Company showed tremendous growth rate by growing more than 400% three year in a row and being among fastest growing 500 companies of the USA in 2005. In 2007 company sold 125 million dollar local produced clothes outside of the America. The company continued showing dramatic increase and remained as an ideal for other fashion retailing companies until 2010. From 2010 on company started losing its power and strength in the market. Moreover, company’s CEO Dov Charney was considered as unreliable and he faced harassment allegations.
Its annual revenues rose from about $9 billion in 1995 to over $100 billion in 2000. At the end of 2001 it was revealed that its reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. According to Thomas (2002), the drop of Enron 's stock price from $90 per share in mid-2000 to less than $1 per share at the end of 2001, caused shareholders to lose nearly $11 billion. And Enron revised its financial statement for the previous five years and found that there was $586million in losses. Enron fall to bankruptcy on December 2, 2001.
Better known as AIG (NYSE: AIG) - What was once unthinkable on September 16, 2008. That day, the federal government took was American International Group, a rescue package of 85 billion dollars. In return, the US government received nearly 80% of the share capital of the company. For decades, AIG was the world's largest insurer, a company known worldwide for providing protection to individuals, businesses and others. March 19, 2009 - Understanding the AIG Bonus explosion: Many people are outraged that AIG paid $ 165 million in bonds to borrow up to $ 170 billion in bailout funds from the government.
The brand he established, Polo is now one part of an empire that includes fragrances, home furnishings and luxury clothing. Lauren has used his personal fortune to amass a collection of rare and classic cars. Ralph Lauren Corporation is a leader in the design, marketing and distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. For more than 47 years, Ralph Lauren 's reputation and distinctive image have been consistently developed across an expanding number of products, brands and international markets. According on Reuters resources, Ralph Lauren now operates 396 stores itself, up from 379 last year.
Several lawsuits by its competitor Lego group regarding similar design of blocks has brought some bad name to the company. 6. Due to market conditions, the company lost $458 million in 2008 after 23 consecutive years of growing profits and filed bankruptcy. B. SWOT Analysis: external environment factors and marketing mix implications External Environmental Factors: Opportunities 1. Company’s creative team can start producing some unique products and make use of new marketing strategies to sell their products world wide.
The company expanded overtime to Phoenix, Arizona and Nevada. It had plans for rapid growth with 182 stores as of October 2011 and over 200 by December 2012. After only 17 months of operation, Tesco reported a $142 million loss and eventually accrued a total loss of $1.8 billion. On September 2013, Fresh and Easy filed for bankruptcy. In the filing, Fresh & Easy listed debts of more than $500 million and assets of $100 million to $500 million.
In 1990s, many people started to talk about labour practice at Nike’s contract factories. Workers have to work in an inconvenient life, for example, they have to work overtime and get back with a little money, verbal and physical abuse, and also over toxic chemical (Henderson, Locke, Lyddy, & Reavis, 2009). Nike is the most famous footwear brand in the world. It succeed in their products, but after this issue was expose, people are more concerns and that causes the company lose their trust, and profits from customers. Furthermore, children have to work for twelve-hour and pay very low to these children as sixteen cents for hour.
The wages in Walmart have been a subject of major discussion. Workers in the stores get paid with the federal minimum of $7,25 and have repeatedly asked for a raise that will increase their hourly salary to $15. Truth be told, the federal minimum is pretty low and in many cases can’t be enough for a worker who has to raise a family or has in general many needs. The protests for this issue are many and the last one took place on 10/17/2014 when the employees tried to give to heiress Alice Walton a petition signed by 1,695 Walmart stores for this
The return of equity is 51%. in the last reporting period. As shown in figure 2.1 it has increased its revenue from R294 million in 1992 to over R18 billion in the 2015 reporting period. Mr Price (2015b) states that this growth is largely driven by Mr Price, which contributes approximately 60% of the group’s revenue, the Mr Price brands (Mr Price, Mr Price home and Mr Price sport) together constitute 83% of group revenue. Sales in South Africa grew by 12% in the previous reporting period, online sales grew by 110%.
Debt restructuring helped the company to lower down interest to 11% and save ₹500 crore/year as interest cost. But high leverages and increase in cost lead the company to liquidity and created following payment problems. Delayed Salary By 2010, Kingfisher Airline had the staff strength of 6,000 and used to spend ₹ 58 crore on salaries every month. According to the financial results of first quarter of year 2011, it had ₹ 174 crore under the segment of employees cost, which increased from ₹163 crore during the same year. From August 2011 to January 2012, Kingfisher Airlines was unable to pay salaries to its employees which lead to agitation by the employees.