Carolyn Ballard || Chelsea Smith

Raphael Croce || Stefanie Welter

Table of ContentsSECTION 1: INTRODUCTION & HISTORY TO DATE.................................................................4

SECTION 2: THE ENVIRONMENTAL THREAT OPPORTUNITY PROFILE (ETOP)..................6

2.1 INDUSTRY ANALYSIS........................................................................................................6

2.2 COMPETITIVE ANALYSIS..................................................................................................8

2.2.1 NIKE, INC......................................................................................................................8

2.2.2 STEVE MADDEN, LTD.................................................................................................9

2.2.3 CALERES, INC...........................................................................................................10

2.3 CUSTOMER ANALYSIS....................................................................................................11

2.4 THREATS..........................................................................................................................11

2.5 OPPORTUNITIES..............................................................................................................12

SECTION 3: THE STRATEGIC ADVANTAGE PROFILE (SAP).................................................12

3.1 FINANCIAL ANALYSIS......................................................................................................12

3.2 RATIO ANALYSIS.............................................................................................................13

3.3 BALANCE SHEET.............................................................................................................16

3.4 COMMON-SIZE INCOME STATEMENTS........................................................................17

3.5 STOCK ANALYSIS............................................................................................................19

3.6 STRENGTHS.....................................................................................................................20

3.7 WEAKNESSES..................................................................................................................21

SECTION 4: STATEMENT OF THE MISSION...........................................................................23

4.1 STATEMENT OF CORPORATE OBJECTIVES................................................................24

SECTION 5: STRATEGIC ALTERNATIVES...............................................................................26

5.1 DIRECTIONAL ALTERNATIVES.......................................................................................26

5.1.1GROWTH.....................................................................................................................27

5.1.2 STABILITY..................................................................................................................27

5.1.3 RETRENCHMENT......................................................................................................27

5.1.4 RECOMMENDATION.................................................................................................28

5.2 COMPETITIVE ALTERNATIVES.......................................................................................29

5.2.1 LOW COST – COST LEADERSHIP...........................................................................29

5.2.2 DIFFERENTIATION....................................................................................................30

5.2.3 FOCUS........................................................................................................................30

5.2.4 RECOMMENDATION.................................................................................................30

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5.3 FUNCTIONAL STRATEGY................................................................................................31

SECTION 6: IMPLEMENTATION OF STRATEGIES..................................................................31

6.2 PROGRAMS AND DETAILED IMPLEMENTATION PLAN...............................................31

6.2.1 TURNAROUND STRATEGY: CONTRACTION..........................................................31

6.2.2 TURNAROUND STRATEGY: CONSOLIDATION.......................................................32

6.2.3 COST LEADERSHIP STRATEGY: DISTRIBUTION...................................................33

6.3 TIMELINE AND BUDGETS...............................................................................................33

6.3.1 TIMELINE....................................................................................................................33

6.3.2 BUDGET......................................................................................................................33

6.4 EVALUATIONS AND CONTROL.......................................................................................33

SECTION 7: CITATIONS FROM OUTSIDE SOURCE MATERIAL ………………………………36

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SECTION 1: INTRODUCTION & HISTORY TO DATE

Founded in 1883, Wolverine World Wide, Inc. is a global designer, manufacturer, and

marketer of branded footwear, apparel, and accessories. Established on the desire to “create

good products for good people,” they shaped a success and growth mindset from the start.

Wolverine’s founder, G. A. Krause, knew the importance of hard work; believing that the

accomplishment of hard things is made possible when dedication and determination lead the

way. Krause and his sons started their business as a small shoe factory out of Rockford,

Michigan and by shortly after the turn of the century, Wolverine Boots and Shoes had already

established itself as a quality product, with its shoes being coined the ‘1000 mile shoes.’

The Great Depression hit Wolverine just as it did thousands of other businesses during

that time. Fortunately, Wolverine rooted its corporate belief around their employees. They knew

the individuals who worked for them was what made it possible for Wolverine to deliver quality

products. In fact, Wolverine was one of the first companies to sell shares to their employees as

a profit sharing method. During the hardest times of the depression, Wolverine proved its

commitment to both their product and their employees, keeping the factory lines running and

warehousing their excess shoes, knowing that sales would rebound as the economy recovered.

Wolverine had its first major product breakthrough in 1958, with the launch of their soft,

suede casual shoe and the Hush Puppies brand. It was a huge success and after only one year,

they signed their first international licensee, Greb Shoes Ltd. of Canada. As Hush Puppies grew

in popularity, so did Wolverine’s international growth, hitting another milestone in 1989 when

their international sales exceeded their state sales. This gave them the ability to start acquiring

other brands in the footwear marketplace, always ensuring that the companies they collaborated

with follow their core values of dedication to quality and commitment to the individual.

With a vision to “build a family of the most admired performance and lifestyle brands on

the earth,” global domination is their aim, claiming that they “have the world at their feet, both

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literally and figuratively.” They were one of the first in the footwear industry to institute a diverse

business model that leverage their brands’ global potential. Wolverine’s global footprint now

reaches 200 countries and they have no plans on stopping there. For their growth, the company

heralds all the passionate individuals, spread all around the world, for their success (Wolverine

Worldwide, Inc.).

Wolverine is comprised of three operating segments that hold their 15 brands. The units

are the Lifestyle Group, consisting of Sperry, Stride Rite, Hush Puppies, Keds, and Soft Style;

Performance Group, consisting of Merrell, Saucony, Chaco, and Cushe; and the Heritage

Group, consisting of Wolverine, Cat, Bates, Sebago, Harley-Davidson, and HyTest brands

(Mergent Online). The majority of these are owned by Wolverine, but some are licensed, such

as Harley-Davidson and CAT Footwear. Their products are well known and they have a strong

following of consumers. Wolverine has proved that their dedication to quality products has set

them apart from their competition, winning several awards, including ‘Company of the Year’ by

Footwear News in 2014 (Wolverine Worldwide, Inc.).

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SECTION 2: THE ENVIRONMENTAL THREAT OPPORTUNITY PROFILE (ETOP)

2.1 INDUSTRY ANALYSIS

Wolverine World Wide, Inc. is a major competitor within the footwear manufacturing

industry. Demand within this industry is steered by several factors, including current fashion

trends, age, gender, and location. Successful companies within this industry have the ability to

incorporate these factors into their products and to effectively meet the needs and wants of their

target consumers.

Footwear manufacturing is a billion dollar industry, and continues to grow. According to

MarketLine, “the global footwear market grew by 3.9% in 2014 to reach a value of $289.7

billion,” shown in the table below. Of the market value, Europe is responsible for $89.8 billion,

Asia-Pacific is responsible for $89.3 billion, the United States is responsible for $74.2 billion, the

Middle East is responsible for 6.0 billion, and the Rest of the World accounts for $30.4 billion

(MarketLine), which is shown in the graph below.

