Embed Size (px)
DESCRIPTION
Overview. As senior managers, you run an athletic footwear company that produces and markets shoes worldwide. Your management team will make the strategic decisions to produce, distribute, market, and sell shoes in a global market. - PowerPoint PPT Presentation
Citation preview
Overview As senior managers, you run an athletic footwear
company that produces and markets shoes worldwide.
Your management team will make the strategic decisions to produce, distribute, market, and sell shoes in a global market.
You will compete head-to-head against the other companies in the class.
Your sales, costs, and profits are determined by comparing your decisions with the decisions of all the other teams in the class.
World MarketsThe ‘World’ is divided into four regions
North America
South America
Europe/Africa
Asia/Pacific
Production, marketing, and sales can take place in any of the regions and shoes can be shipped between the regions.
There are tariffs, shipping charges, and foreign exchange adjustments for shipments between regions
Your Company
10 year-old company Public Corp; 10 million shares
outstanding @ $30; B+ credit rating Two existing factories; 2M pair/year in
NA, 4M pair/year in A/P Sales of 5.2M pairs worldwide, revenue
of $238M, net earnings of $25M
DecisionsYou and your co-managers will make decisions each period
relating to Factory locations and facilities (up to 6 decisions per plant) Production (up to 10 decisions per plant) Worker compensation and training (3 decisions per plant) Distribution (up to 8 decisions each plant) Pricing and marketing (up to 10 decisions in 4 geographic
regions) Bids to sign celebrities to endorse your company’s footwear
(up to 3 decision entries per bid) Financing of company operations (up to 8 decisions) Corporate Social Responsibility Spending Plus there is a screen for making annual sales forecasts and
deciding whether to have inventory clearance sales
How It Works
Simulation
Decisions
Yearly Results
Annual Reports
Company Decisions
Company Decisions
Company Decisions
Company Decisions
How it Works
Branded Retail SalesBranded Internet SalesPrivate Label Sales
Revenue Costs Adjustments Profits
Market Share Determinants
Price Mail-in RebatesStyle/Quality Rating Number of Models/StylesAdvertising Celebrity EndorsementsRetailer Network Retailer Support Timely Delivery
Internet Sales:
Demand: Expect steady long-term growth
Retail Sales:
Price Models Shipping Charge
Style/Quality Rating
Advertising Celebrity Endorsements
Private Label Sales
Shoes produced by your company but sold under someone else’s name
Must produce specifically for PL market
Must meet minimum SQ Rating
Contract awarded by retailer strictly on price
Performance Measures
Earnings Per Share
Return On Equity
Credit Rating
Stock Price
Image Rating
Score each round is based on
• Investor Expectation Standard
• Best in Industry Standard
NA Asia EU LA
NA AS EU LA
BL
WWW
PL BL BL BL
WWW WWW WWW
PL PL PL
Stores Stores StoresStores
Retailers SupportCelebrities Marketing
Retailers SupportCelebrities Marketing
Retailers SupportCelebrities Marketing
Retailers SupportCelebrities Marketing
Production DecisionsLocation Capacity Upgrades Financing
Quantity Models Quality Control
Materials Styling Features TQM/Six Sigma
Wages Incentives Training
Distribution DecisionsShipping
Delivery Time
Retail Network
Retail Support
Marketing DecisionsPrivate Label Internet
Advertising Endorsements
Price Rebates
Financial Decisions
Bonds
Dividends
Stocks
NA Asia EU LA
NA AS EU LA
BL
WWW
PL BL BL BL
WWW WWW WWW
PL PL PL
Stores Stores StoresStores
Retailers SupportCelebrities Marketing
Sales Revenue
Production Costs
Distribution Costs
Marketing Costs
Financial Costs
Retailers SupportCelebrities Marketing
Retailers SupportCelebrities Marketing
Retailers SupportCelebrities Marketing
Strategy
STRATEGY!!STRATEGY!!STRATEGY!!
