Ace Footwear is an athletic shoe company that operates globally. It aims to gain market share in multiple regions while maintaining financial goals like earnings per share and return on equity. Initially using a differentiation strategy, it later shifted to low-cost to be more competitive. Key competitive advantages include low retail price, quality rating, advertising expenditures, and delivery time. The company implements its strategy through plant upgrades, workforce training, marketing spending, and stock repurchases. It also engages in corporate social responsibility initiatives to improve its image rating. Globalization factors influence the company's production and sales decisions across different cultural markets.
Grizzly Footwear is a company that produces athletic footwear for customers around the world. It operates plants in North America, Latin America, and Asia Pacific. The document outlines Grizzly's goals and strategies to increase market share and profits over the next 10 years. Key goals include increasing earnings per share by at least 7% annually, maintaining a return on equity above 15%, and boosting its stock price by at least 10%. Grizzly's strategies focus on maintaining a high quality-to-price ratio, expanding production capacity, and gaining market share in the wholesale and internet sales channels.
The document summarizes Exotic Footwear's performance and strategies over 10 years from Year 11 to Year 16. Some key points:
- Exotic Footwear implemented a differentiation strategy focused on product uniqueness and customer centricity.
- By Year 16, earnings per share had increased to 13.03% from 2.9%, return on equity to 37.5% from 17.6%, and stock price to $267.98 from $41.56.
- Key to success were clear objectives, commitment from team members, efficient leadership, defined roles, decision-making processes, collaboration, and skills.
- Lessons included having one clear leader, delegating tasks, and focusing on quality
BSG Strategy Game - Madaas Footwear PresentationAmmar Matter
Madaas is a footwear company that aims to be the global leader in quality and affordable footwear. Over the past 5 years, it has grown its total revenue significantly through focusing on superior quality, customer health, and worldwide reach. It follows a global best cost strategy and competes primarily with StarTrack across various markets. Going forward, Madaas plans to continue investing in product quality while maintaining competitive pricing to capture more market share, especially in internet and private label sales.
Evolve - the evolution of shoes | BSG - Business Strategy Simulation GameSabrina Bruehwiler
MBA: Strategic Decision Making - Business Strategy Simulation Game
Our vision: https://www.youtube.com/watch?v=FPMPJ40Y4NI
My Team:
Uzi Niazi https://www.linkedin.com/in/uziniazi/
Louise Porter https://www.linkedin.com/in/louise-porter-2542245b/
Also look at my article about how to improve the Business Strategy Simulation Game on our Octalysis Gamification Blog: http://blog.octalysisgroup.com/2017/08/how-to-make-a-boring-simulation-exciting-with-octalysis/
Evolve's vision is to be the global leader of branded footwear, offering the widest choice of ethically produced and stylishly designed shoes for ultimate performance.
We enable people worldwide to express their individuality. Our global appeal, efficient manufacturing facilities and focus on understanding our customers changing needs, delivers a truly differentiated business model.
Challenge Footwear Business Simulation Game megcrowley
This document provides an overview of Challenge Footwear's strategy for expanding into the UK market. It discusses targeting the large urban populations in the UK with shoes for everyday use and sport. The strategy involves a mix of traditional marketing like commercials, billboards, and celebrity endorsements, as well as modern outlets like social media, blogs, and videos. The goal is to create a culturally relevant campaign around overcoming challenges in sports or otherwise.
Leah's Loafers is a shoe company committed to delivering high quality, ethically produced shoes. Their strategy is to differentiate through quality, variety, and customer service. Financially, they aim to maintain credit ratings and returns while growing earnings and stock prices annually. Strategically, they seek to build their brand and image through marketing, pricing, and corporate social responsibility initiatives. Over time they have made adjustments to operations, distribution, and offerings to remain competitive in the industry.
The document outlines the strategies and performance of "The A Team" shoe company. It discusses their strategic vision of being a low-cost industry leader to provide reasonably priced quality shoes. It also summarizes their targets for the next two years which include evolving their branded and private label competitive strategies through various measures like pricing, production capacity, and advertising. The document also discusses their production, workforce, and finance strategies and closest competitors in branded and private label footwear. It concludes with lessons learned like spending money to achieve higher profits and focusing on closest competitors.
BSG Game Final Presentation 2017 - Champion footwear 12 18-2017 version 1Markyamc
Champion Footwear achieved strong financial results from 2011 to 2022 by focusing on quality footwear at sustainable prices while balancing profits and social responsibility. Key strategies included low-cost, high quality shoes; reliable celebrity endorsements; extensive training; and maximizing materials and styling. This led to industry-leading metrics such as a 27.6% operating profit increase and stock price growth of 358%. While some CSR initiatives did not provide clear returns, diversity and efficiency programs helped. Major successes came from high quality positioning and stock buybacks. Going forward, the company will consider a high volume, low price strategy to target untapped markets.
Grizzly Footwear is a company that produces athletic footwear for customers around the world. It operates plants in North America, Latin America, and Asia Pacific. The document outlines Grizzly's goals and strategies to increase market share and profits over the next 10 years. Key goals include increasing earnings per share by at least 7% annually, maintaining a return on equity above 15%, and boosting its stock price by at least 10%. Grizzly's strategies focus on maintaining a high quality-to-price ratio, expanding production capacity, and gaining market share in the wholesale and internet sales channels.
The document summarizes Exotic Footwear's performance and strategies over 10 years from Year 11 to Year 16. Some key points:
- Exotic Footwear implemented a differentiation strategy focused on product uniqueness and customer centricity.
- By Year 16, earnings per share had increased to 13.03% from 2.9%, return on equity to 37.5% from 17.6%, and stock price to $267.98 from $41.56.
- Key to success were clear objectives, commitment from team members, efficient leadership, defined roles, decision-making processes, collaboration, and skills.
- Lessons included having one clear leader, delegating tasks, and focusing on quality
BSG Strategy Game - Madaas Footwear PresentationAmmar Matter
Madaas is a footwear company that aims to be the global leader in quality and affordable footwear. Over the past 5 years, it has grown its total revenue significantly through focusing on superior quality, customer health, and worldwide reach. It follows a global best cost strategy and competes primarily with StarTrack across various markets. Going forward, Madaas plans to continue investing in product quality while maintaining competitive pricing to capture more market share, especially in internet and private label sales.
Evolve - the evolution of shoes | BSG - Business Strategy Simulation GameSabrina Bruehwiler
MBA: Strategic Decision Making - Business Strategy Simulation Game
Our vision: https://www.youtube.com/watch?v=FPMPJ40Y4NI
My Team:
Uzi Niazi https://www.linkedin.com/in/uziniazi/
Louise Porter https://www.linkedin.com/in/louise-porter-2542245b/
Also look at my article about how to improve the Business Strategy Simulation Game on our Octalysis Gamification Blog: http://blog.octalysisgroup.com/2017/08/how-to-make-a-boring-simulation-exciting-with-octalysis/
Evolve's vision is to be the global leader of branded footwear, offering the widest choice of ethically produced and stylishly designed shoes for ultimate performance.
We enable people worldwide to express their individuality. Our global appeal, efficient manufacturing facilities and focus on understanding our customers changing needs, delivers a truly differentiated business model.
Challenge Footwear Business Simulation Game megcrowley
This document provides an overview of Challenge Footwear's strategy for expanding into the UK market. It discusses targeting the large urban populations in the UK with shoes for everyday use and sport. The strategy involves a mix of traditional marketing like commercials, billboards, and celebrity endorsements, as well as modern outlets like social media, blogs, and videos. The goal is to create a culturally relevant campaign around overcoming challenges in sports or otherwise.
Leah's Loafers is a shoe company committed to delivering high quality, ethically produced shoes. Their strategy is to differentiate through quality, variety, and customer service. Financially, they aim to maintain credit ratings and returns while growing earnings and stock prices annually. Strategically, they seek to build their brand and image through marketing, pricing, and corporate social responsibility initiatives. Over time they have made adjustments to operations, distribution, and offerings to remain competitive in the industry.
The document outlines the strategies and performance of "The A Team" shoe company. It discusses their strategic vision of being a low-cost industry leader to provide reasonably priced quality shoes. It also summarizes their targets for the next two years which include evolving their branded and private label competitive strategies through various measures like pricing, production capacity, and advertising. The document also discusses their production, workforce, and finance strategies and closest competitors in branded and private label footwear. It concludes with lessons learned like spending money to achieve higher profits and focusing on closest competitors.
BSG Game Final Presentation 2017 - Champion footwear 12 18-2017 version 1Markyamc
Champion Footwear achieved strong financial results from 2011 to 2022 by focusing on quality footwear at sustainable prices while balancing profits and social responsibility. Key strategies included low-cost, high quality shoes; reliable celebrity endorsements; extensive training; and maximizing materials and styling. This led to industry-leading metrics such as a 27.6% operating profit increase and stock price growth of 358%. While some CSR initiatives did not provide clear returns, diversity and efficiency programs helped. Major successes came from high quality positioning and stock buybacks. Going forward, the company will consider a high volume, low price strategy to target untapped markets.
MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au...Mark Susor
MBA Strategic Management Course. Presentation outlines strategy utilized in global marketplace. The Business Strategy Game_2014 Industry Champion. Competition-based global strategy simulation; senior executive at the best-performing company in an industry setting where teams of students ran companies and crafted strategies aimed at achieving superior financial performance and market leadership; the exercise was conducted in a course at Benedictine University (MBA 671_Strategic Management). Team ranked 6th. Worldwide.
The document outlines strategies for a shoe manufacturing company to achieve the lowest production and distribution costs through economies of scale, best practices, and supply chain management. It recommends an aggressive approach of using high leverage through debt to grow quickly, corner the market through predatory pricing, and acquire excess manufacturing capacity from competitors to further lower costs and increase market share. Financially, it suggests managing equity, debt, stock purchases, and dividends to optimize returns while maintaining adequate credit ratings during the high growth phase.
Ryan Aman's company struggled for several years due to overpricing shoes and poor distribution strategies. In years 11-14, the company accumulated huge debts and lost sales in North America and Latin America. However, the company was able to turn things around starting in year 15 by selling plants, decreasing inventory, and re-entering global markets at lower price points and quality levels. While advertising, celebrity appeal, and free shipping were strengths, high prices, limited retail outlets, and "tunnel vision" strategies had previously hindered the company's performance.
This document outlines the strategies and structure of a company called G6 participating in a business strategy simulation game. It identifies the CEO and other leadership roles. It describes G6's vision, mission, and objectives to grow market share, share price, and revenue. The corporate strategy involves a multi-domestic approach and vertical integration. It analyzes G6's arenas, vehicles, differentiators, and economic logic according to the 5 elements strategy model. It outlines G6's staged expansion nationally and internationally over 16 years and moments of success in certain markets and reaching a high market capitalization.
This document outlines the strategic plans of an athletic footwear company over several years. The original vision from 2010-2013 was to lead the industry through efficient operations and high quality materials. However, the vision was revised from 2014-2016 to focus on efficient operations and low quality materials. Future performance targets are outlined for earnings per share, return on equity, credit rating, and image rating through 2018. The company's strategies across different regions and markets are also summarized.