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There will always be a demand for footwear as they are a necessity, and often have to

be replaced. Europe averages 5.5 pairs of shoes, per person, annually, the United States

averages 7 pairs and underdeveloped countries average 2.5 pairs of shoes a year (MarketLine).

The market value for the footwear industry is projected to grow by 19.9%, totaling $347.5 billion

by 2019 (MarketLine). This is a considerable jump from 2014.

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2.2 COMPETITIVE ANALYSIS

The footwear manufacturing industry is dominated by several large companies. Many of

these companies specialize and focus on specific consumer activities. Wolverine World Wide's

three major competitors are: Nike Inc., Madden (Steven) Ltd., and Caleres, Inc. (Mergent). Nike,

Inc. has dominated in athletic footwear and apparel, Madden has made their success in fashion

footwear, and Caleres, Inc. has an abundance amount of experience, competing in the footwear

industry for 137 years.

2.2.1 NIKE, INC.

Nike designs and develops athletic apparel targeting eight major sporting activities:

Football, Basketball, Running, Golf, Men's Training, Women's Training, Action Sports, and

Sportswear. Their major brands consists of Nike, Nike+, Jordan, Hurley, and Converse.

As of 5/31/2015, Nike, Inc. bought in $30.68 billion in Revenue, had a Gross Profit of $14.06

billion, and a Net Income of $3.27 billion. Over the last year, Nike has increased their Net

Income by 21.54% (Mergent).

NIKE Inc (NYS: NKE)Income Statement

  05/31/2015 Common Sized 05/31/2014 Common

Sized Variance

Item USD % USD % USD %Revenues 30,601,000,000 100.00% 27,799,000,000 100.00% 2,802,000,000 10.08%Direct Costs 16,534,000,000 54.03% 15,353,000,000 55.23% 1,181,000,000 7.69%Gross Profit 14,067,000,000 45.97% 12,446,000,000 44.77% 1,621,000,000 13.02%Taxation 932,000,000 3.05% 851,000,000 3.06% 81,000,000 9.52%Net Income 3,273,000,000 10.70% 2,693,000,000 9.69% 580,000,000 21.54%EPS Continuing Basic 3.8   3.05   0.75 24.59%EPS Net Basic 3.8   3.05   0.75 24.59%EPS Continuing Diluted 3.7   2.97   0.73 24.58%EPS Net Diluted 3.7   2.97   0.73 24.58%

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Nike, Inc. gives customers the option to customize their shoe or to pick shoes from one

of their collections, which give their customers extensive footwear options. Another strategy

used by Nike is that they have been sourcing their manufacturing and materials, which saves

them money on labor and materials, following guidelines that are compliant with their Code of

Conduct (Nike, Inc.).

2.2.2 STEVE MADDEN, LTD.

Steve Madden, Ltd., is a private label footwear company that designs, sources, and sells

footwear for men, woman, and children. The Steve Madden brand “represents a lifestyle…

embracing fashion while still maintaining that funky independence that first defined the brand 20

years ago (Steve Madden).” As of 12/31/2014, Steve Madden brought in $1.33 billion in

Revenue, had a Gross Profit of $469 million, and a Net Income of almost $112 million.

Madden’s Revenue has increased over the past year, their Taxation has dropped, and yet their

Net Income has decreased by 15.25% (Mergent). This shows that their Direct Costs are

increasing faster than they can bring in Revenue.

Madden (Steven) Ltd. (NMS: SHOO)Income Statement   12/31/2014 Commo

n Size12/31/2013 Commo

n SizeVariance

Item USD % USD % USD %Revenues 1,334,951,000 100.00% 1,314,223,000 100.00% 20,728,000 1.58%Direct Costs 865,951,000 64.87% 831,847,000 63.30% 34,104,000 4.10%Gross Profit 469,000,000 35.13% 482,376,000 36.70% (13,376,000) -2.77%Taxation 58,764,000 4.40% 75,666,000 5.76% (16,902,000) -22.34%Net Income 111,880,000 8.38% 132,007,000 10.04% (20,127,000) -15.25%EPS Continuing Basic 1.82   2.04   -0.22 -10.78%EPS Net Basic 1.82   2.04   -0.22 -10.78%EPS Continuing Diluted 1.76   1.98   -0.22 -11.11%EPS Net Diluted 1.76   1.98   -0.22 -11.11%

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Steve Madden has been designing the shoes for the company since he founded it in

1990. The company markets their products in the United States, Canada, Asia, Europe, the

Middle East, Mexico, Australia, South Africa, South America and India. They make their product

available through several retail outlets and e-commerce websites (Steve Madden).

2.2.3 CALERES, INC.

Caleres, Inc. is a footwear merchant wholesaler and retailer. They began operating in

1878, when they “practically invented the modern footwear industry (Caleres).” After

reorganization, the company’s operations is composed of two segments: Famous Footwear and

Brand Portfolio. The company maintains and operates 171 stores in the United States and

Canada (Mergent). As of 1/31/2015, Caleres, Inc., brought in $2.57 billion in Revenue, they had

$1.04 billion in Gross Profit, and a Net Income of $82.85 million.

Caleres Inc (NYS: CAL)Income Statement   01/31/2015 Common

Size02/01/2014 Common

SizeVariance

Item USD % USD % USD %Revenues 2,571,709,000 100.00% 2,513,113,000 100.00% 58,596,000 2.33%Direct Costs 1,531,609,000 59.56% 1,498,825,000 59.64% 32,784,000 2.19%Gross Profit 1,040,100,000 40.44% 1,014,288,000 40.36% 25,812,000 2.54%Taxation 27,184,000 1.06% 23,758,000 0.95% 3,426,000 14.42%Net Income 82,850,000 3.22% 38,073,000 1.51% 44,777,000 117.61%EPS Continuing Basic 1.9   1.25   0.65 52.00%EPS Net Basic 1.9   0.88   1.02 115.91%EPS Continuing Diluted 1.89   1.25   0.64 51.20%EPS Net Diluted 1.89   0.88   1.01 114.77%

Over the past year, Caleres, Inc. has more than doubled their Net Income, increased

Revenue by 2.33%, and increased their Gross Profit by 2.54%. This shows their reorganization

has been successful and has had a positive effect on their company.

2.3 CUSTOMER ANALYSIS

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Wolverine World Wide, Inc., has a wide variety of customers due to their three operating

segments. The Lifestyle Group segment consists of Sperry Topsider, Stride Rite, Hush Puppies,

Keds, and Soft Style. Sperry Topsider’s was the world’s first boat shoe and provides footwear to

water enthusiasts (sailors, boaters, etc.) and is also in demand for casual wear. Stride Rite

provides footwear for children, Hush Puppies promotes comfortable shoes for consumers of all

ages, and Keds and Soft Style target women and young women consumers.

