applied business managment bod ppt
TRANSCRIPT
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Eternal ComfortBoard of Directors Meeting
MANAGEMENT TEAMMICHAEL CAMILLERI PRESIDENT. PRIVATE LABEL & NORTH AMERICAHANNAH DAVIS V.P. FINANCE & LATIN AMERICAANDREA PAREDES V.P. MARKETING & ASIA PACIFICLAURA MACRI V.P. PRODUCTION & EUROPE AFRICA
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Agenda President
Global Market Overview Marketing Finance Production Private Label
Situation Analysis SWOT Y17-19 Plan / Objectives Strategy Action & Decisions
North America Europe Africa Asia Pacific Latin America
Situation Analysis SWOT Y17-19 Plan / Objectives Decisions & Actions
Summary
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President MICHAEL CAMILLERI
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Global Market Overview
Industry #27 Competitive market 6 Total companies
Company A B C D E F
Price $49 $58.50-$60 $53-$55 $50-$60 $58 $55-$59
S/Q 4 8 7 5-6 8 6-7
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Situation Summary$ Millions Y14 Y15 Y16
Y16 Projectio
ns
Y16 B/(W) PY16
% Y16 I.A.Y16
B/(W) I.A.
%
Revenue $
$395,657
$354,403
$451,868
$506,846
$(54,978)
-10.8%
$423,247
$28,621 6.8%
Market Share % 18.7& 14.6 17.8 19.1 -1.3 -6.9% 16.7 (17) -
98.9%Operating Profit
$$54,766 $63,278 $76,044 $98,571 $(22,52
7)-
22.9% $66,423 9,621 14,5%
Operating Profit
%13.8% 17.9% 16.8% 19.4% (0.03) -
13.4% 15.7% 0 7%
Earning Per
Share $$3.58 $4.34 $5.26 $7 $(2) -
23.5% $3.77 1 39.5%
Return on
Equity %15.1% 15.7% 16.2% 20% (0.04) -19% 9.8% 0 65.3%
Stock Price $ $47.25 $54.99 $68.42 n/a $68.42 n/a $53.30 15 28.4%
Credit Rating A+ A A- A+ n/a n/a B n/a n/a
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SWOTStrengths Weaknesses
• High quality at an affordable price
• High image rating• Strong cooperate social
responsibilities• Meets or exceeds investor
expectation
• Credit rating on a decline• Maximized capacity
Opportunities Threats
• Growth• Market share • Take the high end shoe
market
• Large amount of competition• Similar company's • Anyone can under cut us
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Y17-Y19 Plan/Objectives$ Millions Y16 PY17 PY19
Revenue $ $451,868 $560,378 $770,120
Market Share % 17.8% 25.8% 27.2%
Operating Profit $ $76,044 $105,682 $165,495
Operating Profit % 16.8% 25.8% 24.6%
Earning Per Shares $ $5.26 $7.17 $11.78
Return on Equity % 16.2% 18.5% 19%
Stock Price $ $68.42 $83.54 $92.30
Credit Rating A- A+ A+
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Strategy
Maintain our high star for a reasonable price strategy
Take advantage of mimicking companies
Sell large amounts of shoes across all regions
Increase revenue yearly to keep up with plan
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Action & Decisions
Implement our plan for the upcoming year 17 plan
Look over decision to ensure we are maximizing out profit for that year with our capacity
Eliminate other competition in our competing market
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MarketingANDREA PAREDES
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Situation Analysis$ Millions Y14 Y15 Y16 Y16
ProjectionsY16 B/(W)
PY16 % Y16 I.A. Y16 B/(W) I.A. %
