IMG Worldwide and Others: IT Resource Acquisition Strategies

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IMG Worldwide and Others IT Resource Acquisition
Strategies
Presented By Lucas Duffner
Ashley Elinburg Eric
Gosselin
Dirk Lange Charlotte Prevost
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International Management Group (IMG)
Mark H. McCormack Former CEO 2003
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International Management Group (IMG)
Robert D. KainCo-C.E.O
Alastair J. Johnson Co- C.E.O
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(Main) Competitors
Clear Channel CC. Com (part of SFX Entertainment
Inc.)
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IMG Company History

• Founded by Mark H. McCormack in 1960
• 1960 Mark McCormack and Arnold Palmer shake
  hands on an agreement that forms the foundation
  of IMG and sports marketing
• 1964 First World Matchplay Championship staged.
  
• 1968 IMG Broadcasting founded, Chris Schenkel
  signed
• 1969 First Model signed, Jean Shrimpton.
• 1971Mark McCormack goes to Brazil and signs Pele

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IMG Company History

• 1973 The Superstars TV Show is first staged
• 1979 Chris Evert and Martina Navratilova sign as
  clients
• 1983 IMGs first Involvement in the Olympics
• 1996 Tiger Woods signs as IMG client
• 1999 IMG begins representation of U.S. Olympic
  Committee Salt Lake City

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Company Background

• Worlds premier sports and lifestyle management
  and marketing firm
• International staff of more than 2,200 people
• 70 offices in 30 countries
• TWI, IMGs television division? largest
  distributor and producer of televised sports in
  more than 200 countries
• IMG involved (average) 11 major sports/cultural
  events daily worldwide

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Company Background (cont.)

• International Model Management
• Managing music artists
• TWI internet platform ? worldwide leader in
  digital sports and entertainment

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• Financial Information
• IMG word is a private and not a public company
• No stocks in the public markets
• According to Forbes.com place 184 in the largest
  private companies ranking
• According to a interview in businessweek.com with
  Mark H. McCormack
• We financed IMG's growth out of earnings all
  the way. It is the way I have always thought
  about business, which is a very unsophisticated
  and a very old-world way.
• Going public? I don't know why we would. Most
  people I know who have private companies that
  went public are sorry they did. I can read SFX's
  S-1s and know everything about every company they
  bought. I don't want to tell everybody in
  competition with us everything we're doing.

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OshKosh BGosh Background History

• Founded in 1895 in Oshkosh, Wisconsin as a
  small-town manufacturer of adult workwear
• Best known for its rugged, mens hickory-striped
  bib overalls
• During the early 1900s, began making a
  pint-sized version of bib overalls item finally
  took off when mail-order firm Miles Kimball
  featured the kids overalls in their national
  catalog
• Encouraged Oshkosh to expand into specialty and
  department stores and to gradually broaden their
  childrens wear line

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• Incorporated in the State of Delaware in 1929,
  but company executive offices are still in
  downtown Oshkosh, Wisconsin, in the building
  where they began over 100 years ago
• Currently, OshKoshs primary business is
  manufacturing and marketing a contemporary and
  stylish line of childrens clothing
• Products include bib overalls, pants, shorts,
  shirts, swimwear, a layette line for newborns,
  accessories, shoes, socks and sleepwear
• Employ approximately 4700 people
• Main acquisitions 2 manufacturing facilities

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• OshKosh has 154 of its own retail stores in the
  U.S.
• Primarily, they wholesale to hundreds of retail
  and department stores including, Kohls, Kids R
  Us, JC Penney, Mervyns, Babies R Us, Saks, May
  Company, and Federated Department Stores

Company President, Chairman, and CEO is Douglas
W. Hyde
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• Competitors include

HEALTHTEX
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• Some of their competition comes from their
  customers in-house brands
• JC Penneys Arizona Jean Company or B.T. Kids
• Dillards Class Club brand
• New strategy for competitive advantage is to
  become Americas family brand by offering
  clothing for the entire family they are
  revamping their product design and implementing
  price reductions
• During 2003, six OshKosh Company Stores were set
  to open that will offer family apparel, home
  furnishings, accessories, and toys
• In 2003, OshKosh teamed with Target to
  manufacture and sale a customized line of
  childrens clothing in Target stores called
  Genuine Kids

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Financial Data
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Question 1Do you agree with the methods and
criteria that Gergely Tapolyai of IMG uses to
evaluate IT products? Why or why not?

• the vendors stability versus ability to provide
  personalized services.
• to ignore the positive feedback so that he can
  focus more on the negative feedback.

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Question 2 What characteristics of the Oshkosh
BGosh buying process should be implemented by
other companies? Explain your reasoning

• Work closely with end users
• Meeting one companys requirements
• Asking for customer references
• Let the whole team participate

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• Question 3
• What other evaluation methods and criteria
  (whether mentioned in this case or not) are
  crucial to the IT acquisition process. Why?

• Research the company providing the product or
  service
• Do reference checks contact the vendors
  current customers to assess service and support
• Involvement of end-users
• Return on Investment (ROI)