strategy

Provide a  written description  of the following areas (1-8) below about Company B to include inserting  the appropriate

chart in their respective area.  The words are only estimate for each area to include the charts to be subtracted from

1100 words.  You might not need as many words to the describe the area
Charts
Trends in the company’s annual total revenues
Trends in the company’s annual earnings per share (EPS)
Trends in the company’s annual return on equity investment (ROE)
Trends in the company’s annual credit rating
Trends in the company’s year-end stock price
Trends in the company’s annual image rating
1)    Strategic vision;  (110) words
Describe your strategic vision for the company
Our goal at Company B Athletic Footwear is to become one of the world’s leading athletic shoe providers. We will achieve

this by providing exceptional quality, low costs athletic shoes that fit every niche of the athletic footwear arena.

Company C! logo will be synonymous with great customer service by ensuring that our online shopping experience is smart,

easy to navigate and safe for all of our customers transactions. Our shoes will be comfortable and sleek and our

customers will wear them with pride. “Don’t just chase your dreams, race to them in a pair of Company C! shoes.”
2)    Performance targets;   (70) words
Describe the performance targets for EPS, ROE, credit rating, and image rating you and your co-managers would set for

each of the next two years for Company B. You may also want to indicate a stock price target as well.
3)    Competitive strategy;   (80) words
Describe Company B competitive strategy for the internet market in some detail and how that strategy has evolved during

this exercise in years (each week is a year ..over eight weeks). The company’s strategy for the internet market varies

markedly from geographic region to geographic region

(50) words
Describe Company B competitive strategy for the private-label market in some detail and how that strategy has evolved

over the years you have managed the company
4)    Production strategy   (70 ) words
Describing Company Bproduction strategy (as concerns plant capacity and location, use of overtime, and work force

compensation/training strategy).
5)    Financial strategy;   (70 ) words
Describing Company B finance strategy (as concerns dividends, use of debt versus equity, stock issues/repurchases,

actions to achieve/maintain a strong credit rating, etc.) You should clearly describe your company’s dividend policy

during the period you have managed the company. Here, you should also set forth what sort of dividend increases, if any,

you would likely consider paying out in the next two upcoming years (given the EPS targets you have established
6)    Measuring your competition;(100) words
Our Closest competition in order (4th Place is Company B)
1.    Company  C
2.    Company   G
3.    Company  E
4.    Company B
Describe those companies you consider to be your strongest/closest competitors in the internet market as of the last year

or two of the simulation, (2) those companies that are your strongest/closest competitors in the wholesale market, and

(3) those companies that are your strongest/closest competitors in the private-label market.
7)    Market-share strategy     (70) words
Detailing the actions you would take to out-compete these close rivals in the next two years  Since the actions may

differ between internet, wholesale, and private-label
8)    Lessons learned  (70) words
Detail the “lessons learned” about crafting a winning strategy and about what the managers of a company should or should

not do for a company to be financially and competitively successful in a head-to-head battle against shrewdly-managed

rival companies.
Exercise eight week ago

Youtakingovertheoperation ofanathleticfootwearcompanythatisinaneck-and-neckraceforglobalmarketleadership,competing

againstrivalathleticfootwearcompaniesrunbyotherclassmembers.Allfootwearcompaniespresently havethesameworldwidemarket

shareandthesamemarket sharesineachofthefour geographic market

regions—Europe-Africa,Asia-Pacific,LatinAmerica,andNorthAmerica.Currently,yourcompanyis

sellingover5millionpairsannually.Inthejust-completedyear,yourcompanyhadrevenuesof$238

millionandnetearningsof$25million,equalto$2.50pershareofcommonstock.Thecompanyisin

soundfinancialcondition,isperformingwell,anditsproductsarewell-regarded.Yourcompany’sboardof

directorshaschargedyouandyourco-managerswithdevelopingawinningcompetitivestrategy—onethat

capitalizesoncontinuingconsumerinterestinathleticfootwear,keepsthecompanyintheranksofthe

industryleaders,andbooststhecompany’searningsyear-after-year.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Company B

Company B produces footwear at 2 plants—a 2 million-pair plant in North America and a newer 4 million-pair plant in Asia.

