Funky Footwear Performance Evaluation - Case Study Example

?The footwear company Introduction Management in a company has a lot of influence on how the output of the company works. The decisions made by the company’s management are major to the strategies and achievement of a company. It is necessary for the decisions made to be made so carefully thought because they have a direct impact on how the company’s strategy fairs against the other. In the case of the footwear company we see the decisions made especially cost it sales in the twentieth year since it had the lowest sales. It is necessary to be competitive in the market and thus the co managers need a clear view of the trends of the market so as to be effective in the management of the company. Something that also needs to be taken into account is the performance of the company. In my case I have taken consideration of the funky footwear company. The decisions made by the management have seen a lot of influence in the way it has fared as it is seen in the competitive intelligence report. My analysis of this report will bring to point some of this issue am mentioning. The reports present a critical look at some of the decisions made. These decisions have had an impact on the trends of performance of the company. I will do an analysis and an evaluation of these records to see what the companies have been up to for the period of ten years. Industry and company report In this section of my report I analyze the performance of this company over the period. The report analyses the performance of all the companies that are under the footwear industrial. The performance is ranked and valued contrary to the investor’s anticipations whereby the investors periodic set performance target that is mostly yearly. From the data and statistics collected, the scoreboard shows that the company’s performance is quite significant and even going behold the investors’ expectations. Footwear Company in this case emerges to be the leading and the best performing company with 6 bonus points up to date. Some of the company’s performance as per the scoreboard over a period of time depicts that the business trend is not constant in the market and in terms of performance either. This is because many companies show positive performance this year and the following year there is negative response and vice versa. The 20th year proves it right according to majority of the company’s performance that very year comparing to the previous year. However, every investor is experiencing behold his expectation as far as the company performance is concerned. Companies B, E and F shows quite a positive performance and emerges to the only three companies to be ranked as the best performing according to the earning per share . On the same note, the same companies are the high scoring companies even behold the investors’ expectations on the EPS. Company B emerges to a greater performer with an average of 15 performance wise while the rest two rate at 2 and 3 respectively. On the other hand, company H records the lowest performance rate that is below the investors’ expectations while the rest of the companies perfume poorly but not as company H. these outcome are captured from the inventory price and the returns on shares. Therefore it will true to say that, there is an interconnection in the three based on their performance on ROE and EPS records. Companies A, B and F all have an average of A in scoring and that shows a significant performance according to the credit rating something which is way behold the investors’ expectations. Nevertheless, the rest of the companies though not scoring too high are still within the performing the investors’ expectations. On the image rating, three companies emerges to be performing behold the investors’ expectations. We have records on how the company’s production has been trending on the market which is recorded on the fourth page of the report. The production rate is therefore compared against the consumption and the dropped items. There is a behavior of maintaining and even reducing the level of the rejected production rate below 5 percent from the previous five years while on the other hand on the 20th year change of up to and even behold 5 percent is recorded on this industry of footwear. The performance analysis is done on the next page which is page 5 which is based on the profits earned. There is a constant performance at year 10 in all companies where the records are quite similar. Company B records a great dynamic change in the 14th year by scoring high scores while company H drowns hence making looses. In the subsequent years, this trend is shown where company B records still the highest score while company H remains on the losing side poorly performing. We see records on how the celebrities are boosting this industry by endorsing their products. We have records showing prolonged contracts done by the celebrities approximately for four to six years. This therefore shows that the celebrities have gained a lot of confidence with these products. Clarity of strategic position In the 14th year, increase in the plant capacity and the plant investment is recorded and this is shown on the first page. Since the 11th year, it is clearly showing that there is constant growth in the companies’ production. The company records 6000 pairs and $255000 investment and 8000 pairs and $320480 investments at the end of the 14th year. The company’s growth is recorded down the line up to the 19th year and on the 20th year there is a boom in the company’s performance generally and therefore a possibility of positive trend and production. According to the data collected and recorded on second page, the distribution statistics is not constant. For in instance, the distribution on the 16th year goes down up to 600 pairs contrary to the earlier years. There is quite a positive change on the subsequent year’s distribution being boosted to 2000 pair especially in the 21st year. There is either positive or negative direct impact on the distributions in the company’s expenses. The higher the distribution a company makes, the lesser the expenses. These expenses mostly occur on the storage fee on the warehouses whereby the longer the products stays on in the warehouses the higher the cost on the same. From the company’s income records, the income is quite constant as recorded. There