The Performance Group segment consists of Merrell, Saucony, Chaco and Cushe

branded footwear. These brands target highly active customers. The Heritage Group consists of

Wolverine, Cat, Bates, Sebago, Harley-Davidson, and HyTest branded footwear. These brands

provide sturdy boots and uniform shoes to working men and women consumers around the

world.

2.4 THREATS

The footwear industry is highly competitive. Wolverine World Wide, Inc. competes

among the largest footwear and apparel companies in the industry. Some of these companies,

such as Nike, Inc., have greater resources which enables them to adapt to changes in the

market. Fashion trends are constantly changing and greatly influences the buying patterns of

consumers. It is important for Wolverine World Wide, Inc. to be able to accommodate

consumers as quickly, or more quickly, than their competition.

Another external threat to the company is the increase in the cost of labor in the United

States. This increase is a result of “tight labor markets, increased overtime, government

mandated increases in minimum wages and a higher proportion of full-time employees

(Marketline).” The minimum wage rate increases as the cost of living increases. The federal

minimum wage rate has increased from $5.15 per hour in 1998, to $7.25 in 2010 (Marketline).

However, due to higher costs of living in certain states, the state minimum wage rate can be

higher than the federal rate. Wolverine World Wide Inc. has approximately 6,600 full time

employees (Mergent). As labor costs or number of employees increase, the total expenses for

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the company increases. Wolverine World Wide, Inc. will need to monitor these changes, as it

closely effects the profit of the company.

2.5 OPPORTUNITIES

The footwear industry is on the rise. As previously stated, the market value of the

footwear industry is estimated to grow by 19.9% by 2019, to reach a market value of $347.5

billion. If Wolverine World Wide Inc. can anticipate and adapt to growing trends and fashion

changes of the consumers in the market, they will be able to take advantage of this growth.

Another opportunity for the company is the increased popularity of online shopping.

Online shopping is more convenient, accessible, and is less restricted. Items can be purchased

online from all over the world at any hour of the day. Sales revenue from online shopping has

increased from $169.3 billion in 2010 to $297.4 billion in 2014 (Marketline).

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SECTION 3: THE STRATEGIC ADVANTAGE PROFILE (SAP)

3.1 FINANCIAL ANALYSIS

Based on analysis of Wolverine’s financial ratios, balance sheet, common-size balance

sheet, and stock price along with further investigation into forms filed with the SEC, Wolverine

appears to hold solid financial standing. While they have not had a consistent success growth

rate every year or quarter, it has remained positive. Their economic trend is on the up and up

and they have experienced five consecutive years of revenue growth (Krueger).

In 2015, Wolverine achieved record breaking operating cash flow, which enables them to

attract shareholders (Krueger). The greater the cash flow, the greater the ability to expand their

asset base, which in turn draws more investors and shareholders to the table. Free cash flow,

which is the cash is left over in the bank after all expenses are paid and capital expenditures

spent, is one of the best indicators of a company’s true performance because it offers less

opportunity for a company to hide misdeeds and adjustments. It tells shareholders and investors

that the company is strong and runs their company efficiently and effectively (Investopedia). In

short, it tells them that their money is in good hands with Wolverine.

3.2 RATIO ANALYSIS

Ratio Analysis can be a useful tool for determining whether or not a company is meeting

their financial performance goals. Public companies give regular statements regarding what

earnings they expect to see in the coming months, quarters, and years, to help investors

determine where they should be looking in order to gauge a company’s financial health. An easy

way to do a ‘temperature check’ on any company is to break down certain line items from the

balance sheet and the income statement and compare them, or ratio analysis, which ultimately

gives insight into questions about how a company is working to strengthen their shareholder’s

investments. Ratios are split into major performance groups including, efficiency, solvency,

liquidity, and profitability, which can give investors a better idea as to what ratios will be more

applicable to the questions they have about a company.

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In the case of Wolverine, an investor might start by looking at some liquidity ratios,

specifically, the current ratio and the quick ratio. The current ratio measures a company’s ability

to pay current liabilities with current asset, giving insight into the financial health of the company.

(Investopedia) If a company doesn’t have enough money to pay off current assets, it could

mean they aren’t bringing in enough revenue or they have more long-term assets tying up the

wealth of the company. Conversely, if the current ratio is too high, it could mean a company isn’t

using their current assets efficiently or they are not reinvesting available funds back into the

company. A liquidity ratio over 1 usually signifies that the company is performing well.

Wolverine’s current ratio for 2014 was 3.06, on a downward trend over the last 5 years,

meaning that they are fully capable of paying off current liabilities but may be reinvesting their

funds more appropriately than in years past. The quick ratio is similar to the current ratio,

however it removes inventory from the calculations of available funds to pay off current

liabilities. This essentially gives an even closer picture of how easily Wolverine could pay off

their current liabilities. Wolverine’s quick ratio in 2014 was 1.55, which is the lowest it’s been in

the last 5 years, however, this would still signify that they are able to access plenty of liquid

funds to pay off current debt.

Asset Management, or efficiency, ratios are probably some of the most important ratios

to highlight Wolverine’s specific business segment. Specifically, asset turnover, receivables

turnover, and inventory turnover, as all of these look closer at how a company is managing their

day-to-day operations.

Asset turnover tells an investor the value of its sales generated relative to its assets

(Investopedia), or for every dollar owned, how much money does it generate? This ratio is

especially helpful when comparing companies of similar types. When comparing Wolverine

against its closest competitors, this is the result (Mergent Online):

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Asset Turnover 01/03/2015 12/28/2013 12/29/2012 12/31/2011 01/01/2011

Wolverine Worldwide Inc 1.06 1.03 0.95 1.72 1.68

Nike Inc 1.52 1.54 1.53 1.58 1.42

Madden (Steven) Ltd 1.49 1.56 1.7 1.78 1.64

Caleres Inc 2.18 2.17 2.13 2.18 2.3

These results show us that Wolverine’s asset turnover ratio is not as strong as its competition,

especially over the last three years. This is apparent for two reasons, one, that Wolverine has

the lowest average over the last five years, and two, that they have not kept consistent in their

year over year ratio result. This could signify that Wolverine needs to look at how much money

is going into asset development as compared to their competition, and whether or not they can

create their products at either a lower cost to them or a higher price at sale. In 2014, Wolverine

can attribute most of its reduced asset turnover to their Lifestyle Group, performing at only .77,

as compared to its Performance and Heritage Groups performing at 2.04, and 1.75, respectively

(Wolverine World Wide). Again, this sheds some light on where efficiency may need to be tuned

within the company in order to meet the market average across performance groups.

Receivables turnover ratio indicates the how well a company is giving and collecting on

the credit they issue to their customers. Something to highlight with accounts receivable is that it

is interest-free to the customer and money that cannot be immediately used by the company.

