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360 Degree Analysis of Guccio Gucci - Coursework Example

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A literature review was conducted to purposely apply the use of several academic theories related to Operations, SCM, consumer behavior, HRM, and finance to the case of Gucci. This study highly recommends that Gucci should re-examine and keep its supply chain system as short as possible…
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360 Degree Analysis of Guccio Gucci
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To create more value-added financial strategies, the top management of Gucci should continuously make its P/E ratio and EPS more attractive to the public investors. By doing so, this company will have more funds for its future business expansion projects. In 1921, Guccio Gucci established the “House of Gucci” a.k.a. “Gucci” in Florence (Gucci, 2013a). This company started as a family-owned shop that specializes in the selling of leather goods. In the 1940s, this company experienced a shortage in the supply of leather (Gucci, 2013b).

To solve this problem, the company decided to use other expensive textiles like “hemp, linen, and jute” (Gucci, 2013b). When Guccio Gucci died in 1953, “his sons Aldo, Vasco, Ugo, and Rodolfo took over the business” (Gucci, 2013c). In the 1960s, Gucci expanded its business by opening several store outlets in Beverly Hills, London, Paris, and Palm Beach (Gucci, 2013d). In the 1970s, Gucci started selling ready-to-wear clothing with “GG logo” and expanded its business overseas (i.e. Hong Kong and Tokyo) (Gucci, 2013e).

Selling a wide range of babies and kids accessories including handbags, shoes, travel and business accessories, wallets, belts, watches, fine jewelleries, scarves, hats and gloves, sunglasses, fragrance, and pet accessories for both men and women, Gucci is now operating its store outlets in 60 different countries worldwide (Gucci, 2013i). (See Appendix I – Summary of Gucci’s Store Outlets in 60 Different Countries on page 35) Under the leadership of Maurizio Gucci, this company was transformed into a public limited company in 1982 (Gucci, 2013f).

 Under the leadership of Maurizio Gucci, this company was transformed into a public limited company in 1982 (Gucci, 2013f). Under the leadership of Domenico De Sole, this company became a fully public-owned company in 1995 (Gucci, 2013g). Four years later, this company became a “multi-brand luxury group” (i.e. Gucci Group, Alexander McQueen, Balenciaga, Bottega Veneta, Boucheron, Sergio Rossi, Stella McCartney, and Yves Saint Laurent among others).

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