Marketing ExpensesInternet
Advertising $ 5,001 $ 6,047 $ 6,884 $ 8,268 $ (1,384) -16.7% $ 5,317 $ 1,567 29.5%Web Site
Maintenance $ 4,260 $ 4,260 $ 4,260 $ 4,260 $ (8,520) -200.0% $ 4,256 $ 4 0.1%Celebrity
Endorsements $ 1,312 $ 282 $ 3,814 $ 4,598 $ (784) -17.1% $ 1,040 $ 2,774 266.8%Total Internet
Marketing Expenses
$ 10,573 $ 10,589 $ 14,958 $ 17,126 $ (2,168) -12.7% $ 10,613 $ 4,345 40.9%
% of Internet Revenues 18.6% 20.8% 20.1% 17.1% 3.0% 17.7% 22.1% -2.0% -9.0%
WholesaleAdvertising $ 29,499 $ 37,953 $ 41,116 $ 39,732 $ 1,384 3.5% $ 41,193 $ (77) -0.2%
Rebate Redemption $ 6,117 $ 4,075 $ 6,746 $ 7,369 $ (623) -8.5% $ 5,315 $ 1,431 26.9%
Retailer Support $ 7,488 $ 8,930 $ 14,647 $ 14,647 $ - 0.0% $ 20,087 $ (5,440) -27.1%On time delivery $ 9,980 $ 6,223 $ 9,308 $ 10,060 $ (752) -7.5% $ 14,730 $ (5,422) -36.8%Celebrity Endorse $ 7,744 $ 1,774 $ 22,896 $ 22,112 $ 784 3.5% $ 8,065 $ 14,831 183.9%
Total Wholesale Marketing Expenses
$ 60,828 $ 58,955 $ 94,713 $ 93,920 $ 793 0.8% $ 89,389 $ 5,324 6.0%
% of Wholesale Revenues
106.8% 116.1% 127.2% 93.6% 33.6% 36.0% 27.5% 99.7% 361.9%
Total Marketing Expenses
$ 71,401 $ 69,544 $ 109,671 $ 111,046 $ (1,375) -1.2% $ 100,002 $ 9,669 9.7%
% of Total Revenue 18.0% 19.6% 24.3% 27.6% -3.3% -12.0% 23.6% 0.6% 2.7%
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SWOTStrengths Weaknesses
Consistent high image rating In year 16 – exceptionally strong
celebrity appeal; well above industry average
Days of inventory low; turnover rate high
Operating profit was consistently above industry average
On-time delivery was good (2 weeks)
Outbid in year 15 for celebrities; were unable to compete effectively in the four regions
Private label sales in year 16; did not have enough capacity
Low rebate redemptions in year 15
Opportunities Threats
Build a new plant Purchase more capacity Regain private label sales
Competition Being outbid for future celebrity
endorsements Companies copying our strategy Higher days of inventory
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Y17-Y19 Plan/Objectives$ Millions Y16 PY17 PY19
Net RevenueInternet $ 74,448 $ 90,072 $ 138,751
Wholesale $ 373,604 $ 375,956 $ 514,498 Private Label $ 3,816 $ 94,350 $ 116,871
Total Net Revenue $ 451,868 $ 560,846 $ 770,120Market Share
Internet 22.8% 23.9% 26.5%Wholesale 17.6% 17.5% 19.0%
Private Label 1.8% 36% 40.0%Total Share 14.1% 25.8% 27.2%
Shoe ProductionCost of Branded Pairs Sold/Pair $ 29.23 $ 28.22 $ 27.75
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Strategy
Produce shoes in Asia Pacific and ship to Europe Africa
Produce shoes in North America and ship to Latin America
Increase private label sales
Acquire more celebrity endorsements
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Decisions/Actions
Implement our plan for the upcoming year 17 plan
Produce shoes for a medium to low price for consumers, at a marginal cost
Decrease inventory days
Shock the market by tapping into the private-label market effectively and become private-label market share leaders
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Finance HANNAH DAVIS
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Situation Analysis$ Millions Y14 Y15 Y16 PY16 Y16 B/(W)
PY16 % Y16 I.A.Y16
B/(W)I.A.
