business strategies report

8/11/2019 Business Strategies Report

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reat Shoes

Written eport

INTRODUCTION ........................................................................................ 3

THE STRATEGIC VISION FOR THE COMPANY ................................... 3

COMPANYS PERFORMANCE FOR ALL DECISION ROUNDS......... 4

REVIEW OF THE FINANCIAL AND STRATEGIC PERFORMANCE ... 5

TRENDS IN THE COMPANYS ANNUAL TOTAL REVENUES......................... 5

TRENDS IN THE COMPANYS ANNUAL EARNING PER SHARE (EPS)........ 6

TRENDS IN THE COMPANYS ANNUAL RETURN ON EQUITY

INVESTMENT (ROE) ................................................................................................ 7

TRENDS IN THE COMPANYS ANNUAL CREDIT RATING............................. 8

TRENDS IN THE COMPANYS YEAR-END STOCK PRICE ............................... 9

TRENDS IN THE COMPANYS ANNUAL IMAGE RATING........................... 10

TRENDS IN GLOBAL UNIT SALES ..................................................................... 11

TRENDS IN THE COMPANYS GLOBAL MARKET SHARE........................... 13

THE COMPANYS PRESENT STRATEGY AND HOW IT HAS

EVOLVED .................................................................................................. 14

DESCRIPTION .......................................................................................... 17

CORPORATE CITIZENSHIP STRATEGY ............................................................ 17

PRODUCTION STRATEGY .................................................................................. 17

MARKETING STRATEGY ..................................................................................... 18

WHOLESALE STRATEGY ..................................................................................... 19


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INTERNET STRATEGY .......................................................................................... 20

PRIVATE LABEL STRATEGY ................................................................................ 20

CLOSEST COMPETITORS ...................................................................... 20

NORTH AMERICA ................................................................................................ 20

EUROPE AFRICA .............................................. Error! Bookmark not defined.

ASIA PACIFIC ......................................................................................................... 24

LATIN AMERICA ................................................................................................... 24

PERFORMANCE TARGETS FOR THE NEXT YEARS ......................... 29

MOVES TO WIN OUT COMPETITORS ............................................... 30

LESSONS LEARNED ............................................................................... 31


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COMPANYS PERFORMANCE FOR ALL DECISION ROUNDS

The following graph shows the position that was taken over the years:obtained

not taken

SCOREBOARD.

We startedin seventh place because wedont know so much how to play the

game but after we start to have in the principal places after the company

descend for the hard competition, the low prices less that the average industry

so for this reason we lost market share and decrease in the last places from the

sixteen year to the final of the game.Revise the tense of the verbs

Even if we try to do best combination our error was in the price. Revise the tense

of the verbs

YEAR SCOREBOARD

11 7

12 1

13 2

14 3

15 2

16 5

17 5

18 5

19 5

20 5

7

1

2

3

2

5 5 5 5 5

0

1

2

3

4

5

6

7

8

11 12 13 14 15 16 17 18 19 20

SCOREBOARD


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0

50000

100000

150000

200000

250000

300000

350000

400000

11 12 13 14 15 16 17 18 19 20

TOTAL REVENUES

REVIEW OF THE FINANCIAL AND STRATEGIC PERFORMANCE

TRENDS IN THE COMPANYS ANNUAL TOTAL REVENUES

YEARTOTAL

REVENUES

11 228544

12 299589

13 319501

14 334712

15 374976

16 322212

17 293892

18 346445

19 334322

20 358959

The total revenues that we have in the company some years decrease and

others increase, in the final of thegamewe finished with good earnings.


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TRENDS IN THE COMPANYS ANNUAL EARNING PER SHARE (EPS)

In the EPSs chart we had the highest score in the year 15, after our earnings per

share decrease to the final to the game ended with $ 4,63 per share.

YEAR E.P.S.