Proper handling of receivables is important as the longer the credit is outstanding, the more it’s

costing the company (Investopedia). Over the last five years, Wolverine has had an average

receivables turnover of 6.86 and in 2014 reached its highest rate of 7.64 (Mergent Online). What

this means is that they are collecting their receivables more quickly than they have over the past

reporting periods, which is a positive direction for Wolverine as they’ll be able to use, or

reinvest, that money into the business faster. More discussion on Wolverine’s accounts

receivable and how they have reduced this number in the past three years is discussed as we

take a closer look at the balance sheet later on in this report.

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It goes without saying that Wolverine operates on the sale of inventory. With this in mind,

determining how efficiently they are getting rid of their inventory is an important factor when

reviewing their financial ratios. This information is available by looking at the inventory turnover

ratio, and looking at that same ratio compared to that of the company’s competition. The lower

the ratio, the longer it’s taking for a company to sell their inventory, and vice versa. Here is a

breakdown of Wolverine’s inventory turnover ratio and their competition’s inventory turnover

over the last five years (Mergent Online):

Inventory Turnover 01/03/2015 12/28/2013 12/29/2012 12/31/2011 01/01/2011

Wolverine Worldwide Inc 3.98 3.64 2.89 3.84 4.12

Nike Inc 3.99 4.16 4.21 4.5 4.77

Madden (Steven) Ltd 10.41 12.11 12.51 12.23 10.27

Caleres Inc 2.81 2.77 2.9 2.92 3.06

These results show that Wolverine has seen an increase in their inventory turnover over the last

three years. This is a good sign and an indicator that they are managing their inventory levels

more efficiently year over year.

3.3 BALANCE SHEET

The balance sheet, what can be thought of as a snapshot of the health of the company,

gives insight into the financial position of a company. All in all, after analyzing the trends across

all the key elements of Wolverine’s balance sheets across the past five years, it is apparent that

they are doing well. Their current and total other assets have remained relatively stable, having

a positive trend until the last year when their accounts receivable, inventory, and some other

assets have started to dwindle. While these accounts fell, cash and cash equivalents continued

to grow, but at a rate just 1% faster than current liabilities. However, long term debt as recently

dropped by 30% in the last two years, which has resulted in a favorable change in retained

earnings and stockholders’ equity.

The first component of our analysis is cash and cash equivalents, because everyone

knows that cash is king. Wolverine has done a good job of managing their cash. They have

enough readily available to pay their current liabilities should they become due immediately. If

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they were all to become due immediately, they would still be able to cover them with their other

liquid current assets. In addition, their cash reserve has been growing consistently, which

signals there are performing well. It is also a good sign that they do not have excess cash just

sitting there. While a company needs to have enough cash on hand to protect against hard

times and opportunities to grow, if they allow cash to sit idly without any return, then they are not

investing their cash wisely (Investopedia). Judging from the balance sheet records over the past

five years, Wolverine has done a great job of maintaining a healthy cash account balance.

Wolverine’s inventory management is the next aspect of the balance sheet of

importance. Inventory management is important because companies have limited cash to invest

in inventory and if they are holding too much on hand, then that shows they are overproducing

and/or underselling. One way to assess whether inventory is well managed or not is to look at

how fast a company’s inventory is growing; making sure that they are not outpacing sales

(Investopedia). Wolverine’s revenue has been growing at a rate much faster than their

inventories. In fact, other than in 2012, their inventories have been declining. This tells us that

they are operating efficiently and effectively.

There is one more account on the asset side we analyzed, that being their accounts

receivable. Of course one would want a company to keep their receivables low enough and to

have a good history of being able to collect on what is owed to them. However, if their accounts

receivable is too low, that means they could be missing sales opportunities because of too

stringent of credit limits to their customers. Wolverine’s receivables declined by over $8.5 million

in 2014. This is quite the drop and required digging beyond just the financial statements. Their

2014 10K filing notes that in the fourth quarter of 2014, Wolverine signed a three year

agreement with an unnamed financial institution to sell selected accounts receivables on a

recurring, non-course basis of up to $200 million of its receivables (Wolverine World Wide). This

is a smart move on their part as it not only ensures a higher degree of collectability, but also

relieves them of the overhead costs it takes to manage the receivables as well.

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3.4 COMMON-SIZE INCOME STATEMENTS

The income statement allows for an analysis of how effective Wolverine’s operations

have performed over a span of time (in this case over five years). A portion of the common-

sized income statement (in 1000’s) is at the end of this portion of Section 3. The data was

extrapolated from Mergent Online. The percentages next to the amounts for each line item

represent the portion of that account in relation to total revenues.

Consistent revenue is the best way for a company to ensure profitability and Wolverine

has had a steady stream of revenue growth in the last five years. Sales have more than

doubled, growing from $1.25 billion in 2010 to over $2.76 billion in 2014. In 2013, they

experienced their largest spike in sales, with revenues and gross profit increasing by 64% and

69% from the prior year, respectively. Unfortunately, 2014 did not return the same rate of growth

as revenues grew by only 3%. This halt is largely due to the dropping of their Cushe brand and

the closing of over 140 Hush Puppies stores that occurred as a result of strategic restructuring

(Martinez, Wolverine Worldwide Will Close 140 Stores to Improve Profitability).

For Report Dates,1/3/2015 12/28/2013 12/29/2012 12/31/2011 1/1/2011

Revenue: 2761100 100.00% 2691100 100.00% 1640838 100.00% 1409068 100.00% 1248517 100.00%Costs: Cost of goods sold 1673800 60.62% 1619000 60.16% 1008197 61.44% 852316 60.49% 754537 60.43% Acquisition & integration costs - - - - 4481 0.27% - - - - Restructuring & transition costs - - - - - - - - 1406 0.11% Restructuring costs 1000 0.04% 7600 0.28% - - - - - -Total Cost of Sales: 1674800 60.66% 1626600 60.44% 1012678 61.72% 852316 60.49% 755943 60.55%

Gross profit 1086300 39.34% 1064500 39.56% 628160 38.28% 556752 39.51% 492574 39.45%

Expenses: Selling, general & admin expenses 815200 29.52% 830700 30.87% 481899 29.37% 386534 27.43% 347499 27.83% Acquisition & integration costs 15200 0.55% 41500 1.54% 32537 1.98% - - - - Restructuring charge 26000 0.94% - - - - - - - - Restructuring & other transition costs - - - - - - - - 2828 0.23%Total Expenses: 856400 31.02% 872200 32.41% 514436 31.35% 386534 27.43% 350327 28.06%

Operating profit 229900 8.33% 192300 7.15% 113724 6.93% 170218 12.08% 142247 11.39%

