BUSINESS AND MANAGEMENT -- PAPER 1 CASE STUDY PERSONNEL PROFILES CASE STUDY: LadyA. For use in May and November 2015

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Darlene Phillips
6 years ago
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1 LadyA (María Immaculada Alejandra González Carroccio) Was born in 1978 in Miami, USA to Mr and Mrs Carroccio who had fled Cuba in 1973 (lines 16, 3) Her real name was Maria Immaculada Alejandra González Carroccio (line 1) Will be aged 37 this year (inferred from line 16) Was brought up as an American and was encouraged to speak in English at home with her parents (lines 17, 18) As a child, she sang in choral groups, at school and at church (line 18) Her parents paid for her to attend after-school dance lessons (line 19) Started getting occasional jobs as a model for local fashion catalogues and magazines for her good looks from the age of 12 (line 20) Her parents put her earnings into a college fund which would pay for her university later (line 21) Was cast in 1994, at the age of 16, as a young Hispanic woman who could sing and dance in one scene in the film La Bella Rosa (line 19) The film role led to Alejandra being offered a contract by a music label to produce a CD album (line 27) Being unfamiliar with negotiations, Alejandra hired Gloria Woolrich as her agent (line 28) Being still under 18, Alejandra s parents signed the contract with the music label on her behalf (line 30) Gloria promoted Alejandra as Lady Alejandra to target the Spanish-speaking market in the US (line 31) Her first CD album Presentación Lady Alejandra saw one song reach number one in the music charts in Florida (line 33) Alejandra earned much income from the copyrights and royalties from her CD sales (line 34) Although Alejandra s parents were happy at the success of her first CD they did not want music to distract her from her studies at this stage (line 41) They agreed to her doing the second CD, Viva Lady Alejandra, but only reluctantly (line 41) Her second CD album proved even more successful than her first one (line 42) In the final year of high school, she decided not to go to university and instead moved to Los Angeles to build a career as a musician as she wanted to be a star, leaving her parents very disappointed (line (line 45) Hired a new agent, Ruth Liebermann in Los Angeles, who, among other things, was to promote her (line 48) Ruth believed that Alejandra needed a brand identity and that future revenue streams would be based on that brand, which was Alejandra herself (line 53) Ruth planned to develop extension strategies to extend the life of the product Alejandra (line 49) Alejandra had an identity based upon her youthful and innocent look, her powerful voice and her Hispanic heritage (line 55) Upon Ruth s suggestion that Alejandra dress more like a young woman, she began going to Gavin Pratt, a famous hairdresser and style expert (lines 56, 59) This led to a new revenue stream from her appearing on the covers of high-profile fashion magazines (line 60) Focus groups showed that some English-speakers did not like the name Lady Alejandra leading Ruth to suggest that she change her name to LadyA (lines 64, 65) By 2000 and at 22 years of age, LadyA was one of the most successful musicians in the USA (line 67) She was particularly popular with English-speaking teenage girls and young women (line 68) She also appealed to Hispanics who saw her as a shining success story of a Hispanic American (lines 70, 71) -

2 By 2001, she was earning millions from CD album sales, concerts, magazine covers and music videos (line 73) She employed many full time core employees, temporary employees and peripheral employees (lines 74, 80, 81) Was very inconsistent and unpredictable in her style of leadership with her employees (lines 84, 86) Was sometimes autocratic and at other times adopted a laissez-faire leadership style (lines 84, 86) Employees suffered from poor communication with her (line87) The employees when complaining behind her back, mockingly referred to her as la princesa (line 88) Originally operated as a sole trader then changed to a private limited company, LadyA Management Limited (LAM) to get the protection of limited liability (lines 89, 90, 91) 98% of the shares in LAM are owned by Alejandra and remaining 2% by her parents and Ruth Liebermann (lines 91, 92) By 2000 music artists like LadyA were expected to produce their own videos and upload them to video hosting websites which did not generate any direct revenue for artists (line 100) Artists like LadyA were suffering from falling sales revenue which was made worse by the economic downturn of 2008 (lines 102, 103) LadyA, like other artists, had to transform herself into a media personality and find ways to generate revenue from this branded identity (line 104) In 2009, started appearing in many above the line and below the line promotions of various types of carefully chosen products in order to strengthen her brand identity (line 106) Her brand identity was that of a beautiful, mainstream American yet one with Hispanic passion and intensity (lines 107, 108) In 2009, she started communicating with her fans through various social networking websites (line 109) In 2010, started offering her own product line of perfume and cosmetics under the LadyA family brand name (line 110) The main target market for LadyA products is teenage girls and young women (line 113) By 2011 LadyA perfume and cosmetics were being sold in a nationwide chain of department stores in the USA (line 119) In 2011 she reorganized the business by appointing a Managing Director and a Human Resources Manager but continued to manage all her household employees personally (line121) Delegated some business functions but kept a close interest in all decisions through her regular meetings with the Managing Director (line 123) Employees complained less after the reorganization because of the clear roles, systems and procedures that were put in place (line 125) Married an Italian investment banker, Rafaele Eco in 2012 (line 126) Purchased a large mansion in Hollywood after her marriage (line 127) Was at the peak of her media power, wealth and fame over the next few years (line 128) Was more mature and business-oriented than when she was in her twenties (line 129) Her leadership style matured to being paternalistic and she became more consistent (line 130) Turns 37 in 2015, so was worried about the next phase of her career in the USa where many female musicians and film stars are known to struggle to remain popular once they reach their forties (lines 133, 134, 135) Hired Kersey & Joyce (K&J) as consultants to provide her with some strategic options for the future (line 136).