%
INCOME STATEMENTRevenue $395,657 $354,403 $451,868 $506,846 $(54,978) -10.8% $423,247 $28,621 6.8%
COGS $234,413 $189,801 $227,378 $253,927 $(26,549) -10.5% $220,124 $7,254 3.3%
Operating Profit % 13.8% 17.9% 16.8% 19.4% -2.6% -13.4% 15.7% 1.1% 7.0%
EPS $ $3.58 $4.34 $5.26 $7.00 $(1.74) -24.9% $3.77 $1.49 39.6%BALANCE SHEET
ROE % 15.1% 15.7% 16.2% 20.0% $(0) -19.0% 9.8% 6.4% 65.3%Stock Price $47.25 $54.99 $68.42 $83 $(14) -17.1% $53.30 $15.12 28.4%Total Assets $305,886 $344,250 $439,030 $419,881 $19,149 4.6% $410,859 $28,171 6.9%
Total Liabilities $60,241 $56,796 $100,954 $66,193 $34,761 52.5% $102,243 $(1,289) -1.3%
CREDIT RATING METRICSCredit Rating A+ A A- A+ n/a n/a B n/a n/a
Interest Coverage 9.83 21.72 25.65 33.24 (7.59) -22.8% 26.92 (1.27) -4.7%
Debt to Assets Ratio 0.11 0.10 0.18 0.10 0.08 80.0% 0.23 (0.05) -21.7%
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SWOTStrengths Weaknesses• Bank loans• Credit ratings• Default risk• Debt to asset ratio/interest
coverage
• Ending cash• Operating profit expenses• Costs of pairs sold
Opportunities Threats• Increasing ending cash
available• Reduce operating profit
margin• Reduce cost of pairs sold
• Competitors• Co. Blue Label• Co. Cartel Shoes
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Y17-Y19 Plan/Objectives$ Millions Y16 PY17 PY19
Revenue $ $451,868 $560,378 $770,120
COGS $253,927 $288,601 $399,095
Operating Profit $ $76,044 $105,682 $165,495
Operating Profit % 16.8% 25.8% 24.6%
Earning Per Shares $ $5.26 $7.17 $11.78
Return on Equity % 16.2% 18.5% 19%
Stock Price $ $68.42 $83.54 $92.30
Credit Rating A- A+ A+
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Strategy
Use a portion of excess cash to pay off outstanding loans
Maintain a credit rating of A or A+
Keep bank loans minimum to none
Increase profit margin by reducing operating costs
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Decisions/Actions
Shoes distributed to Latin America will be from North America plant instead of Asia Pacific plant
Increase corporate social responsibility financial efforts
Avoid 1-Yr loans, use only 5-Yr/10-Yr options
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ProductionLAURA MACRI
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Situation Summary$ Millions Y14 Y15 Y16
Y16 Projecti
ons
Y16 B/(W) PY16
% Y16 I.A.Y16
B/(W) I.A.
%
Total Capacity 6,000 6,000 6,900 6,000 6,000 6,900 7,250 (350) -4.8%
Net Footwear Productio
n Total 2,301 2,301 2,308 2,308 - - - - -
Days of Inventory 18 54 58 - 58 - 121 (63) -52.1%
Capacity Utilization
N.A. 120% 120% 120% 120% 0% 0% 120% 0% 0%
A.P. 120% 112.4% 120% 120% 0% 0% 120% 0% 0%
Branded Production Cost Per Pair
N.A. $32.88 $30.81 $29.03 $29.17 $(0.14) -0.5% $28.11 $0.92 3.3%
A.P. $26.45 $25.88 $23.45 $23.83 $(0.38) -1.6% $21.57 $1.88 8.7%
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SWOT
Strengths Weaknesses• Branded production (AP)• Branded labour cost• Private label labour cost
• Plant capacity• Branded production
Opportunities Threats• Purchase more capacity• Build another plant• Reduce branded production
rate• Think about putting private
label in the other three regions
• Reduce days of inventory
• Not providing private label in EA, LA, AP
• Not utilizing all of capacity purchased
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Y17-Y19 Plan/Objectives$ Millions Y16 PY17 PY19
Capacity 6,900 8,700 8,900
Capacity Utilization 120% 120% 114%
Ending Inventory 1,155 465 424
Days Of Inventory 58 50 45
Branded Labour Cost $2.97 $3.43 $2.04
Cost Of Branded Pairs
Sold$29.23 $28.22 $25.00
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Strategy
Provide a high quality shoe for an affordable price
Keep production cost low but also offer detailed training and incentives for all employees
Keep rejection rates at a minimum by purchasing and using more capacity
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Decisions/Actions
Build more capacity that will allow for more production
Reduce days of inventory by providing inventory clearance sales
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Private Label MICHAEL CAMILLERI
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Situational Summary $
Million Y14 Y15 Y16 PY16Y16
B/(W) PY16
% Y16 I.A.
