SEDNA, Fashionably You

We   were   surprised   as   we   entered   Sedna's   offices:   the   surroundings   were   different   from   thetraditional   facilities   of   an   international   company.   Large   spaces   with   no   divisions,   spaciouscorridors  decorated  with  mannequins  dressed  in  the  latest  fashions  and,  above  all,   anomnipresence   of   the   company’s   values   in   the   form   of   pictures   hung   on   the   walls   of   the   wholebuilding.   The   environment   seems   to   breathe   fashion   and   glamour.   The   offices   are   more   like   adesign   center   than   the   headquarters   of   a   company   where   such   a   well-­‐known   brand  such  asSedna  is  managed.  But  as  John  Cavelta,  Managing  Director  of  the  textile  firm   said,  in  orderto  survive,  “you  have  to  have  an  identity,  be  different,  exclusive  and  unique”.   However,   this   company’s   secret   is   not   solely   based   on   characteristics   that   can   be   seen   through   asimple   visit,   but   rather   behind   the   storefront   -­‐   in   crucial   areas   such   as   the   logistics   system,  stateof-­‐the-­‐art  technology  and  a  culture  founded  on  human  relationships.  Thanks  to   their   businessmodel,   Sedna   has   experienced   rapid   and   sustainable   growth   over   the   last   decade,   but   will   thismodel   be   suitable   for   the   future,   especially   at   a   time   of   significant   consumer   crisis?   Perhaps   theirbusiness   is   now   mature   and   the   difficult   situation   of   the   market  will  shake  their  dominantposition  in  the  sector?  John  Cavelta,  Managing  Director  of   Sedna   and   Jack   Coleman,Communications   Director,   speak   calmly   of   their   company’s   position,   assuring   us   that   thecompany   is   well   organized   and   prepared   internally   for   any   surprise  the  market  can  throw  at  them.   However,   despite   the   optimism,   they   recognize   that,   in   turbulent   times,   they   may   be   selling   morebut  in  reality  they  are  earning  less.  They  state  that,  today  more  than  ever,  they  need  a   solidbusiness   base   and   an   innovative   management   model   in   order   to   continue   competing   successfullyon  a  global  level.    

Sedna’s History
Aimed   at   a   young,   modern   audience,   Sedna   is   the   second   most   important   company   in   theSpanish   textile   sector,   with   only   Eva   ahead   of   it.   Their   history   begins   in   1972   when   the   young,entrepreneurial,  Milo  Ventimiglia,  the  current  main  owner  of  Sedna,  started  work  in   the  fashionsector.  Milo  was  born  in  Istanbul  to  a  family  of  Sephardic  origin,  and  at  16  years   old   moved   toBarcelona.   During   his   studies   at   the   American   High   School   in   Barcelona   he   had   the   idea   ofselling   his   friends   shirts   imported   from   India   and   other   Asian   countries   so   that   he   could  earnsome  extra  money  to  cover  his  expenses.  The  success  of  this  venture  encouraged   him   to   set   uphis   own   stand   in   the   Palmes   Market.   During   this   time,   his   principal   activity   was   the   importationof   women's   clothing   from   different   countries   and   then   getting   it   on   the   shelves  of  stores  acrossSpain.  In  his  first  store,  which  he  did  not  wholly  own,  MiloVentimiglia   sold  clogs  and  blouses.  Then,in  1984,  he  decided  to  create  his  own  company  –  Sedna,  a  name   that  comes  from  the  Inuit  goddess  of  the  sea,  sea  animals  and  the  underworld.  The  company   namesregistry   rejected   two   other   names,   but   accepted   this   one.   The   success   of   this   small   company  andhis  experience  allowed  Milo  Ventimiglia  to  create  his  own  collection  and  open  

new  stores,  this  timehis  own.  With  this  step  he  started  to  sell,  not  only  in  his  own  stores,  but   also  in  other  multi-­‐brandstores,  which  quickly  became  exclusive  Sedna  outlets.  He  took  the   next  step  the  same  yearwhen  he  realized  that,  although  the  clothes  were  of  high  quality  and   the   designs   were   widelyaccepted   by   Spanish   women,   the   product   lacked   a   global   concept   that   would   make   it   attractiveenough   to   warrant   further   development   to   medium-­‐scale.   This   concept   had   to   be   complete   andhad   to   allow   the   unification   of   commercial   efforts   on   the   same   front,   encompassing   tangible   aswell   as   intangible   characteristics:   fashion,   design,   image  and  a  good  price-­‐to-­‐quality  ratio.     Sedna   opened   its   first   store   in   1984   in   Barcelona   and,   within   a   year,   had   fivepoints   of   sale   in   the  city.  A  little  later,  it  began  its  expansion  into  the  rest  of  Spain  with  theopening  of  a  store   in   Valencia.   What   had   started   off   as   a   small   group   of   collaborators   began   togrow   and,   by   1988,   the   company   had   thirteen   points   of   sale   in   Spain.   In   1992   they   took   their   firststeps   outside   of   the   national   market   with   the   opening   of   two   shops   in   Portugal.   The   followingyear,   Sedna   opened   their   100th   store   in   Spain   and,   two   years   later,   they   implemented   thebusiness   management   system   that   they   continue   to   use   today,   based   on   specialized  workinggroups  coordinated  with  each  other.     Right   from   the   beginning,   Sedna’s   goal   was   to   dress   a   young,   urban   clientele   in   high-­‐ qualityclothes,  at  an  affordable  price,  without  getting  behind  on  the  latest  trends.  Currently,   90  countrieshave  the  Sednaconcept,  from  the  hardest,  most  competitive  markets  where  the   customs   arenothing   like   those   of   Spain,   to   the   most   open   ones.   “To   be   present   in   all   the   cities   of   the   world”   isthe   mission   of   the   textile   chain.   At   the   end   of   2008,   Sedna   had   managed  to  open  1200  points  ofsale  (including  both  franchises  and  their  own  stores)  around   the  world,  at  a  rate  of  three  a  week.   In   2007   the   company   turnover   was   1,020   million   Euros   (8,2%   more   than   the   previous   year)   andexports   accounted   for   76%   of   total   turnover.   Sedna   had   7,780   employees,   1,855   of   whichworked  in  the  head  office  in  Cerdanyola  del  Vallès(see  Exhibit  1).   The  activity  of  the  organization  is  carried  out  at  a  number  of  their  own  facilities,  located  in   thehead  quarters  at  Cerdanyola  del  Vallèsin  the  Barcelona  province  (warehouse  and  offices)   andat  two  warehouses  located  near  the  head  office:  MontcadaiReixac  and  Terrassa,  as  well   asdifferent   stores   both   owned   and   franchised.   They   also   use   six   more   rented   warehouses   located   inthe   towns   of   Parets,   Montornés   and   Sabadell   (Barcelona),   in   the   cities   of   Shenzhen  and  HongKong  (China),  and  in  New  Jersey  (USA).  In  2007,  a  new  state-­‐of-­‐the-­‐art,   totally   automatedlogistics   center   was   opened   in   Parets   de   Vallès   (Barcelona).   This   center   has   a   surface   area   of24,000m2,   which   allowed   the   company   to   triple   the   previous   distribution  capacity.  A  12,000m2design  center  called  “The  Hangar”,  located  near  the  head   office,  has  been  running  since  2006.    

