#2) The group described their firm's resources and abilities in developing competitive advantage. * We built a 2 million shoe factory in LA with the intent of using extra capacity in the private label market. * We went with a high sq rating (8), short delivery (1 week), * To reduce reject rates we upgraded all three plants with option A - reducing reject rates by 50% * In NA and LA we upgraded option D to improve worker productivity * In AP we used option C to improve Sq rating to get us to an SQ rating of 10- An attempt to get to a higher SQ rating that K to steal some of their market share. #3) The group applied appropriate tools and techniques to analyze their financial and strategic outcomes in the game. * To pay for the LA plant we took out a 10 year loan. When our credit rating improved, we took out a 5 year loan with a better interest rate to pay off the 10 year loan. * We paid off our original higher interest rate loan in year 11. * We aggressively pursued a stock repurchase program.
* When the private label became too competitive and profits were not obtainable. We looked to lose capacity. 4) The group's recommendations for improving their strategic position were well founded. * We tried several different ways to improve our strategic position. This included selling off both the NA and LA plants in different years, increasing the SQ rating in AP to a 10 (no other team had this SQ rating)- we should have done this sooner. * We purchased capacity in AP (at the 10 SQ rating) to offset the loss on LA plant. * In endgame - we repurchased capacity in LA to utilize the private label market. * We tried to differentiate ourselves from group K as much as possible. #5) Overall, the group was well prepared and the presentation appeared seamless and covered all of the important issues. * This part is on you guys-- I can only tap dance so much. See if you can get me the power point early enough to practice with
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