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

Profits Of Ducati Essay

2694 words - 11 pages

Hi-Res Case Study: Ducati Motor Holding


Ducati Motor Holding (Bologna, ITALY)

Alessandra Pistani & Matteo Boemi Nomisma December 2001

Ducati is a world leader in the production of high-powered sport motorcycles. Since 1996, following acquisition by the Texas Pacific Group, an American investment fund, the company has undergone an intense relaunch process involving several aspects of its organisation. This case aims to describe the change that has occurred in the reorganisation of production and the benefits that the new system has brought to the company.

Hi-Res Project 2001. Page


Hi-Res Case Study: Ducati Motor ...view middle of the document...

In 1985, the Cagiva Group, a private motor-industry group controlled by the Castiglione family, acquired the company and the Ducati brand name. Under the management of Cagiva, Ducati operated its own production facilities and its autonomous research and development division, while product development, financial management, marketing and the sales network where shared with other companies within the Cagiva Group. The Cagiva Group contributed to the strengthening of the Ducati brand by refocussing the company's activities on its traditional competitive advantage in high performance competition motorcycles and, as a consequence, it was able to consistently increase the annual sales volumes of the firm. Under the control of the Cagiva Group, Ducati motorcycles further increased their reputation both in the competitive and commercial fields. As mentioned, the financial management of Ducati was shared with the other companies of the Cagiva Group, and, as a result, cash flow problems generated by within the group deprived the company of the necessary liquidity to pay suppliers. Despite product innovation and racing success, Ducati entered into a deep financial crisis as its financial resources were drained by unsuccessful ventures of sister companies within the Castiglioni-controlled Group. As a consequence of these liquidity problems, many suppliers reduced their component flows, causing serious production delays for Ducati. This situation was reversed in 1996, when Ducati was taken over by the Texas Pacific Group, an American investment fund, that brought in the needed cash and a new group of international managers. Today Ducati Motor, totally controlled by Ducati Motor Holding SpA, designs, builds and distributes motorcycles and components under the Ducati brandname. Ducati Motor owns
© Nomisma 2001 Hi-Res Project 2001. Page 3

Hi-Res Case Study: Ducati Motor Holding

Ducati North America, Ducati France S.A, Ducati Motor Deutschland GmbH, Ducati Japan KK, Ducati Benelux and Ducati U.K., the Ducati Group distributors in each of these countries. Ducati Motor also owns 99% of Ducati Corse S.r.l., known also as Ducati Corse, which was constituted in 1998 in order to carry out the organisation and management of the activities of the Ducati racing team. Ducati represents a well-known historical brand in the motorcycle sector and is known for high-level motoring solutions, high technical quality and innovative design in addition to its success in racing competitions. The combination of these factors has allowed the group to address its products to a high price target group of consumers in the sport segment of highpowered motorbikes. The sport segment constitutes a niche segment including motorbikes conceived for competitions and afterwards adapted for street circulation. Ducati’s motorcycles are currently sold in more than forty countries world wide, mostly in Europe and North America, where the Group has realised 90% of its motorcycle and...

Other Papers Like Profits of Ducati

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages with incentive theory and efficiency wage theory. If we assume that the company was seeking to maximise profits, a more productive and stable workforce would be a worthy objective. In addition to this, higher wages may have been seen as a means of reducing (or eliminating) the risk of worker unionisation given their high levels of dissatisfaction previous to the five-dollar day announcement. Additionally, Henry Ford’s own individual incentives

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

Related Essays

Volkswagen Swot Essay

1390 words - 6 pages treated as losses, rather than perspective future cars. On the other hand, steeping fuel prices would make current Volkswagen models less attractive to cost conscious consumers, as they demand smaller cars that consume lower amounts of fuel.Rising raw material prices. Rising prices for raw metals will lift the costs for auto manufacturers and result in squeezed profits for the companies.Growing euro exchange rate. The business earns more than 70% of

Business Environment Essay

2669 words - 11 pages and improve the competitive process. Let us consider the example of Ducati’s hybrid motorcycle policy. When Ducati company loses their market to other companies, they take a great decision to produce hybrid motorbike. This hybrid motorbike can easily run in mountain, city, village roads etc. this hybrid motorbike also a racing motorbike. To build this hybrid motorbike Ducati earn a good profit and they achieved their old place. Produce hybrid car

Harley Davidson Essay

2276 words - 10 pages Porter's 5 Forces Threat of New Entrants: Low Like any automobiles, Harley-Davidson's industry requires large manufacturing facilities and equipments to enter. New Entrants would have to have a large amount of capital is start in this industry. Already established firms such as Harley-Davidson, Honda, Suzuki, Kawasaki, Yamaha, and Ducati have the advantage of brand recognition from all over the world. These companies also established

Course Project Essay

3518 words - 15 pages like financing, leasing and fleet management. VW continued to grow at an impressive rate, with established manufacturing plants in a number of countries across the world, including Mexico, China, India, Russia and United States. In 2012, VW Group continued its expansion by emerging with long-time partner Porsche and acquiring high performance motorcycle company Ducati. In 2013, VW Group had operations in over 150 counties, and had become a