Overview
This presentation is the property of its rightful owner.
Sponsored Links
1 / 15

Overview PowerPoint PPT Presentation


  • 73 Views
  • Uploaded on
  • Presentation posted in: General

Overview. As senior managers, you run an athletic footwear company that produces and markets shoes worldwide. Your management team will make the strategic decisions to produce, distribute, market, and sell shoes in a global market.

Download Presentation

Overview

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Overview

Overview

  • As senior managers, you run an athletic footwear company that produces and markets shoes worldwide.

  • Your management team will make the strategic decisions to produce, distribute, market, and sell shoes in a global market.

  • You will compete head-to-head against the other companies in the class.

  • Your sales, costs, and profits are determined by comparing your decisions with the decisions of all the other teams in the class.


World markets

World Markets

The ‘World’ is divided into four regions

Europe/Africa

North America

Asia/

Pacific

South America

Production, marketing, and sales can take place in any of the regions and shoes can be shipped between the regions.

There are tariffs, shipping charges, and foreign exchange adjustments for shipments between regions


Your company

Your Company

  • 10 year-old company

  • Public Corp; 10 million shares outstanding @ $30; B+ credit rating

  • Two existing factories; 2M pair/year in NA, 4M pair/year in A/P

  • Sales of 5.2M pairs worldwide, revenue of $238M, net earnings of $25M


Decisions

Decisions

You and your co-managers will make decisions each period relating to

  • Factory locations and facilities (up to 6 decisions per plant)

  • Production (up to 10 decisions per plant)

  • Worker compensation and training (3 decisions per plant)

  • Distribution (up to 8 decisions each plant)

  • Pricing and marketing (up to 10 decisions in 4 geographic regions)

  • Bids to sign celebrities to endorse your company’s footwear (up to 3 decision entries per bid)

  • Financing of company operations (up to 8 decisions)

  • Corporate Social Responsibility Spending

  • Plus there is a screen for making annual sales forecasts and deciding whether to have inventory clearance sales


How it works

How It Works

Company Decisions

Company Decisions

Company Decisions

Company Decisions

Simulation

Decisions

Yearly Results

Annual Reports


How it works1

How it Works

Regional Market

Market Share

Market Share

Branded Retail Sales

Branded Internet Sales

Private Label Sales

Revenue

Costs

Adjustments

Profits


Market share determinants

Market Share Determinants

Demand: Expect steady long-term growth

Price Mail-in Rebates

Retail Sales:

Style/Quality Rating Number of Models/Styles

Advertising Celebrity Endorsements

Retailer Network Retailer Support Timely Delivery

Internet Sales:

Price Models Shipping Charge

Style/Quality Rating

Advertising Celebrity Endorsements


Private label sales

Private Label Sales

Shoes produced by your company but sold under someone else’s name

Must produce specifically for PL market

Must meet minimum SQ Rating

Contract awarded by retailer strictly on price


Overview

Performance Measures

Earnings Per Share

Return On Equity

Credit Rating

Stock Price

Image Rating

Score each round is based on

• Investor Expectation Standard

• Best in Industry Standard


Overview

NA

Asia

EU

LA

BL

PL

BL

PL

BL

PL

BL

PL

NA

AS

EU

LA

WWW

Stores

WWW

WWW

Stores

WWW

Stores

Stores

Retailers Support

Celebrities Marketing

Retailers Support

Celebrities Marketing

Retailers Support

Celebrities Marketing

Retailers Support

Celebrities Marketing


Production decisions

Production Decisions

Location Capacity Upgrades Financing

Wages Incentives Training

Quantity Models Quality Control

Materials Styling Features TQM/Six Sigma


Distribution decisions

Distribution Decisions

Shipping

Delivery Time

Retail Network

Retail Support


Marketing decisions

Marketing Decisions

Private Label Internet

Price Rebates

Advertising Endorsements


Financial decisions

Financial Decisions

Bonds

Stocks

Dividends


Overview

NA

Asia

EU

LA

BL

PL

BL

PL

BL

PL

BL

PL

NA

AS

EU

LA

Strategy

WWW

Stores

WWW

WWW

Stores

WWW

Stores

Stores

Retailers Support

Celebrities Marketing

Retailers Support

Celebrities Marketing

Retailers Support

Celebrities Marketing

Retailers Support

Celebrities Marketing

STRATEGY!!

Sales Revenue

STRATEGY!!

STRATEGY!!

Production Costs

Distribution Costs

Marketing Costs

Financial Costs


  • Login