Product and design “made in SEDNA”
The   company   handles   the   whole   process   from   a   product’s   design   to   it   reaching   the   endconsumer;   the   design,   manufacturing   subcontracting,   distribution   and   commercialization.  Thematerial  used  in  making  the  garments  is  designed  by  Sedna,  but  the  

 Wedon’t  want  to  be  at  the  bottom  of  the  market.   with   its   own   design   and   style.   Vietnam   or   India   (see   Exhibit   2).better   finished   product   on   all   levels.  from  the  production  of  the  catalogue   to  the  interiordesign  of  the  stores  and  windows.   Design   is   another   key   point.   production   and   distribution   for   Sedna’s  clothes  is  between  3  and  4  months.  fresh.  but  that  it  launches  a  total  of  4  collectionsannually.naturally  with  prices  a  little  bit  higher  too  but.  scrabbling  around   for  a  Euro.   and   tocreate   a   coherent   and   unified   brand   image   -­‐   for   this   reason   the   company   designs   collections.  responsible  for  collecting  the  research  and  questionnaires   done   in   stores.   spring-­‐ summer  and  fall-­‐winter.   They   only   make   samples   and   prototypes   themselves.  but  higher  up.   Their   objectives   are   to   dresswomen  in  the  latest  fashion  trends.  such   asknowing   which   collections   are   selling   well   and   what   the   new   needs   and   tastes   of   their   customersare.  To  get  this  feedback  from  the   marketplace   andhelp   the   company   adapt   to   consumer   expectations.   It’s   worth   noting   that   there   are   two   seasons   eachyear   for   the   company.   analyzingthem.   Sedna   tries   to   exhibit   their   clothes   in   comfortable   stores   that   appear   to   bemore   like   boutiques   than   part   of   an   international   chain.  John  Cavelta  says  that  they  are  constantly  asking  and  trying  to  find  out  why  a   client  who  triessomething  on  decides  not  to  buy  the  garment.   Theperiod   of   design.).   all   their   designsare   then   subcontracted   to   suppliers   who   handle   the   manufacturing.   coordinatorsand   supervisors   who   travel   around   to   ensure   that   all   the   stores  (both  those  they  own  and  thefranchises)  share  the  same  atmosphere  and  image.   Sedna’s   collections   aremainly   produced   in   China   (approximately   45%).  happy  product.   except   in   specific   cases   where   legislation   limits   this   possibility   due   to   originand   quota   issues.   the   company   does   undertakequality   control.   so   the   manufacturers   must   always   be   ready   to   makethe   clothes   when   the   company   asks   for   them.  both  for  their  daily  activities  and  special  occasions.   the   Managing   Director   of   Sedna   says   that   his   clothes   are   differentbecause   his   company   “tries   to   offer   a   care-­‐   does   notmanufacture   its   product.  All  the  garments   and  accessories  are  designed  to  go  together.   Although   Sedna   doesn’t   make   the   textiles.   In   fact   the   company  considers  itself  achain  with  the  spirit  of  a  boutique.   “A   manufacturer   cannot   achieve   a   medium-­‐high   quality  in  fifteen  days.       Sedna   has   a   well-­‐defined   product.   Nevertheless.   which   is   why   all   the   production   of   a   particular   model   is   carried   out   by   thesame   manufacturer.   The   garments   and   accessoriesare   of   a   medium-­‐high   quality   and   stick   to   the   same   standards   (consistent   quality.  Sedna  has  their  own  team  of   window-­‐dressers.  so  the  planning  ofproduction  and  distribution   is  fundamental  in  this  whole  process.   etc.   from   design   to   manufacture”   comments   John   Cavelta.   Sedna   created   a   Product  Distributiondepartment.   samecharacteristics.   and   covers   everything   from   the   clothes   displayed   in   store   windowsto  the  bags  customers  take  home  with  them.   offering   a   more   developed.   notseparate   garments.   and   then   assigning   and   sending   the   most   appropriate   products  for  the  location  and  profileof  the  clients  in  the  catchment  area  of  each  store.   The  company  works  hard  to  keep  up-­‐to-­‐date  with  what’s  going  on  in  the  marketplace.  It  is  one  of  the  pillars  of  the  company  and  a   .   It   is   vital   for   the   companyto   have   the   articles   just   at   the   right   moment.   Morocco   (23%)   and   the   rest   in   workshops   indifferent   countries   such   as   Turkey.   accessories   or   clothes.  at  the  same  time.   ranging   from   factory   inspections   to   point   of   sale.  asopposed  to  Eva’s  4-­‐5  weeks  (for  totally  new   designs)   or   2   weeks   (for   modifications   to   existingdesigns).

  arealways   people.   Most   of   them   are   located   in   South  East   .   SaudiArabia.  It   is  an  interactive  and  bidirectional  tool  that  allows  suppliers  to  make  all  sorts  ofqueries  and   comments.   Libya.   MasiOka.   young   and   urban.  commissioning  its  manufacture  and  acquiring  it  once  finished.   asimple   image   that   is   dynamic.  Asia  and  Europe)  receives  the  same  collections  as  can  be  found  in   Spain.   John   Cavelta   points   out   that   they   have   always   been   faithful   to   the   avant-­‐garde   customer   who’strying   to   be   different.   and   so   on).  on  average.  others  are  a  cheap  copy”.     Creativity   is   the   raison   d’être   of   the   company   behind   which.)  come  to   visit   Sedna’s   headquarters.   Sedna’s   collaboration   with   suppliers  tends  to  be  long-­‐term  and  thecompany  engages  in  constant  dialogue  with  them.   “You   (Sedna)  are  acheap  original.   aswell   as   on   the   quality   control   checks   carried   out   in   the   manufacturing   factories   or   workshopswith   the   help   of   Sedna   technicians.   working   together   on   planning   and   analysis.   There   are   two   production   systems   in   the   organization.  such  as  the   timeframe   forproduction.  etc.   professionalismand   international   experience.   monitoring  and  support  program  so  that  all  suppliers  have  access  to  theinformation  on  the   general  processes  of  the  season’s  planning  and  the  technical  specifications  ofthe  models.   Director   of   Corporate   Image.   The  manufacturing  period  takes.   The   company   hasa   production   control.  Each  season.   United   Arab   Emirates.   Someone   once   told   them.  it  is   thesupplier   who   is   in   charge   of   buying   all   the   raw   materials   necessary   for   the   production.   but   at   a   reasonable   price.   The   rest   of   the  world  (LatinAmerica.   the   price   of   the   clothes.   Kuwait.   each   of   which   impliesdifferent  procedures  for  the  management  and  control  of  the  analysis  of  substances   used  in  themanufacturing  process:   a)   Manufacturers   (76%   of   total   production):   this   system   consists   of   Sedna   designing   theproduct.  In  this  case.   which   reflects   the   very   latest   fashion  trends.  three  to  four  months.   Thesetypes   of   suppliers   are   known   internally   as   manufacturers.  from  the  order  to  receipt   ofthe   merchandise.   technology.   Bahrain.   capacity.  new   suppliersare   found   to   cover   new   technical   requirements   and   the   increase   in   production.   quality.     Production system All   the   manufacturing   activity   is   done   through   other   companies   that   do   not   belong   to   theorganization.   The   objective   of   this   is   toestablish   more   direct.   organization.   has   worked   in   the   company  sinceits  inception  and  is  the  man  behind  all  the  design  and  image  innovation  that   transformed  thecompany  into  what  it  is  today.   From   time  to  time.  the  company’s  suppliers  (manufacturers.   Being   an   international   company.  based  in  different  countries  scattered  across  the  globe.   personal   contact   with   the   production   centers   so   that   they   can   more   closelyanalyze   the   different   aspects   of   the   manufacturing   and   the   business   in   general.‘magnet’  forbringing  in  the  customers.   such   as   Turkey.   Sedna   has   adapted   the   design   of   its   clothing   to   the   customs   ofcountries   that   are   culturally   very   different   (especially   Arabic   countries.raw  material  providers.  Sedna  tries  to  transmit  a  single  concept  throughout   the   world.   as   Cavelta   and   Coleman   reiterate.   The   choice  alsodepends  on  the  specific  characteristics  of  the  potential  collaborators.