Both plants can be operated at overtime to boost annual capacity by 20%, thus giving the company a current annual

capacity of 7,200,000 pairs. Sales volume in Year 10 equaled 5.2 million pairs, so there’s no immediate urgency to add

more capacity. At management’s direction, the company’s design staff can come up with more footwear models, new features,

and stylish new designs to keep the product line fresh and in keeping with the latest fashion. The company markets its

brand of athletic footwear to footwear retailers worldwide and to individuals buying online at the company’s Web site. In

years past, whenever the company had more production capacity than was needed to meet the demand for its branded

footwear, it entered into competitive bidding for contracts to produce footwear sold under the private-label brands of

large chain retailers. In Year 10 the company sold4.5 million pairs of branded shoes to retailers and individuals, and it

bid successfully for contracts to supply 740,000 pairs of private label shoes to large multi-outlet retailers of athletic

footwear.

Materialsto makethecompany’sfootweararepurchasedfromavarietyofsuppliers,allofwhomhavethe capabilityto makedailydeliveries

tothecompany’s  plants;thecompany’s  just-in-timesupplychain

eliminatestheneedformaintainingmaterialsinventoriesatitsplants.Newlyproducedfootwearis

immediatelyshippedinbulkcontainerstooneofthecompany’sfourregionaldistributioncenters.The

distributioncenterforEurope-Africa is inMilan,Italy.Thedistributioncenter fortheAsia-Pacificregionisin

Bangkok,Thailand.TheLatinAmericandistributioncenterisinRiodeJaneiro,Brazil,andtheNorth

AmericandistributioncenterisinMemphis,Tennessee.Manycountrieshaveimportdutiesonfootwear

producedatplantsoutsidetheirgeographicregion;importtariffs,whichbecomepayablewhenyour

companyshipsfootweartoforeigndistributioncenters,currentlyaverage$4perpairinEurope-Africa,$6

perpairinLatinAmerica,and$8inAsia-Pacific.However,theFreeTradeTreatyoftheAmericasallows

tariff-freemovementoffootwearbetweenallthecountriesofNorthAmericaandLatinAmerica.The

countriesofNorthAmerica,whichstronglysupportfreetradepoliciesworldwide,currentlyhavenoimport

tariffsonfootwearmadeineitherEurope-AfricaorAsia-Pacific.Yourinstructorhastheoptiontoalter

tariffsasthegameprogresses,sothecurrent tariffarrangementsshouldbeviewedastemporary
ShippingandDistributionCenterOperations.Personnelatthecompany’sdistributioncenters

openthebulkshipmentsfromplants,packeachincomingpairinindividualboxes,storetheshoeboxesin binsnumberedbymodel andsize,

retrievethepairs/boxesfrombinsasneededtofill incomingordersfrom footwearretailersand onlinebuyers,and readyordersfor

shipment.

Arrangementsaremadewithindependentfreightcarrierstopickupoutgoingordersattheloadingdocksofthedistributioncentersand

deliverthemtocustomers.Eachdistributioncentermaintainssufficientinventoryofeachmodelandsize

toenableorderstobedeliveredwithin1to4weeksfromthetimetheorderisplaced.Youandyourco- managerswill decidewhether

tostafffor1-week,2-week,3-week,or4-weekdeliveryto retailers

CompetitiveEffortsintheMarketplace.From-time-to-timethecompanyenhancesitsfootwearwith

newstylingandperformancefeaturesandaltersthenumberofmodels/stylesinitsproductlineup.In

addition,thecompanystrivestoenhanceitssalesvolumeandstandinginthemarketplaceviaattractive

pricing,advertising,mail-inrebates,contractingwithcelebritiestoendorseitsbrand,convincingfootwear

retailersdealerstocarryitsbrand,providingmerchandisingandpromotionalsupporttoretailers,good deliverytimesonshipmentsto

retailers,andpromotingonlinepurchasesatitsWeb site.

StockListingsandFinancialReporting.Thecompany’sstockpricehasrisenfrom$11.00inYear

6,whenthecompanywentpublic,to$30attheendofYear10.Thereare10millionsharesofthe

company’sstockoutstanding.Thecompany’sfinancialstatementsarepreparedinaccordwithgenerally

acceptedaccountingprinciplesandarereportedinU.S.dollars.Thecompany’sfinancialaccountingisin accordancewiththe rulesand

regulationsof all securitiesexchangeswhereitsstockistraded.

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