Glo-Bus Winning Strategy: The tested Strategy to Win Glo-busAmi Sampath
A concise presentation on glo-bus winning strategy, which includes some glo-bus simulation tips for those who are taking up the glo-bus business strategy game. Glo-bus business strategy game demystified is an ebook consist of some valuable glo-bus simulation cheats and tactics to win the game with a minimum effort.
Alpha Sonic is a camera company presenting its long-term direction, strategy, and performance. Its vision is to provide affordable, high-quality cameras and guarantee customer happiness. Its mission is to become the top camera producer by selling quality products. Key performance targets for 2016-2017 include increasing earnings per share, return on equity, credit rating, image rating, and stock price. The company formulates entry-level, multi-level, production, and financial strategies to achieve these goals. It identifies strengths, weaknesses, opportunities, and threats in a SWOT analysis. Areas for improvement include Latin American operations and entry-level camera quality and warranty costs. Lessons focus on compensation, training, and lowering costs.
The company's gross profit and overall profit have increased in the last five years. The company's sales are higher than its expenses, which has allowed it to earn a profit from its operations. Specifically, the company's gross profit margin improved from 9.5% in 2014 to 10.7% in 2018. Both the company's non-current and current assets have increased over the past five years as well. The company's property, plant, and equipment have increased by 75% from 2014 to 2018 through expansions and upgrades.
The document provides a 10-year review of Innova, a camera manufacturer, including key metrics and strategies. Over the 10 years:
- Innova maintained leading market share positions globally and achieved strong financial performance with increasing earnings per share, return on equity, and stock price.
- The company pursued a strategy of prioritizing in-house production and above-average employee compensation to maximize quality and efficiency.
- For entry-level cameras, Innova's strategy was to offer the lowest price through low costs, while for multi-feature cameras the strategy was to offer the best quality through investment in R&D.
Lululemon is a leading athletic apparel company known for its strong brand image. It has potential for expansion through new product lines like menswear and ivivva, as well as geographic growth. However, it faces key risks such as competition infringing on its strategies and instability in executive management. A discounted cash flow valuation estimates Lululemon's fair value at $66 per share, its current market price.
Ford Motor Company is the second largest automaker in the US behind General Motors. This report analyzes Ford's organizational structure, strategic position using various matrices, and recommends a 3-year strategic plan for the new CEO. The analyses show strengths in Ford's global market share and manufacturing expansion, but weaknesses in declining profits in recent years. The recommendations aim to improve profitability through restructuring plans.
This is the case study analysis and presentation for the purpose of final examination by two student of IE Business School.
The sole purpose of this document is to provide the analysis for the final exam. This document should not be used as basis for any calculations/ decisions and user should conduct his/ her own analysis.
CEMO Enterprises is a camera manufacturer established in 2008 with its manufacturing plant in Taiwan. It produces multi-featured and entry-level cameras for export to North America, Latin America, Asia Pacific and Europe Africa. Its vision is to be the leading choice for premium cameras through continual innovation, and its mission is to offer superior quality cameras at good value. Its goals are to be a low cost provider and use the best cost provider strategy. CEMO faces competition from companies E, G and H in entry-level cameras and E, F and G in multi-level cameras. A SWOT analysis identifies strengths in credit rating and image rating, while weaknesses include a narrow focus and high warranty periods. Actions to take include minimizing costs
A Marketing analysis for TESLA company in DBA program by Cairo University. It discussing how TESLA is competing Electric Vehicle Market and advancing the development of such Sector. In addition, Tesla is taking further steps toward future by inventing futuristic cars and innovative technology.
-->Topics Are Covered:
Introduction, Logo Evolution, Brand Power
-->Different strategies:
Global Business Strategy, Segmentation Strategy, Selling Strategy, Organizational Strategy, Human Resource Management Strategy
Hans van Driem has worked in tourism for over 45 years. He began his career as a tour director in Europe in the 1970s, guiding groups from the US. He then took various roles promoting tourism to the Netherlands and Germany. He worked for the tourism board of The Hague and hotel groups before becoming Marketing Manager for Benelux at Crest Hotels from 1980-1983. Throughout his career he has learned from many mentors and colleagues in the industry.
This document outlines the strategy and performance of a shoe company over 20 years. Key aspects of the strategy included positioning the company like Reebok by offering high quality shoes at slightly lower prices, implementing ethics and diversity programs, and investing in sustainability initiatives. The company's annual revenue, earnings per share, return on equity, credit rating, and stock price all increased steadily over the years. The company focused on branded footwear over private labels and distributed shoes globally to optimize production capacity. Lessons learned emphasized monitoring competitors, differentiating business strategies, exceeding investor expectations for financial metrics, and having an advantage in quality or pricing.
BSG Final PaperThe paper is to be an analysis of your strateVannaSchrader3
BSG Final Paper
The paper is to be an analysis of your strategy and firm performance.
Section 1: What is your firm’s strategy? What were your top priorities? How did this guide your approach to the simulator?
Our firm pursued a combination of strategies, which include both global differentiation and focus strategy and we made moves based on previous industry trends. We agreed on pursuing whatever opportunities look most promising based on the competition that arises.
At the beginning, the top priority was to differentiate from the other companies by being able to dominate three out of four markets which are: North America, Europe-Africa, and Asia-Pacific. We concentrated heavily on three markets so that we could start out strong and take as much market share as possible. We started differentiating ourselves from other competitors by continuously expanding our product line and increasing the S/Q rating. We increased our number of models/styles to a maximum of 500 and invested more in Enhanced styling/ features in order to offer our customers a variety of high quality choices and match their demand. In addition, we also focused on investing more in our brand marketing both for internet and wholesale segments, and we targeted the private-label market since there was a huge demand that wasn’t being met. In Year 14, we managed to hold one of the largest market shares of the industry and we also decided to enter the Latin American Market in order to increase our Image Rating. We also succeeded in increasing the market share and becoming the market leader in the high-end sneaker market with one of the largest product lines. We were looking to become the "Nike" or "Adidas" in this industry but as previously mentioned, we would have to shift this strategy if it was needed. In years 15-17, we continuously worked toward being the market leader in the high-end sneaker market by focusing more on a differentiation strategy. However, in years 18-19 we had to change our strategy for two of the geographic regions which are North America and Europe Africa. We focused on a budget based strategy and we were not charging premium prices for these two regions. Nevertheless, we still continued to focus on differentiation and price premium strategy for the Latin America and Asia Pacific markets while still spending a considerable amount on marketing.
.We worked toward becoming a market leader by also operating in a socially responsible manner as a top priority. There was no pressure to spend anything on the seven initiatives but it was very important for us to operate in an ethical and sustainable way and take interest in social issues rather than focus only on those issues that impact the profit margins. Being committed to ethical practices, we decided to pursue and embrace all seven CSRC initiatives throughout the years.
Section 2: Simulation narrative. I prefer to read about trends and themes, not a year by year rundown of what was done (so trans ...
MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au...Mark Susor
MBA Strategic Management Course. Presentation outlines strategy utilized in global marketplace. The Business Strategy Game_2014 Industry Champion. Competition-based global strategy simulation; senior executive at the best-performing company in an industry setting where teams of students ran companies and crafted strategies aimed at achieving superior financial performance and market leadership; the exercise was conducted in a course at Benedictine University (MBA 671_Strategic Management). Team ranked 6th. Worldwide.
The document outlines strategies for a shoe manufacturing company to achieve the lowest production and distribution costs through economies of scale, best practices, and supply chain management. It recommends an aggressive approach of using high leverage through debt to grow quickly, corner the market through predatory pricing, and acquire excess manufacturing capacity from competitors to further lower costs and increase market share. Financially, it suggests managing equity, debt, stock purchases, and dividends to optimize returns while maintaining adequate credit ratings during the high growth phase.
Ryan Aman's company struggled for several years due to overpricing shoes and poor distribution strategies. In years 11-14, the company accumulated huge debts and lost sales in North America and Latin America. However, the company was able to turn things around starting in year 15 by selling plants, decreasing inventory, and re-entering global markets at lower price points and quality levels. While advertising, celebrity appeal, and free shipping were strengths, high prices, limited retail outlets, and "tunnel vision" strategies had previously hindered the company's performance.
This document outlines the strategies and structure of a company called G6 participating in a business strategy simulation game. It identifies the CEO and other leadership roles. It describes G6's vision, mission, and objectives to grow market share, share price, and revenue. The corporate strategy involves a multi-domestic approach and vertical integration. It analyzes G6's arenas, vehicles, differentiators, and economic logic according to the 5 elements strategy model. It outlines G6's staged expansion nationally and internationally over 16 years and moments of success in certain markets and reaching a high market capitalization.
This document outlines the strategic plans of an athletic footwear company over several years. The original vision from 2010-2013 was to lead the industry through efficient operations and high quality materials. However, the vision was revised from 2014-2016 to focus on efficient operations and low quality materials. Future performance targets are outlined for earnings per share, return on equity, credit rating, and image rating through 2018. The company's strategies across different regions and markets are also summarized.
Glo-Bus Winning Strategy: The tested Strategy to Win Glo-busAmi Sampath
A concise presentation on glo-bus winning strategy, which includes some glo-bus simulation tips for those who are taking up the glo-bus business strategy game. Glo-bus business strategy game demystified is an ebook consist of some valuable glo-bus simulation cheats and tactics to win the game with a minimum effort.
Alpha Sonic is a camera company presenting its long-term direction, strategy, and performance. Its vision is to provide affordable, high-quality cameras and guarantee customer happiness. Its mission is to become the top camera producer by selling quality products. Key performance targets for 2016-2017 include increasing earnings per share, return on equity, credit rating, image rating, and stock price. The company formulates entry-level, multi-level, production, and financial strategies to achieve these goals. It identifies strengths, weaknesses, opportunities, and threats in a SWOT analysis. Areas for improvement include Latin American operations and entry-level camera quality and warranty costs. Lessons focus on compensation, training, and lowering costs.
The company's gross profit and overall profit have increased in the last five years. The company's sales are higher than its expenses, which has allowed it to earn a profit from its operations. Specifically, the company's gross profit margin improved from 9.5% in 2014 to 10.7% in 2018. Both the company's non-current and current assets have increased over the past five years as well. The company's property, plant, and equipment have increased by 75% from 2014 to 2018 through expansions and upgrades.
The document provides a 10-year review of Innova, a camera manufacturer, including key metrics and strategies. Over the 10 years:
- Innova maintained leading market share positions globally and achieved strong financial performance with increasing earnings per share, return on equity, and stock price.
- The company pursued a strategy of prioritizing in-house production and above-average employee compensation to maximize quality and efficiency.
- For entry-level cameras, Innova's strategy was to offer the lowest price through low costs, while for multi-feature cameras the strategy was to offer the best quality through investment in R&D.
Lululemon is a leading athletic apparel company known for its strong brand image. It has potential for expansion through new product lines like menswear and ivivva, as well as geographic growth. However, it faces key risks such as competition infringing on its strategies and instability in executive management. A discounted cash flow valuation estimates Lululemon's fair value at $66 per share, its current market price.
