The Tyrant Billionaire

Luxury goods industry

"Manufacturing makes money based on the scale of the industry, while luxury goods profit from branding. With our super stars and the media industry as a support, we have a high level of publicity, which can create a batch of luxury brands.

"The profit margin for manufacturing is often only around ten percent, while the profit margin for luxury goods can be several times or even dozens of times higher. Leather goods, clothing, perfumes, scarves, watches, jewelry—for example, a bag that costs only $10 to make can sell for $2000. Why? Because of the added brand value.

"We can acquire shares in luxury brands or create our own. As long as the promotion is in place, any product can become a luxury item."

Finally, Hardy looked at Andy.

"In addition to the current departments, the group company needs to establish another very important department."

"What department?"

"A think tank."

"Management is the body, and the think tank is the brain. It can provide the company with policy research and consultation, summarize business intelligence, offer policy design and plans, and guide company decisions.

"One person's intelligence is ultimately insufficient. If we gather a group of smart people, we can exert great power. The group company has a block structure, and the think tank can connect these departments and subsidiaries."

Andy supported Hardy's plan and took it back to add details. Two days later, Hardy Group held its first group meeting to announce the company's three year plan.

Of course, some plans can be made public directly, while others remain top company secrets known only to a very few.

These plans design the company's future. If leaked, they could invite attacks from competitors or allow them to get ahead.

After the meeting, each company and department had to set their own three year plan, to be submitted to Hardy for review.

For example, Wash Mining, the first listed company Hardy acquired. Since Hardy got it, it hasn't been well managed, only operating a few stock prices and extracting a few million dollars.

This time, Hardy made a plan. A good listed company shouldn't be wasted, so he ordered the current exploration supervisor, Columbus, to expand the exploration team and search for new mineral sources.

"Okay, boss."

"How do you plan to carry out your work?"

"Oh, expand the exploration area and put effort into places across the U.S. that might have minerals," Columbus said.

Hardy shook his head and took out a map from the drawer. "This is a map of Australia. Experts say Western Australia is a dense mineral distribution area. Only a few companies are there now, and much of it hasn't been surveyed yet. Take people there.

Australia's iron ore, bauxite, coal, gold, and copper reserves are among the top in the world. Now it's 1948, and many large mines of later generations haven't been discovered yet. Now is a good time to enter Australia's mining industry.

In his previous life, Hardy went to Australia to play. Friends introduced him to some situations and mentioned a few place names, but Hardy didn't know the specific locations.

He only knew that Australia's minerals were mainly concentrated in Western Australia. The rest is up to Columbus to discover. He found the New World, so finding mines shouldn't be a problem."

After dealing with group matters, Hardy relaxed.

He had a president and managers for various departments and companies. If he did everything himself, what would he need them for?

A few days later, Andy reported to Hardy that Pepsi Cola Company had sent news.

Just after New Year's Day, Pepsi Cola announced its financial report for the previous year. Compared to the previous year, Pepsi's business shrank again in 1947, and its profitability continued to decline.

Affected by the news, Pepsi's stock price fell.

Then some bad news circulated in the market, saying Pepsi's financial situation was very poor, on the verge of collapse. The shareholders' meeting was preparing to negotiate with Coca Cola again, hoping Coca Cola would acquire them.

This was already Pepsi's third request for Coca Cola to acquire them.

The news caused Pepsi's stock price to fall again.

A few days later, Pepsi's syrup production plant in San Francisco had a pipeline failure, leaking nearly 50,000 liters of syrup and halting production for three days, causing losses of up to tens of thousands of dollars.

This news caused Pepsi's stock price to drop significantly again.

Then, the Global Times reported that their reporter interviewed Coca Cola, asking if they would acquire Pepsi. Coca Cola's president clearly stated they would not acquire Pepsi.

Finally, analysts commented: Pepsi and Coca Cola have been competing for the market for decades. In Coca Cola's eyes, Pepsi has always been an imitator. In their market reports, they refer to Pepsi as "the imitator" rather than its proper name.

Pepsi and Coca Cola taste the same. Coca Cola acquiring Pepsi makes little sense and could cost tens of millions of dollars, possibly even touching some antitrust laws. So, Coca Cola acquiring Pepsi is highly unlikely.

If Pepsi doesn't develop soon, its only outcome might be shutdown and bankruptcy.

This report caused the market to lose confidence in Pepsi, leading to panic selling and a significant drop in stock price, from $8.3 per share at the beginning of the year to $5.6 per share, evaporating over $5 million in market value.

Even many shareholders lost confidence in Pepsi's future.

At this time, more bad news came from Pepsi. Hardy Group, which had recently acquired Pepsi shares, was now Pepsi's largest shareholder. At the latest shareholders meeting, Hardy Group's representative had a fierce dispute with Pepsi's current president, Walter Mack. Afterward, Hardy Group stated that considering Pepsi's situation, it might sell its shares.

The largest shareholder wanted to leave, causing even more panic among small shareholders, and the stock price fell further.

As small shareholders panicked, a financial company approached them, willing to buy their shares. Many shareholders, having lost confidence in Pepsi, sold their shares.

In a short time, this financial company acquired many small shareholders shares, accounting for 18% of the total share capital.

At the same time, Andy absorbed over 8% of the shares in the market. Continue reading at m|v-l'e m,p| y- r

Now, Hardy already controlled 49% of the shares, making him the undisputed largest shareholder.