Download - Business Team Simulation
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ONE SHOE AT A TIME
Managing a Billion Dollar Company
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RYAN AMANAMY HEDLUNDLUCAS PETTIT
MEGHAN UPSON
Craman Company
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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.
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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)
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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
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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
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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
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SWOT Analysis
Strengths Yr 11-14 Free Shipping Celebrity Appeal
Strengths Yr 15-18 S/Q Rating Wholesale price Free Shipping Delivery time
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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
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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…
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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
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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
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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
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Annual Net Revenues
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Annual Earnings Per Share
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Annual Return On Equity
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Annual Credit Rating
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Year-End Stock Price
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Annual Image Rating
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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
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