Ford Motor Company is the second largest automaker in the US behind General Motors. This report analyzes Ford's organizational structure, strategic position using various matrices, and recommends a 3-year strategic plan for the new CEO. The analyses show strengths in Ford's global market share and manufacturing expansion, but weaknesses in declining profits in recent years. The recommendations aim to improve profitability through restructuring plans.
This is the case study analysis and presentation for the purpose of final examination by two student of IE Business School.
The sole purpose of this document is to provide the analysis for the final exam. This document should not be used as basis for any calculations/ decisions and user should conduct his/ her own analysis.
CEMO Enterprises is a camera manufacturer established in 2008 with its manufacturing plant in Taiwan. It produces multi-featured and entry-level cameras for export to North America, Latin America, Asia Pacific and Europe Africa. Its vision is to be the leading choice for premium cameras through continual innovation, and its mission is to offer superior quality cameras at good value. Its goals are to be a low cost provider and use the best cost provider strategy. CEMO faces competition from companies E, G and H in entry-level cameras and E, F and G in multi-level cameras. A SWOT analysis identifies strengths in credit rating and image rating, while weaknesses include a narrow focus and high warranty periods. Actions to take include minimizing costs
A Marketing analysis for TESLA company in DBA program by Cairo University. It discussing how TESLA is competing Electric Vehicle Market and advancing the development of such Sector. In addition, Tesla is taking further steps toward future by inventing futuristic cars and innovative technology.
-->Topics Are Covered:
Introduction, Logo Evolution, Brand Power
-->Different strategies:
Global Business Strategy, Segmentation Strategy, Selling Strategy, Organizational Strategy, Human Resource Management Strategy
Hans van Driem has worked in tourism for over 45 years. He began his career as a tour director in Europe in the 1970s, guiding groups from the US. He then took various roles promoting tourism to the Netherlands and Germany. He worked for the tourism board of The Hague and hotel groups before becoming Marketing Manager for Benelux at Crest Hotels from 1980-1983. Throughout his career he has learned from many mentors and colleagues in the industry.
This document outlines the strategy and performance of a shoe company over 20 years. Key aspects of the strategy included positioning the company like Reebok by offering high quality shoes at slightly lower prices, implementing ethics and diversity programs, and investing in sustainability initiatives. The company's annual revenue, earnings per share, return on equity, credit rating, and stock price all increased steadily over the years. The company focused on branded footwear over private labels and distributed shoes globally to optimize production capacity. Lessons learned emphasized monitoring competitors, differentiating business strategies, exceeding investor expectations for financial metrics, and having an advantage in quality or pricing.
BSG Final PaperThe paper is to be an analysis of your strateVannaSchrader3
BSG Final Paper
The paper is to be an analysis of your strategy and firm performance.
Section 1: What is your firm’s strategy? What were your top priorities? How did this guide your approach to the simulator?
Our firm pursued a combination of strategies, which include both global differentiation and focus strategy and we made moves based on previous industry trends. We agreed on pursuing whatever opportunities look most promising based on the competition that arises.
At the beginning, the top priority was to differentiate from the other companies by being able to dominate three out of four markets which are: North America, Europe-Africa, and Asia-Pacific. We concentrated heavily on three markets so that we could start out strong and take as much market share as possible. We started differentiating ourselves from other competitors by continuously expanding our product line and increasing the S/Q rating. We increased our number of models/styles to a maximum of 500 and invested more in Enhanced styling/ features in order to offer our customers a variety of high quality choices and match their demand. In addition, we also focused on investing more in our brand marketing both for internet and wholesale segments, and we targeted the private-label market since there was a huge demand that wasn’t being met. In Year 14, we managed to hold one of the largest market shares of the industry and we also decided to enter the Latin American Market in order to increase our Image Rating. We also succeeded in increasing the market share and becoming the market leader in the high-end sneaker market with one of the largest product lines. We were looking to become the "Nike" or "Adidas" in this industry but as previously mentioned, we would have to shift this strategy if it was needed. In years 15-17, we continuously worked toward being the market leader in the high-end sneaker market by focusing more on a differentiation strategy. However, in years 18-19 we had to change our strategy for two of the geographic regions which are North America and Europe Africa. We focused on a budget based strategy and we were not charging premium prices for these two regions. Nevertheless, we still continued to focus on differentiation and price premium strategy for the Latin America and Asia Pacific markets while still spending a considerable amount on marketing.
.We worked toward becoming a market leader by also operating in a socially responsible manner as a top priority. There was no pressure to spend anything on the seven initiatives but it was very important for us to operate in an ethical and sustainable way and take interest in social issues rather than focus only on those issues that impact the profit margins. Being committed to ethical practices, we decided to pursue and embrace all seven CSRC initiatives throughout the years.
Section 2: Simulation narrative. I prefer to read about trends and themes, not a year by year rundown of what was done (so trans ...
Breeze is a shoe company that presented its business strategy and accomplishments over the past 8 years. Key highlights include Breeze becoming the market leader with 20.9% market share in North America, exceeding financial targets for earnings per share, stock price, return on equity, and credit rating. Breeze also received several awards for corporate responsibility and performance. Going forward, Breeze aims to further improve worker productivity and quality while maintaining low costs, and continue celebrity endorsements to drive sales.
This document provides an overview of Acme Corporation's original strategies, the results of those strategies, a SWOT analysis, and comparisons to competitors. The company's original corporate strategy focused on emerging markets with an aggressive approach. Business strategies centered on differentiation through R&D and advertising. Functional strategies emphasized marketing, capacity expansion through debt and equity, and ensuring high quality. Initial strategies proved successful, particularly in Asia-Pacific, though over-reliance on equity financing later diluted earnings. Capacity issues and celebrity contract losses also hindered performance. Acme showed strengths in quality, advertising, and distribution, but weaknesses in capacity and regional production. Threats included competition, while private label and capacity purchases presented missed opportunities.
BE, Inc. is a footwear company that aims to be a market leader while maximizing profits and innovation. In 2018, the company focused on maintaining its leadership position despite increased competition. Due to its persistence, BE recorded high profits and revenues, increasing its EPS to $7.57 and paying dividends of $4.93 per share. BE expanded its corporate social responsibility efforts to include energy efficiency expenditures. Looking forward, BE is committed to meeting shareholder expectations through its strategy of focused differentiation and remaining a low-cost provider.
This document summarizes Ameriprise Financial's fourth quarter 2006 earnings conference call. It discusses strong adjusted revenue, earnings, and return on equity growth for both the quarter and full year. The separation from American Express is on track. Brand awareness has increased and distribution capabilities have been strengthened through advisor productivity improvements and growth in fee-based assets and clients.
Control ExampleBusiness Name The Café Around the CornerSMAR.docxdonnajames55
Control Example
Business Name: The Café Around the Corner
SMART Goal: Increase customer satisfaction by 10% within a six month time frame.
Criterion being Measured: customer satisfaction
Time Frame For Goal Completion: six months
Explain the system that you will create to track the success of this goal?
Every month, employee surveys will go out to the customers on our mailing list. There will also be surveys attached to each receipt to reach people that haven’t signed up for email. The surveys will ask a variety of questions meant to measure the customer experience and their opinion of Café Around the Corner. All surveys will be electronic and collected in an online database that management can access. The surveys will be sorted by the employee that took care of the customer.
Why is being reliable and completing this goal on time important to the business’ success?
Accomplishing these goals will increase the reputation and financial success of the business. It’s also important to reach these goals in a timely matter as other aspects of the business are relying on me to follow through with expectations. It’s important to be professional and reliable when faced with objectives to complete.
What adjustments will you make if you fall behind completing this goal?
I will continually track the survey scores as they come in. If the business starts to fall behind, I plan on bringing in outside consultants to work with my employees. The consultants will run twice a month trainings that will focus on improving customer satisfaction. Every employee is required to attend at least one a month.
I will also begin rewarding employees that have the highest survey scores at the end of the month. This will improve motivation and create a customer service focus in the business culture. Publically sharing the monthly winners will also create recognition among the employees. These two methods will cover intrinsic and extrinsic motivation.
Pg.587
3. Universal Auto is a large multinational corporation headquartered in the United States. For segment reporting purposes, the company is engaged in two businesses: production of motor vehicles and information processing services.
The motor vehicle business is by far the larger of Universal’s two segments. It consists mainly of domestic U.S. passenger car production, but it also includes small truck manufacturing operations in the United States and passenger car production in other countries. This segment of Universal has had weak operating results for the past several years, including a large loss in 2013. Although the company does not reveal the operating results of its domestic passenger car segments, that part of Universal’s business is generally believed to be primarily responsible for the weak performance of its motor vehicle segment.
Idata, the information processing services segment of Universal, was started by Universal about 15 years ago. This business has shown strong, steady growth tha.
AssignmentInvestment Management, Fin 3720Final examAgreement By s.docxssuser562afc1
AssignmentInvestment Management, Fin 3720Final examAgreement: By submitting the complete final exam to Bb I agree that I have not given any help to another student nor has another person given help to me.Fall 20141. Only open Blackboard and Excel on your computer.2. Please save your file frequently on the computer's desktop.3. Please use the cells to the right of the data to make calculations, or you can add rows in the ss to make calculations.4. Write your comments in the folder "Written comments".5. When done rename the file to your ID number (no names) and post in Bb and email to [email protected]AssignmentWelcome to Alpha Value Investors, LLC. We are pleased you have joined our investment firm, and hope that you appreciate our approach to investing. Almost all of our clients have well-diversified, efficient portfolios. Most have a "reasonably conservative" risk profile, but are also interested in having a non-core part of their portfolios invested in individual securities.Unfortunately, Mike has been called to a meeting, but he would like your help on a recommendation to the investment committee. As a retail industry analyst, he is considering recommending one of two stocks to our clients next week. The firms are the Gap, Inc. (GPS) and Coach, Inc. (COH).In this file are analyst reports and data on the firms. Please analyze these two companies and make a recommendation of one firm to our clients to be purchased as a long-term investment. The non-core, security portion of their portfolios are balanced across sectors but additional weight in the consumer cyclical sector would improve the allocation. The investment committee meeting is in two hours and Mike will meet you out side the meeting room so please complete your analysis in this file and be prepared to share your findings with the committee and Mike.
Written commentsWritten comments:Note: Your are welcome to format this areas as you like to present the most compelling case for investing in one of the firms.
FrameworkBAGrowth70%80%Perf. Ratios70%60%Mkt. Metrics90%70%Cash flow70%65%Value Creation70%95%
B Growth Perf. Ratios Mkt. Metrics Cash flow Value Creation 0.7 0.7 0.9 0.7 0.7 A Growth Perf. Ratios Mkt. Metrics Cash flow Value Creation 0.8 0.6 0.7 0.65 0.95
FormulasFormulasSustainable growth rate gs = ROE * bInternal growth rate gi = ROE * b * (E/A)Free Cash Flow Ebit * (1-t) + depreciation - change in NWC - CapExDividend Discount Model (constant-growth)P0 = (D1 / (ke - gss))Value with non-constant growth modelsP0 = (Div1 / (1+ r)1) + (Div2 / (1+ r)2) + (Div3 / (1+ r)3) +(TV3 / (1+ r)3)Where TV3 = (Div4 / (r - gss))And, where Divn cnd be substituted for FCFnAnd, where ke is also called rAnd, where Terminal Value (TV) also called Horizontal ValueDividend Discount Model (no-growth)P0 = Div1 / keHolding period returnReturn = (D1 + (P1 - P0)) / P0CAPMke = rf + β (rm - rf), last element often referred to as "market premium"WACCWACC = ke (E / (E + D)) + kd (1 - t) (D / (E ...
