ONE SHOE AT A TIME

Managing a Billion Dollar Company

RYAN AMANAMY HEDLUNDLUCAS PETTIT

MEGHAN UPSON

Craman Company

Mission and Vision Statements

Mission Statement: Our goal is to provide the finest footwear products on a

global scale near the market average price. Our product will reach our consumers, retailers, and wholesalers in a fast and cost effective manner.

Vision Statement: We will invest the majority of our resources in superior

materials and enhanced shoe design to ensure our customers that our product is better than the rest.

Our Strategies….

General “strategies” throughout the whole game

Provide and produce shoes with quality and features above the market average

Keep the shoe price in-between the market average and the most expensive shoe

Distribute shoes to accommodate market demand

Take out loans to cover fees (overdraft, loans, fixed costs, etc)

Make plant upgrades when possible to address issues(reject rate, productivity, etc)

Significant Steps

Yr. 11 Over priced in all segments, built in Europe

Yr. 12 Still over priced, no sales, acquired huge debt

Yr. 13 Stop Distributing to North America and Latin America, added capacity.

Yr. 14 Social responsibility too expensive, lost money on isolation of markets, extreme warehouse costs from inventory

Steps Continued….

Yr. 15 Sold off North America plant, did not produce due to so much inventory

Yr. 16 Sold more capacity, make cash, play with the numbers, reentered the global market

Yr. 17 Repurchased stock, decrease shoe quality to better compete

Yr. 18 Repurchased stock, decrease over all costs

SWOT Analysis

Weaknesses Yr. 11-14 Retail Outlets Retail Support Advertising Retail Price Models Offered

Weaknesses Yr. 15-18  Celebrity Appeal Retail Price Models Offered Advertising

SWOT Analysis

Strengths Yr 11-14  Free Shipping Celebrity Appeal

Strengths Yr 15-18 S/Q Rating Wholesale price Free Shipping Delivery time

SWOT Analysis

Opportunities Adaptability to Change Radical Strategy- Entering Asia

and Europe Africa

Threats Capacity and Building

Strategy Cost effective strategy

entering Europe Africa and Asia

Main Competitors

Dynasty Shoes Very close in price

(generally within $.50-$1.00)

Very close S/Q rating (same or +/- 1 star)

Similar spending on advertising

Similar model availability

Performance

Example…

Competitors Continued…

Global Shoes Similar wholesale pricing ( generally +/-

$1.00) Similar S/Q rating (+/- 1 star) Similar number of retail outlets Similar delivery time Similar market share

Performance

What Worked Well?

As of Year 17 our company turned around due to: Repurchasing stock Decreasing S/Q ratings Identified weaker demand in North America Loan Maxed out available outlets

What Did Not Work Well?

Year 11- set too high of a price, for a low quality shoe-Too high rebate offer

Year 13- we attempted a total market share takeover of Europe-Africa and Asia-Pacific

“Tunnel Vision” Advertising and Marketing

Production/Distribution

Annual Net Revenues

Annual Earnings Per Share

Annual Return On Equity

Annual Credit Rating

Year-End Stock Price

Annual Image Rating

What We Would Have Done Differently

Started the simulation with a lower overall price

Steadily increased advertising

Produced units in North America Offer more retailer support

Manage superior materials better