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.

1. Leah's Loafers
Marie Holada
Leah Klacko
Dean Rowbotham
Makenzie Schwartz

2. Mission Statement
"We are committed to delivering the highest
quality shoes to our customers that are made
responsibly in an ethical, diverse setting."

3. Strategy Formulation
Initial Broad Differentiation Strategy
● High Quality Shoes at a High Price Point
● Higher S/Q Rating than competitors
● More models and more advertising
● Retain loyal customer base with rebates and more retailers carrying the products
● Best practices training to employees to provide excellent customer service

4. Financial Objectives
Short Term:
● Maintain a credit rating of B+ through the first two years
● Maintain a return on equity investment of 15% or more annually.
Long term:
● Grow earnings per share 7% annually through first five years, and 5% annually after.
● Achieve stock price gains of 7% through the first five years, and 5% annually after.

5. Strategic Objectives
Short Term
● Construct an upscale brand that was the leader for its quality product offering and
use of superior materials.
● Consistently be the leader in advertising and marketing as well as recognized in
the global shoe industry.
Long Term
● Achieve an image rating of 70+ within the first 5 years.
● Incrementally increase prices for our products to remain
competitive.

6. Strategy & Tactics
● Invest in environmentally responsible practices to improve our CSR.
● Achieve maximum capacity in plants as well
as invest in upgrade options A and D for the
North American Plant.
● Free shipping as well as a mail-in rebate.

7. Adjustments
● Corporate Citizenship
○ Use of Recycled Boxing and Packaging
○ Energy Efficiency Initiatives
○ Charitable Contributions
○ Ethics Training and Enforcement
○ Workforce Diversity Program

8. Year 18 Corporate Citizenship

9. Adjustments
● Sales Forecast
○ Inventory Clearance
● Plant Capacity
○ Purchase/ Sale of Capacity
○ Upgrade Option A and C at N.A. Plant and Asia Plant

10. Adjustments
● Branded Production
○ Achieve highest S/Q rating
○ TQM/ Six Sigma Quality Program
○ Compensation

11. Adjustments
● Branded Distribution
○ North America
○ Asia

12. Adjustments
● Internet Marketing
○ Competitive Pricing
○ Increased Models Offered
○ Achieved highest S/Q rating
○ Free Shipping
○ Increased advertising

13. Adjustments
● Wholesale Marketing
○ 200 models offered in the market
○ Competitive Pricing
○ Rebates offered
○ Support Retail Outlets
● Celebrity Appeal
○ Tiger Green
○ Oprah Letterman
● Private-Label Operations

14. Year 18 Wholesale Marketing

15. Finance & Cash Flow
● Paid $1.50 Dividend
● Repurchase 2000 shares @ $39.05 a share
● Allowed Leah's Loafers to significantly raise
Return on Equity

16. Assessment - EPS
● Board of Directors Expectations
○ 7% annually through Year 15
○ 5% annually Year 16 on
● Competition
○ Company F EPS
○ Industry Overall

17. Assessment - ROE
● Expected to have an annual return on equity a 15% or higher.
● Struggled year 11 at 4.6%
● Significantly better performance for
years 12, 13, 14 and 18. All above 15%.
● Company F competition
● Overall industry

18. Assessment - Credit Rating

19. Assessment - Image Rating

20. Assessment - Stock Prices
● Beginning Stock Price
○ Year 11, $16.65
● Ending Stock Price
○ Year 18, $101.02

21. Industry Stock Prices

22. Year 18 Performance

23. Key Learnings
● Adapting Strategy to changing market
○ product offering, pricing
● Celebrity behind Leah's Loafers
○ Tiger Green
● Private-Label Operations

24. Advice
● Know the demand for the market
● Private-Label Operations
○ Worth it for Leah's Loafers?
● Bomb.com Product Offering
● Hard working Workforce
● Whose reppin' us?