The document summarizes Procter & Gamble's (P&G) strategies and goals for environmental and social sustainability between 2007-2012. P&G established five strategies with goals in areas like developing sustainable product innovations, reducing environmental impacts of operations, and improving children's lives. The document provides updates on progress made towards goals in areas like cumulative sales of sustainable products, reductions in energy/water usage and waste, and numbers of children impacted by social programs. It emphasizes P&G's commitment to continuous improvement and raising goals over time to make a meaningful difference through its sustainability efforts.
The document is a business plan for Bynno Enterprise that outlines its strategy and performance over 8 years from 2014 to 2021. It discusses Bynno shifting its strategy from cost leader to cost leader with product lifecycle focus. It summarizes the company's performance in each yearly practice and competition round, highlighting problems encountered and solutions implemented. Key issues addressed include improving forecasting, production capacity, and contribution margins to achieve profitability and increase market share.
AAND Motors has improved its financial position from 2014-2018 by realigning production based on market trends. Key improvements include increasing net profit from -£157.96M to £207.76M, return on shareholder funds from -49.28% to 23.22%, and share price from £26.85 to £287.29. However, costs per vehicle remain higher than competitors and fourth model release has been delayed. Recommendations include reducing costs through automation, releasing a new "city car" model, investing in R&D for customer-desired features, and improving productivity through training to better compete in the market.
2011 ANNUAL REPORTInnovating for Everyday Life$82..docxeugeniadean34240
2011 ANNUAL REPORT
Innovating for Everyday Life
$82.6
$78.9
$76.7
$79.3
$72.4
11
09
08
07
10
Net Sales ($ billions)
30%
4%
19%
9%
14%
24%
By business segment
Beauty
Grooming
Health Care
Snacks & Pet Care
Fabric Care & Home Care
Baby Care & Family Care
2011 Net Sales
9%
14%
16%
41%
20%
By geographic region
North America
Western Europe
Central & Eastern Europe,
Middle East & Africa
Latin America
Asia
35% 65%
By market maturity
Developed
Developing
$13.2
$16.1
$14.9
$15.0
$13.4
11
09
08
07
10
Operating Cash Flow ($ billions)
$3.93
$4.11
$4.26
$3.64
$3.04
11
09
08
07
10
Diluted Net Earnings (per common share)
Contents
Letter to Shareholders................................. 1
Leadership Brands.......................................9
Innovating for Everyday Life...................... 14
Gillette Guard ........................................ 16
Brazil...................................................... 18
Crest 3D White ......................................20
Gain Dishwashing Liquid ........................22
Head & Shoulders ..................................24
Old Spice ...............................................26
Disaster Relief ...........................................28
Financial Contents ....................................29
Global Leadership Council......................... 75
Board of Directors..................................... 75
Financial Summary.................................... 76
Company and Shareholder Information..... 78
Financial Highlights (unaudited)
Amounts in millions, except per share amounts 2011 2010 2009 2008 2007
Net Sales $82,559 $78,938 $76,694 $79,257 $72,441
Operating Income 15,818 16,021 15,374 15,979 14,485
Net Earnings 11,797 12,736 13,436 12,075 10,340
Net Earnings Margin from Continuing Operations 14.3% 13.9% 13.9% 14.2% 13.3%
Diluted Net Earnings per Common Share from Continuing Operations $3.93 $3.53 $3.39 $3.40 $2.84
Diluted Net Earnings Per Common Share 3.93 4.11 4.26 3.64 3.04
Dividends Per Common Share 1.97 1.80 1.64 1.45 1.28
Dear Shareholders,
Last year, I described P&G’s Purpose-inspired Growth Strategy, which is to
touch and improve more consumers’ lives in more parts of the world more
completely. I told you that we intend to deliver total shareholder return
that consistently ranks P&G among the top third of our peers — the best-
performing consumer products companies in the world. To do this, we
must deliver the Company’s long-term annual growth goals, which are to:
Grow organic sales 1% to 2% faster than
market growth in the categories and countries
where we compete
Deliver core earnings per share (core EPS) growth
of high single to low double digits
Generate free cash flow productivity of
90% or greater
Robert A. McDonald
Chairman of the Board, President and
Chief Executive Officer
We made meaningful progress toward these long-term goals
for fiscal 2011, despite significant external chal.
iSalesStrategy.com - International Trading, Marketing, Sales & DistributionThe CME Agency
iSales Strategy is a knowledge-based company composed of FMCG (Fast Moving Consumer Goods) experts in the field of sales and marketing from different markets around the world. We distribute products for Fortune 500's and global brands in the ASEAN, Asian, Middle East, North & South American regions.
This document is the 2015 annual report for LyondellBasell, one of the world's largest plastics, chemicals and refining companies. The summary is:
1) In 2015, LyondellBasell achieved record financial results including $8.1 billion in EBITDA and $4.4 billion in income from continuing operations, despite challenges in the energy sector.
2) Operations performed strongly with improved safety and reliability. Expansion projects in the US increased ethylene capacity and positioned the company for long-term growth.
3) The company returned over $6 billion to shareholders through dividends and share repurchases, placing it among the top performers in the S&P 500 for share
Exchange Rates - Previous Years
YEAR 11
YEAR 12
YEAR 13
YEAR 14
YEAR 15
YEAR 16
YEAR 17
YEAR 18
YEAR 19
YEAR 20
Exchange Rate Impact on
Revenues Generated in:
Europe-Africa (US$ per €)
1.2062
1.1879
1.1938
1.189
1.1933
1.1816
1.1778
1.1734
1.1776
1.1877
Asia-Pacific (US$ per Sing$)
0.752
0.7419
0.7429
0.7424
0.7456
0.7422
0.7424
0.7433
0.7441
0.7469
Latin America (US$ per R)
0.1783
0.1723
0.1791
0.1778
0.1799
0.181
0.1771
0.1733
0.1752
0.1789
Exchange Rate Impact on
Cost of Pairs Shipped from:
North America Plant to
Europe-Africa (€ per US$)
0.829
0.8418
0.8377
0.841
0.838
0.8463
0.849
0.8522
0.8492
0.842
Asia-Pacific (Sing$ per US$)
1.3298
1.3479
1.3461
1.347
1.3412
1.3473
1.347
1.3454
1.3439
1.3389
Latin America (R per US$)
5.6085
5.8038
5.5835
5.6243
5.5586
5.5249
5.6465
5.7703
5.7078
5.5897
Europe-Africa Plant to
North America (US$ per €)
1.2062
1.1879
1.1938
1.189
1.1933
1.1816
1.1778
1.1734
1.1776
1.1877
Asia-Pacific (Sing$ per €)
1.6041
1.601
1.6069
1.6015
1.6003
1.5921
1.5863
1.5788
1.5825
1.5903
Latin America (R per €)
6.7659
6.8966
6.6313
6.689
6.6357
6.5274
6.6489
6.7705
6.7249
6.6401
Asia-Pacific Plant to
North America (US$ per Sing$)
0.752
0.7419
0.7429
0.7424
0.7456
0.7422
0.7424
0.7433
0.7441
0.7469
Europe-Africa (€ per Sing$)
0.6234
0.6246
0.6223
0.6244
0.6249
0.6281
0.6304
0.6334
0.6319
0.6288
Latin America (R per Sing$)
4.218
4.307
4.1434
4.1762
4.1455
4.1013
4.1924
4.2886
4.2481
4.1742
Latin America Plant to
North America (US$ per R)
0.1783
0.1723
0.1791
0.1778
0.1799
0.181
0.1771
0.1733
0.1752
0.1789
Europe-Africa (€ per R)
0.1478
0.145
0.1508
0.1495
0.1507
0.1532
0.1504
0.1477
0.1487
0.1506
Asia-Pacific (Sing$ per R)
0.2371
0.2322
0.2413
0.2395
0.2412
0.2438
0.2385
0.2332
0.2354
0.2396
Exchange Rates Affecting Year 20
YEAR 19
YEAR 20
REVENUE IMPACT
Exchange Rate Impact on
Revenues Generated in:
Europe-Africa (US$ per €)
1.1776
1.1877
4.29%
Asia-Pacific (US$ per Sing$)
0.7441
0.7469
1.88%
Latin America (US$ per R)
0.1752
0.1789
10.56%
Exchange Rate Impact on
Cost of Pairs Shipped from:
North America Plant to
Europe-Africa (€ per US$)
0.8492
0.8420
-4.24%
Asia-Pacific (Sing$ per US$)
1.3439
1.3389
-1.86%
Latin America (R per US$)
5.7078
5.5897
-10.35%
Europe-Africa Plant to
North America (US$ per €)
1.1776
1.1877
4.29%
Asia-Pacific (Sing$ per €)
1.5825
1.5903
2.46%
Latin America (R per €)
6.7249
6.6401
-6.30%
Asia-Pacific Plant to
North America (US$ per Sing$)
0.7441
0.7469
1.88%
Europe-Africa (€ per Sing$)
0.6319
0.6288
-2.45%
Latin America (R per Sing$)
4.2481
4.1742
-8.70%
Latin America Plant to
North America (US$ per R)
0.1752
0.1789
10.56%
Europe-Africa (€ per R)
0.1487
0.1506
6.39%
Asia-Pacific (Sing$ per R)
0.2354
0.2396
8.92%
BSG SIMULATION
ANA SOFIA ELJACH
OSCAR GUTIERREZ
PROFESSOR JUAN STEGMANN
BUSI-4900D-1
Mission Statement
Our mission is to collaborate to develop technology, processes and quality products according to the demand of our customers and ...
The document provides talking points for Ameriprise Financial's first quarter 2007 earnings call. Key points include:
- Revenues grew 6% and adjusted earnings grew 16% over the previous year. Adjusted return on equity reached 12.2%.
- Total number of mass affluent and affluent clients grew 8% year-over-year and advisor productivity increased 18%.
- The company is focused on improving profitability by being more selective in hiring, enhancing advisor productivity, and retaining top advisors. Asset growth was strong across the business.
- Ameriprise Financial held a second quarter 2006 earnings call to discuss financial results and progress on strategic objectives.
- Key highlights included adjusted revenues growing 13% and adjusted earnings growing 22%, above long-term targets. Adjusted return on equity improved but was below the 12-15% target.
- The company executed several strategic initiatives including growing the mass affluent client base, maintaining a focus on financial planning, improving advisor productivity, developing new products, and ensuring an efficient operating platform.