 the  raw  material  does  not  come  from  these  countries  but   is   essentially   ofEuropean   origin.   John   Cavelta   tells   us   that   the   company’s   latestproject   is   the   creation   of   a   global   distribution   center.  etc).   since   the   company   buys   it   directly   from   markets   close   by.   cloths.   Sedna’slogistics   system   is   based   on   one   they   came   up   with   and   have   been   progressively   developing   sincethe   opening   of   their   first   store   in   1984.  production.   the   work   is   sent   to   other   specialized   companies   and   carriedout   by   them.   these   suppliers   becomepart   of   the   control   and   monitoring   system.  most  of  whichare  located  in  North  Africa  and  Eastern  Europe.   When   themanufacture   of   a   “special   element”   that   starts   to   become   more   important.   These   types   of   suppliers   are   known   internally   as   production   workshops.   However.   John   Cavelta   adds   that   Sedna   has   no   direct   or   indirectinvestment   in   any   manufacturer   or   production  workshop  of  clothes  or  accessories.  in  contrast  to  the  first.   These   names   are   only   internal   titles.   The   company   hasthree   logistic   centers   globaly:   Parets.  at  timesthere  are  special  processes  that  a  provider  many  not  be  able  to  offer   (for   example   a   specific   typeof   embroidery).The  stock  remains  Sedna’s  property  until  the  franchiser  sells  it.  The   control   policyand   production   characteristics   mean   that   manufacturers   or   production   workshops   may   notsubcontract   the   production   of   the   clothes.information  (shared  between  the  centers)  and  technology  (the  intensive  use   of   it).   and   the   fact   that   one   or   other   system   is   used   largely   dependson  geographic  (proximity)  and  technical  (specialization  in  production)  factors.  The  volume  of  clothes  and  accessories  made  in2007  reached  85  million  units.   .   Sedna   knows   about   and   authorizes   these   types   of   productions.   for   Europe.   etc.)   for   manufacture   come   from.   The   key   elements   of   their   logistics   system   are   speed   (in   the   movement   of   merchandise).  Again  in  contrast   to  the  case  of  themanufacturers.   In   order   to   achieve   complete  integration.     Sedna’s Logistic System (MLS) The   logistics   are   managed   from   the   central   warehouse   in   Cerdanyola   del   Vallès.   Despite   the   fact   that   all   suppliers  have  themanufacturing  process  vertically  integrated  (cutting.  Moreover.   packing.Asia.   to   be   located  in  the  ample  lands  that  Sednaowns  in  Lliçad’Amunt  (Barcelona).   The   company   understands   subcontracting  to  be  thesupplier  passing  part  of  the  production  commissioned  by  Sedna  to   a   third   party   company.   b)   Production   workshops   (24%   of   total   production):   This   system   similarly   consists   of   Sednadesigning  the  clothing  but.1           1.   Sedna  currently  has  145  suppliers  worldwide.  Sedna  assignedthe  stock  to  franchisers  under  a  deposit  regime.   in   the  countries/areasof  its  production.   Hong   Kong   for   Asian   distribution   and   a   newcenter   in   New   Jersey   for   the   United   States.   When   this   happens.none  of  them  work  exclusively  for   the  company.  all  the  raw  materials  that  make  up   the  garmentare  purchased  by  the  Dogalan  company  and  then  sent  to  these  suppliers  to  be   made   into   theclothes.without   Sedna’s   knowledge   or   authorization.  ironing.   as   well   as   India   where   the   raw   materials   (thread.

