i have uploaded 2 file one is question and another one is sample paper of report writing. The case number is 9LVMH acquires Tiffany . so i need your help for report writing
TACC605 GROUP CASE STUDY -STUDENT Group Case Studies (20%) The group case study project in this course is designed as a practical simulation of a real-world business problem. Instead of testing only your theoretical knowledge, it allows you to develop a practical, business-orientated solution to a problem over time through social interactions. You will have ample opportunity to develop many of the Graduate Attributes that you are expected to have by the completion of your degree. In particular, you will be required to exercise the following key skills: - Communication skills - in your written assignments, by giving a group presentation, and by discussing with your team members. -Teamwork and leadership skills - while working together in a group. -Critical thinking and problem solving skills – by developing a practical solution to the real-world business problem. - Professional skills – by building relationships and networks, by taking initiative, planning, organising and self-managing to achieve the individual and group outcomes by the due dates. You will be expected to work in a team for the case project. The questions below are designed to answer some of the questions you may have about group work. What is the rationale for group work? Your ability to forge relationships, build networks, maintain contacts and work within a team is an essential part of working in a professional or business environment. The group work component of the case study project is an important part of you developing your Communication, Teamwork and leadership and Professional Skills. How many people must be in the group? 3-4 students for each group. Selected randomly by the system. Please check “Participants” for your group number/members. Assessment criteria: Marks will be awarded according to how well the Presentation PPT (10% in total) meet below criteria. For example, if visual aids are reasonably well prepared, the group will be awarded with “Good” but not “Outstanding” marks. Each student in the group will be marked individually according to their performance during the case study discussion (10% in total) session in week 11 with their Lecturer. Late submission penalties: 1-5 working days late: 10% of the maximum marks available for the assessment item will be deducted. Please note that the penalties are applied to the maximum marks available for the assignment, not the actual mark awarded. Structure of Presentation: Is broken into well-sized, logical components that are linked together. This shows the extent to which the group has prepared for the presentation together. I would suggest to include the following parts in your presentation PPT: 1. Informative introduction: The introduction is the point at which the presenter explains the content and purpose of the presentation. This is a vitally important part of your talk as you will need to gain the audience’s interest and confidence. 2. Main points: When preparing your PPT you should put aside your research notes and produce a list or summary of the main points that you would like to make, expressing each in a few words or a short sentence. After you have identified your main points, you should embellish them with supporting information. For example, add clarity to your argument through the use of diagrams, or substantiate your claims with appropriate data. Use the supporting information to add colour and interest to your talk, but avoid detracting from the clarity of your main points by overburdening them with too much detail. 3. The Conclusion: in this part you can summarise the content and purpose of your case study, offer an overview of what has been achieved and make a lasting impact. Visual Aids: - Are effective. I would suggest you to include pictures/digram/few key words (less than 30 per slide) in your PPT. CASE ALLOCATION You will be required to discuss the following questions in your case study : 1. What drives the need for the company in your case to consider mergers and acquisitions? 2. Is that a good time to be engaged in an M&A transaction in your case, and why? 3. What are the key risk areas in the M&A transaction for your case? 4. Do you think the M&A transaction in your case is (will be) successful, and why? Group Case Number Case A 1 The Walt Disney Studios’ acquisition of Pixar B 2 Google acquired YouTube C 3 Google acquired Android D 4 Wesfarmers acquisition of Coles E 5 Facebook acquires Instagram F 6 Tesla acquired SolarCity G 7 Tencent acquires riot games H 8 Alibaba acquires ele.me I 9 LVMH acquires Tiffany J 10 Amazon acquires whole foods K 11 Apple acquired Beats Electronics L 12 Exxon merged with Mobile M 13 America Online merged with Time Warner N 14 H. J. Heinz merged with Kraft Food O 15 Wesfarmers acquires Bunnings http://ele.me In November, the iconic American jeweller Tiffany; agree to sell itself to the French luxury powerhouse LVMH for a $16.2 billion. The deal came after months of speculation and an earlier rejected offer at $120 per share. In the end, LVMH was able to clinch the deal after raising its offer price to $135 per share a nice premium over Tiffany's $90 share price in October. The reason why LVMH consider acquiring the tiffany are: 1. Synergies LVMH had acquired the jewellery brand Bulgari in 2011 and the revenue from this brand is now twice that in 2011. That shows LVMH knows how to operate luxury brands in general and jewelry brands in particular. Moreover, with the help of this acquisition LVMH will be able to expand its jewellery segment all over the global market. LVMH and tiffany have been operating in luxury segment and catering to high-end customers. It shows there are synergies between the two companies for successful integration and smooth operations post-merger. Tiffany can get access to the supplier relationships of LVMH, its distribution network and its other strategic relationships and partnerships to strengthen its supply chain and operations through this acquisition. Tiffany will also get a more stable management after the merger. 