This website uses cookies to ensure you have the best experience. Learn more

Finance Merger And Buyour Essay

1793 words - 8 pages

Maidenform Restructuring: An Analysis of its Benefits and Negative Effects


Maidenform is an intimate apparel manufacturing company that specializes in women’s undergarments. It recently revealed a massive restructuring plan in order to reduce on its forecasted losses for the first quarter of the year. This essay aims at providing an in depth analysis of the Maidenform restructuring plan with particular attention on the extensive effects of the process.

The Restructuring Plan

The restructuring will take place over 2013. Over the year, the company plans to close all unprofitable segments of businesses. These unprofitable lines require considerable resources ...view middle of the document...

Cumulative annual savings from the reduced operation costs will be essential in reinvesting in profitable areas of Maidenform’s market.

The Restructuring Steps

The company plans to start the restructuring by exiting all unprofitable business segments it has previously dealt in. The exit will focus on the segments that require considerable resources but return little or no profit (Marian, 2013). One of the unprofitable segments is the Charm brand. This would lead to the closure of its 10 retail outlets. The next step in the restructuring process will be the reallocation of resources saved from the closed ventures to the remaining key ventures. After this, the company will engage in increased marketing to boost the Maidenform brand. It will also consolidate all departmental store shape-wear designs under the umbrella Maidenform brand. The restructuring will also include an introduction of a full figure lingerie brand within the year’s fourth quarter. The initial design will include four new styles. Market research shows that Maidenform has a market opportunity in about 40 percent of the market that is dependent on full figure lingerie. The company forecasts an increase in revenue by about US$ 30-40 million for 2014. This strategy will be coupled with a reduction in SKUs by 20 percent before the completion of the trading period. It intends that the SKU reduction lead to efficient brand management. The company forecasts that through careful sustenance, SKU productivity will increase by 25 percent. This will also lead to reduction in its markdowns and significant improvement on its inventory turns. Maidenform also plans to fund the renewed branding via the reduction of overhead costs. The reductions will occur in the company’s supply chain. The restructuring plan includes expansion into Canada, Mexico, South Korea and Germany.

Benefits of the Restructuring to Maidenform

The restructuring will result in reduced operating costs. Its plan to reduce spending on its supply chain will ensure the company achieves this. Cost reduction ensures sustainable economic interests (Griffin, 2003). The restructuring also ensures that Maidenform readjusts according to the market changes. Its decision to focus on additionally developing a full figure outfit is in line with readjustments. Failure to readjust might lead to future losses. All progressive companies in extremely competitive markets have to develop in order to stay afloat (Lanmin and Xianfeng, 2012). In the European Union, previous restructuring plans in the telecommunications industry have ensured that market performance increases and the companies enter into new markets (Siengthai and Pinprayong, 2012). Therefore, Maidenform’s restructuring plan will also ensure that it prepares against its competitors.

Apart from the reduction in operating costs, Maidenform will realize increased revenue in the long term. The restructuring plan focuses on the closure of low profit segments...

Other Papers Like Finance - Merger and Buyour

Organisations Have Many Avenues Open to Them for Business Expansion

1817 words - 8 pages of Chrysler by Damiler-Benz in 1999 which was widely referred to in the time and is still is today as a merger of two companies. Financial Managers are experienced finance professional who will lead the financial due diligence and accounting efforts as well as assist with the integration for new mergers and acquisitions and strategic investments. Advantages and disadvantages of mergers and acquisitions may or may not be present in the short or

Analisis Laba Dan Kinerja Keuangan Perusahaan Pengakuisisi Sebelum Dan Sesudah Merger Dan Akuisisi

2526 words - 11 pages dan industri finance atau perusahaanperbankan dan lembaga keuangan lainnya. 3. Perusahaan memiliki tanggal merger dan akuisisi yang jelas. 4. Menerbitkan laporan keuangan auditan secara lengkap selama satu tahun sebelum merger dan akuisisi serta setelah merger dan akuisisi dengan periode berakhir per 31Desember. Metode Pengumpulan Data Metode pengumpulan data yang digunakan dalam penelitian ini adalah dengan metode studi pustaka yang

DaimlerChrysler Post-Merger Integration

930 words - 4 pages align even if purchasing different items IT: different operating systems did not align or talk to each other Finance: different approaches in terms of attaining shareholders’ expectations, reinvestment, long versus short term planning and decision making for future benefits, options fo using GAAP Soft issues: HR: Many top-managers left in post-merger phase, different compensation and incentive schemes, no integration of lower levels

