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.

2. https://youtu.be/FPMPJ40Y4NI

5. 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.

6. We enable people worldwide to express
their individuality.
express yourself

7. Our global appeal, efficient manufacturing facilities and focus on
understanding our customers changing needs, delivers a truly
differentiated business model.
global appeal
efficient manufacturing
understanding our customers

8. By providing a constantly evolving footwear experience to a global
audience, we will achieve and sustain an inimitable market leading
position.
constantly evolving
global audience
market leading

9. May 7, 2017
CSR Strategy & Award - Figures

10. May 7, 2017
CSR Strategy & Award - World Wide Ranking

11. May 5, 2017
Competitive Strategy – Internet - Year 10 to Year 18
Year Global Strategy
11&12 N/A
13 Models Offered & Celeb appeal
14 Advertising & Celeb appeal
15 Models Offered, Free Shipping & Celeb appeal
16 Models Offered, Free Shipping & Celeb appeal
17 Models Offered, Free Shipping, Celeb appeal & Advertising
18 Models Offered, Free Shipping, Celeb appeal & Advertising
19 & 20 SQ Rating & Price

12. May 5, 2017
Competitive Strategy – Internet - Year 10 to Year 18

13. May 5, 2017
Competitive Strategy – Wholesale - Year 10 to Year 18
YEAR NA LA EA AP
11&12 N/A N/A N/A N/A
13 Models avail, celeb appeal Models avail, celeb appeal Models avail, celeb appeal Models avail, celeb appeal
14
Advertising, celeb appeal, rebate,
delivery time Advertising, del time, celeb appeal
Advertising, celeb appeal, rebate, delivery
time, retailer support Advertising, del time, celeb appeal
15
the above + increase in models
availability
Models, celeb appeal, outlets, del
time, rebate (+) models, rebate, del time, celeb appeal
Models avail, celeb appeal, outlets,
del time, rebate
16 the above + retail outlets (+) the above and repeated it. the above + retail outlets (+) the above and repeated it.
17 the above + increased advertising
(+) models, advertising, rebate &
celeb appeal (+) models, rebate, del time, celeb appeal
(+) models, advertising, rebate &
celeb appeal
18
the above + decrease delivery
time the above (-) del time. the above + advertising, reduced del time the above (-) del time.
19&20 Price & SQ Price & SQ Price & SQ Price & SQ
Evolve

14. May 5, 2017
Competitive Strategy – Private label - Year 10 to Year 18
10-15
19-20
16-18
Build CSR Reputation Evolve with Market
Differentiation
CSR
Evolve
Core
• Models offered
• Bid Price
• Target 3 regions
• Positioning strategy
• Reduce models volume
• Withdraw from Private label if
possible
• CSR – Work life balance for work
force – no O/T• Reduced models volume
• Low bid price
• Not target LA
• Reduce Over time in line with CSR

15. May 5, 2017
Year 19 – Year 20 Performance targets
Performance Year 19 Year 20
EPS $5.92 $10.12 $5.95 $10.20
ROE 19% 22% 20% 23%
Credit Rating A- A- A- A
Image Rating 80 77 80 80
Stock Price $82.20 $173.00 $87.20 $177.00
Total Annual

16. May 7, 2017
Year 19 – Year 20 Performance targets

17. May 5, 2017
Production strategy - Overview
Plant Location
Social
People
Development
Costs
• North America
• Asia
• New location: Europe
• CSR culture
• Incentive pay
• Recycling
• Green material
• Diversity training
• Ethics training
• Six sigma/TQM training
• Best practice training
• Energy efficiency
• Reduced overtime
• Foreign exchange fluctuations – intelligent distribution of goods
Celebrity Endorsements
Evolve
Marketing spend

18. May 5, 2017
Evolve Finance Strategy - Stakeholder Value Model
• Employee Engagement and training
• Investment in energy efficiencies and
green materials
• Y13: Stock buyback
• Y17: Dividend payment
• NA and EA: Plant investments
• Refinance and consistent loan repayment

19. May 5, 2017
Internet Global Market Share
Achilles Zeus Evolve Flyte
23% 10% 26% 40%
Evolve is driven by market share, therefore this is the KPI selected for competitive
analysis
EVOLVE STATUS: CHASING MARKET SHARE
Closest Competitor – FLYTE (Team D)
Similar strategy: High No. Models with moderate S/Q rating focusing on all four
regions
Competitive Analysis - Year 18 Snapshot
Internet Marketing

