On
September 25th Michael Kors announced that they were buying Versace
for 2.1 billion dollars. The Versace family currently own 80 percent of the
business and the other 20 percent is owned by Blackstone. Michael Kors’s share
price fell by almost a tenth after the news came out about the deal with
Versace. The is part of Michaels Kors’s effort to become a luxury-brand company
like Dior and Givenchy. Michael Kors has recently decreased the sale of its
items at off-price shops. Michael Kors is also renaming itself Capri Holdings. Capri
Holdings is inspired by the Italian island and the threes towering rocks off
its coast. Michael Kors wants the three rocks to symbolize the three brands
that the company plans to build its future with: Michael Kors, Versace, and
Jimmy Choo, an upscale shoemaker that Michael Kors bought in 2017 for 1.35
billion dollars.
The
main concept that I learned from this reading is that if your company wants to
grow one of the ways is to expand to new companies. Since Michael Kors wanted
to expand into the luxury brand they went and bought two luxury brands to add
to their company. This was probably a part of their business plan. There was
also probably a lot of planning that went into this deal between the three
companies.
A
business plan is a plan or blueprint for the company. When developing your
business plan, you have to make strategic decisions in the areas of management,
operations, marketing, accounting, and finance. A business plan makes you
analyze your business concept and the industry that you will be operating in
and it also helps to determine how you can gain a percentage of sales in that
industry. So, since Michael Kors is revamping its entire company they are
probably going to need a new business plan to get investors. The other concept
is planning which is when you set goals and determine the best way to achieve
them. Michael Kors probably had to do a lot of planning to be able to reach
their goal of becoming a new company.
My
plans for IA02 is to interview someone next week and have the interview written
up and ready before it’s due. For IA03, I plan on starting it after IA02 and
get it done before it is due. I haven’t really started to plan this one yet.
For IA04, I have already been to a networking event and plan on writing the
post soon. Lastly for IA05, I plan on doing this post after a speaker that I
really enjoyed listening to and plan on getting this one done before it is due
also.
Michael Kors splurges on
Versace. (2018, September 26). Retrieved September 26, 2018, from https://www.economist.com/business/2018/09/26/michael-kors-splurges-on-versace
