1. How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental logic of Minoli’s turn around? Operational effectiveness is a key to gain profitability. [p 29 What is Strategy?] Constant improvements in the following operational activities resulted in profit maximization of Ducati: Standardization of products using two crank cases and three cylinder heads provided efficiency gains in manufacturing. Moved towards a platform
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0-306-074 Ducati: In Pursuit of Magic (A) On the first business day of January 2006‚ Federico Minoli pulled up and parked his Ducati Multistrada motorcycle in front of the Ducati headquarters in Bologna‚ Italy. As he looked up at the complex‚ which housed offices‚ the assembly factory and the Ducati museum‚ he reflected back on the company’s history. 2006 would mark several anniversaries: 80 years since Ducati was established to produce electronic radio equipment; 60 years since Ducati had been
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Ryan SAAD 1) Ducati became the second most profitable motorcycle maker in the world despite its small scale thanks to several successful strategies. First of all‚ the operational effectiveness of Ducati was the key factor to gain the second most profitable motorcycle maker. Their Platform based approach to production caused more efficiency with economic of scale. Also‚ the Standardizing of products using two crank cases and three cylinder heads creates efficiency gains in manufacturing. Moreover
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Ducati and Texas Pacific Group Case StudyFinancial PolicyApril 8‚ 2010 | Chris CovielloMatt CarrozzaChris HammondNick Baseel | Introduction In the Fall of 1995 Texas Pacific Group (TPG)‚ by way of Abel Halpern‚ expressed interest in purchasing Ducati‚ the Italian motorcycle company‚ from Cagiva‚ an Italian conglomerate owned by the Castiglioni family. Cagiva owned a number of diverse companies but had become excessively leveraged‚ and Ducati’s profits were believed to be supporting other failing
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* Phillip Island is an Australian island located about 140 km to the south and south-east of Melbourne‚ Victoria. Phillip island got its name from Arthur Phillip‚ the very first governor of NSW‚ Phillip Island is a natural breakwater for the shallow waters of Western Port. * Philip Island is visited by an estimated 3.5 million tourist annually. There’s no service of public transport available on the Island‚ so a bike or car is the best way to go. * -------------------------------------------------
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Analysis and Business Valuation Instructors: Prof. Amiya Sahu FINANCIAL STATEMENT ANALYSIS AND BUSINESS VALUATION Instructors: Prof. Amiya Sahu Class of : 2013-15 Course Code : EL FI 406 Credit :3 Academic Year: Second Term: IV Sessions: 20 Objective: This course is aimed at enabling the students: To strengthen their understanding on the concepts of Business analysis and Valuation; and its application. To use financial statement information in business analysis and valuation‚ and To value
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2. What is the maximum price they could expect to pay Monmouth‚ based on an analysis of valuation using discounted cash flow‚ calculation of WACC and terminal value determination? 2. Based on the DCF valuation and using a WACC of 8.25% (the beta assumed to be 1‚ the average beta of comparable firms and the coupon rate to be 7.96%‚ the rate for BB rated companies) and a growth rate of 5.5%. The fair price is $40.4 per share for Robertson‚ lower than the $50 offered by Simmons to sell their
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Ducati In: Business and Management Ducati Ducati feedback Q1. I wanted you to begin by recognising that this was a turnaround situation‚ with Ducati in 1996 close to bankruptcy. A new management team led by Minoli changed strategy with clear objectives of aggressive growth within a niche of the sports segment and competing as a focussed differentiator. The logic of the turnaround can be conceptualised as follows (a) Ducati reduced costs without affecting the WTP for the physical product
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Issues/Challenges Today‚ Ducati is one of the most successful motorcycle companies in the world with a dramatic profit growth since 1996. Before its huge success‚ Ducati was one step away from facing bankruptcy. Ducati managed to overcome such an obstacle through strong innovation and culture. Today‚ Ducati is faced with another challenge that may bring fortune to the company if successfully managed. Ducati set a new goal‚ which is to sustain the explosive double-digit profit growth in the next decade
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Issues/Challenges Today‚ Ducati is one of the most successful motorcycle companies in the world with adramatic profit growth since 1996. Before its huge success‚ Ducati was one step away fromfacing bankruptcy. Ducati managed to overcome such an obstacle through strong innovation andculture. Today‚ Ducati is faced with another challenge that may bring fortune to the company if successfully managed. Ducati set a new goal‚ which is to sustain the explosive double-digit profitgrowth in the next decade
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