Ethics And Legal Issues In Mergers

1264 words - 6 pages Ethical and Legal Issues Merger of Company A & Company B Human Resources Management & Talent Development 07-04-13 Abstract In any merger, there are always legal and ethical issues involved. These issues have to be resolved in order to ensure a successful merger. It is the role of Human Resource personnel to ensure the code of ethics is used in legal and moral implications. The role of the Human resource manager is to create an

Mergers and Acquisitions

1253 words - 6 pages Merger between American Airlines and US Airways The two airlines American Airlines and US Airways merged on December 9th, 2013 to form the American Airline Group that became the biggest airline in the world. This merger was formed by the increased competition that airlines are facing in the business today. The merger presented an opportunity for both airlines to exploit the benefits of an extended network that would result after merging as

Bus 508 Assign 1

1974 words - 8 pages competition, valuation, and merger activity. The Journal Of Finance, 68 (1), pp. 125--172. 6. The Street. (2014). Thanks to ge, thermo fisher will buy life technologies. [online] Retrieved from: [Accessed: 15 Feb 2014]. 7. (2014). Thermo fisher scientific - welcome. [online] Retrieved from: [Accessed: 15 Feb 2014].

Mergers And Acquisitions

1382 words - 6 pages Airways had various groups that used to operate under the chief executive. Such groups included revenue and marketing group, corporate affairs, and finance, as well as the operations groups. However under the new company, there are no such groups. Determine whether or not the human resources management practices of the company were modified to reflect the outcome of the merger or acquisition. If no changes were necessary, speculate on the reasons

Hp Operations

1796 words - 8 pages Lesjak. Lesjak, also Chief Executive, is by and large, in charge of the company’s financial operations including its treasury, business unit finance and controller (information management) (HP). Nevertheless, it seemed almost impossible for a company as renown as HP to fail to properly access the financial risk and derive information from its investment appraisal, one that is essential for securing a successful merger that the company can benefit

Problem Solution: Lester Electronics

1507 words - 7 pages globalization of Shang-wa and Lester Electronics. "There is no more dramatic or controversial activity in corporate finance than the acquisition of one firm by another or the merger of two firms" (Ross, Westerfield, and Jaffe, 2005, p. 796). Acquisition benefits are referred to as synergies. "The acquisition of one firm by another is, of course, an investment made under uncertainty" (Ross, 2005 p. 795). Being global companies, legalities, tax issues and

Merger Aquisition

897 words - 4 pages acquisitions that could and should be considered in the terms of better business for my company (Target), for the market, and for the consumers in general. The Target Corporation is an American retailing company. It is the second largest discount retailer behind Walmart. With that being said it would at first be a natural thought maybe to think of a merger with Walmart, but as Target being second to them it wouldn’t necessarily be a merger as it

The New Delta Airline/International Financial Trends

4589 words - 19 pages The New Delta Airlines Thomas D. Stringer FIN 318-01 Principles of International Corporate Finance Dr. Gariboldi Delta Air Lines, Inc. is a commercial airline based and headquartered in Atlanta, Georgia. The primary business function of Delta is to provide public air transportation services on a system of regularly scheduled routes. It is a publicly traded company on the New York Stock Exchange under the ticker

Related Essays

Steave Jobs Leader Essay

1222 words - 5 pages Adidas and Reebok Merger Introduction Mergers and Acquisitions generally refer to as the strategies that are followed in purchasing, selling or merging different companies by means of finance, strategies or management of the work force. The main goal of the mergers and acquisitions is to save the fainted companies and provide them with the financial aid or to capture the new business areas with the merging of companies in a same type of

Mergers And Acquisitions Essay

2475 words - 10 pages Introduction Mergers and Acquisitions, shortly termed as M&A, generally refer to as the strategies that are followed in purchasing, selling or merging different companies by means of finance, strategies or management of the work force. The main theme of the mergers and acquisitions is to save the fainted companies and provide them with the financial aid or to capture the new business areas with the merging of companies in a same type of

Impact And Effectiveness Of Bank Mergers And Acquisition

1826 words - 8 pages Impact and Effectiveness of Bank Mergers and Acquisition Nurul Hidayah Ab Rahman, Student, Degree in Finance, Faculty of Business Management, Universiti Teknologi MARA, Malaysia Abstract The effect of a worst financial crisis in 1997, there has been an increase in the number of corporate takeovers and mergers. The beginning of merger and acquisition process increases the chances for an individual bank to become an acquisition target

Company Mergers And Acquisitions Essay

2240 words - 9 pages capital. The cost saving is archived through the removal of repetitive process in the two companies for which the merger is required at various level. Integration can happen in full functional area of the companies; for example - human resource, accounting, information technology, marketing, finance and operations. The new company will be working on best practices of the two companies and certain key factors will be merged together to have a