is increase in the profit earning year by year this kind of trend being maintained until the 19th year recording quite good profits but there after the downfall of the performance is recorded especially on the 20th year where the outcome is as low as $43. The cash flow trend is constantly increasing as approaching the 20th year. On this note, the assets are recorded being higher that the cash flow contrary to the subsequent years like 15th year where the cash flow is recorded as $513000 whiles the assets being $448000. But as at 20th year, the trend is at pick recoding the highest profit gains. Funky footwear performance analysis and evaluation In this segment I have provided charts and the analysis of the charts will draw us to understand the trends in the performance of the company. Credit rating This is a chart showing the investors’ expectations being rated against the credit rating. It is well depicted that the rating is not constant through out the years though that does not affect the investor’s expectations since the revenue does not go below the low limit mark expected. Image rating This chart shows poor performance according to the expectations of the investors as recorded on the 10 to 13th. However, the change is experienced and great relevant performance is realized and maintained which shows that the company made a realistic and positive decisions on how to boost their performance. Global unit sales This chart shows the unit sales globally. The chart depicts rising trend in units sold globally over a period of ten years. From the 10th year the units’ keeps on increasing up to the 19th year was it records great sales more than the investor’s expectation contrary to the 20th year where a significant sales drop globally is realized. Net revenue share This chart shows the net revenue share for the industry over the ten years. The revenue shares at the beginning years are quite low but things begin looking up in the subsequent years, and hitting a bar high at the 19th year. Market shares The market share chart shows seeminglyfluctuating trend especially in the early years till the 14th year. From the 15th year the trend changes significantly and we see an increase in the shares till the 19th year. The 20th year shows depreciation. Pricing strategy: North America The charts provided will give an insight in to the marketing strategy of these companies in the ten years period This chart give information on the performance of the company shares on the three marketing strategy that is the internet, the wholesale and the private label. The chart shows the performance in North America. From the information gathered it is clear that in this region the best marketing strategy is the private labeling. It is seen that in all the years the private labeling is giving a high results. The internet segment shows a very low rating over all the year. Companies pricing and S/Q ratings The marketing strategy here shows that the internet pricing are high at the 14th year after increasing from the 10th year. But at the year 14 there sees quite a drop in the pricing in the internet segment. The other marketing strategy in this case remains significantly low with the wholesale prices having no significant difference at all. Europe and Africa Markets share In this region of Europe and Africa the company’s marketing share works well with the private label just as it was seen in North America. The trend is seemingly, is at the low end in the early years and tries to pick at the 14th year but still remains low in the subsequent years. But, point to note is that the private label has a high rating in most of the years. Prices and S/Q Rating I The marketing strategy in this case is high in the beginning years showing the internet pricing being high. But just as the others the trend takes downward moves in the years that followed the 14 year. Asia pacific This region shows quite an impressive performance in the market shares. Through the years the share value remains significantly high and the leading strategy is the private label. At the early years there is quite a similarity in all the three marketing strategies. But in the years 11 to 13 we realize that private label is not used as a marketing strategy but on its reintroduction from the 14th year shows it leading as a marketing strategy in this region. Just to note in the years that only the internet and the wholesale are used the wholesale takes the lead as a marketing strategy for the shares. Latin America The marketing strategy in this region realizes quite a very low impact on the shares. From the chart the share are significantly low but on high on the private labeling. At year 16 we see that the private label picks but the others remain significantly low The marketing strategy in this segment does not really show a significant difference from the other. As it can be deduced, the internet pricing take a high bar at the beginning but the trend just fall in the subsequent years beginning at year 14, Data management and presentation In the late years, that is from year 18 to 20 we realized that there was a significant increase in the production and the sales in the company. Worth mentioning is the footwear company. In the charts provided and the balance sheets we can see that this company has realized an increase in its profit over the period of ten years. The production has also been improving significantly and this is all seen in the record from the company Conclusion: The performance of the funky footwear company were realized after the management realized that it is not a matter of hard work of a particular individual but the combined efforts of all the stake holders. There was also a lot of fluctuation in the sale for the period of the ten years. At some point the gain achieved was below the expectation and in other cases high above the expectation. This is attributed to some factors either within the industries or other factor like the market and trend in the consumers. Through the years there was a significant fluctuation in the demand from the consumer. These led to the increase in production in the footwear company. Such increase reduces the production cost and similarly increases the capacity of production. These high production reduced the cost of production and these was depicted in the later years when these company realized high gains Read More