IMG Worldwide and Others: IT Resource Acquisition Strategies

IMG Worldwide and Others:
IT Resource Acquisition
Strategies
Presented By:
Lucas Duffner
Ashley Elinburg
Eric Gosselin
Dirk Lange
Charlotte Prevost
International Management Group (IMG)
Mark H. McCormack
Former CEO
† 2003
International Management Group (IMG)
Robert D. Kain
Co-C.E.O
Alastair J. Johnson
Co- C.E.O
(Main) Competitors
Clear Channel
CC. Com (part of SFX
Entertainment Inc.)
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
IMG Company History
• 1973 The Superstars TV Show is first staged
• 1979 Chris Evert and Martina Navratilova sign as clients
• 1983 IMG’s first Involvement in the Olympics
• 1996 Tiger Woods signs as IMG client
• 1999 IMG begins representation of U.S. Olympic
Committee – Salt Lake City
Company Background
 World’s premier sports and lifestyle




management and marketing firm
International staff of more than 2,200 people
70 offices in 30 countries
TWI, IMG’s television division largest
distributor and producer of televised sports in
more than 200 countries
IMG involved (average) 11 major
sports/cultural events daily worldwide
Company Background
(cont.)
 International Model Management
 Managing music artists
 TWI internet platform  worldwide leader in
digital sports and entertainment
 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.”
OshKosh B’Gosh:
Background & History
 Founded in 1895 in Oshkosh, Wisconsin as a
small-town manufacturer of adult workwear
 Best known for it’s rugged, men’s hickorystriped bib overalls
 During the early 1900’s, began making a pintsized version of bib overalls – item finally took off
when mail-order firm Miles Kimball featured the
kid’s overalls in their national catalog
 Encouraged Oshkosh to expand into specialty
and department stores and to gradually
broaden their children’s wear line
 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, OshKosh’s primary business is
manufacturing and marketing a contemporary and
stylish line of children’s 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
 OshKosh has 154 of it’s own retail stores in the U.S.
 Primarily, they wholesale to hundreds of retail and
department stores including, Kohl’s, Kids R Us, JC
Penney, Mervyn’s, Babies R Us, Saks, May Company,
and Federated Department Stores
Company President,
Chairman, and CEO is
Douglas W. Hyde
 Competitors include:
HEALTHTEX
 Some of their competition comes from their
customer’s in-house brands:
 JC Penney’s Arizona Jean Company or B.T. Kids
 Dillard’s Class Club brand
 New strategy for competitive advantage is to
become America’s 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
children’s clothing in Target stores called Genuine
Kids
Financial Data
Net Sales
Net Income
Profit Margin on
Sales
Current Ratio
Quick Ratio
Inventory
Turnover
Debt to Asset
EPS
2002
$ 436,989,000
32,045,000
7.3%
2001
$ 463,069,000
32,808,000
7.1%
2.41
1.24
4.32
2.52
1.37
4.85
40.68%
2.59
54.32%
2.69
Question #1:
Do you agree with the methods and criteria
that Gergely Tapolyai of IMG uses to evaluate
IT products? Why or why not?
 the vendor’s stability versus ability to
provide personalized services.
 to ignore the positive feedback so that he
can focus more on the negative feedback.
Question 2:
What characteristics of the Oshkosh B’Gosh
buying process should be implemented by
other companies? Explain your reasoning
 Work closely with end users
 Meeting one company’s requirements
 Asking for customer references
 Let the whole team participate
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 vendor’s
current customers to assess service and support
 Involvement of end-users
 Return on Investment (ROI)