losses (2) Strong and Improved margins Increase in share price Increase in sales revenue from new Though it is an indicator of the organisations ability to generate revenue from new product development, overall reduction in sales 3 products within the industry and market in general due to GFC. Return on Investments 4 Return on Sales 5 Earnings before Income Tax (EBIT) Increase cost of labour and freight in offshoring services in China, and increase in cost of cotton, has an impact on flattening the EBIT and Net profit before Tax and NPBT. 7 Market share Efficiency Reduction...
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...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...
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...Introduction: Pacific Brands Limited is the largest supplier of everyday essential brands in Australia and New Zealand, retailing and distributing some of the biggest brands like Berlei, Hard Yakka, Bonds, Sheridan, Holeproof, Kayser, etc. The purpose of this case study is to analyse the fundamental issues relating to Pacific Brands strategy to close all seven of its Australian factories, and source its merchandise from southern Chinese factories resulting in the layoffs of 1850 Australian workers . Pacific Brands’ decision was made to save a company labouring under too much debt – about $740 million at the time – operating in a highly competitive, global market and suffering the impact of the worldwide financial crisis on the company. Australian consumers may love Australian products, but they don’t like paying for them . Pacific Brands CEO Sue Morphett stated that the rise of cheap offshore manufacturing meant that Pacific Brands could no longer afford to make clothes in Australia ... manufacturing in Australia no longer provides any competitive advantage to the company. What are the keys problems and/or issues? Offshoring for the purpose of this discussion can be defined as the relocating of one or more aspects of a firm’s business to another country’s location to lower costs. This makes Pacific Brands as a multi-national corporation (MNC) as according to when an organisation is in the multinational phase of internationalisation, the organisation’s principal concern...
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...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...
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...Appendices, and 9. Any footnotes. Coast4Life Cruises Business Case Analysis Business Case Analysis Introduction Coast4Life Inc. was incorporated federally on June 3, 2000, and is in the business of offering ocean cruises along the Canadian west coast, with stops at interesting ports of call in British Columbia. The business has a September 30 year end. In 2007, the original owners sold all their Coast4Life shares to the senior management group. Between 2001 and 2010, the company grew steadily from 135 to 574 employees and from $9.4 million to more than $55.7 million in revenue. Vision Coast4Life will be the first choice for vacationers who are seeking a safe, enjoyable and unique cruise experience in the northeastern Pacific Ocean. Mission Coast4Life meets the needs of North American vacationers by offering safe, enjoyable and unique cruises along the coast of British Columbia at affordable prices and at a high-quality level of service. Coast4Life also strives to minimize the effects of cruising on the ecology along the BC coast and maximize the safety of customers, staff and marine life by ensuring that the ships used are well maintained and that environmental and safety regulations are not only met, but exceeded. Quantitative analysis The main revenues in the Coast4Life are generated for the most...
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...Mary Ann Bellinger Eng 121 Instructor McKoy -Taylor Descriptive essay My First Cruise I remember like it was yesterday the year I decided to take my first vacation without the kids. My fiancé and I went on a week long cruise to Mexico. Neither one of us had ever been on a cruise so it was a new experience for the both of us. We needed to be in New Orleans for departure so we drove the six hours from Jonesboro, Arkansas to New Orleans, Louisiana. My fiancé and I used this time to talk, make plans for the future and fantasize about our week away from the kids and work. We left before the sun was fully up when the sky is blue with fluffy white clouds and not a sign of rain anywhere not to mention Hurricane Irene. We enjoyed the night on bourbon street eating famous Louisiana gumbo and poor boy sandwiches, drinking wine and sight seeing. We rode the trolley through the famous garden district. We walked the pier where we to board our cruise ship. There was so many cruise ships docked there some were coming in others were waiting to depart. The boarding of cruise ships takes as long as boarding an airplane. First you have to check in then go to your boarding area. Then you have to go through customs and check your luggage that is not seen again until you arrive at your cabin where it will be waiting for you. From there everyone is to meet at the emergency exits to hear the proper procedures to follow in case of an emergency. After the brief introduction...
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...Assignment Porter’s five force |Suppliers power |For stubing enterprises the key suppliers are the cruise manufactures, as there are not many | | |manufactures in cruise business. The power is in suppliers side, so if they increase their cost | | |of ship and other facilities. It would be a problem for the travel companies to buy ships and | | |maintain. If stubing enterprises think of renting cruise and run the business, then it would be | | |problem from the renting companies because they might charge more for the cruise. Not only the | | |manufactures, the suppliers who supply other facilities like food, beverages, band people etc. | | |They also affect the business, if they increase their prices the prices of ticket will also go | | |and the people might not be interested in the cruise market. | |Buyers power |Buyers are the most powerful in any business, because they have many choices to select, which one| | |is more affordable they will choose. So they play a major role in price setting, because as a | | |travel enterprise it should attract customers based on low prices and...