20. May 7, 2017
Competitive Analysis - Year 18 Snapshot
Internet Marketing
Evolve Flyte Difference
S/Q Rating 7 * 7 * =
Models Offered 346 350 -4
Free Shipping Yes No
Total Advertising Spend (£m) £71 £63 + 14%
Global Celebrity Appeal 1,465 820 + 79%
Average Price ($ per pair) $86.50 $72.49 + 19%
Global No. Pairs Sold 1218 1678 -27%
Global Market Share 26% 40% -14%
Closest Competitor Analysis
Competitive Advantages
• Free Shipping – Switching costs
• Celebrity Appeal – Barrier to entry
Competitive Disadvantages
• Price – Substitute threat
• No. models (marginal) – Supplier power

21. May 7, 2017
Wholesale Global Market Share
Achilles Zeus Evolve Flyte
27% 22% 28% 23%
Evolve is driven by market share, therefore this is the KPI selected for competitive
analysis
EVOLVE STATUS: DOMINANT MARKET SHARE
Closest Competitor – Achilles
Different strategy: Low no. models with high S/Q rating focusing on AP and LA
market
Competitive Analysis - Year 18 Snapshot
Wholesale Marketing

22. May 7, 2017
Competitive Analysis - Year 18 Snapshot
Wholesale Marketing
Closest Competitor Analysis
Competitive Disadvantages
• S/Q Rating – Supplier Power
• Price – Substitute Threat
• Global outlets used – Supplier Power
• Retailer Support – Supplier Power
Evolve Achilles Difference
Average Price ($ per pair) $63.46 $59.20 + 7%
S/Q Rating 7 * 10 * - 3*
Models Availability 350 50 + 300
Total Advertising Spend (£m) £71 £64 + 11%
Rebate Offer $4 $2 + 50%
Total Global Retail Outlets Used 11,084 13,762 -19%
Retailer Support ($ per outlet) 550 600 -8%
Delivery Time (weeks) 2 3 33% faster
Global Celebrity Appeal 1,465 1,125 + 30%
Global No. Pairs Sold 7008 6861 + 2%
Global Market Share 28% 27% + 1%
Competitive Advantages
• Model Availability – Switching costs/
Supplier Power
• Advertising – Barrier to entry
• Rebate offer – Buyers bargaining power
• Delivery time – Buyers bargaining power
• Celebrity Appeal – Barrier to entry

23. May 7, 2017
Private Label Global Market Share
Achilles Zeus Evolve Flyte
5% 81% 14% 0%
Evolve is driven by market share, therefore this is the KPI selected for competitive
analysis
EVOLVE STATUS: LOW MARKET SHARE
Closest Competitor – ZEUS
Different strategy: Private-Label Focused – more aggressive pricing across all
regions meant Zeus secured market share
Competitive Analysis - Year 18 Snapshot
Private Label

24. May 7, 2017
Competitive Analysis - Year 18 Snapshot
Private Label
Closest Competitor Analysis
Competitive Disadvantages
• Price – Substitute threat
• No. Pairs Offered – Suppliers bargaining power
• No. Pairs Sold – Buyers bargaining power
Competitive Advantages
• n/a
Evolve Zeus Difference
Global Average Bid Price (if bid) 28.10 27.75 + 1%
S/Q 7 7 =
Total Models Offered 1563 3915 -60%
Total Pairs Sold 767 3915 -80%
% of Pairs unsold 49% 0 + 49%
Global Market Share 14% 81% -67%

25. May 7, 2017
Competitive Actions - Short Term
Internet Segment
Decision Options
• Invest in shoe quality
(target 8-9* S/Q)
• Increase models offered
• Reduce Price
Wholesale Segment
Decision Options
• Invest in shoe quality
(target 8-9* S/Q)
• Reduce Price
• Increase models offered
• Increase no. of retail
outlets
• Increase retailer support
Private-Label Decision
Strategy Options
• Reduce Pricing to capture
market share
• Step away from P-L
market
DISTRIBUTIONS & OPERATIONS
1. Consider re-alignment of SBUs – Production to meet demand
2. Build plant in Latin America – protects business from potential externalities. LA plant
because savings made for distribution to NA
Pay back
loans

26. May 7, 2017
Lessons learnt
1. Focus: we tried to be too many things at the same time
2. Partnerships: Zeus (Partnership offered to Flyte in year 14)
3. Pricing Strategy: less aggressive

27. May 7, 2017
Lessons learnt - Partnerships - Unicef

28. May 7, 2017
Lessons learnt - Partnerships - Bobs for Dogs

29. Thank you!