Prada Ipo or Not Essay
1490 WordsOct 16th, 20156 Pages
Problem: Prada 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
#1) IPO: (Initial Public Offering) Cons: High tax and pricing "We received little demand from our (retail) clients for the (Prada) shares. It might be the 12.5 percent tax that scared them away and the pricing itself was expensive when it compared with its peers," said Alfred Chan, chief dealer at Cheer Pearl Investment. "Unlike institutions, our retail clients hold the shares for a much shorter term," he added.
"Consumers are willing to pay a very high premium chasing after brands, but…show more content…
“If Chanel was not posting incredible results, no one would know. But if they were public and this was known, some customers would say that the brand was not cool anymore — this is a risk.”
Prada raised US$2.14 billion from a Hong Kong IPO in June last year. That was around a fifth less capital than the company had planned for. As things transpired, retail investors were put off by the prospect of Italian capital gains and dividend taxes, which they were liable to pay (even though the listing was in Hong Kong).
the share price shot up in July but then proceeded to lose around a third of its value to December, as investors panicked about stock market and real estate declines.
The New York Stock Exchange, the biggest in the world by market capitalisation, was arguably a safer choice.
That the share price has been so volatile is a measure of the risk in instigating an IPO in relatively uncharted waters.
Risk is a core reason why other luxury goods companies, with an eye on a Hong Kong listing, have hesitated. Prada was bold in its listing strategy, and that has to be one of the biggest lessons. It is one thing to identify emerging Asia – and China in particular – as the sweet spot of luxury goods opportunity, it is another to act on it
Prada has moved speedily away from a wholesale model, which was shown to have fundamental weaknesses in the aftermath of the 2008 financial crisis –
Essay on The Devil Wears Prada Film Case Study
1259 WordsJul 23rd, 20136 Pages
“The Devil Wears Prada”
Film Case Study
“The Devil Wears Prada” is a movie about a naïve, yet smart young woman named Andrea Sachs, and her journey to becoming a journalist. Andrea, also known as Andy, graduated from Northwestern University and interviewed for a job at Runway, a major fashion magazine in New York City. Being a simple young woman, Andy wasn’t necessarily up to speed with the fashion industry, but ended up landing the job. Miranda Priestly, editor in chief at Runway hired Andy because she was “different” from any of her previous assistants. If Andy worked as an assistant to Miranda for at least a year, she was under the impression that she could easily be hired as a journalist in the future. The only problem was…show more content…
Even Emily, Miranda’s other assistant began to get jealous of Andy’s accomplishments.
I think Miranda displays several different types of power throughout the movie. Individuals with legitimate power can influence people through requests or demands within their position. Miranda uses her power sources in this way through authority among her co-workers. Even though reward power and coercive power are opposite, Miranda carried out both. It’s obvious that she conducts coercive power by using threatening gestures and the fear of punishment to gain power among her work place. Miranda portrays reward power in a case like Andy’s because being at Runway for a year will give her extensive job opportunities in the future. Miranda knows that Andy is a smart, hard worker, and she’ll do whatever she is told in order to remain an assistant, and be rewarded with a good job in the future. Out of the three power bases I’ve mentioned for Miranda, I think legitimate power is most important and prominently used in her character role. Legitimate power is similar to the learning style we’ve been experiencing is class. Nigel had worked with Miranda for several years, and by now had built a strong relationship with her. She still bossed him around, just like she did everyone else, but he knew all of her tricks and was able to respond to her better than most of her colleagues. Nigel was very knowledgeable not only