The Dansko Presentation was presented by myself and fellow classmates in our Global Business Policies Capstone. We analyzed our company, Dansko, and developed a strategy to build the brand into the future.

1. Developing Dansko VLACC Consulting Nate Velazquez, Chris Loeffert, Eric Conklin, Jon Czyzewski, Nick Amadio

2. Overview Industry Analysis… Competitor Analysis… Dansko’s Company Strategies… Potential Options for Growth… Our Recommendation… Implementation of Recommended Strategy…

3. Problems Transitioning beyond a mom-and-pop business into a mid-sized organization Sustaining growth while maintaining company cultures and values

4. Overall Economic Overview According to the American Apparel & Footwear Association (AAFA) 2004 annual report US economy showed positive gains by most measures GDP increased 3.5% in 2004 Personal income increased 5.5% Personal Consumption Expenditures (PCE) increased 6.3%

5. Industry Analysis U.S. footwear industry consists of about 100 manufacturers with sales of about $60 billion U.S. Expenditures on clothing and footwear increased 5.0% in 2004 (AAFA) Consumption predicted to continue to increase Comfort Shoe sector surviving sluggish economy Footwear prices staying consistent Prices for rubber footwear increased 0.6% Prices for non-rubber footwear increased 1.4%

6. U.S. Consumption of Footwear Thousands of Pairs Year

7. SWOT Analysis

8. Competitors

9. Competitors

10. Dansko Originated in U.S. with a Danish manufacturer Strong company culture 9 Different Product Lines “Stay gourmet” Pricing matches competitors Rising costs in production are beginning to affect profits

11. Option 1 : Not Recommended

12. Option 2 : Not Recommended

13. Option 2: Dansko’s Production Effects Price per Pair ($) A…..Dansko’s current production with independent retailers B…..Dansko sells to big box retailers, causing supply and demand to both increase. This results in a lower price and more shoes being sold C…..After selling to big box retailers, the market is saturated and demand for Dansko shoes decreases. This causes the equilibrium quantity and price to drop causing lower profit margins and lower total revenues S S’ A 100 B 80 C 60 D’ D 100 125 Thousands of Pairs

14. Option 3 : Not Recommended Continue Independent Upgrading and Utilizing Self Realized Ideas Dansko has been a company built from the ground up They consider themselves as a mom and pop shop Have a close knit corporate culture They have notoriety of being very unconventional in their business ways They promote an environment that promotes everyone in the company to provide feedback and ideas Everyone takes part in every job, “learning as they go”

15. Option 3: Not Recommended

16. Option 4: RecommendedNew Organizational Structure Reorganize and modify positions Create universal titles Bring in industry professionals Increase directors’ authority and freedom

17. Option 4: Recommended

18. Option 5: RecommendedIncreasing HR focus Bring structure to Mandy’s employee goals. Expand training and development programs Monitor manager-employee relationships Goal setting Performance Mentoring

19. Option 5: Recommended

20. Recommendation New Organizational Structure & Increase HR Focus

21. Implementation Amanda Cabot CEO Peter Kjellerup Executive VP Philomena Curry COO Mark Diehl Senior VP/sales Gwen Livingston HR Director Mitch Meyer IT Director Marc Vettori C/S Manager Catherine Byers Mktg & COMM Mgr. Matilda Mullin Finance (AP) Manager Wendy Convington Credit & Coll. Manager Brenda Zurl HR Admin Navision Programmer Inventory Buyers Christian Shea Mktg. Dev. Mgr. Danielle Alpaugh Sales Coordinator Web Author Retail Outlet Staff Martha Ryan OnLine Bus. Mgr. Tim Lewis Network Coordinator Kim Dunn Warehouse Mgr. LeAnneMcComsey PD Manager QC supervisor PD Coordinator

22. Amanda Cabot President Peter Kjellerup Executive VP Gwen Livingston HR Director Mark Diehl Marketing /Sales Director Philomena Curry Operations Director Finance Director Sales Manager Mitch Meyer IT Manager Wendy Convington Credit & Coll. Manager Matilda Mullin Finance (AP) Manager Inventory Buyers Catherine Byers Mktg & COMM Mgr. Marc Vettori C/S Manager Training and Development Coordinator Navision Programmer Retail Outlet Staff Brenda Zurl HR Admin Christian Shea Mktg. Dev. Mgr. Web Author Kim Dunn Warehouse Mgr. Danielle Alpaugh Sales Coordinator Martha Ryan OnLine Bus. Mgr. Tim Lewis Network Coordinator QC supervisor LeAnneMcComsey PD Manager PD Coordinator

23. ImplementationIncrease HR focus Training Development Relational returns of employees

24. Questions?