Essays on Fantastic Holdings Limited, OrotonGroup Limited Strategies Case Study

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The paper "Fantastic Holdings Limited, OrotonGroup Limited Strategies " is a perfect example of a business case study. Fantastic Holdings Limited is an Australian based company which manufactures and deals in furniture. (Fantastic website, 2011) The company has operations over 125 states and is a major producer and leader for furniture in the Australian market. Some of the products offered are beds, tables, sofas to name a few. (Fantastic website, 2011) The entire operation of the company can be divided into two broad categories. Firstly is the retail segment which includes manufacturing and retailing of furniture and secondly is a property where the company develops sites for companies.

(Fantastic Holdings, 2011) The company on a whole has around 1400 employees and sales for the company was in the tune of $450 million. (Fantastic website, 2011) The company is listed on the Australian Stock Exchange and traded by the code FAN. The company has been able to improve its business and has been able to integrate the external environment in its planning process. OrotonGroup Limited is also an Australian based company dealing in leather goods, fashion apparel and accessories.

(OrotonGroup Website, 2011) The company operates under two banners. Firstly is the Oroton and secondly Polo Ralph Lauren. The company to ensure efficient marketing have established dealer and networks to sell their products. The company has designated 20 stores which sell products manufactured by OrotonGroup. (OrotonGroup Website, 2011) The company since its operation in 1938 has established itself as a brand name. The core factor distinguishing the company has been the fact that they have been able to create a brand power through efficient marketing.

(ORL, 2011) The company is traded over the Australian Stock Exchange through the ticker ORL. The company has been able to create a presence by ensuring different tactics to satisfy customers. The financial performance of both the company gets altered due to various factors which are beyond the control of the organization. A study also suggests that organizations that are able to consider the environmental changes required in the future by looking into the present situation are able to ensure that the fluctuations of the share prices are controlled. (Kennerley & Neely, 2002) Some of the factors which influence the share prices both in the short and long run are as follows Political Factors: Political situation plays a very important role in any industry.

(Tommi & Olavi, 2006) A change in political policies affects the share market as it makes investor look for products which are less risky making the share prices move down and vice versa. Economic Factors: The economic situation affects the number of buyers as during recession people consider it a luxury but during boom a necessity.

(Justin, 2008) This makes the prices of shares go up and down depending on the demand in the market Interest Rates: Interest rates also have an effect on the stock market and any changes in it result in the prices of the share to move up and down. Interest rates make borrowing expensive thereby making the share prices move in both directions. Intermediaries are third parties who help the parties to come to a solution. (Intermediaries, 2011) The financial intermediary has a major role in both Fantastic and OrotonGroup. They perform various financial functions and help to ensure proper financial management in the organization.

(Intermediaries, 2011) Some of the intermediaries which both the companies have used are as follows Underwriting: Both the companies have underwritten their shares so that the shares of the company were easily listed on the Australian Stock Exchange. (Goldsmith, 2008) This has ensured that the listing process passed easily and helped to create a positive environment for the company. Capital Restructuring: The companies have used capital restructuring to bring a change in the capital pattern and ensure liquidity in the organization. (Gorton & Pennacchi, 1990) This has helped both the companies to solve the problem and ensure proper management of resources. Syndicated Credit: The companies have also secured credit to ensure sufficient liquidity and continue their operations in an efficient manner.

(Gorton & Pennacchi, 1990) This has helped to bring a change in the working environment and improve the manner in which work is carried out.

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