- Financially, the quarter saw strong operating performance with adjusted earnings of $195 million, up 22% year-over-year. The company continued optimizing its capital structure and returning capital to shareholders
- Ball Corporation held its third quarter 2008 earnings conference call on October 30, 2008 to discuss financial results
- Overall performance was good, with most business segments reporting improved profitability despite difficult economic conditions
- Ball is taking actions to position itself for near and long-term growth, including plant closures, cost reductions, and focusing on demand-driven operations
- Ball Corporation held a conference call to discuss its third quarter 2008 earnings results
- Overall performance was good, with most business segments reporting improved profitability compared to Q3 2007 despite economic challenges
- Two beverage can plants will close, one in Kansas City and one in Puerto Rico, resulting in restructuring charges but expected future cost savings
- Most business segments saw higher operating earnings compared to Q3 2007, driving higher EPS
2. 1
Table of Contents
Introduction Page 2
Goals Statement Page 2-Page 4
Strategy Formulation Page 4-Page 6
Strategy Implementation Page 7-Page 10
Global analysis Page 10-Page 12
Corporate Social Responsibility and Citizenship Page 12-Page 14
Market Analysis:
a. Industry analysis Page 14-Page 18
b. Competitor analysis: Page 18-Page 46
● Wholesale Market Demand Analysis
● Internet Market Demand Analysis
● Private Label Analysis
● Implementation Analysis
● Performance Analysis
● Competitor Analysis
Conclusions and Strategic Responses Page 46-Page 49
3. 2
Introduction:
Ace Footwear is an organization that concentrates on selling athletic shoes to all different
types of consumers. Our team competed in a global competitive Footwear industry which is
located in four geographic market regions: North America, Europe-Africa, Asia-Pacific and
Latin America with five other firms. Our company produced Footwear at two plants which are
the North America and Asia-Pacific plants. We provide shoes at a low-cost that are within
affordability limits of the consumers. We focused on the wholesale and internet markets, but we
also competed in private label. Our firm initially started selling over 5 million pairs annually
with revenue of $238 million and net earnings of $25 million which narrows down to $2.50 per
share of common stock. In the long-term growth of sales for athletic Footwear are projected to be
positive. Overall, we would like to continue to stay competitive based off our business strategy
in the coming years.
Goals Statement
Our goal was to create a competitive advantage in the market that consisted of six
different firms. Additionally our goal was to gain a market share in more than one region and
stay debt free. As well as keeping the earnings per share, return on equity, image rating, credit
rating and stock price gains above the investors’ expectations. Lastly, maximize shareholders
wealth.
Market Share
We expected our projected growth for each region as follows: For branded Footwear
markets in North America and Europe-Africa we project 5-7% in Years 11-15 and 3-5% in Years
4. 3
16-20, in Asia-Pacific and Latin America we project 9-11% in Years 11-15 and 7-9% in Years
16-20. In regards to private label Footwear markets in all four regions we project 10% annual
growth in Years 11-15 and 8.5% annual growth in Years 16-20.
Earnings per share
Our organization’s goal in Year 11 was to obtain at least a 7% annual growth through
Year 15 and 5% for the future years. Ace Footwear’s overall goal is to maintain earnings per
share that achieve at least 15% of the industry average.
Return on Equity
Our firm’s goal every year is to maintain a return on equity of 15% or more. To meet
expectations, we allocated our resources towards plant upgrades in North America and
Asia-Pacific, and also, repurchasing stock and distributing dividends to shareholders. In addition,
we also want to provide consistency to let our shareholders believe that our firm is acting in the
best interests of gaining market share of at least 10% or more.
Image rating
Ace Footwear aims to achieve an image rating of 70 or higher in each geographic region.
We plan to observe the S/Q ratings in each of the geographic regions, the company’s actions to
display corporate social responsibility, as it related to the overall image rating, and advertising.
In addition, we aim to acquire celebrity endorsements in order to increase image rating and brand
awareness.
Credit rating
Ace Footwear believes that in order to be more credible to our shareholders, our credit
rating needs to be in check. Investor expectations are to achieve a credit rating of B+ or higher,
5. 4
depending on debt-to-asset ratio, default risk ratio, and interest coverage ratio. Our goal was to
maintain at least an A+ credit rating, which will give us borrowing power if and when we decide
to take out a loan. We will also have the advantage in lowering our overall cost to borrow.
Stock price
The goal of the stock price is to achieve 7% annually through Year 15 and about 5%
annually thereafter. Ace Footwear believes that it is in our firm’s best interest to increase
shareholders’ wealth year by year. Our goal is to exceed the average industry stock price.
Strategy Formulation
Ace Footwear started out with a differentiation business strategy. However, after the 15th
year, we changed our strategy to low-cost business strategy. Low-cost business strategy is where
the company offers a low-cost product, and seeks to increase demand and gain market share. We
changed our strategy due to analyzing the other firms in the market and came to conclusion that
we need to lower our S/Q rating and price to gain market share. Our goal is to focus on making
the price as competitive as possible while also having competitive S/Q ratings. Out of the eleven
competitive weapons, our company’s top competitive weapons are: Retail price, S/Q rating,
advertising expenditures, and delivery time.
Retail price
Part of the low-cost, retail price strategy is a competitive advantage and was an advantage
for our firm. As we decreased our price, our firm started to gain more of market share. For
example, during year 11, our retail price was the highest at $85.00 and our market share was
below 8%. From year 11 to year 15, our retail price was above $65.00 and our market share was
below 15%. From year 16 to year 20, our retail price was below $65.00, which caused a shift in
6. 5
the market and increased our market share in all regions. Decreasing our retail price increased
the intensity in the market and for our firm to win market share in different regions. For example,
in year 20, our market share was at 24.3% for North America region and leading firms market
share was 16.6%. Changing our price affected other firms. Our firm will continue to keep a low
retail price and compare it to other firms.
S/Q rating
From year 11 to year 15, our S/Q rating was majority a 7 in all regions with a higher
price, however, since we changed our strategy our S/Q rating decreased. From year 16 to year
20, our S/Q rating was below a 6. S/Q ratings are the second most important factor that
influences consumers' choice, aside from price when deciding which Footwear brand to
purchase. Even though our S/Q ratings are not high, we are still gaining market share in regions
since the decrease in our retail price and S/Q rating. We will continue to keep a low-cost, low
S/Q rating at this time in our intense market.
Advertising expenditures
Ace Footwear monitored other firms advertising decisions very closely in order to be
competitive in the market. Our firm increased advertising every year since advertising is an
important feature to a company's success. In order to gain brand awareness we had to increase
our advertising expenditures every year. Initially our firm started with an average advertising
cost of $8,000-$13,000 from year 11 to year 15 for North America and Europe-Africa. The
average advertising cost of $1,000-$7,500 from year 11 to year 15 for Asia-Pacific and Latin
America. But as our strategy changed after year 15 we significantly increased our advertising
cost in all four regions. In North America and Europe-Africa, our firm averaged advertising cost
7. 6
of $17,450-$23,300 and $6,500-$20,965 in Asia-Pacific and Latin America. We increased our
advertising since our retail price and S/Q rating were low from year 16 to year 20. Also, from
year 11 to year 15, we offered free shipping but, as we changed our strategy in year 16 our firm
stopped offering free shipping. As we continue to progress through the coming years, we will
closely analyze the expenditure factors of the competing firms. Our plans are to spend above the
industry average.
Delivery time
Ace Footwear understands it is important for the retailers to receive their goods in a
timely manner. In order for us to meet the expectations of the retailers our firm plans to average
a delivery time of 3 weeks in all four regions.
Corporate Citizenship and Social Responsibility
Our firm is planning to participate in corporate citizenship and social
responsibility because we believe it will help our organization increase image rating. We
plan to participate in ethics training/enforcement and workforce diversity program every
year, because we believe every employee should be educated in providing quality control
and providing a safe and open work environment. We understand that although these
implementations would decrease net revenue, but Ace Footwear believes in leaving less
of a carbon footprint, with its environmentally conscious decision-making and be more
‘green.’. We also plan to engage in energy efficiency initiatives, using renewable energy
sources. In the near future, we will continue to engage in corporate citizenship and social
responsibility and represent an ongoing effort for many years to come.
8. 7
Strategy Implementation
Ace Footwear created a strategic plan in order to stay aggressively competitive in all four
regions providing a low cost, decent quality shoe. In order to maximize our shareholders wealth
and company’s profit, we focused on manufacturing, human resource, marketing and finance
departments. Initially, we started with a differentiation strategy, but after year 15, we had to
change our strategy to remain competitive, continue to make a profit, and gain market share. Ace
Footwear began to produce shoes in two manufacturing plants - a 2 million -pair plant in North
America and a newer 4 million-pair plant in Asia. Our firm expected to boost our capacity by
20%. We operated both plants at regular time and if we saw that we needed to increase hours, we
would use overtime. The North America and Asia Pacific regions supplied production in all
markets using Internet, Wholesale and Private Label. All of these factors helped us in obtaining
an average net profit of 12.9 over the last ten years. Our firm managed to maintain or close to
average net profits expect for in years 15 and 16. Our marketing expenses was an average of
23%, administrative expenses were 3.5%, and warehouse expenses were 7.9% of net revenues.
Our firm tried to maintain the cost per pair sold as low as possible by optimizing the numbers in
branded production. This in return will help us gain higher profit margins which allows us to
maintain a competitive advantage over our competitors by widening the gap between value
creation and cost.
Our human resource department made efforts in satisfying the workers in our production
plants and increasing productivity. In years 11 through 20 we gave an incentive pay to the
workers for every pair that was a non-reject. This helps our firm increase productivity of pairs
and reduce defective workmanship. Our firm also participated in best practices training by
9. 8
investing a certain dollar amount in a year for each employee. This helped us maintain our S/Q
rating for both branded and private label Footwear, lowering the material costs spent on the
Footwear.
Throughout the years our firm did not build capacity in any other regions. Instead we
upgraded our plants in North-America and Asia-Pacific regions. The options we invested in
were: Option A which is an assembly line upgrade to reduce reject rate by 50% and Option D
which is facilities upgrade to boost worker productivity by 25%. This helped our organization
the incentive to produce more shoes and supply to our retail outlets. It allowed for us to price our
shoes accordingly and increase sales throughout the regions. Option A gave us advantage in
taking a loss against pairs that are rejected due to defective workmanship. Option D allows for
our firm to increase the production of shoes which gives us the advantage to fulfill inventory
demand in the wholesale, private-label and internet markets.
Moreover, we focused on repurchasing stock. So, from year 15 until year 21, we will be
unable to repurchase stock moving forward, because there is no more stock to repurchase. In
year 15, we purchased 600,000 shares for $18,924,000. In year 16, we purchased 800,000 shares
for $20,688,000. In year 17, we purchased 660,000 shares for $29,020,000. In year 18, we
purchased 352,000 shares for $29,378,000. In year 19, we purchased 88,000 shares for
$6,119,000. In year 20, we purchased 0 shares, because there were none available. The reason
we repurchased stocks was to: increase earnings per share, return on equity, and stock price. In
regards to increasing shareholder’s wealth, we wanted to allocate our ending cash, so we
repurchased stocks year after year.
10. 9
When it comes to dividends, they were not distributed to shareholders until year 18 until
year 20. For year 18, dividend payments to shareholders were $22,764,000. For year 19,
dividend payments to shareholders were $37,500,000. For year 20, dividend payments to
shareholders were $22,500,000. For year 18, they were $3.00/share. For year 19, they were
$5.00/share. For year 20, they were $3.00/share.
