VF Corporation aims to grow by building leading lifestyle brands and fostering a culture of innovation and diversity. They face competition from major brands and challenges with product life cycles, but have strengths in their organizational structure and market position. The company seeks to expand its presence, particularly in Eastern Europe, and improve operational efficiency while maintaining strong financial metrics.

1. Case Analysis

2. CEO
Histroy
Types
IndustryFounded
Headquarters
Revenue
About VF Corporation

3. VFC Operates

4. ``WE WILL GROW BY BUILDING LEADING LIFESTYLE BRANDS THAT EXCITE
CONSUMERS AROUND THE WORLD”
Current Vision

5. MISSION

6. Mission
Ours is a perpetually driven culture, focused on constant innovation (4). Using
deep research and insights, we combine the art and science of apparel to create
products that excite consumers and brands that inspire loyalty (5,7).
We responsibly manage the industry's most efficient and complex supply chain,
which spans multiple geographies (3), product categories and distribution
channels(2).
Our goal is to continuously exceed the expectations of our consumers, customers
(1), shareholders and business. partners (6) We help our retail partners win with
consistently solid execution and outstanding service. And we continually find ways
to improve our performance and generate bottom line results.
Our people are the source of our success (9). VF associates share a deep
commitment to diversity - in people and ideas. We conduct business with the
highest levels of honesty and integrity (8) and we foster a positive working
environment based on creativity, collaboration, and congeniality. These are the
things that make us great. These are the things that make us VF.

7. VISION & MISSION
“To create a truly global brand that provides growth opportunities for the company
and its employees, whilst achieving its goal of becoming the number one value
fashion retailer around the world.”

8. Opportunities
Eastern Europe is
a fast growing
market with
Ukraine leading
the way.
Baby boomers
are the largest
per capita
consumers of
apparel.
71 million teens
in the US are
maturing into
young adults.
Consumers 20-
34 account for
24% of the
appeal spending
in the US.
Social media
enables retailers
to listen to
customers in real
time.
US consumers
spent $192
billion in 2010 on
apparel.
External Audit

9. External Audit
Threats
1. Gap, Timberland, Nike,
Adidas, and Reebok are
all strong competitors.
2. Product life cycles are
short and fashion trends
can change quickly.
3. Timely delivery and
low cost transportation
and oil from supply chain
being over seas.
4. US is still suffering
from high
unemployment around
9% and low home prices.
5. Cotton prices are up
over 100% from 2009.

10. EFE (External Factors Evaluation) Matrix

11. EFE (External Factors Evaluation) Matrix

12. Internal Audit
Strengths
Diversity of
products
(more than
25 brands).
Largest
branded
apparel
company in
the world.
Excellent
organizational
structure with
5 distinct
SBUs.
International
revenues
account for
30% of
revenues.
Opened 15 new
stores in first
quarter 2011
bringing total
number of owned
retail stores t o788.
Weathered
the 2008-2009
recession
better than
competitors.
Stock price
increased from
$40 to $140 or
140% from 2009
to year end 2011.

13. Internal Audit
Weaknesses
 Current Ratio of 1.5 compared to 3.0 for the industry suggests VF is
more highly leveraged than competition.
 Receivables turnover is only 6.7 compared to 38 for the industry.
 Revenues have not increased in the last 3 years.
 Property, Plant, & Equipment remained the same.
 Approximately $2.5 billion or 40% of assets come from goodwill or
intangibles.
 Sportswear, Contemporary Brands and Other segments are not
operating efficiently.
 Currently paying over 18% of revenue for labor.

14. IFE Matrix (Internal Factors Evaluation)

15. IFE Matrix (Internal Factors Evaluation)

16. Financial Analysis
Inventory method:
75% FIFO ,
25% LIFO
Common stock: $411,830,000 ,Largest
course of cash from investing activities
Capital expenditures $111,640,000

17. Financial Analysis
• Liquidity and Efficiency
Current Ratio
• 2009: 2.4
• 2010: 2.5
• Since 2005, current ratio
fluctuated from 2.1 to 2.6
Their current ratio most
likely fluctuated in the past

18. Inventory Turnover
2009: 3.81
2010: 4.05
They needed to cut their supply/inventories in order to keep
their costs competitive
Accounts Receivable:
Turnover Ratio :
2009: 8.77
2010: 9.84
Accounts receivable stayed roughly the same, while net
Financial Analysis

19. Solvency
Debt to equity ratio
2009: .697
2010: .672
Debt to equity ratio did not fluctuate as much as in
previous years No sales or purchases of companies VF
Corporation keeps their debts very low easier to pay off
debt strong solvency
Financial Analysis

20. Profitability
Profit Margin Ratio
2009: .064
2010: .074
Gross Margin Ratio
2009: .437
2010: .461
Return on Total Assets Ratio
2009: .071
2010: .089
Financial Analysis

21. Financial Analysis
Would we invest in VF Corporation?

22. Yes
Dividends Double dividend payments every 8 years
EPS: Annual Dividends 11.9% Greater than
average EPS Attractively valued14 times earnings
Payout ratio stayed under 50%
Financial Analysis

23. QSPM (Quantitative Strategic Planning Matrix)

24. QSPM (Quantitative Strategic Planning Matrix)

25. QSPM (Quantitative Strategic Planning Matrix)

26. QSPM (Quantitative Strategic Planning Matrix)

27. Competitors

28. • Build 100 new stores in
Eastern Europe (S1, S2,
S5, S6, O1, O9).
• Develop line of
products attractive to
Baby boomers (S1, S2,
O2).
• Increase from 34% to
50% production of own
products (S4, O5).
SO
Strategies
Strategy

29. Strategy
• Build 100 new stores
in Eastern Europe (W4,
O1, O9).
• Introduce and
advertising campaign
to ensure customers
associate all of VF
Corp’s brands with the
VF Corp. (W6, O6, O7).
• Acquire Babe Stores
(W4, O3, O4, O7).
WO
Strategies

30. Strategy
ST
Strategies

31. Strategy
• Expand accounting
staff to aid in
collections (W2, T1).
• Liquidate
Sportswear,
Contemporary
Brands, and Other
segments (W7, T1).
WT
Strategies

32. Recommendations
Build 100 new stores in Eastern
Europe at $1.5M each for
$150M.
Expand on customer basis
and revenue opportunities
International sales and
opportunities
Produce a form of loyalty program
for customer specially with their
high price product