Y16 B/(W) I.A.
%
Revenue $35,222 $26,827 $3,816 $3,816 $ - 0.0% $35,452 $(31,636.17
) -89.2%
Direct Costs $32,718 $20,541 $3,968 $3,928 $ (39) -1.0% $29,170 $(25,202.71
) -86.4%
Direct Margin
$$2,504 $6,286 $(152) $(112) $ 39 -34.9% $6,282 $(6,433.46) -102.4%
Direct Margin
%7.11% 23.43% -3.97% -2.94% $ 0 -34.9% 17.7% -21.69% -122.4%
Private Label Cost/Pair
N.A. $29.11 $28.82 $36.24 $34.86 $1.38 3.96% $27.80 $8.44 30.4%
E.A. $33.11 $ - $ - $ - $0 0% $29.58 $(29.58) -100.0%
A.P. $0 $27.82 $ - $ - $0 0% $24.55 $(24.55) -100.0%
L.A. $35.11 $ - $ - $ - $0 0% $31.03 $(31.03) -100.0%
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SWOT
Strengths Weaknesses• High Shoe quality for a low
price• Always met projections for
coming year
• Little to no revenue• High cost per pair
Opportunities Threats• Drive the market
unexpectedly • Maximize sales at cheapest
costs• Drive competition out of the
market
• High competitive market• Unstable demand growth
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Y17-Y19 Plan/Objectives$ Millions Y16 PY17 PY19
Revenue $ 3,816 $ 94,350 $ 116,871
Direct Costs $ 3,968 $ 20,165 $ 36,297
Direct Margin $ $ (152) $ 74,185 $ 80,574
Direct Margin % -3.97% 78.63% 68.94%
Private Label Cost/Pair:
NA $ 36.24 $ 24 $ 23
EA $ - $ - $ -
AP $ - $ 23 $ 22
LA $ - $ - $ -
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StrategyCatch competitors off guard with unexpected entry of private labelSteal all possible demand with the amount of capacity left overOffer a high star at a extremely low costUnder cut all company's so we make all possible salesSell private label in all regions Increasing capacity in both North America / Asia Pacific
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Decisions/Actions
Implement strategy in year 17 and onward
Wider range of available market to offer private label
Keep our brand image as a company
No one will expect our plan and will be unable to compete with our action
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North AmericaMICHAEL CAMILLERI
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Situation Analysis$ Million Y14 Y15 Y16 PY16
Y16 B/(W) PY16
% Y16 I.A. Y16 B/(W) I.A. %
RevenueInternet $ 17,490 $ 15,164 $ 21,024 $ 28,440 $ (7,416) -26.1% $ 13,145 $ 7,880 59.9%
Wholesale $ 90,248 $ 82,364 $ 102,469 $ 108,965 $ (6,496) -6.0% $ 91,096 $ 11,373 12.5%Private Label $ 12,950 $ 8,853 $ 3,816 $ 3,816 $ - 0.0% $ 10,671 $ (6,855) -64.2%
Total $ 120,688 $ 106,381 $ 127,309 $ 141,221 $ (13,912) -9.9% $ 114,911 $ 12,398 10.8%Operating Expenses
Cost of Pairs Sold $ 74,301 $ 59,188 $ 66,462 $ 73,198 $ (6,736) -9.2% $ 59,174 $ 7,288 12.3%
Warehouse Expenses $ 7,793 $ 6,540 $ 7,788 $ 9,030 $ (1,242) -13.8% $ 7,189 $ 599 8.3%
Marketing Expenses $ 23,989 $ 21,297 $ 32,095 $ 32,313 $ (218) -0.7% $ 27,831 $ 4,264 15.3%
Administrative
Expenses$ 2,773 $ 2,718 $ 2,835 $ 2,802 $ 33 1.2% $ 2,861 $ (26) -0.9%
Operating Profit $ $ 14,853 $ 17,686 $ 18,129 $ 23,878 $ (5,749) -24.1% $ 17,857 $ 272 1.5%
ProductionCost of
Branded Pair
Sold/Pair$ 33.53 $ 31.90 $ 30.13 $ 31.10 $ (0.97) -3.1% $ 27.61 $ 2.52 9.1%
Cost of Private