When it comes to private-label markets, that was another way for our firm to gain market
share and to maintain competitive. The projected growth at 10% annually during years 11-15 and
8.5% during years 16-20. We competed in the private label market every year. Our firm
participated in private label to make the market competitive among other rival firms. In the
industry, our firm was not competing against all the competitors, but with DABonair Footwear.
For 4 years out of the 10 years, for the North America region, we did not sell any shoes offered.
In the remaining 6 years, we successfully sold shoes to consumers across the North America
region; for the Europe-Africa region, we competed for 3 years and in year 12, we were
unsuccessful in selling shoes. Although we bid every year, we were unsuccessful in selling
products to consumers in Asia-Pacific region for 6 out of the 10 years to date. In years 11, 15,
and 16, we sold all of the amount of pairs sold. In year 15, we won 100% market share in
private-label market for Asia-Pacific region. For Latin America region, we competed from years
11-13. In year 11 and 12, we successfully sold all of the pairs of shoes offered. In addition, we
won 100% private-label market share for year 12. Unfortunately, we were unsuccessful in selling
any pairs to consumers in year 13.
11. 10
Corporate Social Responsibility and Citizenship
Our firm participated in corporate citizenship and social responsibility because we
thought it will help our organization's image rating increase. We participated in ethics
training/enforcement and workforce diversity program every year. After year 15, our firm
decided to engage in more activities since our image rating was low. Therefore, we
invested in energy efficiency initiatives. We invested in energy efficiency initiatives
because we are investing in something positive and beneficial. In year 16, we started by
giving $100 million per distribution center and million pairs of plant capacity. We
increased our giving since we were debt free and had plenty of ending cash.
Unfortunately, even though we engaged in more CSR, our image rating was still low. Our
image rating average was a 63 when we calculated it for the past 10 years. Our firm was
awarded 2nd place for Exemplary Corporate Citizenship in year 16, 17, 18, and 19. This
means that our firm was spending the second highest percentage of its revenues for social
responsibility and citizenship initiatives. This was a positive image on our firm and
helped us gain market share. More activities that are included in CSR are: Use of recycled
boxing / packaging, charitable contributions, and use of “Green” Footwear Materials. In
the near future, we will continue to engage in corporate citizenship and social
responsibility and possibly participate in more areas of social responsibility.
Global Analysis
Globalization is defined as the spreading of political, economic, and social phenomena of
businesses and the exchange of trade and goods and services across borders. It includes the
transfer of ideas, information, and money as well as more uniform rules and norms across
12. 11
borders. Globalization is a growing importance in today’s business world and is becoming
rapidly important for most firms that want to survive - especially larger firms. Today,
globalization has increased the standard of living for many countries around the globe. It is
important for companies to compete with the rise in communications and income levels in
developing nations, businesses have been able to reach more markets. Business now have to
think about all of the aspects of their operations and how they fit into the globalized culture. For
example, factors such as product design, product image, and the functionality of the product all
have to be thought about before going global. Do these factors fit in regions of the world whose
cultures and ideas are different from their own? Additionally, production, distribution and
management play a role in globalization. Financial factors such as tariffs, transportation costs,
and exchange rates play a role when going global. These factors impacted and affected our
company’s production and selling decision. Our firm focused a lot of time and effort in finding
the best shipping routes to get our product around the globe to our customers as efficiently and
cost-effectively as possible and to meet our demand in all four regions of business. Decreasing
tariff expenses was another point of focus for the company. Another goal of our firm was to
produce the pairs demanded in each region to supply that region to save costs in transportation,
tariffs, and exchange rates.
Exchange rates were an important aspect that our firm had to focus on every year. The
foundation of properly allocating our expenditures was based off of the exchange rates. The
exchange rates affect revenue generated in all four regions and also, the cost of pairs shipped
from a plant in one region to distribution warehouses in a different region. The exchange rates
fluctuated every year impacting advertising cost, inventory shipment between plants,
13. 12
wholesale/internet pricing and private-label bids. Our organization had to adjust the internet
pricing depending on the percentage of the branded Footwear demand for every year. Since we
had the advantage of competing in all four regions in online buying, the payments made to our
firm were impacted by the shifting exchange rates. In order for our firm to stay consistent with
the changing rates, we tried to achieve high-operating profit margins. There were years where
our firm gained a sufficient amount of profits compared to other years due to exchange rate
fluctuations. In years 18 through 20 the exchange rates for Latin America were insufficient
compared to other currencies. This made it very difficult for us to sustain profit margins without
being in the negatives. To prevent our firm taking a huge loss we significantly decreased our
advertising in year 19 and stay consistent till year 20. We also increased our wholesale price in
that particular region. Our firm’s goal was to make sure we had a positive impact on our net
revenue and profit with the varying exchange rates every year.
Tariffs played an important role when shipping our shoes to different countries. Tariff
expenses are incurred on pairs once they are imported and are due and payable at the port of
entry rather than when orders are filled and the pairs shipped to retailers and online buyers. Our
firm incurred high cost of tariffs when our shoes were shipped to the Latin America plant. We
were at a disadvantage because we did not have production plants in Latin America and
Europe-Africa region.
Corporate Social Responsibility and Citizenship
Corporate social responsibility is thinking about what the proper thing to do is and how a
company’s actions can impact society as a whole. There were 6 different options that our firm
14. 13
could choose from, in order to improve image rating both internally and externally, as well as
diminishing the plants’ carbon footprints. The use of “Green” Footwear materials involves using
environmentally friendly materials in manufacturing athletic Footwear at all plants. Between
years 11 and 20, Ace Footwear did not use green materials, because we chose to focus more on
changes that would give the firm the most benefit long-term, such as implementing energy
efficiency initiatives and ethics training. The second option was the use of recycled
boxing/packaging, which involves the use of recycled packaging materials to box each pair of
athletic Footwear at company distribution centers. In addition to not using green materials, we
also did not use recycled boxing/packaging because we decided that it was best to allocate the
opportunity cost that would have been for recycled boxing and packaging to other green options.
The third option was Energy Efficiency Initiatives, which involves investments to improve
energy efficiency and using renewable energy sources. We began energy efficiency initiatives in
year 16, as we felt that we had more than enough profit to afford the energy efficiency initiatives,
and felt that the benefit of improving our image rating outweighed the cost of maintaining this
option active. The fourth option is Charitable Contributions, which involves making pre-tax
donations to charities or charitable causes. Although it is imperative for our firm to have been
involved in local charities and help the communities that surround our plants, we did not
implement this option because we felt that the most important factor in a firm’s success came
from within, and that meant improving strategic management, maintaining employee morale
high and satisfactory, as well as supervising the plant's operations to ensure effectiveness and
efficiency in its daily operations. The fifth option is Ethics Training / Enforcement, which
involves training for and development / enforcement of a code of ethics. We believe that by
15. 14
proper training and establishing guidelines that reflect our vision and goals, can our employees
handle situations properly and represent Ace Footwear with integrity and dignity. The sixth
option is Workforce Diversity Program, which involves initiatives to achieve and maintain
workforce diversity concerning age, sex, ethnicity, and other factors. Globalization has affected
the business world in more ways than one. We believe that firms should push toward a
‘forward-thinking’ company, capable of meeting the demands of an ever-changing global
market. What better way to begin this change, than by enforcing a program that embraces
potential employees from all walks of life, and teaches all that the only to achieve a common
organizational goal is by working collaboratively and in unison.
The potential drawbacks of high investments in each of these areas include decreased
profitability and decreased returns to shareholders that take form for our company on the
evaluation of earnings per share, return on equity, and stock price. Therefore, we did not invest
further in other areas of CSR programs like green materials, use of recycled boxing / packaging,
or charitable contributions. We believed it was too costly to our operating projections and not
worth the costs to our company’s strategic positioning.
Market Analysis:
a. Industry analysis
Michael Porter's Five Forces model can be used as a reliable source to compare and
analyze the industry in which our firm competed in. Also, it can be used to identify the
competitive forces that have developed in the Footwear industry in which our company operates.
16. 15
Using each dimension which include: the threat of new entrants, threat of substitute products,
bargaining power of suppliers, bargaining power of buyers, and competitive rivalry, we can see
the potential effects this model has on our specific organization as well as the rest of the industry.
Threat of New Entrants
Initially when the firms in the industry started competing; differentiation strategy was
what other firms were pursuing. As the first two years went by, the market became very
competitive and firms started to change to different strategies in order to gain the most market
share. As firms started to change their strategies it opened a door for threat of new entrants. For
our firm to continue to stay competitive in the market we maintained a cost-leadership strategy
starting from year 15 and aimed to keep the cost of production and price as low as we would
because we needed to stay within our S/Q rating. Threat of entry requires for our firm and other
firms to spend more money satisfying existing customers.
Threat of Substitutes
Due to the intense competition between the companies, there was a high threat of
substitutes from the different companies within the industry and not from outside sources.
Company E was our closest competitor in terms of S/Q rating and price. Advertising was also
similar, but depending on the region. For example, in North America it is significantly different,
but in Asia-Pacific it is similar.
17. 16
Bargaining Power of Suppliers
The supplier power was also a competitive force in the Footwear industry. Since our
strategy changed, our firm focused on producing a medium to low star rated shoe by using a
lower percentage of superior materials and enhanced styling features. The materials provided
from suppliers are set at a base price, which can be adjusted up or down depending on the
demand of such materials. Moreover, suppliers have a high degree of control over their material
prices. Our firm can also benefit from cost cutbacks of materials if the supplier is able to
decrease the cost of superior materials. It was important for our firm to keep an eye out on the
changes in the cost of materials though, making the necessary adjustments to our production
each year that progressed. Due to our generally low S/Q rating, we did not require many superior
materials as our strategy was to maintain low quality and low cost.
Bargaining Power of Buyers
The consumers had the ability to switch to any other company at any time, depending on
how satisfied they were. The power of buyers was low because of limited firms.
Competitive Rivalry
The rivalry among the existing firms in the industry has been one of the major
competitive forces that has spread and affected our company and industry. Rivalry within the
industry has been important to our firm since the beginning. From year 15, the intensity within
the industry increased even more. Each company was making great efforts to make their strategy
work the best in the attempt to gain the largest market share. With other firms developing new
18. 17
competencies and increasing their performance that created competition which became more
threatening towards our company and our performance. Our closest competitor is Team
Endeavor specifically in years 18-20. They had a similar S/Q rating to our firm and similar
pricing in the internet and wholesale market. In year 18, our firm’s S/Q rating was a 4-star and
Team E had a S/Q rating of a 3-star. For Year 19, our S/Q rating was a 3-star and Team E was at
a 2-star. For Year 20, we maintained a S/Q rating of 3-start and E at 2-star. We were the only
firms in the industry to have the lowest S/Q ratings. This was one of the ways for us to gain
competitive advantage because the other firms were averaging S/Q ratings between
5-star-10-star. In some of the regions depending on the year, Team E had similar advertising
budgets as our firm. For example, in Year 18, our firm’s advertising budget in the Asia-Pacific
region was 18,550 and Firm E’s budget was 17,500. Also, due to the competitive environment, it
was difficult to gain profits and market share. The competition increased due to converging
prices between our company’s close competitors, similar S/Q ratings, and advertising budgets.