Earnings before income taxes - US 132400 4.80% 76700 2.85% 38294 2.33% 105470 7.49% 86817 6.95%Earnings before income taxes - foreign 49100 1.78% 51000 1.90% 55884 3.41% 63440 4.50% 56409 4.52%Earnings (loss) before income taxes 181500 6.57% 127700 4.75% 94178 5.74% 168910 11.99% 143226 11.47%Income taxes 47600 1.72% 26700 0.99% 13414 0.82% 45623 3.24% 38756 3.10%Net earnings (loss) 133900 4.85% 101000 3.75% 80764 4.92% 123287 0.0875 104470 0.08368

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Operating profit has not enjoyed as consistent or rapid growth as revenues and gross

profit. As shown in the chart below, it has grown from roughly $142 million to $229 million, but

not without a dramatic drop in between. In 2012, operating profit dropped 33% from 2011, a

difference of $56 million dollars, due largely to acquisition and integration costs. This type of

growing pain is normal, however, for a company with a growth mindset like the one Wolverine

has. Furthermore, they were able to recoup this hit in the following year, when their operating

profits increased by 69% despite further acquisitions.

2014 2013 2012 2011 2010100000

600000

1100000

1600000

2100000

2600000

Amts in 1000's

Revenue: Cost of goods sold Total Cost of Sales:Gross profit Operating profit

Income tax is another factor that has an effect on the company’s net earnings.

Wolverine’s effective tax rates were 26.2% and 20.9% for fiscal 2014 and 2013, respectively.

According to the company, the reason for this hike was a greater amount of revenues earned in

jurisdictions with a higher tax rate. In addition, 2013’s tax rate was lowered by tax deductions.

The tax rate for 2012 (14.2%) was nearly half of that of 2014’s because of a beneficial tax ruling

in global tax planning strategies (Wolverine World Wide). As Wolverine’s revenue stream

continues to climb, they need to be diligent in seeking effective tax planning strategies in order

to be able to retain as much of their earnings as possible.

3.5 STOCK ANALYSIS

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Over the last five years, Wolverine’s stock price has had a low of $17.72 and a high of

$35.20. In the last two years, their average stock price has ranged from $25 to $35 (Yahoo!

Finance). However, over the last twelve months, their shares and stock have declined 31% and

21% respectively (Associated Press). More recently, within the last quarter, their stock price has

plummeted to only eighty cents higher than its five year low.

Forces driving the change in Wolverine’s stock price include not meeting consumer

demands, equaling lower revenues in all three of their operating segments, as well as not

meeting Q3 earnings forecasts. Revenue decline is due to their recent disbanding of Cushe and

closing of 140 Stride-Rite locations, unfavorable foreign exchange rates, and loss of their

Patagonia footwear license (Wolverine Worldwide, Inc.).

Despite the recent drop in price and missed earnings, we would recommend buying in

Wolverine’s stock. It is currently valued at a low price and we expect it to grow in the future. We

based our forecast for growth on the company’s plans for growth, brand development, SWOT

analysis, and recent restructuring efforts. Additionally, the consensus of analysts is to hold, as

they project stock price of $34 (Macdonald).

3.6 STRENGTHS

Brand recognition has largely contributed to Wolverine’s five consecutive years of

revenue growth. As previously mentioned, Wolverine carries 15 major brand lines. Their most

recognized brands include Keds, Sperry, Merrell, and Chaco just to name a few. These are all

brand names that are synonymous with quality, durability, and performance. Footwear Plus

honored Wolverine with the ‘Company of the Year’ award in 2011, 2012, and 2013, at the Plus

Awards for Excellence in Design, a prestigious and coveted award given in honor of the best of

the best brands in the industry. At the 2013 Awards Plus ceremony, they received awards for

four other top accolades including ‘Brand of the Year.’ The Plus Awards are voted on by

thousands of retailers and department stores across the country and speak to Wolverine’s

success in establishing their brands in the marketplace (PR Newswire).

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Global expansion is another large contributor to Wolverine’s longstanding success.

Wolverine was one of the first to have the foresight to leverage their global brand portfolio, and

now span almost 200 countries and territories. In 2014, they achieved revenues of

approximately $2.76 billion with their global portfolio, a record for the company (Wolverine

Worldwide, Inc.). In order to ensure they expand efficiently and with control, they have instated

a Code of Conduct that they insist all their partners and collaborators adhere to in order to

maintain their well-established value chain. Additionally, they make sure that all global

production partners are able to satisfy the C-TPAT Tier III requirements in order to continue

operations abroad successfully (Wolverine Worldwide, Inc.).

Wolverine has always heralded all the individuals who come together with passion for

the company as the root of their success. Their strategic team has been a continuous source of

strength for the company since inception. Beings as such, they invest heavily in the people that

work for them to ensure they achieve their highest potential (Krueger).They offer a several

personal and professional development opportunities and health and welfare programs to foster

healthy and productive lifestyles for their 6,600 plus employees (Wolverine Worldwide, Inc.).

Wolverine’s strong focus on social purpose is another strength that has resulted in great

success for the footwear company. Making the world a better place and always doing the right

thing are two of their core values that they carry into all endeavors. They founded the Wolverine

Worldwide Foundation in 1959 on the passionate belief that by helping others, they contribute

not only to the community, but to the company as well. Wolverine’s green initiatives include

recycling, post-consumer cardboard usage, their re-Chaco program, renewable energy usage,

and tree planting (Wolverine Worldwide, Inc.). Having a sincere and earnest focus on social

responsibility gives them the opportunity to “strengthen their bottom line, do good for society,

work to reverse some of the growing problems facing the world today, retain top talent, build an

engaged Board of Directors and attract customers (O'Keefe).”

3.7 WEAKNESSES

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Growth parallel to technology is one or of Wolverine’s major weaknesses. They only

recently established a digital-consumer direct initiative, which could be considered grossly late

to the game. Additionally, their initiatives for moving forward to grow digital consumer direct

business are vague. From their own website, the ‘consumer direct’ information page only lists

that it operates in 411 of their stores and 3 countries (Wolverine Worldwide, Inc.). It would seem

beneficial that this area might have some additional direction to the customer, or investor, on

how online resources are available to them, how they are being developed, and where they are

used in Wolverine’s plan to create a welcoming buying experience.

While digital sales growth strategy is a weakness, declining retail store performance is

yet another weakness of Wolverine’s. Last year, they announced they will be closing 140 stores

due to underperformance of sales (Martinez, Wolverine Worldwide Will Close 140 Stores to

Improve Profitability). Seeing these two issues coupled together, just after a restructuring effort

by Wolverine, does not speak to an effective sales strategy. In fact, just after the announcement

of store closures, Wolverine revised its forecasted revenue to the lower end of its initial yearly

estimates (Martinez, Wolverine Worldwide Will Close 140 Stores to Improve Profitability). As

discussed in our Stock Analysis section, this is most likely another driver of dropped stock

prices.

