Napoleon Perdis

1. Napoleon Perdis • http://www.switzer.com.au/video/perdis090714/ • As we go through the course think about how each different entrepreneurship topic relates to Napoleon Perdis • Eg entrepreneurial thinking • Immigrant entrepreneurship/ethnic entrepreneurship • International/ Regional developments • Sport and social entrepreneurship • Technology, healthcare entrepreneurship • Entrepreneurship and organizational behavior- role of individuals, teams, strategic alliances • Entrepreneurial marketing

2. Napoleon Perdis • theaustralian.com.au/thedeal • Napoleon Perdis at Australian Fashion Week • Australian make-up entrepreneur • US market is 44 per cent of the world market for cosmetics (more than India, China and Brazil combined) • 1/3 of all consumable products in the world are purchased in the US • Headquarters Sydney, Aus • Expanded through Dillards retail outlets

3. Napoleon Perdis • More than 4500 point of sale outlets, 78 stand-alone concept stores in Australia, New Zealand and US • Australia- has national arrangement with David Jones, Target, pharmacies such as Terry White Chemists • United States- flagship store and makeup academy on Hollywood Boulevard, LA; • Sells through 300 ULTA stores, independent retailers (eg Planet Beauty) • Sponsorship- three year deal to sponsor Australian ballet • Annual turnover of $70 million

4. Napoleon Perdis • Son of Greek immigrants in Sydney’s western suburbs • Opened first make up store in Oxford Street, Paddington in 1995 • Make up inspired by his mother (family businesses- role of entrepreneurship?) • Moved to United States in 2006 for growth opportunities • US media strategy- websites (Huffington Post, Twitter) • 2008 own reality show ‘Get your face on’ TLC cable network • Appears as a make-up commentator

5. Napoleon Perdis • Has a cheaper discount range NP set range for Target • Major brands in US have 60,000-80,000 points of distribution • Different markets in the US- eg Hispanic, South, East/West coast, Indian descent • Products- innovative, new • Role model- Helena Rubinstein, Polish immigrant who started make up business in Melbourne that is now an international brand

6. Napoleon Perdis • Future plans- expand to Canada and Brazil • Buy out? • Estee Lauder purchased ‘Smashbox’ for $250US million • Use of organics • Mens line

7. Learning how to do case analysis • Case analysis is systematic • Sets of tools you can use • YOU choose what the appropriate tools are • Don’t have to use them ALL every time. • There is NOT a correct answer – just good ones and bad ones • Aim of case analysis is two-fold • Understand the issues • Make recommendations • Recommendations have to be practical (don’t tell companies to change their culture!) and able to be implemented (‘enter new markets’ is insufficient information to implement – Which ones? Why?) • Applications of tools requires understanding of how businesses operate and understanding of world events.

8. Commandments of case analysis • Research thoroughly the company that has been allocated (you need only to conduct secondary research-eg look at the companies website, articles on the company) • Asking yourself “what’s the issue here?” discuss with your group, making notes. • Make a list of problems and issues to be confronted by the company • Analyse any data (graphs, numbers etc.) presented (it is probably there because it gives you an insight!) • Look for opportunity to apply the tools from your toolbox • Be thorough in your case analysis – yes it is time consuming • Support all opinions with evidence and well-reasoned arguments – don’t stop until you purge “I think” or “I feel” from your case. Rely completely on “My analysis shows”. • Prioritise your recommendations and make sure they can be carried out in an acceptable time-frame and with available resources (finance). • Review your recommendations to see if it addresses all the problems • Don’t make recommendations that could have disastrous consequences – look for downside risk as well as upside potential!

9. Number crunching • Numbers are put into company reports for a reason – they tell a story – aim to find out the story! • Numbers are RELATIVE • To own prior performance • To other numbers from within company – profit is relative to sales/turnover and to assets invested. • To competitors

10. Analysis should include • History, development and growth of the company • Nature of the company’s external environment • Nature of corporate level entrepreneurship • Mission, goals, lines of business • Nature of company’s business-level entrepreneurship • How many types of businesses does the company have? • What is their competitive advantage? • Generic competitive strategy- differentiation, low cost, focus? • Company’s structure and control system • Recommendations • Timetable/costs

11. SWOT • Be specific and support your answer with references and explanation in your presentation • Potential strengths • Many product lines? • Broad market coverage? • Good marketing skills? • Good R&D skills and leadership? • Brand name reputation? • New venture management expertise? • Good financial management? • Potential weaknesses • Rising manufacturing costs? • Poor marketing plan? • Inadequate human resources? • Loss of corporate direction? • High conflict and politics? • a

12. SWOT • Potential opportunities • Expand core business? • Widen product range? • Diversify into new growth businesses? • Expand into foreign markets? • Vertically integrate forward or backward? • Overcome barriers to entry? • Seek fast market growth? • Potential threats • Increase in domestic or foreign competition? • Change in consumer tastes? • Rise in new or substitute products? • Changes in demographic/economic factors? • Rising labour costs?

13. SWOT Analysis – by profit centre

14. STEPL Analysis – to understand the environment company is operating in • Societal: Socio-economic and socio-cultural forces • Diversity in workforce • Concerns about the environment • Shifts in work and career preferences • Level of consumerism • Shifts in the mobility of people • Levels of education • Technical • National focus on technology / innovation • New discoveries / developments • Product or process innovations • Speed and nature of technological transfer • Rates of obsolescence • Government spending on research

15. STEPL Analysis – to understand the environment company is operating in • Economic • Inflation rates, interest rates • Trade deficit / surplus • Personal/business saving rates • GDP • Disposable income • Unemployment rates • Political /Legal • Monopolies legislation • Taxation laws • Environmental laws • Foreign trade laws • Government’s political disposition • Deregulation forces

16. STEPL – so where do you get the data? • Search on the web • Look for government sites by the country, examples: • www.state.gov (U.S. State Department) • www.info.usaid.gov (U.S. Agency for International Development) • www.doc.gov (U.S. Department of Commerce) • www.iadb.org (Inter-American Development Bank) • www.worldbank.org (World Bank)

17. RIVALRY Barriers to Entry Threat of new entrants Supplier Power - How much can they bargain? Buyer Power - How much can they bargain? Threat of Substitute products or services Competitor Analysis – 5 Forces

18. Key Success Factors • Technological? • Manufacturing? • Distribution? • Marketing-related? • Skills-related? • Organisational?

19. BRING IT ALL TOGETHER • What is your ADVICE / RECOMMENDATIONS? • Why why why???