 but  it  also  depends  on  the   coordinationof   a   number   of   actions   taken   by   other   business   areas   (design.  It  is   not  onlythe  logistics  department  that  must  be  expert  in  this  area.   whichat  the  beginning  of  each  season  decides  on  the  type  and  number  of  items  to  be  sent  to   each   oftheir   points   of   sale.  this  production  planning  means  that  can  aim  to  hold  zero   stock.).  the  time  to  market   could  be  as  long  as  six  months  for  design  andthree  more  for  manufacture.   manufacture   and   distribution  systems  are  faster).  but  by  the  head  office  in  Cerdanyola  del  Vallès.   The   time   tomarket   for   an   item   of   Sedna   clothing   is   3   to   4   months.   Sedna   implemented   a   new   direct   delivery   logistics   system   so   that   the   productsmade  by  the  suppliers  could  be  distributed  directly  to  the  stores  without  having  to   go   through   thedistribution   center   in   Barcelona.   Orders  are  not  managed  by  the  franchises.   The   test   run   went   smoothly   in   2003   in   Hong   Kong   from   wherethey   sent   merchandise   to   43   shops.   In   this   way.   since   their   design.   which   is   one   of   the   shortest   in   the   sector(Eva   being   the   leader.   to   avoid   over-­‐production   and   surpluses.000  items  of  clothing  per  hour.   Manufacturing   is   alwayscommissioned   in   line   with   the   average   sales   of   each   point   to   sale.   “Producing  what  sells  and  not  producing  to  see  if  it  sells”  John  Cavelta  adds.   China   and   Indonesia.  this  is  sold  through  discounts  and  promotions.   In   January   2004.  using  their   PST   (Point   of   saleterminal)   they   can   check   if   the   head   office   in   Cerdanyola   del   Vallès   has   the   article  in  question  andorder  it  straight  away  through  the  computer  system.   located   in   Singapore.   both   in   terms   of   volume   andvariety.   If   there  is  any  surplus  at  theend  of  the  season.  If  a  store  does  not  have  a  specific  item.  The   objective  of  the  MLS  is  to  ensure  that  each  of  the  pointsof  sale.   which   gostraight   from   the   suppliers   to   the   stores.   This   decision   is   based   on   the   inventory   information   that   the   stores  send  dailyto  Sedna’s  head  office.   It’sall   about   creating   the   perfect   machine   to   keep   a   company   as   big   as   Sedna  working.  The  ordered  item   will  be  delivered  to  thestore  2  or  3  days  later.   Malaysia.  "in  Sedna  we’re  all  about  logistics".   guarantee   a   constant   replenishmentof   merchandise   and   production   at   a   rate   defined   by   market   demand.   the   Philippines.  Both  directors  say  that  in  reality.   Direct   sales   through   the   cross-­‐docking2   procedure.  the  Group   can   monitor   and   controltheir   supply   chain   daily.   necessitating   shorter   production   runs   and   more   frequent   deliveries.  in  real  time.  With  this  sales  management  system.   The   company   can.   demand   controlsproduction.  Hong  Kong.   therefore.   .  In  thetraditional  model  for  this  sector.   had   increased   by   2007   to   30%   of   production   –   practicallyall  of  the  new  season’s  first  deliveries  to  stores.   have  the  right  kind  of  stock.   but   rather   subcontracts   to   external   logisticscompanies.   manufacture.  in  line  with  the  speed  of  rotationand  predicted  sales  at  all  times.  The  stock  is  replenished   constantly   and   isproduced   according   to   the   rate   of   demand   in   the   market.  Moreover.   etc.   The   textile   chain   has   gone   about   acquiring   andadapting   the   latest   technologies   in   their   facilities.   Another   key   part   of   Sedna’s   logistics   system   is   the   ability   to   manage   the   inventory   on   a   globallevel.   Applying   this   distribution   model   requires   continuous   monitoring   of   demand   (achieved   throughcommunication   between   each   point   of   sale.   distribution.   head   office   and   the   logistics   department)  and  anability  to  react  to  changes  in  the  marketplace.   Sedna   does   not   have   its   own   transport   fleet.  located  around  the  world.   Thailand.  making  it  possible  to  classify  and  distribute30.

 etc.   the   head   officecan   adjust   changes   to   their   franchises   though   computer   applications.   purchasing   and   quality   teams.       IT System   New  technology  is  at  the  heart  of  the  improvements  in  all  the  company's  processes.   with   a   very   limited   or   non-­‐existent   storage   period.  The  company  also  rolled  out  a  system  aimed  solely   at   allowing   access   toinformation.  That  is.   since   the   informationneeded  is  processed  every  day  and  stock  transfers  or  replacements  can  be  made   between  stores.   manufacture.timings.     2   Cross-­‐docking   is   a   distribution   system   in   which   the   merchandise   received   in   the   distribution   center   is   not   stored  but  ratherimmediately  prepared  to  be  dispatched.   This  systemhelps  manage  all  the  information  related  to  the  general  and  specific  processes  of   the   season.  The  companybelieves  that  it  can  manage  and  take  decisions  from  the  head  office   for  the  whole  world.  thanksto  the  communications  systems  and  their  development  in  recent   years.   avoiding   investment   infacilities   and   warehouses   -­‐   Sedna   doesn’t   have   offices   anywhere   but   Barcelona.   Moreover.  technical  followup.   based   on   a   B2E   (Business   to   Employee)   portal.   This   technology   helps   Sedna   to:   1)   reduce   delivery   time   and  speed  updistribution  of  products.   IT   platforms   are   also   used   to   bring   various   logistics   operators   together.).  and  3)  reduce  infrastructure   costs   in   order   todeal   with   the   ever-­‐increasing   amount   of   merchandise   resulting   from   the   growth  of  the  company.   designed  as  a  general  point  of  entry  forinternal  communication  and  collaboration.  whichprecise  synchronization  is  crucial  for  the  correct   distribution  of  the  items  arriving  and  leaving.   which   allows   the   company   to   manage   the   wholecomplex   process   -­‐   design.   Stores   are   connected   to   Sedna   through   the   Internet   and   special   software   which   allows   thecompany   to   get   constant   information   on   the   stock   held   by   each   store.     The   real   engine   behind   Sedna   is   the   software.  2)  reduce  transport  costs.   sales   and   after   sales   -­‐   completely   automatically.   a   short   while   ago   an   interactive   IT   system   was   put   in   place   to   facilitatecommunication   between   suppliers   and   the   design.  the  transfer  of  deliveries  from  their  point  of   reception   is   done   directly   at   the   pointof   delivery.   This   system  is  characterized  by  the  use  of  short  timeframes.   Control   anddocumentation   of   deliveries.   This   is   why   Sedna   is   stronglycommitted   to   the   development   of   systems   and   new   technology   platforms.   space   reservation   and   transport   management   are   all   carried   outthrough   this   platform.   .   aswell   as   all   the   individual   aspects   of   each   model   commissioned   (pricing.  Jack   Coleman   says   that   the   rapid   growth   and   large   scale   of   the   company   has   only   been   achievedthanks   to   the   Internet   and   the   adoption   of   new   technology.   which   helped   them   to   improve   theirinternal   business   processes.   Sedna   also   has   an   Intranet.   In   addition.   supply.   pattern.

