Gucci is an Italian fashion and leather goods label. It was founded by Guccio Gucci (1881 - 1953) in Florence in 1921. Gucci is considered one of the most famous, prestigious, and easily recognizable fashion brands in the world.French HYPERLINK "http://en.wikipedia.org/wiki/Gucci" l "cite_note-1" o "" �� Gucci belongs to the conglomerate company Pinault-Printemps-Redoute (PPR). Gucci is the second biggest-selling fashion brand after Louis Vuitton-Moet Henessy (LVMH). Most importantly Gucci is the biggest-selling Italian brand in the world. Gucci operates about 425 stores worldwide and it wholesales its products through franchisees and upscale department stores.
GUCCI PAS DIPEGANG MAURIZIO GUCCI: BYK MASALAH KRN KEMAMPUAN MANAJERIAL MINIM. EX: DISTRIBUSI TDK LANCER, GUCCI PERNAH DI PLOT JADI BARANG MURAHAN, CASH FLOW NEGATIVE, COST TERLALU TINGGI.
MAURIZIO DIGANTI DE SOLE: GUCCI TURNAROUND DARI JELEK KE BAGUS
MELAKUKAN: REORGANISASI DAN REMARKING THE BRAND, MASALAH DI ATAS TERCOVER.
TAHUN 1999, GUCCI INGIN JADI MULTIBRAND GROUP KRN PENGIN EXPAND BUSINESS TO REACH PROFITABLE GROWTH. AKUISISI TERBESAR DAN PERTAMANYA ADALAH YSL. TERNYATA YSL JUSTRU GAK BIKIN DESAIN SENDIRI PAS DIAKUISISI GUCCI DAN TERNYATA SETELAH ITU YSL CONTRIBUTE LOSS.
Gucci was formerly a family owned business in Italy. Inside that company, there was a lot of family problem that distracted its management. Maurizio Gucci was one of Gucci successor that runs the company. Under Maurizio control, Gucci's management deteriorated. Because Maurizio lack of management skill, he hired Domenico de Sole as consultant. Then, after Maurizio death, de Sole replaced his position.
Under de Sole management, Gucci performance was better. De Sole immediately started work on reclaiming Gucci's image as a luxury brand, which had been cheapened in the 80s. In 1999, LVMH tried to acquire Gucci, but Gucci did several efforts to avoid this acquisition. Thus, LVMH was unsuccessfully acquiring Gucci, and Gucci had an agreement of alliance with PPR. After its alliance with PPR, Gucci acquire Sanofi Beauté , which it split into two companies: Yves Saint Laurent Couture and Yves Saint Laurent Beauté . But by the time Gucci acquired YSL, it was no longer designing its own ready to wear and many observers seen its haute couture as a recycled of old designs.Thus. Besides that, at that time the outlook of luxurious goods image is deteriorated. YSL beaute and couture contributing losses to Gucci after its acquisition.
PROBLEM DEFINITION & DIAGNOSIS
Does the acquisition made by Gucci bring more benefit than harm to the company?
The fact that acquisition can break the company needs to be carefully considered by Gucci.
YSL bring more harm than benefit to Gucci.
YSL Couture contribute its losses to Gucci after the acquisition
YSL Beaute didn't meet the the projected revenue in 2000-2002
Gucci was in the managerial transition when they did the acquisition.
In acquiring YSL, Gucci used past data to make future decision without analyzing current condition
Gucci was too aggressive in acquiring another company after its alliance with PPR.
PROOF OF CAUSES
YSL Couture make losses to Gucci after the acquisition
_EVIDENCE 1:_ Gucci has warned that Yves Saint Laurent, its number two brand, will remain in the red zone from 2000 because of the deteriorating outlook for the luxury goods market in US. YSL is too focusing its sales in US.
YSL didn't meet the projected revenue in 2000-2002
References: Kwak, Mary. _"Gucci Group N.V. (A)."_ Harvard Business School, May 10, 2001
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