2. Mission Statement
"We are committed to delivering the highest
quality shoes to our customers that are made
responsibly in an ethical, diverse setting."
3. Strategy Formulation
Initial Broad Differentiation Strategy
● High Quality Shoes at a High Price Point
● Higher S/Q Rating than competitors
● More models and more advertising
● Retain loyal customer base with rebates and more retailers carrying the products
● Best practices training to employees to provide excellent customer service
4. Financial Objectives
Short Term:
● Maintain a credit rating of B+ through the first two years
● Maintain a return on equity investment of 15% or more annually.
Long term:
● Grow earnings per share 7% annually through first five years, and 5% annually after.
● Achieve stock price gains of 7% through the first five years, and 5% annually after.
5. Strategic Objectives
Short Term
● Construct an upscale brand that was the leader for its quality product offering and
use of superior materials.
● Consistently be the leader in advertising and marketing as well as recognized in
the global shoe industry.
Long Term
● Achieve an image rating of 70+ within the first 5 years.
● Incrementally increase prices for our products to remain
competitive.
6. Strategy & Tactics
● Invest in environmentally responsible practices to improve our CSR.
● Achieve maximum capacity in plants as well
as invest in upgrade options A and D for the
North American Plant.
● Free shipping as well as a mail-in rebate.
7. Adjustments
● Corporate Citizenship
○ Use of Recycled Boxing and Packaging
○ Energy Efficiency Initiatives
○ Charitable Contributions
○ Ethics Training and Enforcement
○ Workforce Diversity Program
9. Adjustments
● Sales Forecast
○ Inventory Clearance
● Plant Capacity
○ Purchase/ Sale of Capacity
○ Upgrade Option A and C at N.A. Plant and Asia Plant
15. Finance & Cash Flow
● Paid $1.50 Dividend
● Repurchase 2000 shares @ $39.05 a share
● Allowed Leah's Loafers to significantly raise
Return on Equity
16. Assessment - EPS
● Board of Directors Expectations
○ 7% annually through Year 15
○ 5% annually Year 16 on
● Competition
○ Company F EPS
○ Industry Overall
17. Assessment - ROE
● Expected to have an annual return on equity a 15% or higher.
● Struggled year 11 at 4.6%
● Significantly better performance for
years 12, 13, 14 and 18. All above 15%.
● Company F competition
● Overall industry
24. Advice
● Know the demand for the market
● Private-Label Operations
○ Worth it for Leah's Loafers?
● Bomb.com Product Offering
● Hard working Workforce
● Whose reppin' us?