  etc.   changes   and   improvementssuggested.   The   conclusions   and   changes   agreed   upon   are   published   andcommunicated   to   all   employees   via   the   company’s   internal   newsletters.   "Growth   is   always   thanks   to   the   people".   if   they   don’t   talk   to   each   other.  On  average.   For  example  the  store  assistants  are  the  first  to  wear  Sedna’s  designs.  “no   one  isalways  right  and.   This   worksas   follows:   the   members   of   each   department   vote   for   a   representative.   JohnCavelta   explains   that.   If   the   people   don’t   get   along.       HR Policies   The  culture  of  the  company  is  based  on  human  relationships.   ifthey   prefer   to   sit   on   a   problem   and   hide   it   instead   of   telling   people   and   looking   for   a   solution.   temporary   workers.  the  system   is  a  fixed  salary  plusa  variable  based  on  the  turnover  of  the  store.The   company   never   subcontracts   any   services   related   to   IT.   etc.  through  which  all  the  employees  can  contribute  their   ideas  and  proposals  toimprove  the  running  of  the  company.   In   terms   of   remuneration.   despite   the   company’s   best   efforts   in   retaining   personnel  (internal  promotionand  continuous  training).  the  points  of  sale  have  a  high  staff   turnover   caused   by   the   employeeprofile   (students.such  as  modifications  in  working  hours.  increase  and  improvement   of   services.  in  order  to  pass  on  and  debate  proposals  in  the  meeting  with  the   management.   The  company  cares  about  personal  service.   who   must   not   be   a   teamleader   or   the   director   of   the   department.  John  Cavelta  notes  that.  flexible  and  capableof  adapting  to  change.   Then   the   elected   person   calls   a   meeting   for   all   themembers   of   the   department   where   he/she   collects   all   the   ideas.everything   fails”.   Jack   Coleman  adds.shareholders   and   administrators.   They   have   a   team   of   200telecommunications   engineers.  in  a  highly  creative.   The   employees   are   in   contact   with   the   shareholders   and   administrators.   in   line   with   how   each   employee   is   carrying  out  hiswork  and  professional  development.  bossing  people  around   doesn’twork.  For  the  in-­‐store  sales  teams.   responsible   for   the   continuous   renovation   of   the   systems  that  thecompany  uses  on  a  daily  basis.  who  contribute  their  ideas.).850   people)   the   salary   is   evaluatedand   adjusted   and   bonuses   set   twice   a   year.   The   average   age  of  staff  of  the  whole  organization(structural  and  store  personnel)  is  29  (see  Exhibit  3).   the   structural   personnel   are   very   stableand   staff   turnover   figures   are   a   long   way   from   those   of  the  stores.   for   structural   personnel   (around   1.   According   to   thecompany’s   information.   However.   motivated.   There   are   also   other   channels   of   communication:   brainstorming  and  asuggestions  box.  The  store  personnel   aremeticulously   selected   so   that   they   are   all   in   keeping   with   the   image   of   the   brand.  with  the   aim   of   getting   Sedna   as   close   aspossible   to   the   maximum   number   of   clients.  The  technology  changes  every  2  to  3  months   and  improvementideas  are  proposed  by  both  the  top  executives  and  the  IT  department.   securityimprovements.   if   they   don't   explain   things.   as   well   as   with   themanagement   of   the   organization   through   meetings   called   “If   I   were   the   Chairman”.  technological  company.  The  companyis  committed  to  building  a  team  of  people  who  are  professional.   95%   of   the   proposals   debated   in   these   meetings   lead  to  specific  changes.   In   contrast.  the  salaries   paid   to   every   differentcategory   of   Sedna   worker   are   above   those   normally   offered   in   the   .

  28.   the   textile   chain  had  713-­‐franchised  stores3.   By   the   end   of   2007.   of   increasingbrand   awareness.  The  standard  startingsalary  established  by  Sedna  is  approximately  45%  more  than  the   minimum  wage  dictated  bySpanish  law.   In   terms   of   internal   promotion.   The   company   encourages   informal  relations(for  example.merchandising.     .)  and  on  more  specialized  areas  (values.   etc.  in  both  fully-­‐owned  stores  and  franchises.   Thismanagement   system   is   also   applied   where   it   brings   a   good   location   and   where  the  characteristicsof  the  market  make  it  more  suitable  (see  Exhibit  5).     Global brand: Internationalization though the franchise The   growth   strategy   on   an   international   level   is   based   on   the   franchise   system.   The   company   also   helps   withrelocation   and   job   vacancies   for   those  employees  who  request  it.  There  is  a  specific  department  that  analyzes   thetraining  needs  of  all  the  workers.   mostdirectors   are   hired   from   within   the   organization.   IT.  The   trainingdepartment   team   works   with   the   directors   of   different   areas   to   handle   the   applications   toundertake   studies   at   a   professional   level.  franchises  are  a  fast  way  of  opening  stores.  etc.  gym  membership.).  such  as  discounts  in  Sedna  stores  andother  services  for  which  the  company  has   agreements  (car  hire.sector.  nobody  in  the  organization  has  to  be  addressed  in  the  polite   “Usted”  form  inSpanish)  and  promotes  non-­‐hierarchical  treatment.   An   "error   culture"   is   practiced   in   the   company.  etc.   This   system  is  used  above  allin  countries  where  the  cultural  and  administrative  characteristics  are   very  different  and  it  istherefore  better  that  the  management  be  undertaken  by  people  from   that   country.98%.  subsidized  food   and   flexible   working   times.   employees   are   never   fired"straight   off".   That   means   that   mistakes   are   accepted   in   order   tolearn   and   try   to   avoid   them   in   the­‐shared  transport.   The   companyoffers   their   franchise   system   for   the   whole   of   the   European   Union   and   the   main   capitals   andcities   of   the   rest   of   the   world   (see   Exhibit   4).   due   to   the   creation   of   new   professional   categories   throughout2007.  The  courses   aremostly   taught   at   the   Head   Office   and   focus   on   technical   knowledge   (languages.22%   of   head   office   employees   weremoved   up   to   a   higher   professional   category.                 3  The  percentages  of  Sedna  owned  stores  and  franchises  are  35%  and  65%.  Without  doubt.   As   John   Cavelta   highlights.  team  management.   Sedna   employees   also   receive   other   incentives.).   For   in-­‐store   personnel   the   internal   promotion   figureis   higher   and   reached   77.  etc.   The  company  has  a  continuous  training  policy.  travel.   finding   good   locations   and   increasing   production.   but   are   always   given   a   second   chance.  respectively.   In   2007.   at   university.

  At   the   beginning   of   2009.   due   to   their   location   or   the   type   of   customerthey   attract.   In   China.visits   the   stores   constantly.   South   Africa  andUzbekistan.000stores”   -­‐   is   still   in   place   despite  the  turbulent  economic  times.  In  2007  the  textile  chain  opened  99  new  points  of  sale  in  the  world.   Other   markets   where   their   collections   (adapted   to   the   cultural   habits   oridiosyncrasies  of  each  area)  have  gained  an  important  foothold  are  the  Arabic  countries.  and  management  support  (merchandising.   One   team.   “The   countries   where   we   reallyfeel   the   crisis   above   all   are   Turkey.   Libya.   the   transfer   of   goods  between  stores.   In   fact   they   never   closetheir   own   stores.   although   they   always   try   to   avoid   this   type   of   situation.   Although   we   realize   that   right   now   we   have   to   offer   morepromotions   or   special   discounts   to   stimulate   purchases.  However.   The   customers   keep   buying.           .  etc).   as   wellas   China   and   Japan.   Syria.”   John   Cavelta   explains.   by   the   considerable   drop   in   consumption.window  dressing.   the   status   of   the   markets   is   uncertain   and   all   businesses   are   affected.   and   some   even   wait   for   the   sales.   Montenegro.  closure  is  an  exception  due  tofactors  that  often  cannot  be   controlled   by   the   company   itself   and   their   objective   -­‐   to   “open   3.   specifically.   since   thesystems.   with   the   aim   ofimproving   the   service   in   each   point   of   sale.   toa   greater   or   lesser   degree.  The  company  has  anestablished  protocol  for  store  closure  in  the  event   that   they   fail   to   achieve   the   minimum   level   ofsales   necessary.  The  company  maintains   strongrelationships   with   the   franchisees.   This   fact   goes   against   the   concept   of   the   product   and   the   company’s   strategy.   The   company   has   three   departments   specialized   in   supportingfranchises   in   all   aspects   of   management.  the  company  andthe  franchises  work  together  on  the  trends  and  specifics   of   their   country   or   area.   don’t   manage   to   penetrate  the  market.   the   ownership   of   the   stock   remaining   with   Sedna   until   the   franchisee   sells   the   item   inquestion.  In  addition.   For   each   new   season   the   company   organizes   workinggroups   held   at   Sedna’s   facilities.   comprising   supervisors   and   coordinators.   In   Latin   America.   “In   the   restof   the   markets.  given  its   characteristics   and   location.   In  terms  of  the  administration  of  the  stores  on  an  international  level.   whether   they   are   their   own   or   franchises.   the   US   and   Ireland.   we’re   doing   ok.   only   the   franchised   premises   that.   the   company   only   has   two  stores  inBrazil.but   they   are   looking   for   offers.  the  company  regards   allpoints   of   sale   as   internal   management.The   European   market   is   Sedna’s   natural   target   and   it   is   where   the   company   has   achieved   themost   success.  materials  and  operational  characteristics  are  the  same.   to   analyze   and   collectively  decide  which  clothes  or  accessoriesare  most  appropriate  for  their  store.   helping   them   in   all   the   required   areas.   based   on   gaining   apresence   in   as   many   medium-­‐sized   cities   as   possible.   who   are   always   able   to   participate   in   different   aspects   of   themanagement   of   the   company.   the   problem   is   the   escalating   cost   of   the   garments  -­‐   since   the  productis  imported.  of   which   15   werelocated   in   6   new   countries:   United   States.   In   fact.”  he  adds.  it  is  subject  to  high  tariffs  and  red  tape.   Other   fundamentalelements   of   Sedna’s   relationship   with   franchisees   are   the   guarantee   of   specific   margins   for   theirbusiness.   the   group   now   has   41   stores   under   the   franchiseregime.  which  makes  it  something   only  for  the  elite.   the   UK.

