1. ORIGINAL STRATEGIC VISION YEARS
10-13
Vision Statement
 Our vision is to lead the athletic footwear industry by
creating distinct athletic footwear to enhance player
performance through efficient operations and high quality
materials and high models
Strategic Goals
 Our goal is to provide our customers with a quality product
by employing a strong consistent process and to empower
employees in quality control
 To promote a respectful and diverse work environment where
our employees bring their best into every shoe created

2. REVISED STRATEGIC VISION YEAR 1416
Vision Statement
 Our vision is to lead the athletic footwear industry by
creating distinct athletic footwear to enhance player
performance through efficient operations and low quality
materials and high models
Strategic Goals
 Our goal is to provide our customers with a quality product
by employing a strong consistent process and to empower
employees in quality control
 To promote a respectful and diverse work environment where
our employees bring their best into every shoe created

3. FUTURE PERFORMANCE TARGETS
Year 17
 Earnings per Share $11.75
EPS
Year 18
 Earnings per Share $13.00
EPS
 Return on Equity 33%
 Return on Equity 36%
 Credit Rating A
 Credit Rating A+
 Image Rating 72
 Image Rating 73

4. ANNUAL TOTAL REVENUES

5. ANNUAL EARNINGS PER SHARE

6. ANNUAL RETURN ON EQUITY

7. ANNUAL CREDIT RATING

8. YEAR-END STOCK PRICES

9. ANNUAL IMAGE RATING

10. MARKET STRATEGIES OVERVIEW
Wholesale Market
 Low SQ rating
 High number of models
 Competitive prices
 Advertising costs consistent




and low
Utilized retail outlets
Offered retail support
Increased celebrity appeal
Wholesale price 40% less than
internet price
Internet Market
 Low SQ Rating
 High number of models
 No free shipping
 Advertising costs
consistent and low
 Internet price 40% more
than wholesale price

11. North America Region
NA Plant
•Operation average 100% capacity
•2,000 pair capacity
•Higher compensation
•Lower rejection rates
Internet
•Strategy change year 14
•Increased profits from $3,128 to $7,642 in last three years
•Pairs sold increased from 147 to 385 in last three years
•Operating Margin made gains and losses
Wholesale
•Strategy change year 14
•Increased profits $20,837 to $26,133 in last three years
•Pairs sold steady increase
•Operating Margin increased steadily

12. Latin America Region
LA Plant
•Operation at full 100% capacity
•3,000 pair capacity
•Lower compensation
•Rejection rate kept low
Internet
•Strategy change year 14
•Increased profits $2,440 to $3,612
•Increased pairs sold 95 to 249
•Profit Margin average 29%
Wholesale
•Strategy change year 14
•Increased profits $2,675 to $12,973
•Increased pairs sold 1,582 to 1,653
•Profit Margin increased fro 4% to 20%

13. Asia Pacific Region
AP Plant
•Operation near full capacity 90-120%
•6,000 pair capacity
•Lower compensation
•Rejection rates kept low
Internet
•Strategy change year 14
•Increased profits $2,900 to $6,405
•Pairs sold increased 89 to 310
•Profit Margin decreased 39% to 32%
Wholesale
•Strategy change year 14
•Increased profits $11,423 to $23,707
•Pairs sold increased 1,650 to 1,891
•Profit Margin increased 17% to 28%

14. PRIVATE LABEL
 Additional capacity was purchased that would go towards private
label sales
 Lost out on private label sales by almost .50
 Lowered our private label sales by $4, in hopes of winning bids

15. PRODUCTION STRATEGY
 Incentive pay was issued to workers
 Capacity was purchased in EA
 This turned out to be a mistake
 Expensive production & shipping tariffs

16. FINANCE STRATEGY
 Small dividends were issued and increased every year.
 Loan for NA, EA, and LA capacity purchase
 Capacity was sold off in NA in year 16
 Loans established in years when credit rating was at it’s highest
and paid high interest loans off during that time.

17. Internet Competition
Team B was our major competitor in the internet
market
This was not our strongest area, but we decided to
focus on the wholesale market and out perform Team
B
Our team and team B had same high quality and high
models strategy
Our prices and models were the same and to compete
with Team B we needed to differentiate our company
We changed strategy and decided to go with a low
quality and high models
New strategy was profitable and with low competition

18. Wholesale Competition
Team B was our major competitor in the
wholesale market
Team B had more of the wholesale market share
during some years
Our team took advantage of Team B’s decisions:
•
Internet and wholesale prices too close
•
Purchased extra capacity
•
Strategy was similar to other teams
We changed strategy and decided to go with a
low quality and high models
New strategy was profitable and with low
competition

19. PRIVATE LABEL COMPETITION
 Goal to have lowest price per pair
 100% win was great
 Less that 100% win was always helpful in reducing our inventory
 Our profits increased each time our Private Labels were sold
 All other teams were our competition
 Began to exit Private label by year 16

20. YEAR 17 AND 18 PRODUCTION
DECISIONS
Branded Production
 Low Quality/ High Models
 AP plant 3 star, same number of
models
 LA plant 4 star, more
models, +.05 incentive pay
 Modest capacity increase in LA
plant
Private Label Production
 Operations in LA plants
 Minimum star SQ rating
 Lower styling/ features costs
 Out bid competition

21. YEARS 17 AND 18 MARKETING
DECISIONS
 Wholesale marketing
 Internet marketing
 SQ rating at 3 & 4 star
 SQ rating at 3 & 4 star
 More focus on LA market
 More focus on LA market
 More retail outlets
 Increase number of models
 Lower prices
 Keep advertising costs low
 More models
 Increase celebrity appeal
 More celebrity appeal
 No free shipping

22. FUTURE RESULTS
Outperform competition by
 Focusing on our Low SQ / High Models strategy
 Increasing profits
 Out perform High SQ/ High Models strategy due to high competition
Results
 Team B will struggle with competition in High SQ/ High Models strategy
 Our product will be have more coverage throughout the regions and markets

23. LESSONS LEARNED
 Produce in regions with higher profit margins
 Offering labor compensation rates
 Manage capacity well
 Do not purchase capacity in Europe-Africa region
 Win Private-Label bids
 Change strategies when market is saturated with same strategy