11 2,35

12 4,5

13 4,89

14 6,01

15 6,52

16 5,64

17 4,46

18 4,97

19 4,81

20 4,63

0

1

2

3

4

5

6

7

11 12 13 14 15 16 17 18 19 20

E.P.S.


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All the game was on average to the requirements of the industry with two or

three points additional.

TRENDS IN THE COMPANYS ANNUAL RETURN ON EQUITY INVESTMENT

(ROE)

YEAR R.O.E.

11 14,3

12 22,8

13 20

14 20,1

15 18

16 13,4

17 9,5

18 9,6

19 8,5

20 7,5

0

5

10

15

20

25

11 12 13 14 15 16 17 18 19 20

R.O.E.


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The trend of our company was declining since the year twelve due the

aggressive groups of companies of the industry give low price but at same time

with a high quality, for the last year and ended the game with 7,5% of return of

equity.

TRENDS IN THE COMPANYS ANNUAL CREDIT RATING

These are very confusing

YEAR C. RATING YEAR C. RATING

11A- A+ 9 11 7

12A- A 8 12 7

13A A- 7 13 8

14A B+ 6 14 8

15A+ B 5 15 9

16A+ B- 4 16 9

17A+ C+ 3 17 9

18A+ C 2 18 9

19A+ C- 1 19 9

20A+ 20 9

WHERE

0

1

2

3

4

5

6

7

8

9

10

11 12 13 14 15 16 17 18 19 20

CREDIT RATING


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This graph shows the credit rating annual that we had during all game, we start

with a rating of A- but with a consistence of credit A+ from the fifteen year we

ended the game.Revise how this is written

Throughout the game we didnt ask any loan due to good annual earnings of

the company.

TRENDS IN THE COMPANYS YEAR-END STOCK PRICE

YEAR S. PRICE

11 24

12 74

13 71

14 102

15 91

16 72

17 47

18 52

19 51

20 52

0

20

40

60

80

100

120

11 12 13 14 15 16 17 18 19 20

STOCK PRICE


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In this graph we start with a stock price of 24 that werent good, the most

important was on the year fifteen that we got 102 compared with the industry.

The end of the game was 52, but the company always had abreast or over the

industry average so the actionists can invest.

TRENDS IN THE COMPANYS ANNUAL IMAGE RATING

YEAR I. RATING

11 60

12 74

13 70

14 70

15 74

16 66

17 64

18 65

19 59

20 61

0

10

20

30

40

50

60

70

80

11 12 13 14 15 16 17 18 19 20

IMAGE RATING


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The image that the company get during the game was moderately constant;

always give to the customers the mayor benefits and also get more loyal

customer to our brand.

The last years decreased a little due the hard competition that we had in the

industry.

TRENDS IN GLOBAL UNIT SALES

Hard to read

NORTH A. EUROPE ASIA LATIN A. NORTH A. EUROPE ASIA LATIN A.

11 1310 1382 1021 970 80 81 55 55 4954 0

12 1210 1518 920 934 97 113 72 68 4679 1509

13 1263 1730 890 888 111 118 74 71 4882 1513

14 1231 1634 799 914 146 153 100 96 4724 1870

15 1412 1665 1041 1034 175 186 123 122 5327 1876

16 1226 1418 897 869 223 243 174 167 4633 1135

17 1195 1120 863 752 221 226 173 158 4151 1034

18 1359 1409 1073 853 288 291 229 212 4982 1165

19 1574 1497 1271 1066 336 322 248 232 5744 0

20 1733 2703 1458 1275 405 386 322 292 7574 0

TOTAL BRANDED PRIVATE LABEL

GLOBAL UNITE SALES

YEARWHOLESALES INTERNET

BRANDED


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The chart shows the sales to the four different markets that the company obtain

during the first year of operation to the final game.

With the graph we can explain more detailed about the combination of

decisions that we take:

The first year we dont sell because we did not comply with the required

quality of the industry.

From the year twelve to eighteen the company obtain good earning of

these sales.

The last two years not sold on this tab for cover the total demand of the

wholesales.

