Capital Markets and Global Perspective Case Study, UOL, Malaysia Roy K., chief financial officer (CFO) of Flashing Sports Inc., was thinking about the bright prospects for his company’s fast-growing outdoor
University | University of London (UOL) |
Subject | Capital Markets and Global Perspective |
Roy K., chief financial officer (CFO) of Flashing Sports Inc., was thinking about the bright prospects for his company’s fast-growing outdoor wear brand. It was early March 2007 and was preparing for a meeting with his board of directors to decide on a financing strategy for Flashing Sport’s next phase of growth. Based in Wake County, Flashing Sports Inc. were a manufacturer and retailer of high-quality outdoor clothing.
The company was founded in 2000 and had grown rapidly across the Eastern United States by distributing its clothing, targeted at higher-end, fashionable consumers, through corporate-owned stores. By the start of 2007, senior management realized that further expansion would only be possible if Flashing Sports Inc. had access to outside capital.
Roy had explored a variety of options for the company: issuing long-term debt, an initial public offering (IPO) of stock, and a preferred share offering. Roy and his finance team gathered the relevant data and discussed each of the options in depth. He now needed to decide which option he should recommend to the board and then develop the key rationale to support his recommendation.
THE GLOBAL APPAREL AND FOOTWEAR MARKET
In 2006, the global retail market for apparel and footwear and accessories was worth $500 billion (amounts noted in the case are in U.S. dollars unless otherwise indicated) having grown from $370 billion in 1996. Within this market, the fastest growing segment was the publicly traded branded apparel and footwear players, which had grown from $30 billion to $80 billion during the same period. The U.S. market accounted for approximately 51 percent of the global market. The market for apparel was highly fragmented, with the largest 50 global apparel, footwear, and accessories brands representing only a third of total retail sales.
While it was easy to enter this market, achieving significant growth beyond a one- or two-store operation and a local market required significant skills in purchasing, designing, and store management. The brand building was crucial to success, as one analyst suggested:
Because innovation and fashion can be imitated and operational capabilities developed over time, we view brands as the most unique and powerful assets in the industry. Apparel and footwear consumers are as brand conscious as ever. Apparel was typically sold through mass merchandisers, department stores, and branded-apparel stores.
The mass merchandisers and department stores generally stocked a variety of brands purchased via distributors. Some higher-end apparel manufacturers operated across the entire value chain: first designing and manufacturing the clothing, and then operating their own branded stores. Globally, key centers of apparel production capacity were located in the Far East, the Caribbean Basin, and Central America. This market had few barriers to entry at any point in the value chain; any firm able to design and manufacture clothing and rent a storefront could make clothing available to consumers.
Stuck in Completing this Assignment and feeling stressed ? Take our Private Writing Services.
Get Help By Expert
Enhance your understanding of Capital Markets and Global Perspective with expert online assignment assistance in Malaysia. Assignment Helper MY offers tailored solutions to students enrolled at the University of London (UOL), ensuring a comprehensive grasp of key concepts. Our team of experienced tutors will guide you through case studies, equipping you with the knowledge to navigate the complexities of the global financial landscape. Besides, this you also hire our expert writers for top Coding Assignment Help.
Recent Solved Questions
- BED15203: Variables declared with correct data type and Meaningful names for variables, constant, and function: Fundamentals Of Programming Assignment, UniKL, Malaysia
- BEN5013: Business Plan Assignment, IUMW, Malaysia Social entrepreneurship is the process of recognizing and resourcefully pursuing opportunities to create
- LAW034: Introduction to Legal Theories Assignment, UiTM, Malaysia Delima is a single mother who supports her three children and is a sick mother. She is uneducated but nevertheless managed
- SMOL5203: The amended OSHA Sec 26a. (1) has included “Rights of employees”to remove himself from the danger: OSH Legislation Assignment, OUM, Malaysia
- UGB363: It is 31 January 2024 and the managers of Redsea are considering a change in the company’s dividend policy: Strategic Corporate Finance Assignment, USM, Malaysia
- Business Analytics Research Paper, SU, Malaysia This project is proposed to solve the business problem from a business/firm/company perspective
- HRM2100: the Job Description (JD) and Job Specification (JS) of the job title stated :Fundamentals of Human Resource Management Assignment, IIU, Malaysia
- Procurement and Supply Chain Assignment, IMTC, Malaysia The conception of the ‘The Five Rights of Purchasing” has been used by purchasing professionals over many decades
- BAGB1013: Principles of Management Assignment, UIU, Malaysia Explain the concept of management and describe FOUR (4) function approach in management
- SOPA1035: Social Policy and Social Pedagogies Case Study, UOG, Malaysia Cikgu Aminah teaches a preschool class in SK Tanah Abang, Mersing. She hails from the west coast of peninsular Malaysia