Business Strategy Game Report - Essay Example

………………………………………………………………………….xxxxxx …………………………………………………………………….xxxxxx …………………………………………………………………………xxxxx ………………………………………………………………………..xxxxx @2013 Business strategy Game Report 1. Introduction This report will closely study and analyze the footwear company over the last 10 years. Specific years in the course of the 10 year period will be analyzed by showing the market trends. This report will also analyze critically the marketing strategy scoreboard and how they have influenced the performance of the footwear industry. Management’s decision is very crucial to the development of strategies and in the achievement of the company. Working as a team of co-managers in charge of the company operations is essential for successful implementation of a decision made and their integration in achievement of overall strategic plan. This report will also critically look on the decisions made and how their impacts on the general performance of the company. Charts will be employed in the analysis to show the performance of the company in different regions in which it operates in which include Asia, North Atlantic, Africa and Latin America. 2. Industry and company report The company strategy was cost focus. At the beginning, we started to increased price because demand was high and supply was low, and from year 14 we started to reduce the price, so we have started selling our shoes at a high price in four different regions and every year we made profit, we increased our plan capacity. We started at 11 year with total 6000 plan capacity, and at the end of year 20 we have nearly 20000 planning capacity. Now we can produce shoes at a lower price. Earning per share was high for company B, E and F, and they are characterised by high score which is above the expectation of the investors in terms of EPS. Company B had high performance which was above 15 while the other two company’s performance was between 2 and 3. The other companies are performing below the expectations with company H being the lowest. Company A, B and F has an average performance in terms of credit rating which is above the investor’s expectation. The other companies are not performing well though they are still within the expectation of the investors. The performance of the companies in terms of net profit will also be discussed. All companies had similar performance in the beginning of the period, but year 14 is characterised by a significant change with company B as it scored a high net profit while company H scored lower. Company B has recorded the highest net profit level while company F had recorded substantive losses. The decisions made by company H resulted into its poor performance. The level at which celebrities are endorsing the company products will also be analyzed. The records clearly show that many celebrities had lengthy contracts with companies which ranged from 4 to 6 years. This is a clear indication that the celebrities had full confidence on the company products. 3. Clarity of strategic position The performance of the company’s shows an increase in plant investments and plant capacity from the 14th year. It is clear that the production of the company increase from year 11 where the company recorded 6000 pairs and $255,000 of investment. By the end of year 14, the company recorded 800 pairs with an investment of $320,480. Years later in year 18, there is an upward trend which is a clear indication of high improvement. Year 20 is characterised by an excellent performance which makes it possible for an upward trend in production and investment. From the collected data, it is evident that the distribution fluctuated over the period, and there was no constancy. In the beginning, distribution seems to be very high though it drops at year 16 where 600 pairs were distributed. The subsequent years are characterized by a positive change in distribution which led to an increase in distribution with a projection of 2000 pairs in year 21. There is a direct impact of the distribution and expenses of the company. If the company distributes less, it records high expenses since this increase the warehouse cost and more so because the products have to remain in the warehouse for a long period. There is a constant balance in income from the records of the company. In year 11 for instance, the company recorded a net profit of $53,000 and recorded a profit of $57,000 three years later in year 14. This trend was maintained till the 19th year with the company recording a high net profit of $111, 000. However, in year 20, net profit decreased rapidly to $43. Cash flow records for the company show a continued upward trend all over the 10 years. At the 10th year, the cash flow for the company was as low as $233,000 with the company assets being of higher value than its cash flow. The cash flow keeps on increasing during the subsequent years and the assets continued getting higher over the period. During year 15, the cash flow was at $513,000 with the assets being $448,000. This trend continues upward till year 20 where the cash flow is seen to go beyond $6,000,000. 4. Funky footwear analysis and evaluation Image rating The companies scored low in between year 10 and 13 which was lower than the expectations of the investors. Image rating then went up after at the 14th year and maintained the trend for the remaining years. Credit rating The chart above show the expectations of the investors which has been rated against credit rating. The chart also show fluctuations over the 10 year period, and it are evident that revenue does not do not drop beyond the expectations of the investors. Global unit sales There was an upward trend in the number of units sold across the globe within the 10 year period. The units sold increased from year 10 to year 19 which were higher than the expectations of the investors. Year 20 is characterized by a reduction of the global sales. Net revenue share The net revenue share was low at the early years but increased in the subsequent years with the highest level being recorded in year 19. Market shares The market shared flcuatuated through out the 10 year period from year 10 to year 14. This trend chnages significantly from year 15 till year 19 and then deterioarates sudeenly in year 20. 5. Pricing strategy North America The chart below elaborates on the marketing strategy of the companies for the 10 year period: The chart shows the performance of the shares of the company on the market which are the private label, wholesale and the internet. The performance is for North America and from the chart it is evident that private labelling is the best marketing strategy for the companies. Private labelling has high results for all the 10 years with the internet segment having the lowest rating through out the years. The pricing and S/Q ratings of the companies From the chart above, internet pricing as a marketing strategy has the highest rate during the 13th year after it had increased from the 10th year. There is a high drop in priding from the 14th year in the internet segment. The other two marketing strategies have remained very low over the years with the wholesale prices shows no change at all. Africa and Europe Market Share Market share in Africa and Europe seems to work well in the private label. There is a low trend during the early years but the trend changes from the 14th year though it kept on fluctuating in the subsequent years. However, private label has the highest rating in most years. Prices and S/Q Rating Internet pricing had the highest rating in the early years and started to decrease from the 14th year. Asia Pacific The marketing strategy seems to have very low impact on the shares. Private labelling has a high rating in this region, and it picks up well in the 16th year while the other strategies remain low. The chart above does indicate any signifcant differences the other chart. It is evident that internet pricing was high in the earlier years but started deteriorating from year 14. 6. Conclusion Funky footwear company performances were realized after the management had realized that it required the combined efforts of all stakeholders. There has been a high fluctuation in sales during the 10 year period. In some periods, the gains achieved were lower than the expectations while other periods recorded high gains than the expectations. All this are attributable to factors within industries and other factors like consumer trends and market. Demand from the customer fluctuated during the 10 year period which led to fluctuations in sales. Our company strategy was cost focus. At the beginning we started to increased price because demand was high and supply was low, and from year 14 we started to reduce the price, so we have started selling our shoes at high price in four different regions and every year we made profit, we increased our plan capacity. We started at 11 year with total 6000 plan capacity and at the end of year 20 we have nearly 20000 planning capacity. Now we can produce shoes at lower price. References Doole, Isobel & Lowe, Robin, 2008, International Marketing Strategy: Analysis, Development and Implementation. Cengage Learning EMEA. Read More