In wholesales branded the company sold more in the last year due the

low prices.

Revise the way you are writing, some phrases dont make sense

0

1000

2000

3000

4000

5000

6000

7000

8000

11 12 13 14 15 16 17 18 19 20

GLOBAL UNIT SALES

TOTAL BRANDED PRIVATE LABEL


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TRENDS IN THE COMPANYS GLOBAL MARKET SHARE

YEAR GLOBAL MARKET S.

11 12,90%

12 15,29%

13 14,70%

14 14,39%

15 14,79%

16 11,30%

17 9,70%

18 10,90%

19 9,90%

20 11,10%


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The last graph we observe the market share that the company get during all the

game.

As we can see from the year fifteen there are a reduction of the market

(share?), this drop is due to the low prices of the rest of the company of the

industry.

In the year twenty there is slight increase due the promotions, celebrity appeal,

low prices and variety of models.

THE COMPANYS PRESENT STRATEGY AND HOW IT HAS

EVOLVED

When we began the Business Strategy Game, we decided that our company

Great Shoes was going tofocus?? in the differentiation strategy, which in thebeginning was hard to obtain because we were adapting to the program and

learning about each one of the screens that we need to know for take the

better decision for our company.

0.00%

5.00%

10.00%

15.00%

20.00%

11 12 13 14 15 16 17 18 19 20

GLOBAL MARKET SHARE


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So, the thing that we had defined was that we wanted to maintain the

differentiation strategy focusing in high quality in the shoes to achieve the

preference of our wholesales and capture the best target.

Great Shoes in the year 11 had the worst results of all the decisions, because we

was introducing the company in an industry that was unknown for us; we obtain

the 7thplace in the industry. We offered a quality of 5 stars with high prices for

the market, but according to the another companies of the industry. Our price

in the four regions was $74. In this year we didnt sell in the private label. Also, we

obtain our first celebrity for the next five years: Cristiano Romano. In that

moment we had the disadvantage that our models offered no were enough for

the market and we didnt have production in the private label.

In the year 12 for Great Shoes Company was the best decision, because we

reached the 1st place in the industry after several changes. We added the

quantity of models offered and we decreased the price, but maintaining the

same price of $72 in all the regions. We upgraded the quality in the shoes to 6

stars, and we began to sell in the private label; we incorporated some

incentives to the workers. Also, we obtain good results in the internet sales too.

And all this decisions help us to reach the best place in the industry.

In the years 13, 14 and 15 we maintained the same strategy, we tried to

increase the quality with some reductions in the prices. We began to gain target

in the market, and we use rebate offer to give facilities to our wholesales to buy

our products. We expanded the numbers of models offered and the changes

that we did in these years werent significant. In other words, we tried tomaintain the market that we had reached in the year 12. The most important

change that we realized was increase a star in the quality, our S/Q was 7 in the

year 15thand the price we tried to conserve the price accord to the another

companies of the industry.


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In the year 16, 17 and 18 we maintained the quality of our products in 7 stars in

the wholesales, but in the private label our production had the quality necessary

to be sold. The prices were decreasing a little to be accord to the rest of the

companies in the industry.

In these years we lost the celebrity and our image began to decrease and for

this reason we decrease in the scoreboard too. In this year we had the 5 thplace

in the industry.

In the year 19 we maintained the quality in 7 stars in all the regions; we increase

a little the price and the results were good, but the strategies applied for

another companies didnt allow improve in the scoreboard. The wholesale

showed improvement, while our production wasnt enough to satisfy the

demand of the market.

In this year we eliminated the private label again, because we had to distribute

the shoes for all the regions. Also, we implement the free shipping in the internet

sales and we reached more target. Our image rating was decreasing and the

place in the industry maintained in 5th

place.

For the year 20, in our last decision our price was above the industry average,

with the same quality, that had the increasing of our market share, but

decreasing our models offered online. In the same dimension the image rating

still decreasing although we had a new celebrity. The results were the same that

in the last years.