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...Cruising has recently gained significant importance as one of the fastest growing niche sectors within the tourism industry around the world. In Bangladesh we have started it with a longer vision. Modern cruises with ever-larger vessels have transformed the ship from merely transporting tourists to various destinations to become a resort in its own right (Kester, 2002; Papathanasis & Beckmann, 2011; Weaver, 2005). With the extended facilities offered, competitive pricing and aggressive marketing campaigns we think our cruise business will give its guests an elite type of vacation which they can remember for their rest of life. HR Strategy of Cruise Business Cruise business is simple managing a floating resort. This business is very closely related with hospitality rather than sport, recreation, entertainment, beauty, health and therapy. On the other hand if the human resource management is not proper in such case this would not bring any effective result for such kind of business. The HR personnel of this cruise will also maintain different partnerships with different department of this cruise liner in order to serve all parties in the best interest of the business. By confronting different issues and getting feedback it will report to the manager so that the performance of the overall team can be better. HR personnel also should develop business strategies that are in alignment with the cruise’s business objectives, by focusing on all aspects of the human asset. Continuously...
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...To further accomplish the learning outcome of this assessment, external and secondary research had been carried out through the use of internet, books and journal in completing the report. The SWOT analysis of Shangri-La Asia Limited is further divided into sections. In strength and weakness, it described the brand reputation of the company and its difficulties in expansion on different culture market respectively. Moreover, opportunities and threats is further been analysed into the growing demand of market and increasing labour cost in Mainland China. Furthermore, a TOWS matrix is created and potential strategic is strongly analysed based on the SWOT analysis. As such, it also look into strategic for Shangri-La Asia Limited (SLA) in overcoming the difficulties in culture difference and taking advantage of its brand reputation for expansion. Lastly, strategic such as being cost effective and revising job description of position is been look into. Table of Contents Executive Summary 1 Introduction 3 Analysis 4 Company Overview 4 Company History 4 SWOT 5 Strength 5 Strong brand image and reputation 5 Business geographically diversified in Asia-Pacific 6 Weakness 7 Difficult in expanding market across different culture market 7 Increasing indebtedness 8 Opportunities 9 Growing demand for hospitality industry 9 New hotel openings to improve market...
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... The computer maker can't expect instant results from its decision to sell its products in retail stores Earlier this month, the company broke a 23-year tradition when it unveiled plans to sell its products at retail outfits across the Asia-Pacific region. The announcement is significant for a company that had long marketed itself as the golden child of a direct sales model. According to analysts ZDNet Asia spoke to, it was a move that was inevitable particularly in the Asia-Pacific region, where consumers like to physically handle a product before they buy it. Bryan Ma, IDC's Asia-Pacific director of personal systems research, described the move as "necessary" because Dell was often criticized for pushing its direct model in a region where consumers prefer to "feel and touch" their products and pay in cash. "[The direct model] worked very well for them in the past because the bulk of their business has been in the enterprise and public sectors," Ma explained. However, Dell has had limited success in the Asia-Pacific consumer market, where its lack of physical retail presence was a disadvantage particularly against competitors such as Hewlett-Packard (HP) and Acer. Diptarup Chakraborti, Gartner India's principal analyst of Asia-Pacific client computing markets, said Dell has been facing some resistance from users who do not buy or make advance payments for expensive products such as a notebook, without first seeing the product. Chakraborti noted that this has compelled Dell...
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...Press Release Air Pacific Announces FY2011/2012 Financial Results Turnaround Plan Delivers Profits, More Passengers, and Higher Revenue Nadi, Fiji - Air Pacific today announced its financial results for the fiscal year ended 31 March 2012 (1 April 2011 – 31 March 2012). Mr. Nalin Patel, Chairman of Air Pacific’s Board of Directors, said that Air Pacific Ltd. and Air Pacific Group both made operating profits and that Air Pacific Ltd. delivered record-breaking revenue. (Air Pacific Group includes the national airline, its wholly owned subsidiary Pacific Sun, and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island). • • Air Pacific Ltd. reported an operating profit of $16.5m, compared to an operating loss of $3.7m for the previous financial year. Air Pacific Group reported an operating profit of $13.4m, compared to operating loss of $4.3m for the previous year. On a net basis, Air Pacific Ltd. reported an after tax statutory profit of $11.4m and Air Pacific Group reported an after tax statutory profit of $10.7m (versus after tax statutory profits including net income due to cancelled aircraft deliveries of $24.8m net and $25.3m respectively for FY2010/11). Air Pacific Ltd. also recorded its highest ever revenue of $645.9m, an increase of $90.5m in revenue from FY2010/2011, and an increase of $130m compared to FY2009/2010 (the year before airline restructuring and turnaround efforts began). The airline also carried 85,000 more passengers than it did the previous...
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