Phillips-van Heusen’s Acquisition of Tommy Hilfiger: Case Study I in Operational Planning

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Phillips-van Heusen’s Acquisition of Tommy Hilfiger: Case Study I in Operational Planning In a Toronto Star article entitled, “Phillips-van Heusen to buy Tommy Hilfiger in $3B Deal”, Anne D’Innocenzio and Mae Anderson report on the purchase of the ‘Tommy Hilfiger’ (TH) retail company by Phillips-van Heusen (retail giant which owns such brands as ‘Calvin Klein’ (CK), ‘Izod’, and ‘Arrow’) for $3 billion in cash and stock. The acquisition of TH, did not lead to a change in its existing sales, marketing, and designs strategies, with Tommy Hilfiger retaining his position as principal designer. This move led to a 10 percent rise in the stocks of Philips-van Heusen (PVH) on the New York Stock Exchange, and was expected to increase the combined company’s revenues to $4.6 billion. The authors note that PVH’s move is contrary to the recent trend of “shedding labels” among many apparel conglomerates (D’Innocenzio/Anderson, 2010). The above article is closely tied to two concepts in the domain of planning and control (ch.8): strategic vs. operational plans, and qualitative vs. quantitative forecasting. Regarding the first concept, it becomes clear from the article that Phillips-van Heusen acquisition of TH was a strategic, not operational plan. The reason for this is that the operational aspects of TH were not altered and remained under the control of the principal designer. However, the inclusion of TH translates into a change in the overall strategic plan of Phillips-van Heusen. The article indicated that the TH brand’s popularity in Europe would be capitalized on to increase the popularity and sales of Phillips-van Heusen’s other brands (D’Innocenzio/Anderson, 2010). So while the strategic plan dictates the broader lo... ... middle of paper ... ...etitive techniques that are integral to a business’s strategy plan and which include a continuous and systematic search for technological innovations, insight into consumer trends, anticipating the competitors next step, and launching products quickly and efficiently. Works Cited Anderson, Mae and D’Innocenzio, Anne. (March 2010). “Phillips-van Heusen to buy Tommy Hilfiger in $3B Deal”. Toronto Star. Retrieved at . Schermerhorn, John R. and Wright, Barry. (2007). Management Fundamentals, Canadian Edition. Stalk, George Jr. (January 2010) “Winning the Business War and Securing the Territory.” The Globe and Mail. Retrieved at < http://www.theglobeandmail.com/report-on-business/managing/winning-thebusiness-war-and-securing-the-territory/article1426477/>

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