We can conclude that Great Shoes Company kept its marketing strategy, which

was focusing in the differentiation strategy. And in conclusion, if we had had a

better distribution we could say that the private label sales of the Great Shoes

were our competitive advantage in the industry.Revise how this paragraph is

written


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DESCRIPTION

CORPORATE CITIZENSHIP STRATEGY

Our strategy in this screen was utilize from the 11th year initiative is energy

efficiency initiatives to improve the efficiency of our four plants and in some

years use the diversity program workforce to increase the working efficiency.

Most of the years were in the first or second places due the investment that we

add to the company.Wrong verb

PRODUCTION STRATEGY

In the first screen (it is not the first one) in sales forecast we try all the years

prices have like the industry almost but have the s/q rating by one star up

compared with the industry, invest in advertising all the years, the rest maintain

the estimate in the industry average to win more market share.Revise how this

paragraph is written, it is confusing


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The plant capacity we invest in plan upgrade options the last years for

decrease our cost in percentage of superiors materials and decrease the pairs

rejected but increase the numbers of models for has more variety.Revise how

this paragraph is written,

The branded distribution we try to cover the demand all years and send the

majoritiesof the pairs to the less exchange rate impact on cost of pairs shipped.

So in resume:

Variety of models.

High percentages of superior materials.

Price in average with the industrys price.

Investment in plant capacity.

High quality (more than the industry average).

Excellent compensations for the workers.

What are these factors?

MARKETING STRATEGY

Our marketing strategy was invest in the s/q rating, has a star up compared with

the industry average and has variety of models at same time has a contract


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with a celebrity with a long agreement and with a celebrity appeal high in the

four different markets and the internet segment that we had.

Has a rebate offer in some years more high that the industry, the delivery time

always was abreast with the industry. Revise how this paragraph is written,

So in resume:

High advertising.

Have a celebrity that is recognized in all markets.

On average of the industry the mail-in rebate offer.

Same average with the deliver weeks time.

WHOLESALE STRATEGY

In this screen we observe a comparison with the amounts of the last year and

the decision that we will make for the present year.??

The percentage of profit that we will have projected if we sold all pairs in the

four markets and if we observe that if reduce our market share we gave us more

incentives even if decrease our profit for the next year.This is wrong

The wholesale strategy is the strategy about the production, sales and

marketing of the wholesale shoes


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INTERNET STRATEGY

In the screen of internet strategy we didnt maintain a stable decision

because some years we offered the free shipping but keeping the average

industry price, in others years we remove the free shipping but to alleviate this

we reduced to minimum price to maintain the market and increase the return

on equity and the earnings for us.

PRIVATE LABEL STRATEGY

We offer the pairs of shoes in all the markets with the same average s/q rating of

the industry and for cover de demand we use the overtime too but we can sold

to medium high price because not all companies were selling here.

The last years didnt sell to cover total demand for wholesales and because in

this screen we dont win much with the sold of pairs of shoes.

