BSG Final Powerpoint 3 22 13

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Presentation Description

We are Assurance Consulting, and we are here to present our BSG online simulation experience. The purpose of the BSG online simulation is to conduct an operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members.

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Presentation Transcript

Assurance Consulting:

Assurance Consulting Andrea Roberts, Carol Hill, Kellie Hardee, and William McIntosh

Strategic Vision:

Strategic Vision Our vision is to become the industry’s best provider in quality and durable footwear options. Our customers will be able to trust in our company to provide them with multiple choices in footwear that will satisfy any of their footwear needs. No matter the location, our goal is to satisfy your foot fashion desires and provide you with the best style and quality in footwear.

Performance Targets:

Performance Targets Year 21 Year 22 EPS : $11.75 ROE: %16 Credit Rating: A+ Image Rating: 70 Stock Price: $151.00 - All of the above forecasts are based on company trends EPS: $13.00 ROE: %15.5 Credit Rating: A+ Image Rating: 71 Stock Price: $162.00

Global Unit Sales:

Global Unit Sales

Current Internet Strategy:

Current Internet Strategy High price, coupled with free shipping Little fluctuation with internet prices ($69-71) Strengths: free shipping and advertising Weaknesses: retail price, S/Q rating, models offered and celebrity appeal Overtime, online orders increased within each geographic region

Competition: Internet Segment Data taken from Year 20:

Competition: Internet Segment Data taken from Year 20 Team C and D dominated the internet market. Prices for team C and D were lowest in the competitive set. Team strategy consistent across the board

Internet Strategy for Years Ahead…:

Internet Strategy for Years Ahead… Consider lowering the price in all markets Focus on Market share gain

Wholesale Segment Market Strategy :

Wholesale Segment Market Strategy Geographic Market Trends Understanding each geographic markets’ nationalism Pairing celebrity advertisement with the right location Economic consideration of each geographic market Price Price sensitivity in the market Cost of production and distribution Price of competitors products Competition Competition’s presence in the market or % of market share Quality of their product Number of products offered

Competition:

Competition

Competition: Wholesale Segment Date taken from Year 20 :

Competition: Wholesale Segment Date taken from Year 20 Team C most consistent across all market Team F strongest in North America and Asia Pacific Our strategic focus in each market kept our company within the range of top 4 market leaders. Market Share------ 

Wholesale Strategy for Years Ahead….:

Wholesale Strategy for Years Ahead…. Watch competition closely…anticipate their strategies based on history for each market. Take steps to increase our S/Q rating. Establish a designated team for each market with the strategic goal to grow market share by 5% each year. Price decrease in the amount of $2.00 for next two years.

Private-Label Segment:

Private-Label Segment The private-label segment competed on price within the industry. Coupled with the price, the S/Q rating and the number of pairs offered indicated if the pairs were going to be accepted by the market. After Year 15, Assurance Consulting decided to phase out the sales in Europe-Africa and Latin America. The margins in those segments were minute and took away from the profit margins in the other geographic segments.

Private-Label Pricing:

Private-Label Pricing

Competition: Private Label Data Taken from Year 20:

Competition: Private Label Data Taken from Year 20 Private label is a very market specific industry Team B is getting a very large share in the Europe Africa and Asia Pacific Markets Market share is split almost evenly in the North America and Latin American Markets Several teams backed out of certain markets

Private Label Strategy for Years Ahead…:

Private Label Strategy for Years Ahead… Focus on lowering costs to produce greater margins Focus on the North American and Asia-Pacific regions Look into moving back into the Europe-Africa and Latin America regions

Production Strategy:

Production Strategy Provide the industry’s best quality footwear products at a reasonable price Focused on producing branded, wholesale, and private-label pairs with a high percentage of superior materials (Keep SQ ratings above 5) Rising demand and industry pressures caused us to purchase a new plant after year 4/ Europe-Africa plant paid off through cash Struggled with keeping up with the industry average in models provided Image rating and SQ rating continued to be our strength through the first couple of years

Image Rating:

Image Rating

Production Strategy cont.:

Production Strategy cont. Produced most of our products in Asia Pacific and North America Chose EA to eliminate production cost and the exchange rates that significantly cut into our profit from that region Employees were compensated more as production expanded Overtime increased in each plant after year 5 to keep up with industry demand Models offered continued to be a weakness for our business

Finance Strategy:

Finance Strategy Assurance Consulting strived to uphold a strong liquidity position as well as creating value for our stockholders No new issuances or repurchases/ 1 dividend distribution in period 8 Reinvest funds back into company while improving the performance of the investments of current stock holders Increase in cash and Profit disrupted by the purchase of new capacity in year 4 No new debt throughout the 10 year period Increase EPS, Increase Cash, Increase profits in order to maintain a A+ credit rating

Earnings Per Share (EPS):

Earnings Per Share (EPS)

Stock Price:

Stock Price

Net Revenues:

Net Revenues

Credit Rating:

Credit Rating

Strategy Ahead:

Strategy Ahead Anticipation of the Competition Laser Focused contribution from Senior Management to develop defensive and offensive strategy Differentiation vs. Low Cost Production of more models to keep up with the industry competitors

We assure you success!:

We assure you success!

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