Another point of weakness is Wolverine’s need to maintain their global foothold. In order

to do this, they are held tightly to meeting trade agreement standards, as well as compliance

with the C-TPAT requirements, both of which are rigorous. If these requirements are not met,

the consequences can be significant to the production capabilities and sales of Wolverine

products. Obviously, assurance of compliance in these matters from a global perspective is

costly to Wolverine and risk cannot be 100% mitigated. Wolverine does well to describe that

they hold their production partners to a strict Code of Conduct, which adherence to would mean

compliance with regulations, but does not reassure their investors of any contingency plans in

the event these codes are not followed.

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Wolverine’s reliance on foreign markets is another weakness. This reliance includes

their partners who supply the labor in the creation of their products, and the companies from

which they are sourcing their raw materials. According to Marketline, Wolverine currently

sources approximately 99% its footwear products from 3rd party sources, primarily Asia Pacific

region. (Marketline). Additionally, the costs involved with shipping their final products from out-

sourced production facilities can drive their prices higher in final sales. The more Wolverine

relies on the global marketplace the more they are at risk of being affected by its volatility.

Volatility factors are swings in economies, availability of resources, including labor, and foreign

exchange rates.

Lack of certain brand performance can cause inventory overages, potential job loss, and

missed earnings forecasts which lead to declining stock prices. Their Cushe footwear brand is

an example of a poorly performing line that has negatively affected Wolverine’s bottom line.

Because of poor performance, they decided earlier this year to discontinue the brand after its

ten-year stay with the company (Martinez, Wolverine Worldwide to drop another shoe brand,

close more stores). Cushe was experiencing rapid growth only a few short years ago, but they

failed to gain a tighter foothold on the market. This was the second brand dropped recently, the

other being their Patagonia footwear license. After losing Patagonia last year, their stock fell

$0.81 (Martinez, Say goodbye to Patagonia Footwear; Wolverine Worldwide to stop production),

which is just one of the consequences that comes with a lack of brand performance.

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SECTION 4: STATEMENT OF THE MISSION

A mission statement is an entity’s reason for existence. Wolverine World Wide Inc.’s

“simple” mission statement is to “empower, engage and inspire our consumers – every step of

the way (Wolverine World Wide).” The company looks to achieve their mission through their

loyal and hardworking staff, and by furthering their brand expansion. While their mission

statement is unique, and sets them apart from other companies, it lacks to announce the

products they have to offer. This is a broadly stated mission by the company, as it “fails to

clearly identify either what it makes or which products/markets it plans to emphasize

(Wheelen)."

This is an interesting new approach, since the company had established a narrower

mission statement in the previous years. However, research has shown that a broad mission

statement could be less beneficial than for companies than those who publish narrow

statements. These findings show that companies who specifically state who their consumers

are, and how they serve them, have increased growth over firms who do not. There does seem

to be a slight correlation with the company’s past growth and mission statements to their current

standings. Wolverine World Wide, Inc. should re-evaluate and revise their mission statement to

provide more details to who they are, what products they provide, who they provide for, and how

they are going to provide them.

Wolverine World Wide, Inc. is focused on further expanding their brand name and to

“capitalize on the momentum and amazing opportunities for [their] brands around the world,

[they] plan to significantly increase brand-building investments in the coming years.” This

strategy feeds into their vision for the company, which is “to build a family of the most admired

performance and lifestyle brands on earth (Wolverine World Wide).” While the company states a

broad mission, their corporate objectives are very specific.

4.1 STATEMENT OF CORPORATE OBJECTIVES

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Included in the company’s 2014 Annual Report, is a list of seven future initiatives that

Wolverine World Wide, Inc. is focused on achieving (Wolverine World Wide):

Maintaining a fanatical focus on innovation, especially product creation.

Deepening connections with consumers and creating strong, global demand for our

products.

Expanding and strengthening our extensive global distribution footprint – over 200

countries and territories.

Continuing to invest in consumer-direct initiatives, specifically digital investments that

support the omnichannel experience.

Expanding the lifestyle opportunities for our largest brands.

Building the very best team in the industry.

Executing against our business model, which mitigates the risks associated with an

ever-changing global marketplace.

One of the external opportunities for the company is the increase in online shopping. For the

company to meet the goals of the initiatives above, it is important for them to invest in marketing

and selling their brands in the electronic marketplace. Due to the corporate objectives the

company has set, along with the trends of the company and of the industry, we expect the

company to grow in future years. Using an average of the past years’ revenue growth rate, we

are projecting Wolverine World Wide, Inc.’s revenue to hit $4.58 billion by 2019. This is an

increase of 65.76% from 2014.

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2015 2016 2017 2018 2019 -

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Five Year Revenues

2015 2016 2017 2018 2019 -

50,000

100,000

150,000

200,000

250,000

Five Year Profits

However, as Wolverine World Wide, Inc.’s revenue is expected to grow at an average

rate of 10.64%, the Total Cost of Sales and the Total Expenses are expected to rise by 11.51%

and 13.87% respectively. In order to keep their current momentum, Wolverine World Wide will

need to determine and implement strategies that are most appropriate for the future of the

company.

SECTION 5: STRATEGIC ALTERNATIVES

5.1 DIRECTIONAL ALTERNATIVES

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It is evident from Wolverine’s analysis that not only is the company currently in good

financial standing and exceeding revenue expectations, but it also has a well-implemented

strategic plan that has allowed it to continue growing and expanding its already extensive

portfolio of brands. Coupled with a talented strategic team, a wide range of distribution

channels, and strong brand recognition, Wolverine has been able to position itself in an

advantageous position in a highly competitive market. However, due to changing consumer

shopping behavior and trends, along with a high dependency on third party suppliers, Wolverine

is facing some major risks that could adversely affect its bottom line and overall business

operations. To combat this, the next few sections will look at the various different strategic

alternatives that Wolverine could employ.

5.1.1GROWTH

The first kind of strategy that Wolverine could engage in is a growth strategy. This type

of strategy is designed to help a company expand its activities by focusing on growing sales,

assets, profits, or some combination of the three (Wheelen). However, due to the fact Wolverine

has already employed a growth strategy in recent years, it would be inappropriate for the

company to consider this kind of strategy at this time. With a presence in over 200 countries and

an impressive portfolio of brands recognized worldwide, Wolverine has not had a problem

achieving growth.

5.1.2 STABILITY

The second kind of strategy that Wolverine could engage in is a stability strategy. This

type of strategy, designed to help a company continue its current activities without making any

significant changes to its direction, can be appropriate for a company operating in a predictable

environment (Wheelen). However, due to the nature of the business in which Wolverine is

engaged, the company is very susceptible to changing trends in fashion and consumer

shopping behavior, so this type of strategy, or lack thereof, would be inappropriate at this time

for Wolverine.