CLOSEST COMPETITORS

NORTH AMERICA

Wholesale PRICE S/QA 41 4

B 46 7

C 46,36 7

D 45,62 8


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E 45,99 7

F 45,5 6

G 44 8

INTERNET PRICE S/Q

A 65 4

B 69 7

C 53,29 7

D 68,29 8

E 67,99 7F 66 6

G 59 8


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ASIA PACIFIC

Wholesale Price S/Q

A 40 4

B 42,29 7

C 43,49 7

D 46,41 8


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E 45,5 7

F 41,7 5

G 41,5 8

Internet Segment

Asia

Pacific

Price S/Q

A 65 4

B 69 7

C 53,29 7

D 68,29 8

E 67,99 7


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F 66 5

G 59 8

ASIA PACIFIC

EUROPE AFRICA

Wholesale Price S/Q


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INTERNET Price S/Q

A 40,5 4

B 47,8 7

C 47,28 7

D 48,91 8

E 48,5 7

F 46,9 5

G 44 8


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A 65 4

B 69 7

C 53,29 7

D 68,29 8

E 67,99 7

F 66 5

G 59 8

LATIN AMERICA


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Wholesale PRICE S/Q

A 41,5 4

B 42,3 8

C 43,54 7D 45,79 8

E 45,5 7

F 47,5 5

G 41,5 7

INTERNET PRICE S/Q


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A 65 4

B 69 8

C 53,29 7

D 68,29 8E 67,99 7

F 66 5

G 59 7

Analyzing this graphics, its no difficult to deduce that our closest competitors

was the company D which was the one with we were fighting to be the highest

in S/Q rating in most of the continents.


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Detailing continent per continent in North America in wholesale segment we

take one of the prior position with a price of $44 and a S/Q of $8 and near of us

was the company D but with major price $45,62 against us 44 and by the other

hand in wholesale segment we own a 13.1% market share. In internet segmentwe found that again very close of us company were company D reaching a

higher position by their price which one was $68,29 and in market share very

close with a 1% of difference with 17.6% and D 17.7%.

In Europe-Africa generally in wholesale segment and internet segment with the

same 8 S/Q rating is the company D but focus in wholesale segment our closest

competitor is the C company owning a 14.9% market share and we 13.2%

market share. In the Internet segment our closest competitor per S/Q rating is the

D owning a 17.8% against us with a 17%.

In Asia-Pacific clearly we can notice that our closest competitor is the B

company with a little bite difference in price and owning a 13.3% market share

against us 14.4%.And in the internet segment our closest competitor is A

company with a very close of difference in price but sharing this position with

the D company with the same 8 S/Q rating.

Finally the continent as an observation in Latin America we decrease on

wholesale segment and internet segment the S/Q we started with a 8 rating and

done with 7. Our closeste competitor in this continent was the C company

which have the similar averages in price and S/Q too.

PERFORMANCE TARGETS FOR THE NEXT YEARS


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Assuming the simulation continued we increase every point in 5% percent and

also that the industry not change the rates situation and get back the market

share with low prices and variety of models with high quality with new and best

decision, we hope that the projected year performance for the next two years

increase in accordance to the chart. Revise how this paragraph is written,

MOVES TO WIN OUT COMPETITORS

We want to build more capacity in the Europe Africa plant and maybe in the

future 5 years expand the capacity in Latin American too with the objective of

help the economies of scale, offering a big quantity of models and could

product more shoes to satisfy the demand of our loyal wholesales.

This expansion will help for the image rating of our company and it will permit

that our product be known and elaborated in all the regions of the industry, with

the facility of the delivery time be less.

YEAR 21 YEAR 22

SCORING MEASURES

EARNING PER SHARE $ 4,93 $ 5,20

RETURN ON EQUITY 8,30% 10,30%CREDIT RATING A+ A+

IMAGE TATING 60 69

OTHER MEASURES

NET REVENUES $ 370.907 $ 389.752

NET PROFIT 54.449$ 60.432$

ENDING CASH $ 459.046 $ 462.790

PROJECTED YEAR PERFORMANCE


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Also, we want to offer more incentives for our workers and implement for them

ethics training and enforcement course and with this, they will be more active

than now and they will product more shoes in less time.

Finally we expect to be able to be more social responsible offering our aid to

more charities and spending money in energy efficiency, using green footwear

materials and recycled boxing.

LESSONS LEARNED

Develop abilities in marketing, finances, production, internet sales, private label

sales and wholesales, understanding that the market and de conditions to sell in

each market are different.

We learn to manage successfully the Business Strategies Game, understanding a

little more in each decision that we did and increase our strategies while thesubject Business Strategies was been explained.

This game gave us the opportunity of implement the knowledge that we had

acquired in the course of our career and these help us to take the correct

decisions for makes successful our company.

We develop too the work in group, we plan to connect in the night and we

decided what was the best moment; and also we can understand that Great

Shoes was our company.

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