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MGO403 BSG PRESENTATION.pdf
- 1. 01 ADIZON 3-YEAR PLAN By Cassandra Yew, Ted Lim & Anuvrat Agarwal
- 2. Before our 3-Year Plan Years 11 - 15 Next Our Ranking - #9 Failure to capture sufficient market share Failure to secure sufficient celebrity contracts Why did this happen?
- 3. Before our 3-Year Plan Years 11 - 15 Next Our Ranking - #9 Continuous increase of global SQ rating --> Change in strategy --> Increased EPS but intensified competition Why did this happen?
- 4. Next Year 15 Financial Details End of Year 15 ADIZON INDUSTRY AVERAGE DISCREPANCY Total Revenue Gross Profit Net Income End-of-Year Available Cash CATEGORY $591,715 $795,853 -25.65% $115,869 $177,860 -34.85% $78,163 $117,569 -33.52% $22,837 $23,463 -2.67%
- 5. Year 16 Moving Into Year 16 Challenges & Goals CHALLENGES GOALS Low Market share Lower EPS and ROE Competitive market Increase market share Get more celebrity contracts
- 6. Next Adizon's 3-Year Strategic Vision Statement Adizon believes in providing quality, design, and comfort through our shoes to customers worldwide. Aim to raise the bar higher in terms of our overall growth in different regions. The company has always kept its true vision as excellent customer satisfaction.
- 7. Projected VS Actual Performance Earnings per share ROE Stock Price Year 16 Projected Credit Rating Year 16 Actual Year 17 Projected Image Rating Year 17 Actual Year 18 Projected Year 18 Actual $3.50 14.4% $43 A+ 88 $3.39 13.6% $34.27 A+ 85 $3.72 13.4% $39.12 A+ 80 $4.20 18.5% $58 A+ 88 $5.72 18.9% $72.94 A+ 83 $4.00 18.0% $55 A+ 88
- 8. Year 16 Target vs Actual Earnings per share ROE Stock Price Credit Rating Image Rating Year 16 Projected Year 16 Actual $3.50 14.4% $43 A+ 88 $3.39 13.6% $34.27 A+ 85 Low Market share No Celebrity contract
- 9. Year 17 Target vs Actual Earnings per share ROE Stock Price Credit Rating Image Rating Year 17 Projected Year 17 Actual $4.00 18.0% $55 A+ 88 $3.72 13.4% $39.12 A+ 80 Low Profit margin Lower average advertisement spending Lower selling price a little No celebrity endorsement
- 10. Year 18 Target vs Actual Earnings per share ROE Stock Price Credit Rating Image Rating Year 18 Projected Year 18 Actual $4.20 18.5% $58 A+ 88 $5.72 18.9% $72.94 A+ 83 Manage to hit Private Label (2 regions) Increased market-share (all regions) No celebrity endorsement
- 11. Branded Production 3-Year Plan Achieiving performance targets Higher price model in all regions Concentration on high SQ rating (more superior materials used) Slowly increasing prices for internet and wholesale segment
- 12. 3-Year Plan Private Label Achieiving performance targets Unable to capitalise on private label (cash shortage)
- 13. Strengths -High S/Q Rating - Latin America Facility Weaknesses - Low ROE - Higher than average prices Opportunities -Private label -Celebrity endorsement -Market Share Threats -BOSS -Dynamic Trio -Jadidas - Hakunamatata S W O T Next
- 14. Next Porter's Five Forces INDUSTRY RIVALRY Threat of New Entrants Bargaining Power of Buyers Bargaining Power of Suppliers Threat of Substitutes Monopoly The suppliers control the prices. None None Private Label, Wholesale (Retail) and Internet Segment
- 16. Maintained a similar position in all geographical locations Low models, higher price segment
- 18. What We Have Learnt Next Gain & sustain long-term competitive advantage Analyse business situations & formulate strategies Make informed decisions for strategic success