3 Mr Carroccio Fled Cuba and moved to Florida, USA in 1973 with his wife where they were granted political asylum (line 3) Had limited savings when he arrived in the USA but was determined to succeed (line 4) Thought the best way to achieve financial security was to work independently by operating as a sole trader (line 6) Wanted to set up a shoe repair shop in a Spanish-speaking neighbourhood of Miami (line 7) Got turned down for bank loans due to his poor cash-flow forecasts but eventually got a grant from a government agency that helped entrepreneurs (lines 7-9) Struggled to satisfy even basic needs such as food and shelter when he first arrived in the USA with his wife (line 38) Profits from his shoe repair shop along with his wife s wages eventually helped them to maintain an economically stable household (lines 14-15) Only by working long hours did he and his wife achieve economic security (line 39) Became a father in 1978 when Alejandra was born Was keen for his daughter to have a normal American life (line 16) Although he spoke Spanish at home with his wife, both Mr and Mrs Carroccio wanted Alejandra to speak to them in English (line18) Encouraged Alejandra to sing in choral groups, at school and at church while also paying for her after-school dance lessons (lines 18-19) By 1990 when Alejandra was 12 and began to get occasional jobs as a model, Mr and Mrs Carroccio put her earnings into a college fund (lines 20-21) Mr and Mrs Carroccio signed the contract on behalf of Alejandra when a music label offered her a contract to produce a CD album (line 30) Both Mr and Mrs Carroccio strongly emphasized education (line 37) Reluctantly agreed to his daughter launching a second album, fearing it would distract her from her studies (line 42) Was very disappointed when Alejandra, aged 18, decided not to go to university but focus instead on her career (line 44, 46) Along with Mrs Carroccio and Ruth Liebermann, own 2% of the shares in the private limited company formed by Alejandra, LadyA Management Limited (LAM). Mrs Carroccio In 1973, fled Cuba with her husband to Florida, USA and was granted political asylum (line 3) Had limited savings when she arrived but was determined to succeed (line 4) Had difficulties getting a job when she first arrived in the USA as she did not speak much English (line 10) She attended English classes organized by a local charity (line 11) Found a job in the cafeteria of a local school (line 12) Wages at the school were low but she received training and some fringe payments such as health insurance (line 13) Her wages along with the profits from Mr Carroccio s shoe repair shop helped them to maintain an economically stable household (line 14) Gave birth to her first child, Alejandra, In 1978 (line 16) Wanted her daughter to have a normal American life (line 16) Encouraged Alejandra to speak in English at home (line 18)