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5.1.3 RETRENCHMENT

The third and final kind of directional strategy that Wolverine could engage in is a

retrenchment strategy. This type of strategy is designed to help a company eliminate any areas

of weakness that might be dragging its sales and profits down, such as in Wolverine’s case, the

change in consumer shopping behavior that is affecting its sales in the retail environment. There

are four types of retrenchment strategies that a company could deploy: (1) turnaround strategy;

(2) captive company strategy; (3) sell-out/divestment strategy; or (4) bankruptcy/liquidation

strategy (Wheelen). Since Wolverine’s problems are pervasive, but not yet critical, a turnaround

strategy would be most appropriate for the company at this time.

To achieve this, the turnaround strategy will be executed in two phases: (1) contraction;

and (2) consolidation. The first phase of the turnaround strategy will focus on improving

Wolverine’s operating efficiency and increasing profitability by closing down those retail stores

that have been underperforming in recent years. The second phase will focus on improving

omni channel opportunities to take advantage of changing trends in consumer shopping

behavior and trends. If fully employed, the turnaround strategy will not only allow Wolverine to

improve its bottom line, but to also enhance its business operations, all while taking advantage

of current market opportunities. Several advantages and disadvantages can come from

performing this type of strategy:

Advantages:

1. Improved operating efficiency

2. Increased profitability

3. Improved cross channel growth – sales and brand collaboration

Disadvantages:

1. Decrease in stock price

2. Reduction in non-tech savvy customer base

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3. Increase in IT based risks

5.1.4 RECOMMENDATION

After careful analysis of each directional strategic alternative, it seems most appropriate

for Wolverine to implement a turnaround strategy that will allow it to improve its operating

efficiency while increasing profitability.

5.2 COMPETITIVE ALTERNATIVES

5.2.1 LOW COST – COST LEADERSHIP

The first type of competitive business strategy a company can engage in is a lower cost

strategy focused on cost leadership. A cost leadership strategy is designed to help a company

gain a competitive advantage by reducing operating costs in order to design, produce and

market a comparable product more efficiently than its competitors (Wheelen). This type of

strategy can be very aggressive and require a company to have large amounts of capital and

resources in order to lower the cost of its product. In addition, having a well-structured

organization with tight controls on costs and a vigorous attitude towards cost reduction can also

be important. By engaging in this type of strategy, a company can benefit from not just a lower

costing product, but also from increased sales, profits.

While the cost leadership strategy is usually aimed at lowering the cost of producing a

good, not much attention is given to the costs associated with delivering the product, which is

why this strategy would be most appropriate for the company. Wolverine has been wildly

successful in achieving a cost leadership position by sourcing most of its production, 99% of it to

be exact, from numerous third-party manufacturers in the Asia Pacific region, where the

company benefits from lower manufacturing costs and state-of-the-art manufacturing facilities.

However, when it comes to the delivery and distribution of its products, the company incurs high

costs due its position overseas. Not only is Wolverine susceptible to high shipping costs

because of this, but it can also incur additional costs due to the risks associated with being in a

foreign market, such as foreign exchange risk. Due to this, it would be ideal for Wolverine to

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implement a cost leadership strategy aimed at reducing the cost of distributing its products by

investing in digital consumer-direct initiatives that allow products to be delivered directly to the

consumer from its manufacturing facilities.

5.2.2 DIFFERENTIATION

The second type of competitive business strategy a company can engage in is a

differentiation strategy. A differentiation strategy is designed to help a company produce a

product or service that is unique and of superior value to consumers in order to increase their

competitive advantage in the market (Wheelen). This type of strategy requires a company to

have strong resources tied to research and development that will allow it to differentiate its

products or services from those of its competitors. Currently, Wolverine has three different lines

of footwear that are made up of 15 brands; each footwear line is geared towards a specific

function and has its own market niche. In addition to shoes, the company also has a line of

apparel and accessories that it markets and sells. Due to the broad range of products and

market that Wolverine already possess, it is evident that has been successful at differentiating

itself from its competitors, so this type of strategy at the moment would not be appropriate for

the company.

5.2.3 FOCUS

A focus strategy is designed to help a company identify a specific market segment in

which it is able to effectively compete with other firms within its respective industry. Before

choosing to implement either a lower cost or differentiation strategy, a company must carefully

decide its focus strategy, which can be either broadly or narrowly defined. Wolverine’s focus

strategy is an interesting one because while the company aims to target a broad market, it also

targets specific market niches with the help of its three lines of footwear that are designed for

different functions for people of all ages and genders. This focus strategy is extremely beneficial

to the company, thus it should be kept in place in order to real all the benefits.

5.2.4 RECOMMENDATION

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After carefully analyzing each competitive strategic alternative, it is seems appropriate

for Wolverine to implement a cost leadership strategy aimed at reducing the cost of distributing

its products by investing in digital consumer-direct initiatives that allow products to be delivered

directly to the consumer from its overseas manufacturing facilities.

5.3 FUNCTIONAL STRATEGY

In order to improve the areas of weakness that have been identified in Wolverine’s

strategic plan, a functional strategy, based on the recommendations previously given, outlining

projects and a detailed implementation plan, timelines, budgets, and evaluations and controls

has been devised. The following are the specific programs that Wolverine will need to

implement in order to achieve a greater competitive advantage:

Program I: Turnaround Strategy: Contraction

o Improve operating efficiency and increase profitability by closing down retail

stores that have been underperforming in recent years.

Program II: Turnaround Strategy: Consolidation

o Improve omni channel opportunities to take advantage of changing trends in

consumer shopping behavior and trends by investing in digital consumer-direct

initiatives.

Program III: Cost Leadership Strategy: Distribution

o Reduce the cost of product distribution by focusing on digital consumer-direct

initiatives.

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SECTION 6: IMPLEMENTATION OF STRATEGIES

6.2 PROGRAMS AND DETAILED IMPLEMENTATION PLAN

6.2.1 TURNAROUND STRATEGY: CONTRACTION

As mentioned in section 2.5, one of the biggest trends currently happening in the retail

environment is the shift in consumer shopping behavior from retail to online shopping. This shift

can be attributed to several factors, including changes in technology, the ease and convenience

of online shopping, and the accessibility of the Internet from virtually anywhere. Another major

factor contributing to this trend is the recovery of the US economy; a better economy means

more disposable income per capita, which means more money individuals can spend on

discretionary items such as footwear and apparel. Due to this rising trend in consumer shopping

behavior, the first program that Wolverine should implement in its turnaround strategy is the

contraction of the company’s presence in the retail environment.