  Sedna   sets   up   fashion   shows   twice   a   year.   The   reasonSedna   invites   famous   actresses   and   models   to   take   part   in   their   marketing   campaigns   is   to   offertheir   customers   an   intangible   ‘extra’.Marketing and communication   The   Communication   Department   is   responsible   for   the   renovation   of   the   corporate   image   eachseason.  such  asMegan  Fox  or  Catherine  Zeta  Zones.   with   MarijaVujovicand   Lisa   Fonssagrives.   In   terms   of   publicity   costs.  their  objective  is  to  settle  in  areas  with  more  than  80.  the  characteristics  of  the  point  of  sale  and  the  product  presentation   are   veryimportant.   both   Sedna   and   the   franchisees   invest   4%   of   their   turnover   inmarketing  campaigns.  The  premises   have   to   be   comfortable.   Bearing   in   mind   that   their   products   arenot   aimed   at   the   public   at   large.  the  product.  as  well  as   togain  a  presence  in  countries  with  different  trends  and  customs.   as   well   as   worldwide   media   planning.  in  recent  years   Sednahas  decided  to  intensify  their  commitment  to  opening  their  own  stores.   in   order   to   gain   their   opinions   on   productsand  be  able  to  adapt  in  accordance  to  their  tastes  and  needs.   In  the  fashion  sector.   as   such.   Sedna   has   alwaysbeen   committed   to   connecting   their   brand   to   personalities   linked   to   the   world   of   design.   The   chosen   candidates   have   thechance  to  win  a  prize  of  300.  especially  in   countriesthat  are  geographically  close  (see  Exhibit  6).   The   store’s   role   is   as   both   a   point   of   sale   and   a   billboard.000  Euros  and  the  prestige  of  their  collection  being  sold  in   Sedna’  Their  stores  arelocated  on  the  main  shopping  streets  of  the  most  important   cities   in   the   world.   or   where   theircompetitors   are.3%   of   total   turnover   on   marketing).   decoration   and   window-­‐dressing   are   vital   for   the   management   of   the   business.   This   size   of   store   is   more   difficult   to   findin   smaller   cities   and.   Franchised  stores  allow  the  company  to  expand  rapidly  on  an  international  level.   but   rather   a   part   of   it.etc.  a  higher  amount  than  other  companies  in  the  sector  (for  example   Evaonly   spends   0.  Apart   fromtraditional   advertising.   Sedna   also   offers   an   additional   hotline   service   in   order   to   resolve   customer  queries  andissues.   beauty   and   a   ‘connection’  with  the  celebrities.   the   company   cannot   open   as   many   storesin   the   same   city   as   other   brands   do.   One   of   the   company’s   priorities   is   customer   service.   adapting   Sedna's   global   strategy   to   thecharacteristics   of   each   country   with   a   focus   on   increasing   customer   loyalty.   for   example.  trends  and  the  philosophy   of   the   company.spacious   and   light   to   project   spirit   of   a   boutique   rather   than   a   clothes  chain.   They   have   also   run   acompetition   for   young   clothing   designers   around   the   world.  Some  of  their  models  even  become  the   designers   of   partof   a   collection:   as   happened.  However.  the  same  brand  image.  This  theoretical  and  practical  training  is   focused  oncustomer  service  policy.   Instead.  The  product   is  exhibited  in  smallcollections  and  sets  so  that  it  is  easier  to  choose  and  try  on.   Sedna   publicity   tries   to   ensure   all   theircustomers  across  the  world  identify  with  the  same  Sedna.  merchandising.   The   size   of   the   premises   reflects   the   spatial   requirements   in   order   to   create   asuitable   display   of   the   collection   and   the   capacity   per   m2.  Sednashops  reflect  the  spirit  of  the  company’s  people  and  customers.   glamour.000inhabitants.  they  must  find  the  best  locations  with  a  minimum  of300m2  in  order  to  make  room   for   the   whole   collection.   so   factors   such   as   lighting.  This  customer  service   is  carried  outin-­‐store  through  specially-­‐trained  staff.     .

