1) What is the problem facing Prada? The Prada fell into some financial trouble. It needed to raise more than 1 billion euros to meet the long-term debt maturing in one year in 2011 and also required extra capital to implement its expansion plan in Asia market to seize the opportunity in this area which has the highest growth rate compared to the other markets. The demand for this huge amount of capital is quite urgent. The Prada has tried several times for IPO‚ but all terminated by some unlucky
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• Founded: 1913 • Founder: Mario Prada • CEO: Patrizio Bertelli • HQ: Milan‚ Italy • Co. type: Private • Industry type: Consumer goods • Product type: Textile • Originally: "Prada Bros" • "Prada Phone": The LG KE850 • Pop Culture: The Devil Wears Prada (Film) The Prada Empire derives from the leather goods store Mario Prada opened in Milan in 1913. In addition to his own products‚ he also sold steamer trunks and handbags imported from England to a customer base that included Italian nobles
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From the financial point of view‚ the Italian luxury brand- Prada‚ which was known for its design innovation‚ can’t claim itself successful. Although it has the ability to keep its revenue over 1.5 billion euros for three consecutive years‚ it also contains more than 1 billion euros of debt maturing within 12 months sitting on its balance sheet. One of the best solutions for Prada to solve this problem is to raise capital in the stock market‚ which we could refer as IPO. Given the current market
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MKT 600-011 [Weekly Critique Notes] Case Title: A Crack in the Mug: Can Starbucks mend it? 1. What is the central issue in this case? Starbucks share price [who] declined double the rate of the rise in 2006‚ shedding more than 60% of its highest value to that date [what] in 2007 [when] because of [why] * Short-term borrowing debts * The company using its cash flow and liquid investments in the core business and for other new business opportunities * Starbucks concurrently repurchased
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Yellow Tail Yellow Tail is the leading imported wine in the US. Introduced in June of 2001 by Australian owned Casella Wines‚ Yellow Tail sold more than 8.5 million cases in 2008‚ which is more wine than the next three Australian brands combined. This success has attracted substantial competition. The issue for Casella is how to sustain Yellow Tail’s growth in the face of emerging competition on a limited ad budget. Yellow Tail competes in the $11 billion dollar US wine industry‚ which is characterized
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Does The Devil Really Wear Prada? More than just a title to a movie‚ it is real life to Miuccia Prada‚ President and head designer‚ and CEO Patrizio Bertelli‚ of the Italian Prada Group. This group became one of the top luxury businesses in the world‚ designing high end fashion. Prada quickly built a strong reputation in luxury goods primarily because of its exclusives designs‚ superior manufacturing techniques and high quality materials. Could the majority of their success be because of their
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ASSIGNMENT 2: PRADA Refer to the HBS case "Prada: To IPO or Not to IPO" and answer the questions below. Note: Complete the related textbook chapters (RWJJ Chapters 14‚ 15 & 19) before attempting this case. WHAT IS THE PROBLEM SAID TO BE FACING PRADA? Prada got some financial trouble. First‚ Prada failed for several times to IPO due to various reasons like SARS‚ financial crisis‚ etc. Second‚ because of the long-term debt maturing in one year‚ Prada needed to raise more than 1 billion euros
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Prada Case Analysis “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
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SHEETS 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
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