Changing our strategy has helped our firm increase shareholder value, gain market share,
and maintain competitive over the years. Also, our firm was able to exceed shareholder
expectation for most of the years. The Footwear industry our firm does business in could be to a
certain extent attractive for competitors outside the industry currently. The rivalry among
existing competitors and supplier power are high, however the remaining forces in 5-Forces
model are all quite low. The remaining forces include the threat of entry, bargaining power of
buyers, and the threat of substitutes. Since majority of the 5-Forces are low, the Footwear
industry is more competitive than attractive for competitors outside the industry. The competitive
19. 18
intensity is high within the industry currently, therefore it is less attractive for firms outside the
industry to join.
The insights from the 5-forces analysis is crucial to the success of our firm and will help
us maintain a competitive advantage. It will allow our firm to recognize the opportunities, the
strengths and weaknesses of other firms. We can analyze these factors and modify our strategy
accordingly such as looking at our S/Q rating, advertising budget, delivery time, internet and
wholesale pricing. For example, after year 15 we used the Porter’s Five forces model to change
our strategy to cost-leadership. The Five Forces analysis influence our decisions on how we are
going to safeguard ourselves from new entrants. Closely analyzing the market every year is
essential for our firm’s success to increase and maintain a competitive advantage amongst other
rivals in the industry.
Competitor analysis
I. Wholesale Market Demand Analysis
1. a.
21. 20
1. b. Based on this series of graphs, Ace Footwear considers Team E to be their closest
competitor by year 20. In year 18, our closest competitor was Team E according to S/Q rating
and price. Their S/Q rating was 3-star with a price of $42.00 in year 18. Our firm’s S/Q rating
was 4-star with a price of $42.00 in year 18. In year 19, our closest competitor was again Team
E. Their S/Q rating was a 2-star with a price of $36.50 and our S/Q rating was a 3-star with a
price of $48.25. For year 20, our S/Q ratings were the same as year 19 and closest to Team E.
24. 23
2. b. We believe that, in addition to Team E being our closest competitor, Team B is also a close
competitor. Although we considered both Teams B and E close competitors, we must consider
the fact that it depends on a different variable. First, in Advertising, we noticed that Team B, in
year 18, allocated $19,000,000 for their internet and wholesale segments, while we allocated
$20,450,000; in year 19, Team B allocated $21,000,000 while we allocated $23,300,000. Lastly,
in year 20, Team B allocated $21,000,000 while we allocated $22,300,000. Also, when looking
at number of models offered, Team B offered 50 models just like our firm did. Moreover, in
years 19 and 20, Team B, had a closer price related to ours and Team E had a closer S/Q rating
to ours, as well. Overall, Team E is our closest competitor, but Team B is a close competitor,
based on these variables.
3. After year 15, Team E changed their strategy by decreasing their price and S/Q rating. Only
when Team E changed their strategy, did they start to win market share. Lowering their prices
and S/Q rating gave them an advantage in the market and their strategy change increased the
intensity within the industry. Referring to the graphs from question 1, Team E’s S/Q rating was
set at 3, for a price of $42.00. Retailer demand was 2,839,000 pairs, but Team E sold 2,877.
Therefore, Team E’s market share demanded for year 18 was 27.2%. For year 19, Team E set the
S/Q rating at 2, for pairs to be sold at $36.50. Retailer demand was 3,117,000 pairs, but actually
sold 3,160,000 pairs.Therefore, market share demanded for year 19 was 28.8%. For year 20,
Team E sold pairs at an S/Q rating of 2, for $37.00. Retailer demand was 3,248,000, but actually
sold 3,247,000 pairs. Therefore, market share demanded for year 20 was 28.9%.
4. Our firm is going to stay consistent with our S/Q rating instead of decreasing every year.
Team E has an option to either increase or stay consistent with their S/Q rating because image
25. 24
rating will decrease gradually. This will give a bad reputation for the buyers in the industry
which will result in switching to another supplier. We will continue to invest in advertising
expenditures in all the regions and modify the spending accordingly to reflect currency exchange
rates. Also, we will decrease our price in the wholesale market if needed because those prices
have an affect on the market share. Our firm will plan to increase the models we offer to a 100.
Also, we will attempt to increase the number of retail outlets utilized for the wholesale market.
Our firm will also make efforts to increase our celebrity appeals which will help boost our image
rating. These are just some of the main factors our firm will focus on to threaten our close
competitor firm.
II. Internet Market Demand Analysis
Region/Market Share Y20 Ace Endeavor Catalyst
North America 24.3% 18.1% 18.6%
Europe-Africa 24.3% 18.7% 16.7%
Asia-Pacific 23.2% 18.9% 16.6%
Latin America 18.3% 21.7% 19.6%
In addition to the image above for year 20, we further interpreted overall market share
with the following variables: S/Q Rating, cost, and market share. When it comes to S/Q rating,
for year 18, we elected a 4-S/Q rating, while Team E elected a 3-S/Q rating. For year 19, we
26. 25
elected a 3-S/Q rating, while Team E elected a 2-S/Q rating. For year 20, we elected a 3-S/Q
rating, while Team E elected a 2-S/Q rating.
In terms of cost, for year 18, we sold pairs at $54.90 each, whereas Team E sold pairs at
$53.50 each. For year 19, we sold pairs at $54.25 each, whereas Team E sold pairs at $53.50
each. For year 20, we sold pairs at $52.50 each, whereas Team E sold pairs at $51.50 each.
In terms of market share, for year 18, we ended up controlling 22.1%, whereas Team E
ended up with 26.1%. For year 19, we ended up controlling 22.0%, whereas Team E ended up
with 18.7%. For year 20, we ended up controlling 24.3%, whereas Team E ended up with 18.1%.
III. Private Label Analysis
30. 29
Our private-label market was not competitive as it should have been because many firms
chose not to place bids on the shoes. Our firm was at a disadvantage of not being able to compete
in Europe-Africa and Latin America, because we did not have any plant capacity in these two
regions. This prevented us from placing bids on private-label shoes being shipped from these
regions. We competed every year in private label bids to possibly increase our earnings per share
along with our firm’s image rating. In the last few years, we utilized regular capacity along with
overtime capacity when competing in the private label market. Our future strategy in regards to
private label bids is to continue placing bids and using any overtime capacity there is available.
We will also optimize the bid amount while keeping the margin over direct costs in the positives.
If the need arises we will make adjustments to our proposed shipment plants to distribute out of.
One firm that is our concern is Team DABonair because they have won a significant amount of
market shares competing against our firm in private-label bids. The precise bids they placed on
31. 30
the shoes allowed for them to win market share. Team Endeavor is our biggest concern in the
private label market because they have production plants in Europe-Africa and Latin America.
This will be an disadvantage firm in the coming years because we do not have plant capacity in
both of these regions. To stay competitive within the private-label market we will have to
optimize our bid prices in the North-America and Asia-Pacific Plant and closely analyze margin
over direct costs.
IV. Implementation Analysis
A. Threat: We believe that Endeavor Footwear is choosing to assume a cost
leadership, because side-by-side comparisons from inventory management
and profit and cost analysis have shown that we have dealt with more
expenses, as a result of our determination to excel in the industry.
B. Opportunity: Because Endeavor Footwear appears to lean towards a cost
leadership business strategy, we can counter their strategy with a
differentiation strategy, allowing us to focus more on improving our line
of Footwear’s quality and adding unique features.
36. 35
The following section goes into detail comparing our firm’s performance against our
closest competitor, Endeavor Footwear, over the course of three years. To give the best
comparison between Team E and our firm, we will utilize several variables.
Inventory Management
We began year 18 with a capacity in North America for only 2,000,000 pairs of shoes,
and 4,000,000 pairs of shoes in Asia-Pacific; Europe-Africa and Latin America are at zero,
therefore, the total capacity available for us was 6,000,000 pairs of shoes. On the other hand,
Team E elected their plant capacity to be at 3,000,000 pairs in North America; 2,100,000 pairs in
Europe-Africa; 5,000,000 pairs in Asia-Pacific; and 2,300,000 pairs in Latin America; in
addition, Company Endeavor initiated new construction in year 18, totaling their plant capacity
at 12,400,000 pairs of shoes. Total global plant capacity for year 18 production was 51,800,000
pairs. Obviously, with a diversified strategy to gain capacity and have access to all four
geographic regions, Team E had the opportunity for optimum production and guaranteed
delivery to retailers and consumers worldwide. Which left us at a disadvantage.
In year 19, we kept the same amount of plant capacity for all regions, as well as Team E.
Our total capacity available for year 19 production was 6,000,000, and for Team E, it was
13,600,000 pairs. Total global plant capacity for year 19 production was 55,000,000 pairs. In
year 20, data from year 19 stayed exactly the same, including the total global capacity for year
20 production.
37. 36
Profit and cost analysis
Sales per unit
According to the graph above, throughout year 18, sales per unit was $47.19 for Ace
Footwear. For Endeavor Footwear, their sales per unit was $42.57; the industry average was
$26.05 per unit. In year 19, Ace Footwear’s sales per unit was $52.39, while Endeavor
Footwear’s sales per unit was $37.88; industry average was $26.05 per unit. Lastly, for year 20,
Ace Footwear’s sales per unit was $50.91, while Endeavor Footwear’s was $43.19 per unit; the
industry average was $25.26 per unit.
Manufacturing COGS unit cost
According to the graph above, Endeavor Footwear exceeded us in years 18 and 20, but
both of us maintained a similar unit cost in year 19. Both firms exceeded the industry average by
more than $5.00 per unit.
Warehousing unit cost
In year 18, Ace Footwear maintained a warehousing unit cost of $4.00, while Endeavor
Footwear maintained a cost of $2.00 per unit; both firms exceeded the industry average which
was less than $2.00 per unit. In year 19, Ace Footwear’s warehousing unit cost was $15.00,
while Endeavor Footwear’s was a little over $2.00, leaving Endeavor as a cost leader for this
variable; both firms exceeded the industry average, which was less than $2.00. In year 20, Ace
Footwear’s warehousing unit cost was $4.00, while Endeavor Footwear’s was $3.00; again, both
firms exceeded the industry average, which was set at less than $2.00 per unit.
38. 37
Marketing unit cost
In year 18, Ace Footwear’s marketing unit cost was $13.00, while Endeavor Footwear’s
was $6.00 per unit; both firms exceeded the industry average, which was at $5.00 per unit. In
year 19, Ace Footwear’s marketing unit cost was $15.00, while Endeavor Footwear’s was less
than $2.00 per unit. With that, Endeavor Footwear’s unit cost was actually less than the industry
average, at a little over $4.00. In year 20, Ace Footwear’s marketing unit cost was $14.00, while
Endeavor Footwear’s was a little over $2.00 per unit; Like last year, Endeavor Footwear’s
marketing unit cost is actually less than that of the industry average, which was at $4.00 per unit.