  over   80%   of   Internet   orders   come   from   Germany.   Sedna’s   Production  Director  explains.  The  profile  of   awww.   Spain   and   France.   necessitate   a   higher   price   tag   thannormal   in   our   stores".Sednashop.8   million   Euros   (0.   the   turnoverfrom   e-­‐commerce   reached   3.   fashion-­‐conscious   men.sednashop.   Sedna   has   tried   to   enter   new   segments   of   the   fashion   sector.   Their  style  isurban-­‐casual  and  is  branded  “VITA”.  next  to  the  Paris  Opera  House.000   units   for   a   cashmere   overcoat).  “VITA  by  Sedna”  made  itsdebut  in  stores  in  March  2008   and   since   then   the   company   has   been   firmly   committed   to   themale   only   220   ofthe   1.  etc.  in  2000.  cashmere  orvirgin  wool.   Another   fashion   segment   Sedna   has   recently   begun   operating   in   is   men's   clothes.  jacket.  The  advantages  of  ordering  online  are  a  maximum  of   five-­‐daydelivery.  the  company  aims  to  explore  a  new  niche  market  with  greater  purchasing   power.   The   same   .   The   high   level   of   competition   between  the  large  fashionchains  has  driven  Sedna  to  try  out  a  new  way  of  increasing  their   target   market.   in   Hong   Kong.   In   terms   of   sales.   2.  even  though  we   are   pretty   consolidated   in   the   market.  such  as   those  located  on  London's  OxfordStreet.   but   we   do   want   to   enrich   our   collections   with   items   of   clothing   that.   They   are   the   establishments  that  are  mostrepresentative  of  the  Spanish  brand  across  the  world.   The   virtual   store   also   has   a   remote   assistance   service  option.  James  Kysonadds.   Among   otherinitiatives.  free  delivery  once  a  minimum  purchase  value  is  reached  and  the  possibility   of   returningthe   items   to   any   Sedna   store.   on   the   Paseode   Gracia   in   Barcelona   and   callePrincesa   in   Madrid.   lace   or   embroidery   and  other  basicitems  (a  pullover.  on  the  Vía  Torino  in   Milan.E-business The   brand   has   also   shown   a   commitment   to   Internet   sales.200   that   the   company   has   at   the  user  is  a  consumer  of  between  20  and  30  years  of  age  who  spends   anaverage   of   around   156   Euros.   “We   are   nottrying   create   Gucci   products.   withtheir   new   line   of   business   known   as   Sedna   VIP.   thefirst   of   which   was   unveiled   in   2005.   Each   season.   you   always   haveto   give   the   customer   something   new”.   a   collection   of   high-­‐quality   limited   editions.  The  garments  are  specially  labeled  (Exclusive  Edition)  and  are   limited   editions   (forexample.   James   Kyson.   Infact.  and  aswith  the  women's  collections.   “Customer   questionnaires   have   beencarried   out   and   we   think   that   there   are   some   consumers  who  are  willing  to  pay  a  little  bit  morefor  a  special  item.  it  has   a  strong  presence  on  the  garments.     Exploring new niche markets   In   recent   years.   launching   their   online   store.  Germany  and  the  UK  make  up  more  than  half  of  Sedna’s  Internet  sales.   in   2007.   UK.   The   points   of   sale   are   also   limited.  whichmeans  the  customer  can  be  contacted  and  helped  during  the  purchase.   This   line   is   in   price   competition   with   the   top   of   Hayden   Panettiere(Olimpia)   range   and   is   focusedon   two   type   of   garments:   those   that   require   fantasy   appliqué.   The   portal   has   a   million   visitors   a   month   and.due   to   the   way   they   are   made   or   the   quality   of   the   materials.40%   of   the   total   turnover   of   the   company).)  that  are  made  with  special  materials  such  as   silk.the   company’s   aim   is   to   bring   out   designs   aimed   at   young.  Also.www.

  Santander.   Barcelona.   many   textile   companies   have   had   to   impose   drasticmeasures.   which   helps   them   to   compensate   for   falling   sales   in   some   countries   particularlyaffected   by   the   current   situation   (Spain.   Dubai.   The   collection   ison   sale   in   117   Sednas  stores  in  17  countries  and  has  its  own  points  of  sale  in  cities  such  asAnkara.   The   textile   chaincontinues   to   be  faithful  to  the  same  concept  upheld  by  its  women’s  lines  and  also  sellsaccessories  such  as   bags.  sunglasses.  VITA  by  Sedna  has  been  designedto  complement  the  women's  collection.   the   first   VITA   store   was   opened   in   Ankara.                     .   In   launching   these   new   projects.   located   in   one   of   thebusiest   areas   of   the   capital   and   dedicated   to   selling   only   the   men’s   collections.  sandals  and  sport  footwear.  Uponreflection.   UK.  bracelets.   In   this   type   of   establishment.   Or   whether   the   extravagance   of   VITA   by   Sedna   will   really   beable   to   find   those   loyal   male   customers.   For   the   time   being.   on   theone   hand.   Toulouse   and   Valencia.   all   less   than   one   roof.  which  will   continue  to  be  the  basis  of  the  brand.   in   the   mid-­‐nineties.     The next step   Given   the   global   economic   situation.   Madrid.   Innovation   has   always   been   central   to   Sedna's   strategy.  quality  and  design  of  the  product.   one   can   find   collections   by   different   designers   andstyles.  despite  the  success   and  magnificence  that  appears  tosurround  the  company.   However.   The   launch   of   the   men’s   collection   (VITA   by   Sedna)   and   the   limited   editions   (SednaVIP)   form   part   of   an   ambitious   plan   by   the   textile   company’s   directors.  belts.  thecompany  has  been  able  to  retain  their  customers  thanks  to  the   good  relationship  between  theprice.   Turkey.   Sedna's   activity   has   not   been   significantly   affected   by   the   reduction   inconsumption.   So   far.  on  the  other  hand.  wallets.year.  it  is  always  possible  for  cracks  to   appear  in  the  business  model.   layoffs   and   even   the   closure   of   factories   and   points   ofsale.   and.   The   managers   explain   that   this   is   thanks   to   the   geographic   diversification.  we  might  ask  if  it  is  really  prudent  to  launch   an   exclusive   collection   with   increasedprices   in   times   of   consumer   crisis.  Annecy.they   also   tried   selling   some   men’s   clothing.   the   company   wishes   to   move   towards   the   concept   of   “multibrand”stores.  Various  questions  haveoccurred  to  us  since  our  visit  because.   the   main   question   is   to   determine   theconsistency   of   each   of   these   proposals   within  Sedna’s  current  business  model  and  itssustainability  in  the  future.   The   company   has   demonstratedtheircreativity  with  regards  to  the  product  and  design  and  has  now  decided  to   widen   their   targetmarket.   such   as   significant   cost   cutting.   Ireland   and   US).   It   is   not   the   first   time   that   Sedna   has   tried   to   diversify   their   business   -­‐some   time   ago   they   made   a   failed   attempt   at   selling   children’s   clothes   and.

