Coach is a publicly traded organization that has built its reputation on constructing quality and durable…

COACH INC. (COM)

INTRODUCTION Coach is a publicly traded organization that has built its

reputation on constructing quality and durable handbags and accessories. Coach is an organization that represents stability and permanence, performance driven, and consistently seeking new ways to improve weak areas of their business structure. Coach has been in existence for 73 years, a company demonstrating aggressiveness and longevity. Because we live in a competitive society, having the ability to embrace change and remain competitive is the foundation of remaining an industry leader. Coach exemplifies all these aspects.

COACH (COH) HISTORY Established in 1941 as a family-run

workshop in a Manhattan Loft 1946 Miles Cahn joins the Company 1950 Miles runs factory for owners 1960 the addition of cowhide purses

to the production process and the invention of Coach trademark and the buyout in 1961

Late 1970’s and Early 1980’s The company began direct marketing by starting a mail-order business and the opening up the first specialty store

1985 The sell of Coach Inc., to Sara Lee Corporation for 30 million and expansion of the product line

1988 The company begins expanding internationally in England and Japan

1989 Sales reach 100 million, five times more than 1985

1992 Addition of outerwear and luggage to product line

1999 The company enters into e-commerce

2000 Coach becomes a publicly traded organization

2004 Coach exceeds 1 billion in Sales 2008 Coach begins a major expansion

into China

www.Business Essentials.com

http://www.business/

COMPANY PROFILE Coach Inc, a marketer and a Global leader of high-quality accessories, is

currently transforming and reorganizing Coach to become more aggressive in the selling of apparel, and a global lifestyle organization, because of the importance of staying competitive, and to adapt to consumer preferences.

Coach is an organization that has no limits “Coach Distribution strategy is multi-channel. “As of July 2013, there were over 500 coach stores in North America, over 400 directly operated locations in Asia, and 20 in Europe.

Coach also operates e-commerce websites in the United States, Canada, Japan, and China with informational websites in over 20 other countries. Coach has built a strong presence globally through Coach Boutiques located within select department stores and specialty retailer locations in North America, and through distributor- operated shops in Asia, Latin America, the Middle East, Australia, and Europe.”

Coach Operations are mainly through third party vendors and independent contractors to sustain their enormous clientele and uphold efficiency.

MISSION STATEMENT

“Coach seeks to be the leading brand of quality lifestyle accessories offering classic, modern American styling”

VALUESThe Brand is Our Touchstone

Customer Satisfaction is Paramount Integrity is Our Way of Life Innovation Drives Winning Performance Our Success Depends on Collaboration

SWOT

Internal Origin (attributes of theOrganization)

External Origin(attributes of the environment)

(

StrengthsImprovement in

Profitability Indicators

Healthy Liquidity Positions

Broad Product Portfolio

Distribution Networks

Weaknesses

Revenue Concentration US

OpportunitiesBusiness Expansion

InitiativesStrategic AcquisitionsGrowth Prospects: E-

Retail

ThreatsCompetitive Environment

Changing Consumer Preferences

Counterfeit Goods Market

Rising Manpower Costs

REVENUE

2010 2011 2012 20130

1000000

2000000

3000000

4000000

5000000

6000000

Series 1Column1Column2

www.Hoovers. com

http://www.hoovers/

COACH OF NEW YORK

www.coach.com

EMPLOYEE RELATIONS

•In the Coach environment, all departments work together interdependently towards the same goal.•“It has always been our belief that the Coach Brand is driven by the power of our people: Strong, talented and dedicated employees who share our vision, believe our brand, strive for excellence, bring sense of pride and ownership to their work, and embrace the qualities we value at Coach: •Passion, Tenacity, Optimism, Inquisitiveness, Flexibility, Collaboration, A focus on winning performance, A belief in the boundless opportunities of Coach”•Currently, 18000 employees globally.

