What went wrong with Wedgwood?

!±8± What went wrong with Wedgwood?

It was the only organization or business?

"For centuries, Waterford Crystal has captured the light over and over again. Consumed in the hands of the artists through their art, light, hugs, dances, and cascades over finely cut crystal," says the Annual Report (April) 2008.

According to the information on the website, Waterford Wedgwood plc was founded in 1986 with the merger of the (Irish) Waterford Glass Group, and (the British) Wedgwood founded. The MissionStatement
on the Web site says: "To remain a global brand portfolio of leading luxury lifestyle with particular attention to the table, gifts and home."

When this task has become impossible? The company is struggling to survive since 2001. It was the wedding market, the dominant market for the Company's products (glass and porcelain), the marriage between the crystal and china was not perfect?

Or did he do all the bridal shops morevulnerable? An agreement in which - in parallel as in the financial markets - companies want to offer everything, but where customer preferences are changing.

The situation is very different in 1986 than in 2008. In 1986, long boom has just begun and the luxury hot, where companies like Gucci in the stock market.
It is not strange that the best years in which the head of the Internet bubble in 2001. Everything was still possible.

But the market wants andStructure is changing. The final blow came from the last three months of 2008, when the credit crunch and the reliance on a single lender (Bank of America) is the last hope disappeared.

The former CEO resigns after giving the financial report of 2008, which in April and David W Scully is completed in August appointed a new CEO.

David W. Sculley CEO of the Group (62), is a partner of investment firm, Sculley Brothers. He joined the Group as director1997 Served on the boards of several private companies. Mr. Sculley was a graduate cum laude from Harvard University with a degree in economics. Prior to forming Sculley Brothers, who was a senior executive with Heinz, where he worked as a director. (1)

From the annual report, the CFO confirmed that the first signs was declared a return to financial health of the early results of last year.

The annual report was very open about the problems faced. The financialResults for the year ended 5 April 2008, are very disappointing, the company reports a pre-exceptional loss of EUR31.6 million in EBITDA (earnings before interest, taxes, depreciation and amortization) compared to a profit of 15 euros . 0 million a year earlier. The loss for the year EUR232.8 million against a loss of EUR71.2 million a year earlier. Both departments declined in sales, the division of crystal of 15% (€ 170 million) and the division of ceramics8% (€ 462 million).

In the same report, the risks and uncertainties are defined: Luxury goods, generally discretionary purchases ... sensitive to developments in the general economy. strong competition ... manufactured in countries with lower labor costs significantly. non-euro currencies (dollar, British pound and Japanese yen). the strength of the brand ... Protection of intellectual property. need to manage the portfolio of brands, models and drawings... in person and through cooperation and brand extensions and licensing agreements. Inventory management for sales showed significantly To satisfy dependency (time to market / quality) from suppliers of raw materials and products purchased from our delivery obligations. complementary channels, instead of the traditional department store efficient and effective management of production systems the ability to access additional funding.

These risks show thatthe market exchange factor played a decisive role in the decline of the results.

This is also what journalists (reports) seem to show is: "Ireland Waterford Wedgwood, the pottery was once a luxury a great wedding gift lists around the world pillar, called in the receivers ..." (2)

A debt burden made it impossible, in a financial market where money is king continued: Waterford Crystal is one of the most recognized brands in Ireland.

It is particularly sad, knowing that the owner "British Wedgwood pottery was founded 250 years ago by Josiah Wedgwood
- One of the fathers of the industrial revolution. "

According to the report, the Group has about 8,000 employees worldwide ... 1900 The production in Great Britain, 800 in Ireland ... 1,000 employees based in Germany, porcelain manufacturer Rosenthal.

He was looking for its range "to modernize, because the economic downturn in key markets - Britain and the United States - and met the strength of the euroResult, while the credit crisis has begun talks with banks more difficult "...

Stocks are in decline since 2001 and on the basis of the stock price is represented as a decimal: 0.01 cents ...

Too bad for those who craft (such as technical skills) and tradition in a market where there is little room left for the style value.

The other day I was watching the New Year concert news' on television and I saw many people wearing only a sweater, and not the traditional costume.People do not know how to value a tradition that is lost here, the market or the handyman?

It seems all too clear a sign of our changing times in which we live