Label Pair Sold/Pair
$ 29.11 $ 28.82 $ 36.24 $ 36.24 $ - 0.0% $ 27.80 $ 8.44 30.4%
Celebrity Appeal 165 70 310 n/a n/a n/a 141 169 119.9%
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SWOTStrengths Weaknesses• Internet
• Shoe quality• Celebrity appeal• Advertisement
• Wholesale• Shoe quality• Celebrity appeal• Advertisement • Rebate offer
• Internet• Free shipping
• Wholesale• Retail outlets
Opportunities Threats • Internet
• Offer free shipping • Wholesale
• Utilize more retail outlets
• Wholesale• Co. B & C close to
similar in shoe offering
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Y17-19 Plan/Objectives$ Million Y16 PY17 PY19
RevenueInternet $ 21,024 $ 24,408 $ 40,548
Wholesale $ 102,469 $ 105,166 $ 156,020 Private Label $ 3,816 $ 45,000 $ 39,871
Operating ExpensesCost of Pairs Sold $ 66,462 $ 93,453 $ 127,710
Warehouse Expenses $ 7,788 $ 9,948 $ 12,547 Marketing Expenses $ 32,095 $ 34,103 $ 39,571
Administrative Expenses $ 2,835 $ 3,197 $ 3,375
Operating Profit $ $ 18,129 $ 28,873 $ 45,215 Production
Cost of Branded Pair Sold/Pair $ 30.13 $ 28.60 $ 30.00
Cost of Private Label Pair Sold/Pair $ 36.24 $ 24.11 $ 22.50
Image RatingCelebrity Appeal 310 495 495
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Decisions & Actions
Slightly lower wholesale price
Increase models availability
Increase retailer support
Reduce deliver time
Offer free shipping in internet segment
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Europe AfricaLAURA MACRI
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Situation Analysis$ Million Y14 Y15 Y16 PY16
Y16 B/(W) PY16
% Y16 I.A. Y16 B/(W) I.A. %
RevenueInternet $ 15,048 $ 13,668 $ 21,168 $ 27,360 $ (6,192) -22.6% $ 13,208 $ 7,960 60.3%
Wholesale $ 81,100 $ 75,503 $ 99,921 $ 113,261 $ (13,340) -11.8% $ 90,865 $ 9,056 10.0%Private Label $ 11,772 $ - $ - $ - $ - $ 6,072 $ (6,072) -100.0%
Total $ 107,920 $ 89,171 $ 121,089 $ 140,621 $ (19,532) -13.9% $ 110,145 $ 10,944 9.9%Operating Expenses
Cost of Pairs Sold $ 67,065 $ 47,052 $ 60,573 $ 70,743 $ (10,170) -14.4% $ 57,900 $ 2,673 4.6%
Warehouse Expenses $ 7,119 $ 5,661 $ 7,687 $ 8,995 $ (1,308) -14.5% $ 7,084 $ 603 8.5%
Marketing Expenses $ 18,674 $ 19,598 $ 30,800 $ 31,637 $ (837) -2.6% $ 27,967 $ 2,833 10.1%
Administrative
Expenses $ 2,339 $ 2,389 $ 2,765 $ 2,865 $ (100) -3.5% $ 2,875 $ (110) -3.8%
Operating Profit $ $ 12,557 $ 14,133 $ 19,213 $ 26,370 $ (7,157) -27.1% $ 14,319 $ 4,894 34.2%
ProductionCost of
Branded Pair
Sold/Pair $ 32.38 $ 31.90 $ 29.63 $ 29.98 $ (0.35) -1.2% $ 28.51 $ 1.12 3.9%
Cost of Private
Label Pair Sold/Pair
$ - $ - $ - $ - $ 29.58 $ (29.58) -100.0%
Celebrity Appeal 145 65 335 141 194 137.6%
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SWOTStrengths Weaknesses• Internet
• S/Q Rating• Celebrity Appeal• Dominate Market Share
• Wholesale• S/Q Rating• Rebate Offer• Celebrity Appeal
• Internet• Free Shipping
• Wholesale• Retail Outlets
Opportunities Threats• Internet
• Provide Free Shipping• Wholesale
• Open more Retail Outlets
• Internet• Offer Free Shipping
• Wholesale• Co. B & C having similar
S/Q Rating