2. Growth: Strengthen the LVMH in jeweller LVMH already has strong position in the market, with its world-class jewellery franchise that includes brands such as Bulgari, Hublot, Chaumet, and Tag Heuer. Yet, Including tiffiny in the list makes more powerful to LVMH in the high-end jewellery brand. As they can attract customers across a wider spectrum of the luxury jewellery market. LVMH will also get access to the manufacturing facilities of Tiffany in addition to its 321 retail stores worldwide. Tiffany has 124 stores in America (93 in the United States), 47 stores in Europe, 145 stores in Asia Pacific and 5 in other markets. This implies a 16% addition in the number of retail stores in America for LVMH. Also, adding another major jewellery brand could give LVMH more purchasing power in the market for gemstones and precious metals, which could help reduce procurement costs and improve margins across the board. 3. A prized strategic asset (fits well into the profile) LVMH is global luxury brands including Louis Vuitton handbags, Dom Perignon champagne, Hublot watches, and Bulgari jewellery. These luxury assets have been carefully selected and acquired over the years. Tiffany fits into this portfolio well. Founded in 1837, the Tiffany brand is synonymous with high-end jewellery including diamond rings, bracelets, and necklaces. Shoppers at Tiffany are willing to pay a premium for the company's signature jewellery designs and noticeable blue boxes. In addition to meeting the high bar for its strong brand power, Tiffany is a global franchise, with 321 stores all around the world in high-end shopping districts. This includes 145 stores in the strategically important Asian continent, where significant growth has been driven by newly rich and brand-hungry Chinese buyers. LVMH rightfully sees a great deal of value in Tiffany's brand. Based on the company's initial commentary, it doesn't intend to change Tiffany much, but it wants to fuel the company's growth in Europe, where Tiffany has fewer stores, and bolster growth in China. This should be a straightforward playbook for LVMH to execute and create value from. 4. Revive the shrinking margins Tiffany agreed to this deal could have been its slightly shrinking margins in the recent years as depicted above. The brand value of Tiffany has also gone down slightly in the recent years. It is believed that the company could not adapt completely to the changing tastes of the millennia’s. There have also been many changes at the executive level in Tiffany in the last 3 years. The company did not have a stable pool of employees in the senior management and executive level for the last few years leading to speculations over its stability. Furthermore, LVMH has a good record of driving the growth of brands even in jewellery and watches segment. Is that a good time to be engaged in M & A? Why? There is no particular good or bad time to engage in merger and acquisitions. Since merging can have a significant impact on a company's long term outlook, a number of factors have to be kept into account before including the stock prices, the cost structure of the company, and whether proper integration can be carried out or not. It depends on the position of the company, its profitability, whether the merger will benefit them, whether it will have growth prospects, whether product diversification and acquiring assets of the company will benefit them. For this purpose, deep evaluation of the company and its financial statements have to take place to see the risk benefit trade off from the merger and acquisition. LVHM acquiring Tiffany will give advantages to both the organization. 1. For LVHM: Tiffany is a known and well established luxury jewelry brand. And with this merger, LVHM will get access to a great jewelry brand expanding its product portfolio. It will acquire the manufacturing facilities, the retail stores thus adding to the profitability of the business. The addition of Tiffany will transform LVMH’s Watches & Jewellery division and complement LVMH’s 75 distinguished Houses. Shares of the French multinational luxury goods conglomerate went up 1.4% after the announcement on Monday morning. 2. For Tiffany: The brand value of Tiffany's have been going down in the past few year. It is believed that it could not completely adapt to the new generation of the consumers and LVHM has a history of driving growth in the jewelry segment. Ever since they have acquired Bulgari, it has been doing tremendously well (expanding its operating margins from 8% to 25%). As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values. Since