term paper on crocs

Download Term paper on crocs

If you can't read please download the document

Post on 21-Oct-2014




7 download

Embed Size (px)


this document might help u for educational research on CROCS



Principles Of Management

Term Paper Report On


Submitted by:



Rahat Md. Zawad Fattah


Rahman Arifur


Rahman, Zamiur


Bristi, Farzana Afroz


Nibir, Sazzadur Siraj


Submitted to:

Musrat Mou

American International University Bangladesh


we gratefully acknowledge the wonderful co-operation and help that we received from our faculty Musrat Mou. She helped us to understand the topic and always inspired to make the term paper a successful one.

I hope I would be able to meet up to his expectations.

Table Content






Literature review


What is SWOT? Why SWOT analysis is important, and how it affects strategic decision making?


What is BCG Matrix?


Explain Porters competitive five forces model?


Organizational Structure?


Findings and analysis


SWOT Analysis of crocs


BCG Matrix of Crocs


Porters five forces of crocs


Strategies of their marketing products (Corporate level strategy, business level strategies and others)


Organizational structure of Crocs (Mechanistic or Organic)





Executive summary

Crocs Inc. is an American shoe designing, manufacturing, distributing, and selling company founded in 2002. The company deals in a product which is an extension of traditional footwear.

The most striking attribute is the fact that the US company markets plastic shoes which are available in bright colors. In addition to light green, red, yellow and turquoise; consumers can purchase more subtle colors. Up to 26 colors are available for the main models. Crocs come in a variety of styles. They are usually manufactured in company-owned facilities, located in Canada and Mexico, as well as outsourced contract manufacturers in Italy, Romania and China. Some of the well-known brands are Styles Beach and Cayman. Crocs also expanded into fashion accessories. It has launched a line of handbags that are also produced in a wide range of colors. Crocs also recently entered the market with golf shoes (Ross & Ross 2008).

Crocs shoes are made of plastic foam, which is derived from ethylene-vinyl acetate and were originally designed to be worn at the beach or boat. Since the invention, Crocs has been successful beyond these activities and they are now brought in all sorts of daily activities. Children, especially, are largely attracted by the colorful patterns and simple shapes. Despite the childish appearance of the product, this method was then extended to adults and these shoes are increasingly worn by movie and television stars.

We have reviewed trends in the footwear and apparel industry; closely examined the Companys strategic, Operational and financial situation, and diagnosed the reasons for its distress. We recommend that Crocs implement a turnaround strategy with the following key features:

Specialized Executive Body: In any successful organization it is mandatory to have good or specialized Executive body. But we found several management turnover couple of a year. To be more professional and specialized, Crocs should have maintained their executive body over few years.

High production cost: Crocs reserved merchandise inventory and their technology isnt good enough and they have many internal cost. If they overcome it they can provide a product in minimal rate and earn more profit.

Customer Satisfaction: Customer satisfaction is the key to be more successful. If crocs can increase their distribution channel, they can come closer to their customer.

Come up with varieties of products: Crocs can come with new fashion accessories.


Crocs Inc. was established in 2002 in Colorado, USA by three friends named Lyndon duke Hanson, Scott Seamans and George boedecker. They are the world leader in innovative casual footwear for men, women and children. . Crocs offers several distinct shoe collections with more than 300 four-season footwear styles. All Crocs shoes feature Croslite material, a proprietary, revolutionary technology that gives each pair of shoes the soft, comfortable, lightweight and odor-resistant qualities that Crocs fans know and love. Crocs fans Get Crocs Inside every pair of shoes, from the iconic clog to new sneakers, sandals, boots and heels. Since its inception in 2002, Crocs has sold more than 200 million pairs of shoes in more than 90 countries around the world. Love them or hate them is the crocs shoes tag line. They achieved a huge success among the U.S footwear around 49.3B in annual sales which spit about 60-49% between fashions athletic. Among them shoes representing 55%, sandals 25% and boots and others 20%. The 1000 pairs made available at the site were sold out in three days. . The brand celebrated reaching $1 billion in annual sales in 2011.

Literature review:

2.1 What is SWOT? Why SWOT analysis is important, and how it affects strategic decision making?

Answer: SWOT stands for Strength, Weakness, Opportunities and Threats. SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over others

Weaknesses: are characteristics that place the team at a disadvantage relative to others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or project

Importance and effects of SWOT analysis: SWOT analysis can be a great tool to help one understand what is involved in making business decisions. SWOT analysis is a great way of expressing relationships between components of business decision making. Actually these four factors are the major players when it comes to business decision making. Each refers to things that may be internal or external to the business, which might have significant impact on achieving goals and objectives.Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. SWOT analysis may be used in any decision-making situation when a desired objective has been defined. The decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/ survey. So, SWOT analysis is very important for strategic decision making.

2.2 What is BCG Matrix?

Answer: The BCG Model is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit . To ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market growth. The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company. Placing products in the BCG matrix results in 4 categories in a portfolio of a company:

1.Stars (high growth, high market share)

Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.

Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept.

2. Cash Cows (low growth, high market share)

Profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high

Foundation of a company

3. Dogs (low growth, low market share)

Avoid and minimize the number of dogs in a company.

Beware of expensive turn around plans.

Deliver cash, otherwise liquidate

4. Question Marks (=high growth, low market share)

have the worst cash characteristics of all, because high demands and low returns due to low market share

if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog.

either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash.

2.3 Explain Porters competitive five forces model?

Answer: Porters 5 forces model is one of the most recognized framework for the analysis of business strategy. Michae; Porter introduced many important ideas in strategic management. One of his major contributions was explaining how managers can a sustainable competitive advantage. An important of doing this industrial