4 Encouraged Alejandra to sing in choral groups, at school and at church while also paying for her after-school dance lessons (lines 18-19) Put Alejandra s earnings (from her occasional jobs as a model from the age of 12) into a college fund (lines 20-21) Mr and Mrs Carroccio signed the contract on behalf of Alejandra when a music label offered her a contract to produce a CD album (line 30) Strongly emphasized education (line 37) Reluctantly agreed to her daughter launching a second album, fearing that it would distract her from her studies (line 42) Was very disappointed when Alejandra, aged 18, decided not to go to university but focus instead on her music career (line 44, 46) Along with Mr Carroccio and Ruth Liebermann, owns 2% of the shares in the private limited company formed by Alejandra, LadyA Management Limited (LAM) (lines 91, 92). Gloria Woolrich A local Hispanic woman who, in the mid-nineties, worked with Spanish-speaking performers (line 28) Was hired by Alejandra, who in 1994 being not yet 18, needed an agent to better represent her in her negotiations with the music label which offered her a contract to produce a CD album (line 30) Believed that Alejandra should target the Spanish-speaking market in the USA (line 31) Promoted Alejandra as Lady Alejandra, a name that emphasized her Hispanic origins with a touch of elegance (line 31) Was dropped by Alejandra in 1996 upon her turning 18 having moved to Los Angeles where she decided to pursue a career as a musician instead of going to university (line 47). Ruth Liebermann Hired by Alejandra in Los Angeles when, in 1996 at 18, she had decided to move to LA (line 48) Had successfully turned young stars into media sensations (line 48) She was to help Alejandra with everything: o Buying an apartment in the most fashionable neighbourhood in Miami o Recruiting household employees o Getting agencies to establish concert tours o Producing more CD albums, and, more importantly o Promoting her (lines 49-51) Believed that unless the product life cycle of music stars was carefully managed, it could often be short (line 52) Believed that Alejandra needed a brand identity with revenue streams to be based on that brand (lines 53-54) Developed strategies to extend the life of the product Alejandra herself (line 54) Advised Alejandra to dress more like a young woman and less like a child (line 57) Believed Alejandra needed to be less ethnic to broaden her appeal (line 61) Based upon feedback from focus groups who did not like the name Lady Alejandra, she recommended a new name LadyA for Alejandra (lines 65-66) Ruth, along with Mr and Mrs Carroccio, owns 2% of the shares in LadyA Management Limited (LAM) (line 92).

5 Gavin Pratt A famous hairdresser and style expert based in Los Angeles (line 59) Alejandra started going to Gavin around 1996 when she moved to LA at 18, in an effort to get a more glamorous image (upon Ruth s suggestion that she needed to dress more like a young woman and less like a child) (line 58) His efforts led to Alejandra appearing on the cover of high-profile fashion magazines, creating another revenue stream (line 60) Asked by LadyA to join her as a full-time employee in 2001 to plan all aspects of her clothing, makeup and hairstyle (line 76) One of LadyA s core full-time employees (lines 76, 80). Events manager Hired in 2001 to manage LadyA s concerts (line 78) Arranged bookings of venues and hotels (line 78) Helped hire a company specializing in logistics to transport equipment and set up stage at each location (line 79) One of LadyA s core employees (line 80). Accountant Hired in 2001 to help LadyA manage her revenue and all the many expenses in her new life (line 74) One of LadyA s core employees (line 80). Core employees By 2001, with her increased popularity, revenue and expenses, LadyA decided to employ some core employees, which included: o A full-time accountant o A band o A group of dancers o Music and video technicians o Gavin Pratt o Events Manager (lines 80, 74-79). Temporary employees Hired from 2001 at each concert venue to help set up the venue and stage (line 80).

6 Peripheral employees For her increasingly extravagant lifestyle, by 2001, LadyA had many peripheral employees: o Two personal assistants o Two housekeepers o One chef o One personal trainer o One driver o One chief bodyguard o 6 bodyguards (lines 81-83) On account of LadyA s inconsistent style of leadership, the employees never knew what to expect (line 84) Suffered from poor communication (line 87) Had some exciting moments working for a superstar (line 87) Frequently complained behind Alejandra s back, mocking her la princesa (line 88) Increased number of peripheral employees needed following Alejandra s purchase of a large mansion in Hollywood after her marriage in 2012 (line 128) Complained less following the restructuring of the business in 2011 (line 125). Rafaele Eco An Italian investment banker (line 126) Married LadyA in 2012 (line 126) Purchased a large mansion in Hollywood with his wife (line 127). Kersey & Joyce (K&J) Business consultants who specialize in the strategic direction of brands (line 137) Hired by LadyA in 2014 to help her identify strategic options available to her in her late thirties as she planned the next phase of her career and her life (lines 132, 138) Came up with three strategic Options for LadyA (line 137). Other employees 2 personal assistants * 2 housekeepers * 1 chef 1 personal trainer * 1 driver 6 bodyguards and 1 chief bodyguard. * see key terms file for definition and outline of roles/responsibilities

BACKGROUND: aribbean (C-PAC)

BACKGROUND: aribbean (C-PAC) BACKGROUND: The creative economy which includes audiovisual products, design, new media, performing arts, publishing and visual arts is not only one of the most rapidly growing sectors of the world economy,