To implement the first program, Wolverine will have to be careful to do a contribution

margin analysis of each individual retail store it operates in order to figure out which locations

will need to be closed. Once the company is able to determine which locations

6.2.2 TURNAROUND STRATEGY: CONSOLIDATION

Wolverine has done well to get the process of consolidation started over the last two

years as they’ve shifted a greater amount of resources into their digital consumer-direct sales

focus. However, as discussed in section 3.7, this change can still be seen as a weakness in

their business model. Wolverine needs to strengthen their digital presence and present it as the

primary storefront for serving their customers. Moreover, the digital marketplace Wolverine

presents needs to facilitate their omnichannel approach, serving customers of a wide variety

and addressing each of their shopping needs.

In order to strengthen their digital consumer-direct storefront, Wolverine will need to

reevaluate their current marketplace, determine where it is not meeting the needs of their

omnichannel goals, and make changes. Just as it once was so important to design and present

a brick-and-mortar location with a sales efficiency focus, the same rings true for the design and

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use of a digital location. Moreover, the review and revision of this marketplace should be

completed on a far shorter timeline that that of a physical location as shopping trends in a digital

world move fast.

6.2.3 COST LEADERSHIP STRATEGY: DISTRIBUTION

6.3 TIMELINE AND BUDGETS

6.3.1 TIMELINE

6.3.2 BUDGET

Turnaround: ContractionContribution Margin Analysis 50,000.00$ Location Restructure 20,000,000.00$ Location Closure 8,000,000.00$

28,050,000.00$ Turnaround: Consolidation

Digital MarketplacePlanning 1,000,000.00$ Creation 2,500,000.00$ Implementation 5,500,000.00$

9,000,000.00$ Cost Leadership Strategy: Distribution

Epi-Center Distribution Locations 17,500,000.00$ Automated Pick/Ship Process 10,000,000.00$

27,500,000.00$ Total Cost 64,550,000.00$

6.4 EVALUATIONS AND CONTROL

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Turnaround: Contraction (3-6 Months)

Contribution Margin AnalysisLocation restructureLocation closure

Turnaround: Consolidation (3-6 Months)

Digital MarketplacePlanningCreation ImplementionConstant Review/Revision

Cost Leadership Strategy: Distribution (6 months - 1 year)

Epi-center distro locations?Automated pick/ship process review?

Once the strategies have been implemented, a set of evaluations and controls will be

used to monitor and assess performance of the company. This is an important procedure in the

strategy implementation process. If the outcome of the performance is undesirable, corrective

action will need to be taken, and the programs will need to be reevaluated and revised

accordingly.

Applying steering controls would be an appropriate control to determine the probability of

a retail store’s profitability or underperformance. These controls are designed to measure

variables that impact future profits or efficiency. A steering control that would benefit the

company, is monitoring each retail store’s inventory turnover ratio. If a store’s inventory is

quickly moving and continues to possess a high ratio, management will determine how to

continue the momentum of this trend. If a store’s inventory ratio is low, management will

determine what corrective actions can be taken to improve turnover movement. However, if the

inventory movement is unaffected, and the store continues to possess a low ratio, management

will decide whether or not it would be appropriate to eliminate the store for the best interest of

the company.

An evaluation method that can be used to improve omnichannel opportunities, is to

apply the balanced scorecard approach. This approach includes financial, as well as non-

financial measures. The balance scorecard “combines financial measures that tell the results of

actions already taken with operational measures on customer satisfaction, internal processes,

and the corporation’s innovative and improvement activities—the drivers of future financial

performance (Wheelen).” The balance scorecard will measure the performance of goals in four

areas: financial, customer, internal business perspective and innovation and learning.

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SECTION 7: CITATIONS FROM OUTSIDE SOURCE MATERIALS

Associated Press. "Wolverine Meets 3Q Profit Forecasts." Yahoo! Finance. 20 October 2015. <http://finance.yahoo.com/news/wolverine-meets-3q-profit-forecasts-104135512.html>.

Caleres. Our Name. n.d. 2 November 2015. <http://caleres.com/about-us/>.Investopedia. "Fundamental Analysis: The Balance Sheet." n.d.

<http://www.investopedia.com/university/fundamentalanalysis/fundanalysis7.asp>.—. Ratio Analysis. n.d. 3 November 2015.

<http://www.investopedia.com/terms/r/ratioanalysis.asp>.—. Receivables Turnover Ratio. n.d. November 2015.

<http://www.investopedia.com/terms/r/receivableturnoverratio.asp>.Krueger, Blake W. "Letter to Our Shareholders." 2015.

<http://www.wolverineworldwide.com/investor-relation/annual-reports/WWW_2014_oar/letter.html>.

Macdonald, George. "Piper Jaffray Reiterates a Neutral Rating on Wolverine Wold Wide." 20 October 2015. <http://www.analystratings.com/2015/10/20/piper-jaffray-reiterates-a-neutral-rating-on-wolverine-world-wide-2/422217/>.

MarketLine. "Global Footwear." 27 May 2015. MarketLine. 1 November 2015. <http://advantage.marketline.com.libproxy.txstate.edu/Product?pid=MLIP1633-0009>.

Marketline. "Wolverine World Wide, Inc SWOT Analysis." July 2015. EBSCO host. 2015 Nov 4. <http://web.a.ebscohost.com.libproxy.txstate.edu/ehost/pdfviewer/pdfviewer?vid=11&sid=62518d2f-5a4c-47bc-8d4c-44d1b451f786%40sessionmgr4004&hid=4001>.

Martinez, Shandra. "Say goodbye to Patagonia Footwear; Wolverine Worldwide to stop production." 15 July 2014. <http://www.mlive.com/business/west-michigan/index.ssf/2014/07/say_good-bye_to_patagonia_foot.html>.

—. "Wolverine Worldwide to drop another shoe brand, close more stores." 22 July 2015. <http://www.mlive.com/business/west-michigan/index.ssf/2015/07/wolverine_worldwide_to_drop_an.html>.

—. "Wolverine Worldwide Will Close 140 Stores to Improve Profitability." 15 July 2014. <http://www.mlive.com/business/west-michigan/index.ssf/2014/07/wolverine_worldwide_will_close.html>.

Mergent Online. "Caleres Inc." n.d. Mergent Online. 2 November 2015. <http://www.mergentonline.com.libproxy.txstate.edu/companydetail.php?compnumber=1174&pagetype=synopsis>.

—. "Madden (Steven) Ltd." n.d. Mergent Online. 2 November 2015. <http://www.mergentonline.com.libproxy.txstate.edu/companydetail.php?compnumber=78732&pagetype=synopsis>.

—. "Nike Inc." n.d. Mergent Online. 1 November 2015. <http://www.mergentonline.com.libproxy.txstate.edu/companydetail.php?compnumber=16861&pagetype=synopsis>.

—. Wolverine Worldwide, Inc. n.d. <http://www.mergentonline.com.libproxy.txstate.edu/companydetail.php?compnumber=9152&pagetype=synopsis>.

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