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Y17-19 Plan/Objectives$ Million Y16 PY17 PY19
RevenueInternet $ 21,168 $ 24,984 $ 30,348
Wholesale $ 99,921 $ 102,718 $ 116,548 Private Label $ - $ - $ 20,000
Operating ExpensesCost of Pairs Sold $ 60,573 $ 62,115 $ 87,801
Warehouse Expenses $ 7,687 $ 10,262 $ 13,476 Marketing Expenses $ 30,800 $ 39,856 $ 46,899
Administrative Expenses $ 2,765 $ 3,988 $ 4,185
Operating Profit $ $ 19,213 $ 20,043 $ 31,387 Production
Cost of Branded Pair Sold/Pair $ 29.63 $ 29.33 $ 25.55
Cost of Private Label Pair Sold/Pair $ - $ - $ -
Image RatingCelebrity Appeal 335 335 400
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Decisions & Actions
Increase market share
Increase incentives
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Asia PacificANDREA PAREDES
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Situation Analysis$ Million Y14 Y15 Y16 PY16
Y16 B/(W) PY16
% Y16 I.A. Y16 B/(W) I.A. %
RevenueInternet $ 11,880 $ 11,220 $ 13,392 $ 21,960 $ (8,568) -39.0% $ 10,859 $ 2,534 23.3%
Wholesale $ 62,384 $ 61,868 $ 70,760 $ 85,041 $ (14,281) -16.8% $ 71,836 $ (1,076) -1.5%Private Label $ - $ 17,974 $ - $ - $ - 0.0% $ 10,428 $ (10,428) -100.0%
Total $ 74,264 $ 91,062 $ 84,152 $ 107,001 $ (22,849) -21.4% $ 93,123 $ (8,971) -9.6%Operating Expenses
Cost of Pairs Sold $ 36,837 $ 47,052 $ 36,956 $ 44,828 $ (7,872) -17.6% $ 41,330 $ (4,374) -10.6%
Warehouse Expenses $ 5,358 $ 5,641 $ 6,015 $ 7,273 $ (1,258) -17.3% $ 5,885 $ 130 2.2%
Marketing Expenses $ 14,482 $ 14,501 $ 23,030 $ 24,037 $ (1,007) -4.2% $ 22,392 $ 638 2.9%
Administrative
Expenses $ 1,971 $ 2,115 $ 2,003 $ 2,158 $ (155) -7.2% $ 2,302 $ (299) -13.0%
Operating Profit $ $ 17,054 $ 21,753 $ 20,641 $ 28,705 $ (8,064) -28.1% $ 21,215 $ (574) -2.7%
ProductionCost of
Branded Pair
Sold/Pair $ 27.46 $ 26.90 $ 24.54 $ 29.40 $ (4.86) -16.5% $ 22.93 $ 1.61 7.0%
Cost of Private
Label Pair Sold/Pair
$ - $ 27.82 $ - $ - $ 24.55 $ (24.55) -100.0%
Celebrity Appeal 140
55 260 141 68 48.2%
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SWOTStrengths Weaknesses We decreased the cost of
production between years 14 and 16 to meet and surpass the industry average performance level
Celebrity appeal increase between years 15 and 16
Increased wholesale revenue by $10,000 million
We did not build enough capacity in year 15
We couldn’t afford to sell any private label shoes in year 14 or 16 because it was not feasible
Total market share in Asia Pacific is low
Opportunities Threats Private label segment in Asia
Pacific Producing more shoes in Asia
Pacific at a lower cost More celebrity appeal
Competition Reaching capacity in Asia
Pacific More competitors
manufacturing in Asia Pacific
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Y17-19 Plan/Objectives$ Million Y16 PY17 PY19
RevenueInternet $ 13,392 $ 19,296 $ 32,355
Wholesale $ 70,760 $ 78,126 $ 125,560 Private Label $ - $ 49,350 $ 20,000
Operating ExpensesCost of Pairs Sold $ 36,956 $ 75,322 $ 103,765
Warehouse Expenses $ 6,015 $ 8,826 $ 11,153 Marketing Expenses $ 23,030 $ 24,999 $ 29,312
Administrative Expenses $ 2,003 $ 2,498 $ 2,700
Operating Profit $ $ 20,641 $ 35,127 $ 55,008 Production