PayBase Salary, Bonus, Stock,

Stock Options

Health InsuranceMedical, Dental, Vision, Prescription, Health Care

Flexible Spending Account, Employee Assistance Program

Financial ProtectionLife Insurance, Dependent Life Insurance, Accidental Death &

Disembursement Insurance, Business Travel Accident, Short-term and Long-term Disability,

Dependent Care Flexible Spending Account

Employee ExtrasCoach Product Discount, Tuition Assistance Program, Matching

Gift Program, Employee Referral Bonuses, Technology

Discounts, Transit Program Discounts, Entertainment,

Travel & Shopping Discounts

Savings & Retirement Plans401 (k) Savings Plan, Profit-

Sharing Plan, Employee Stock Purchase Plan

Paid Time OffVacation, Holidays, Sick Time

EXECUTIVE OFFICERS

EXECUTIVE CHAIRMAN CHIEF EXECUTIVE OFFICER

www. Coach.com

MANAGEMENT STRUCTURE

Executive ChairmanLew Frankfort

Executive Vice President,

Corporate Affairs,General Counsel and

SecretaryTodd Kahn

Executive Vice President,

Human Resources

Sarah Dunn

Executive Vice President and

Chief Financial Officer

Jane Nielsen

Board of Directors

Chief Executive Officer

Victor Luis

HANDBAG AND APPAREL

www.coach.com

COMPETITORS Dooney & Bourke Kate Spade Michael Kors

COMPETITOR ANALYSIS

DEBT RATIO INTEREST COVERAGE

Debt Ratio0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

1.47

1.03

0.19

1.66

CoachKate SpadeMichael KorsIndustry Average

Interest Coverage0

100

200

300

400

500

600

700643.5

27.2

413.4

7.72


COMPETITOR ANALYSISCURRENT RATIO NET RECEIVABLE TURNOVER

Current Ratio0

1

2

3

4

5

6

7

2.87

1.46

6.02

3.49CoachKate SpadeMichael KorsIndustry Average

Net Receivable Turnover0

5

10

15

20

25

22.05

12.0113.11

10.4

CoachKate SpadeMichael KorsIndustry Av-erage

COMPETITORS ANALYSISGROSS PROFIT MARGIN PRICE EARNINGS PER SHARE

Gross Profit Margin0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%71.81%

57.40%59.89%

56.11%


Price Earnings Ratio0

10

20

30

40

50

60

14.22

53.19

44.16

22.47


COMPETITOR ANALYSIS

INVENTORY TURNOVER OPERATING PROFIT MARGIN

Inventory Turnover0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2.68 2.66

3.85

1.39


Operating Profit Margin

-4

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

0.3

-3.6

0.3 0.3


WOMEN AND MEN SUNGLASSES

STATE OF INDUSTRYThe economy is currently stable but consumer confidence is still below average.

“If you are an owner of Coach, you’re working with a company very good at innovating and understanding their customer and doing research around who their customer is, “said Leah Endalkatchew, an analysts at Ariel investments, which purchased more than a half-million shares of Coach in February despite the company’s poor second-quarter results ‘Coach has done a really good job of expanding its brand internationally, and there’s still a lot of growth left to gain,’ she added.”

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Series1

www.Morningstar Market Price $44.65 5/1/2014

MEN’S WALLET AND WATCH

WOMEN’S PERFUME AND TRAVEL BAG

CONCLUSION AND RECOMMENDATIONS Coach has been in existence for 73 years representing integrity, longevity and

stamina. After conducting an extensive research paper on Coach Inc, and a business analysis, Coach has a reputation for excellence in their industry. Because we live in a competitive society, having the ability to embrace change and remain competitive is the foundation of remaining an industry leader. Coach is an organization that is governed around principles, philosophies, rules and regulations that direct their operations. Coach developed these guidelines because of the importance of informing their employees, suppliers, and joint partners of who they represent as an organization, their goals and mission of Coach as an Organization. In my opinion, after taking numerous business courses and gaining knowledge of what it takes to be a successful and competitive organization, Coach represents a company that possesses these features, a reputable, competitive, and successful organization, therefore, no recommendations is necessary.

REFERENCES www.coach.com/ managementparadise.com en.wikipedia.org www.coach.com/international

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Coach is a publicly traded organization that has built its reputation on constructing quality and durable…