Administrative unit cost
In year 18, Ace Footwear’s administrative unit cost was $1.40, whereas Endeavor
Footwear’s was $1.20. Both firms exceeded the industry average, which was $0.60. In year 19,
Ace Footwear’s administrative unit cost $1.60, whereas Endeavor Footwear’s was $1.20. Both
firms exceeded the industry average, which was at $0.60. In year 20, Ace Footwear’s
administrative unit cost was $1.50, whereas Endeavor Footwear’s was $1.40. Both firms, again,
exceeded the industry average, which was $0.60 per unit.
Interest and Extraordinary losses (gains) unit cost
In year 18, Ace Footwear’s losses unit cost was -$0.60, whereas Endeavor Footwear’s
gains unit cost was $0.20. Ace Footwear’s losses unit cost was actually more than the industry
average, which was -$0.40; as for Endeavor Footwear, they exceeded the industry average.
39. 38
In year 19, Ace Footwear’s losses unit cost was -$0.60, whereas Endeavor Footwear’s
gains unit cost was $0.10. Similar to year 18’s results, only Endeavor Footwear exceeded the
industry average, which was at $0.15. In year 20, Ace Footwear’s losses unit cost was $0.50,
whereas Endeavor Footwear’s losses unit cost was -$1.30. In this variable, both firms performed
below the industry average, which was $0.10.
Profit per unit
In year 18, Ace Footwear’s profit per unit was $5.00, whereas Endeavor Footwear’s was
$6.00. Both firms exceeded the industry average, which was $3.50 per unit. In year 19, Ace
Footwear’s profit per unit was $6.50, whereas Endeavor Footwear’s was $7.00 per unit. Both
firms exceeded the industry average, which was $3.00 per unit. In year 20, Ace Footwear’s profit
per unit was $7.00, whereas Endeavor Footwear’s was $8.50 per unit. Both firms, once again,
exceeded the industry average, which was $4.10 per unit.
42. 41
Credit Rating Y18 Y19 Y20
Ace A+ A+ A+
Endeavor A+ A+ A+
Industry Average A+ A+ A+
43. 42
V. Performance Analysis
A. Threat: Although Endeavor Footwear’s debt ratio increased for the first
time in year 20, this will give them another advantage to expand their
portfolio and horizons, making it that much more difficult for Ace
Footwear to gain a competitive advantage.
B. Opportunity: Currently, there are no opportunities for Ace Footwear to
gain nor sustain a competitive advantage against Endeavor Footwear, if
we continue on our current strategic path.
Sales & Net Income
According to the Sales revenues graph above, in year 18, Ace Footwear made
$297,267,000, whereas Endeavor Footwear made $571,737,000. In addition to the shocking
difference, only Endeavor Footwear exceeded the industry average, which was at $445,511,000.
44. 43
In year 19, Ace Footwear made $299,072,000, whereas Endeavor Footwear made $560,750,000.
Only Endeavor Footwear exceeded the industry average, which was at $445,888,000. In year 20,
Ace Footwear made $309,892, whereas Endeavor Footwear made $539,616,000. Only Endeavor
Footwear exceeded the industry average, which was $480,816,000.
According to the Net Income graph above, in year 18, Ace Footwear earned a net income
of $32,458,000, whereas Endeavor earned a net income of $86,540,000. Only Endeavor
Footwear exceeded the industry average, which was $65,420,000. In year 19, Ace Footwear
earned a net income of $39,061,000, whereas Endeavor Footwear earned a net income of
$106,721,000. Only Endeavor Footwear exceeded the industry average, which was $61,666,000.
Lastly, in year 20, Ace Footwear earned a net income of $43,287,000, whereas Endeavor
Footwear earned a net income of $111,829,000. Only Endeavor Footwear exceeded the industry
average, which was $86,861,000.
Earnings per share
According to the Earnings per share year graph, in year 18, Ace Footwear’s earnings per
share were $4.28, whereas Endeavor Footwear’s earnings per share were $5.54. Unfortunately,
both firms did not exceed the industry average, which was $6.86 per share. In year 19, Ace
Footwear’s earnings per share were $5.21, whereas Endeavor Footwear’s earnings per share
were $7.74. Only Endeavor Footwear exceeded the industry average, which was $6.86 per share.
In year 20, Ace Footwear’s earnings per share were $5.77, whereas Endeavor Footwear’s were
$10.09 per share. Even though Endeavor Footwear was close to the industry average, neither
firm exceeded the industry average, which was $10.70 per share.
45. 44
According to the Return on Equity graph, in year 18, Ace Footwear’s return on equity
was 10.70%, whereas Endeavor Footwear’s was 12.90%. Only Endeavor Footwear exceeded the
industry average, which was 12.52%. In year 19, Ace Footwear’s return on equity was 13.40%,
whereas Endeavor Footwear’s was 15.60%. Both firms exceeded the industry average, which
was 13.23%. Lastly, in year 20, Ace Footwear’s return on equity was 14.40%, whereas Endeavor
Footwear’s was 21.50%. Only Endeavor Footwear exceeded the industry average, which was
20.50%.
Credit Rating & Debt Ratios
According to the credit rating chart shown above, in year 18, Ace Footwear maintained
an A+, as well as Endeavor Footwear. Both firms met the industry average credit rating, which
was A+. In year 19, Ace Footwear maintained an A+, as well as Endeavor Footwear. Both firms
met the industry average credit rating, which was A+. In year 20, Ace Footwear maintained an
A+ rating, as well as Endeavor Footwear. Both firms met the industry average credit rating,
which was A+.
According to the debt ratio graph shown above, in year 18, both Ace Footwear’s and
Endeavor Footwear’s debt ratio was 0%. The industry average was 0.01%. In year 19, both firms
continued with 0% debt ratio. The industry average was 0.04%. Lastly, in year 20, Ace Footwear
had a 0% debt ratio, whereas Endeavor Footwear had a 0.39% debt ratio, exceeding the industry
average of 0.1%.
46. 45
Stock Price
According to the stock price graph shown above, in year 18, Ace Footwear’s stock price
was $68.72, whereas Endeavor Footwear’s stock price was $70.04. Both firms’ stock price were
below the industry average, which was $97.30. In year 19, Ace Footwear’s stock price was
$81.57, whereas Endeavor Footwear’s stock price was $116.12. Only Endeavor Footwear
exceeded the industry average, which was at $101.27. In year 20, Ace Footwear’s stock price
was $79.81, whereas Endeavor Footwear’s stock price was $157.16. Only Endeavor Footwear
exceeded the industry average, which was $171.41.
VI. Competitor Analysis
A. Endeavor Footwear could be vulnerable when faced with the issue of their
Manufacturing cost of goods sold unit cost. After reviewing the profit and
cost analysis, it would appear that Endeavor Footwear has the competitive
advantage simply because they are using their cost leadership strategy to
the best of their ability; keeping costs low and allocating expenses
accurately. In addition, Endeavor Footwear since year 18, has built
capacity in all four geographic regions, whereas we only had 2 plants
operating in North America and Asia-Pacific.
B. Endeavor Footwear is building competitive advantage by expanding the
number of models offered, low marketing expenses, high operating profit,
maintaining a low S/Q rating, and a diversified and extensive branded
production capacity.
47. 46
C. We believe that Endeavor Footwear, in the near future, will increase
number of models offered until capacity is reached, in order to meet the
demand of the four geographic regions. There is little ‘wiggle-room’ for
drastic improvements for Endeavor Footwear. In addition, Endeavor
Footwear may increase their S/Q rating, if they decide to diversify and
switch their current cost leadership strategy to either differentiation or blue
ocean, a combination of both.
Conclusion and Strategic Responses
Ace Footwear is a well-respected and has performed very well in the industry over the
past ten years. The accomplishments we earned took time and effort, even with the obstacles that
we had to face. The industry we competed in was intense and competitive. Company Endeavor
was proven to be our closest competitor when competing in the industry. To remain competitive
with company Endeavor, we increased our advertising cost, decreased S/Q rating, decreased
price, endorsed more celebrity endorsements, and repurchased stock. One advantage they had
over us was they built product plant capacity in Latin America and Europe-Africa. This was a
setback for our team because company Endeavor was able to bid on all their shoes because they
had production plants in those regions. The company was in debt due to the loans they
established to complete construction of their plants. Our firm remained debt free since year 12
which resulted in us having a Credit Rating of A+. If our firm takes the path of building capacity
we would be a threat to Company Endeavor because they have been able to fully utilize their
48. 47
efforts in the private-label market. Since our firm competes in private-label bids and if we end up
achieving the bid, their market shares will gradually decrease. Some key challenges our firm had
to face were: limited models availability, being able to maintain low cost, differentiation
advantage, creating a new way to differentiate the product, not producing enough to participate
in private label market, and competitors imitating our strategy plan. Company Endeavor had a
total of 350 models in years 18-20, on the other hand our firm only had 50 models available for
purchase. This was a challenge for us because the buyers had a variety of models to chose from.
This was their differentiating factor that led them to a larger market and stronger demand, other
things equal. In the coming years our firm plans to build or purchase available capacity to
increase our production rate of shoes. Our firm was unable to participate efficiently in
private-label bid, because we did not have a surplus of footwear. We could not cost effectively
produce more models than what we sold for the ten-year period. During this period of time, our
firm could only produce 50 models of shoes in each region to remain at a low cost position in
terms of costs per pair sold. Initially when the firms first entered the industry, our indirect
competitor DABonair continued to win private label-bids. But our firm realized we need to make
all efforts in participating in private-label bids to make it competitive amongst other firms. Our
firm had a difficult time in setting a price that will be competitive against other firms.
Our future plans are to build capacity by 1,000 in Latin America and 1,000 in
Europe-Africa. Also, allow us to be able to meet wholesale demand with a surplus in private
label market. Moreover, sustain the current price by raising S/Q rating from 3-4-Star.
Furthermore, we plan to increase number of models offered from 50 to 100. Last but not least,
we want to try to keep our cost as low as possible. Based off of the industry and competitor
49. 48
analysis we plan to use our current cost-leadership strategy in the coming years. Our firm plans
to utilize advertising budget, retail support outlets, online buyers, and wholesale market to stay
consistent with the competing firms.
The 3- year pro forma income statement below reflects our possible outcomes in years
21-23. Our firm plans to stay consistent with the internet pricing in each of the regions, this will
help us gain high percentages of market shares like it did in the previous years. Also, we plan on
building capacity in Europe-Africa and Latin-America regions. Building plants in these two
countries will increase our production of footwear and allow us to complete more efficiently in
private label bids. Since our credit rating is at an A+ it will allow for us to obtain additional
loans to build capacity. There will also be an increase in the advertising budget in all the regions
depending on the exchange rates. We will pursue our efforts in making sure we follow our
cost-leadership strategy: footwear that is low price but quality is higher than average. Our firm
will increase celebrity endorsements, increase our network of retail outlets, maintain a consistent
50. 49
delivery time to retailers to make sure they have inventory and keep our expenses as low as
possible since our firm is pursuing a cost-leadership strategy. Our firm’s goal is to continue to
add value for our shareholders through stock price appreciation and continued payment of
dividends, while exceeding all investors expectations that our company is appraised on at the end
of every year.