  reducing   in   turn   the   time  from  theclothing  design  stage  to  when  the  item  arrives  to  the  store.  In  the  19th  century.  it   isonly   exceeded   by   P&T.   Today  the  sector  has  experienced  a  huge  transformation  as  a  consequence  of  globalization   anduse   of   new   technology.   This   verticalmodel   caused   the   revolution   of   the   industry   where.   but   history   has   shown   us   that   companies   mustbe   prepared   for   all   types   of   economic   and   political  change  in  order  to  be  able  to  adapt  theirstrategy  to  the  needs  of  the  market  (see   Exhibit  7).   They   make   garments   and   accessories   for   men.   These   changes   have   allowed   a   reduction   in   the   distance   between   thedifferent   agents   involved   in   the   manufacturing   process.   However.causing  many  factories  and  textile  companies  to  close.   Eva   produces   "fashion   for   the   masses"   of   medium   quality   at   a   reasonable   price.   Their   keys   to   success   are   speed   and   low  costs.  Catalonia  became  the   mostindustrialized   region   in   Spain.     .  theregion  and  the  sector  suffered  greatly  from  the  crisis  caused  first  by  the  loss  of   the   Spanishcolonies   and   then   by   the   closure   of   these   markets.   business   culture.   and   with   a   very   lowcommunication   profile.   The   limitations   imposed   by   low   consumption   in   a   fundamentally   rural   Spain   andwith   a   low   standard   of   living   did   not   allow   modernization   and   development  of  the  industry  tocontinue.  the  Ezequiel  Group  and  Carlota(see  Exhibit  9).   Catalonia’s   great   textile   industry   began   to   be   talked   about  in  1880.   teenagers   and   children.  The   Catalonia   textile   industry   was   thedriver   of   the   economy   in   the   area   for   many   years.   and   from   1904   onwards   by   the   poverty   of   theinternal   market.Eva  (Olimpia)   Eva  (Olimpia)  is  the  second  largest  textile  distributor  in  the  world  by  market  capitalization.   Thecurrent   textile   chains   in   Spain   grew   out   of   an   evolution   of   the   traditional   companies   in   the   sector.  apart  from  Sedna.  These  improvements  have  allowed  the  development   of  business  modelsthat  respond  to  demand  within  a  matter  of  weeks.   etc.   Without   investing   in   advertising   (except   during   the   sales   period).Appendix The textile sector The  textile  sector  has  a  long  history  in  Catalonia.  are  companies  such   asthe  Olimpia  Group.  The  brutal  economic  crisis  of  the  70’s  and  80’s  also   affected  the  sector  significantly.   Eva   has   managed   to   popularize   and   sell   cheap   clothing   in   the   latestfashion   styles   to   a   large   part   of   the   population.).and  developed  very  quickly  due  to  the  mechanization  and  modernization  of  all   processes(production.     Main competitors The  main  players  in  the  textile  retail  sector  in  Spain.which   have   realized   the   advantages   of   combining   distribution   and   production.   traditionally.  and  creating  the   concept  of  “shortcircuitdistribution”4.   The   vertical  integration  model  has  meant  that  thecompanies  themselves  are  carrying  out  tasks   that  originally  belonged  to  producers  and  retailers(see  Exhibit  8).   This   mechanization   also   provoked   aconcentration   of   large   textile   companies   with   a   greater   ability   to   raise   capital.  P&T.   production   and   distributionwere   treated   as   very   separate   processes.   distribution.  adapting  to  changes   in   fashion   and   trends.   women.

  P&T   has   a   large   publicity   budget   (encompassing   stores.   Carlota  and  Ezequiel   Two   other   textile   companies.  their  virtual  store.billboards.   a   Spanish   textile   chain.  creation  of  a  single  brand  aimed  at  a  large   populationsegment  with  basic  or  highly  fashionable  products  and  sales  through  large  stores   (of   more   than250m2)   to   the   global   customer.   Oswald.   have   a   strong   presence   on   a   national   level.   From   time   to   time   P&T   launches   small   collections   designed   by   fashion   designers   andcelebrities.   This   is   based   on   the   zero   stockphilosophy   that.   In   this   model.P&T.  Swedishand  Norwegian  markets.   Their   products   are   mainlyaimed   at   the   male  market  (with  the  exception  of  Olivia  and  Ezequiel).   from   Karl   Lagerfeld   and   Viktor   &   Rolf   to   Madonna.                             .   less   abundant   deliveries.   through   the   constant   monitoring   of   the   market.   Heliodoro   and   Roxana.  They  also   distribute  their  own  cosmetics  and  accessories.  operating  since  1998.Paulino.   a   Finnish   retailer.   comprises   Ezequiel.   magazines.   Miller.   Ezequiel.  The  company’sproducts  include  collections  for  men  and   women  (including  maternity  clothes)  as  well  asdesigns  for  teenagers  and   is   essential   to   maintain   the   flexibility   of   all   the   agents   (especially   those   subcontracted)  who  must  respond  to  demands  in  a  verylimited  time  frame.  particularly  strong  in  the  German.   catalogues.   makes   new   garments   available   throughout   the   year.  P&T  designs  and   distributes.founded  in  1965  in  Italy.   The   other   textile   giant   is   P&T.   since   this   is   their   mainstrength.   Carlota.   Internet   and   adverts)   using   professional   models.  capacity  to  supply  on  a  global  level.  However.   but   does   not   make   what   they   sell.   only  works  in  theNordic  countries.  given  the  changes  in  the  market.   Olivia.       The   main   characteristics   of   Eva’s   management   module   are   flexibility   at   each   stage   of   the   valuechain.but   are   not   direct   competitors   with   Sedna.  The   companybasically   invests   in   the   centralization   of   their   production   activities   and   sells   their   clothingthrough   licensed   dealers.   TheFinnish   brand   shows   the   price   of   their   products   in   their   advertising.4   Short   circuit   distribution   arises   from   the   need   to   effect   more   frequent.   since   their   customer   profile   is   different.   The   Finnish   group  is  alsocommitted  to  on-­‐line  sales.   The   company   sells   though   their   own   stores   and   does   not   make   use   of   other   commercial   modelssuch   as   franchises   or   joint   ventures.   Carlota   and   Ezequiel.   Alsotheir   logistics   system   allows   them   to   supply  clothes  to  their  store  daily.  places  an  emphasis  on  brightly  colored  casual  knitwear.

    Exhibit  2   Sedna's  purchase  quota  (%)         Exhibit  3   Average  age  of  workers*     *  Data  for  Spain     .EXHIBITS Exhibit  1       (I)  The  Annual  Accounts  from  2007  have  been  prepared.  in   accordance  withthe  regulations  established  in  the  International  Financial  Reporting  Standards   (IFRS).  applying  the  legislation  inforce.  the  same  as  those  of  2005  and  2006.

  Exhibit  4   Sedna’s  worldwide  presence       Sales  figures  for  overseas  markets         Exhibit  5   Sedna’s  franchise  conditions         .

355     467.759     2007   552.26     456.978     372.093     888.167     2006     485.   Exhibit  6   Number  of  Sedna  stores   Description   2003   2004   Total  number   704     768     of   stores   at   the   end   of   the  tax  year     Number   of   242     246   Sedna-­‐ owned   stores     Number   of   462     522   franchised   stores     Number   of   72     75     countries   with   Sedna   stores       Sedna's  sales  by  type  of  business     Sales  by  type   2003     2004   of  business     Sales   in   432.949   429.381     franchises     Amount   of   779.298   Sedna-­‐ owned   stores     Sales   to   346.596     942.356   .836     459.020.814     831.679     net  revenue                           2005   866     2006   995     2007   1094   261     313     381   605     83     682     89     713   89   2005     459.407   1.

          Source:  Caixa  Catalunya  based  on  INE  data.         Industrial   occupation   in   Catalonia   between   1978   and   2006.       .   Absolute   data   inthousands   of   occupants.Exhibit  7   Industrial   occupation   in   Catalonia   between   1978   and   2006.   Size   of   occupation   as   apercentage  of  total  industry.

        Exhibit  8   Vertical  brand  model       Exhibit  9   Fashion  sector  players           .Source:  CaixaCatalunya  based  on  INE  data.


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