New Zealand Business Tycoon: Graeme Hart
Graeme Hart
Dear Readers,
- About the Business
- Business Ideas, amount of capital and current international markets
- Reasons of success
- Limitations
- Suggestions
We will discuss each of the above-mentioned outlines one by one; please keep reading us to add knowledge into your knowledge.
1. A
brief biography of the chosen business tycoon from birth to present age (200
Words)
Graeme
Hart is the richest person in New Zealand with total assets of 8.5 Billion US
Dollars according to Forbes's real-time net worth as of October 14, 2021. He is
the managing director and owner of Rank Group Ltd, which is a holding company
for companies making everyday products like toilet paper and packaging
material. Hart has come a long way due to his remarkable mindset. He is an
expert in finding floundering businesses and rejuvenating them. He is ranked
274th in the Forbes World's Richest People List 2021.
Graeme
Hart was born in 1955 in Auckland, New Zealand. Hart was dropped out of school
at the age of 16 and did some trivial jobs like tow truck driver to make both
ends meet. He was a dreamer such works were as easy for him as shooting fish in
a barrel. Aiming to stand up in the list of professionals he studied MBA at the
University of Otago in 1987. Now he has a family with two children and lives in
a $40 million clifftop mansion. While Hart is famous to keep his privacy he was
notable for the launch of a yacht worth $100 million in 1997. He launched
another yacht Ulysses in 2014.
2. Business
ideas and information, starting and the current amount of capital, current
international markets (300 Words)
Graeme Hart started his first business of Hart Printing and
Office Supplies in 1977. Hart was not satisfied with the usual profits of the
printing press and decided to continue his studies to live up to his
expectations. His MBA thesis reflects his success strategies for financial
services though not achieved at that time. Hart proposed a way to flourish
struggling businesses by fund debt from successful businesses, which ultimately
could increase the equity of initial investors. The title of his thesis was “An
Investigation into the Business and Operations of Carlton Party Hire”.
A big step came in Hart's life when he purchased a
Government Printing Office on generous terms: He was allowed to pay some part
of the total purchasing amount after getting profit. He bought Whitcoulls Group
Ltd. at that time and kicked at the cane by turning the sinking business into a
floating one. Five years later he sells Whitcoulls with a 500% profit.
Being a leveraged buyout private equity investor, Hart has
gone through bad times such as in 1997 Burns, Phillips, and Co Ltd become
bankrupt. But Hart managed to take loans and was able to develop his company
status again. In 2004 he became the whole owner of the company and he sold 20%
of it in 2007 for NZ$675.8
He bought Carter Holt Harvey for almost US$3 billion in
2006, reconstructed the whole business finances, and sold its forests, supplies
business, and packaging business separately with almost US$3 billion profit.
These all deals were completed till 2014. In the same way, he bought and sell
many businesses and earned huge profits. Now, he has shifted his business
interest to the packaging business.
He is the owner of UCI Holdings Ltd/New Zealand, Packaging
Holdings Luxembourg II SA, and UCI Holdings Ltd. And he is the board member of
Rank Group Limited. Since 2013, he is paying his debts by selling the
subsidiaries of Rank Group.
3. Reasons
of Success (150 Words)
Graeme
Hart is no doubt an inspiring personality. His life story demonstrated his
courage to take risks. Not everyone can take a step to reconstruct struggling
businesses. People want easy stuff but this is not the case with Hart. He has
a deep notion about where and how to invest time and money.
Hart
showed significant skills in establishing fundamental business principles. He
made intellectual changes that lead to big achievements. For example, whenever
he bought a business he spent a good amount of time training its employees.
He trained them to make a profit.
Also, Hart has the ability to focus on small details and to look at things in different ways. For example, when Hart bought Whitcoulls Group he just rearranged
the books in a way that people could see the covers rather than the spines. This
sort of adroitness increased the sales immediately and Hart made an $8 billion
fortune from that business.
4. Limitations
(150 Words)
Currently, Graeme Hart is known for his company, The Rank Group. He has achieved
milestones by making profits through this company. But, there are always some
weaknesses or limitations in a company’s working and with the changes in
demands from the innovative world. In the same way, The Rank Group has some
limitations. The company seems to have
low assets than liabilities and it proffers less focus on research and
development than the competitors.
Rank Group is working on lending and making a profit,
resulting in cash flow. Sometimes, the company has insufficient profit which
shows a gap in financial planning. Moreover, most products of the company have a low market share and a sprinkling of products has a high market share.
It is necessary to increase the manpower to motivate the employees. Budget allocation in different departments is not
efficient For example the Quality Control Department has a low budget apportion
which can lead to compromised quality of products.
5. Suggestions
for improvements for long-term growth, survival and sustainability (200 Words)
Hart
is a smart cookie, his expertise in managing fiancés is not needed to mention.
The Rank Group can achieve long-term growth by connecting its strengths with
advanced technology. The marketing becomes easy and productive and the cost can
be reduced by the use of technology. A close eye on marketing strategies can
improve the fruitfulness of the company.
According
to a study, average household income has increased which has increased the
expenditure of customers. Attracting new customers and expanding the targeted
audience can cause obvious reap in financial reward. Introducing its products
to new niche markets will also help.
Inflation
has been low and is expected to remain low for the next two years. This is an
opportunity for Rank Group Plc as its installation costs will remain low for
the next two years.
Packaging
businesses depend on the transport industry. After the coronavirus pandemic,
the transport industry is re-emerging. It will also benefit the rank group by
reducing the overall cost of transportation.
The
health and fitness industries are making a profit as people become more aware
of their health, especially after the coronavirus pandemic. Some companies have
started manufacturing health products. If it starts developing health-related
products, the Rank Group could thrive.
*****
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