Cost of Branded Pair Sold/Pair $ 24.54 $ 24.32 $ 24.00
Cost of Private Label Pair Sold/Pair $ - $ 20.91 $ 21.50
Image RatingCelebrity Appeal 260 440 500
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Decisions & Actions
Build more capacity within Asia-Pacific region
Continue with low pricing strategy to consumers
Continue to produce high quality shoes within Asia-Pacific region
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Latin AmericaHANNAH DAVIS
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Situation Analysis$ Million Y14 Y15 Y16 PY16
Y16 B/(W) PY16
% Y16 I.A. Y16 B/(W) I.A. %
RevenueInternet $ 12,540 $ 10,744 $ 16,704 $ 22,608 $ (5,904) -26.1% $ 10,859 $ 5,846 53.8%
Wholesale $ 65,286 $ 57,997 $ 98,121 $ 95,395 $ 2,726 2.9% $ 70,757 $ 27,364 38.7%Private Label $ 10,500 $ - $ - $ - $ - 0.0% $ 8,281 $ (8,281) -100.0%
Total $ 88,326 $ 68,741 $ 114,825 $ 118,003 $ (3,178) -2.7% $ 89,896 $ 24,929 27.7%Operating Expenses
Cost of Pairs Sold $ 56,210 $ 38,171 $ 63,387 $ 65,158 $ (1,771) -2.7% $ 51,342 $ 12,045 23.5%
Warehouse Expenses $ 5,731 $ 4,801 $ 7,187 $ 7,945 $ (758) -9.5% $ 5,695 $ 1,492 26.2%
Marketing Expenses $ 14,256 $ 14,148 $ 23,746 $ 23,059 $ 687 3.0% $ 21,747 $ 1,999 9.2%
Administrative
Expenses $ 1,993 $ 1,915 $ 2,495 $ 2,274 $ 221 9.7% $ 2,235 $ 260 11.6%
Operating Profit $ $ 10,136 $ 9,706 $ 18,010 $ 19,567 $ (1,557) -8.0% $ 8,877 $ 9,133 102.9%
ProductionCost of
Branded Pair
Sold/Pair $ 34.65 $ 33.45 $ 31.52 $ 31.89 $ (0.37) -1.2% $ 30.58 $ 0.94 3.1%
Cost of Private
Label Pair Sold/Pair
$ 35.11 $ - $ - $ - $ - 0.0% $ 31.03 $ (31.03) -100.0%
Celebrity Appeal 135
60 380 141 239 169.5%
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SWOTStrengths Weaknesses• Internet
• S/Q Rating• Celebrity Appeal
• Wholesale• S/Q Rating • Celebrity Appeal• Delivery Time
• Internet• Free Shipping
• Wholesale• Retail Outlets
• No Private-Label
Opportunities Threats• Internet
• Provide Free Shipping• Wholesale
• Gain more Retail Outlets
• Private-Label• Create Strategy
• Internet• Provide Free Shipping
• Wholesale• Main competitors Co.B
& C
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Y17-19 Plan/Objectives$ Million Y16 PY17 PY19
RevenueInternet $ 16,704 $ 21,384 $ 35,500
Wholesale $ 98,121 $ 94,946 $ 105,390 Private Label $ - $ - $ 48,000
Operating ExpensesCost of Pairs Sold $ 63,387 $ 57,710 $ 79,819
Warehouse Expenses $ 7,187 $ 7,381 $ 9,294 Marketing Expenses $ 23,746 $ 26,608 $ 30,778
Administrative Expenses $ 2,495 $ 2,992 $ 3,240
Operating Profit $ $ 18,010 $ 21,638 $ 33,885 Production
Cost of Branded Pair Sold/Pair $ 31.52 $ 29.84 $ 30.00
Cost of Private Label Pair Sold/Pair $ - $ - $ 30.00
Image RatingCelebrity Appeal 380 515 550
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Decisions & Actions
Put in private-label bid
Add free shipping to internet segment
Lower prices, offer more models, increase rebate offer & retailer support
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Summary
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Thank You
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Questions