Presenting our group experience of the Online Business Strategy Simulation Game

1. The “a Team” Kelli Oshanek, Kristen Storer, Tara Rose, Jessica Vink

2. Agenda Financial and Strategic Performance Strategic Vision Performance Targets Evolvement of Strategies Branded and Private Label Production and Workforce Strategy Finance Strategy Closest Competitors Branded and Private Label Competing against rivals Lessons Learned

3. Financial and Strategic Performance Net Revenues Earnings Per Share

4. Financial and Strategic Performance Return On Equity Credit Rating

5. Financial and Strategic Performance Stock Price Image Rating

6. Financial and Strategic Performance Global Unit Sales Global Market Share

7. Strategic Vision To be the industry leader in low cost strategy allowing our company to save on costs and therefore provide our customers with reasonably priced quality shoes.

8. Performance Targets for Next 2 Years

9. Evolvement of Competitive Strategy in Branded Production Price Few Models Production Capacity Social Corporate Responsibility Advertising Budgets and Rebate Offers Use of Superior Materials Styling Features, TQM and Compensation

10. Evolvement of Private Label Competitive Strategy Re-enter Market Increase SQ Rating Superior material usage Enhanced Features and Styling Clear inventory Increase Market Share in Asia-Pacific and North America Monitor close Competitors

11. Production & Workforce Compensation Strategy Keep production rates high to reduce manufacturing costs per pair Excellent compensation to ensure productivity and low reject rates Significant spending on TQM/ Six Sigma Quality Program Lowered reject rates from as high as 5% to as low as 1%.

12. Finance Strategy Use minimal external financing Current balance sheet shows we have a ten and five year long-term liability These loans were taken to finance the construction of an additional plant, and plant upgrade Keep retained earnings in the company to finance investments for improvements or upgrades

13. Closest Competitors in Branded Label Footwear

14. Closest Competitors in Private Label Footwear

15. Actions to Outcompete Rivals Monitor Inventory Levels Focus on models we are offering Continue with best practice methods that align with our strategy Monitor close competitors

16. Lessons Learned Even with a cost leadership strategy, sometimes you have to spend money to achieve higher profit margins Monitor only those that are your closest competitors Focus on the markets where there seems to be the most response (demand) Utilize your resources- research, the player’s guide Know what attracts your buyers- a low price may not be convincing enough Don’t rely solely on the next years projected performance

17. Conclusion Questions?