Ducati

Questions to answer 1) How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? 2) What is the fundamental economic logic of Minoli’s turnaround? 3) Can Ducati sustain its position in the sport segment? Can Honda and the other Japanese manufactures stop its growth in this segment? 4) What strategic alternatives are available to Minoli in 2001? Which alternatives would you recommend, why? GMAN 512 Midterm 11 February 2010

Margaret DeWitt Ducati Turnaround The turnaround success of Ducati was the direct result of Federico Minoli’s implementation of a differentiation strategy. As a company that was heading towards bankruptcy, Ducati was saved and revamped by Minoli’s specific vision for the company that were precisely presented in an extremely realistic manner. These goals for the company included double-digit growth for Ducati and equaling Harley-Davidson’s profit level. After reading the success of this turnaround

Memorandum Subject: Ducati: In Pursuit of Magic (A) Date: Feb. 19th 2013 Ducati is one of the premium motorcycle producers specializing in sport segment superbike from Italy. The company experienced booming in sales and reputation in 1996-2001. This boost had attracted Texas Pacific Group to pursue controlling interest in the company for higher expected future return. The economic boom somehow masked the mistakes made by Ducati during the period. When sales started to decline during 2002-2005

1. Company Background 1.1 Business of the Company: Ducati Motor Holding S.P.A. is an Italian company that designs and manufactures motorcycles. Headquartered in Bologna, Italy, Ducati is owned by Audi through its Italian subsidiary Lamborghini. In 1926 Antonio Cavaliers Ducati and his three sons, Adriano, Marcello, and Bruno cavaliers Ducati; founded Society Scientific Radio Brevet Ducati in Bologna to produce vacuum tubes, condensers and other radio components. In 1935 they had become successful

commercial market, has proven to be a winning strategy for Ducati. This case focuses on Ducati Corse, a subsidiary of Ducati Motor Holding S.p.A. that manages racing teams, bike development, promotions, and sponsorship areas of the company. Ducati Corse is a relatively small organization that encourages cross-departmental integration with its internal teams to achieve the best motorcycle design and racing outcomes as possible. Ducati started racing in the new MotoGP Circuit during the 2003 race

Chapter 2 - Strategic Overview of Ducati Following its 1996 liquidity crisis, Ducati adopted new strategic plan under new management of Minoli aiming at strengthening the company brand, enhancing its portfolio and increasing its sales and profitability. 2.1. Deliberate and Emergent Strategy The deliberate strategy is determined and the result matches the intended course of action. It does not consider the external or other facts. Deliberate strategies guide the companies with a sense of focused

2. How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? Platform Approach: Ducati divided the bike into a small number of component and sub-component assemblies. A supplier was responsible for managing and delivering the component. The platform approach minimizes detailed, multi-step assembly processes. Consequently, fewer Ducati man-hours are needed to assemble a motorcycle. The assembly expertise of each component is concentrated at the supplier

M&A (B) – Ducati & TPG Question1: On a scale from 0 to 10, we would like to mark it with 2. Answer: TPG is overwhelmingly acting as a financial buyer. Firstly, picking up Ducati as its target company is quite opportunistic. From the traditional investment style’s point of view, TPG is interested in those companies that had grown rapidly but still had the corporate structures of very small companies which caused great stress to the management of the business, and the assets of their target

Ducati Q) How did Ducati become a profitable motorcycle maker despite its small scale? Before its takeover by the American private equity firm Texas Pacific Group (TPG), Ducati went from being one of the top manufacturers of the high performance sport motorcycle industry to being on the verge of bankruptcy. TPG identified Ducati as a high end product with enormous potential for growth but realized that serious change was required if Ducati was to ever fulfill this potential. TPG decided to

9 -9 1 5 -5 1 5 MARCH 9, 2015 ANTHONY J. MAYO MICHAEL J. ROBERTS Caroline Regis at Excel Systems It was Friday, June 13, 2014, and it felt like an unlucky day for Caroline Regis. As she turned off the lights in her office and headed to the company’s parking lot, she wondered if this was her final day at Excel Systems. Regis, vice president of manufacturing, was embroiled in a controversy with some of her colleagues and superiors at Excel Systems, which had recently acquired a rival company, Gemini