Business Strategy Game

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(A)
ADIDAZ|
Business Strategy Game|
Year 18-21 Operations Report|
Group Members:| Nivejan Gunaratnam, President Finance|
| Tim Calaiezzi, Vice-President Marketing|
| Carl Dela Rosa, Vice-President Accounting|
| Rahul Saggar, Vice-President Finance|
| Natercia Cordeiro, Vice-President Human Resources|
Administrator:| Brian Kasta|
Date:| Monday. March.18. 2013|
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TABLE OF CONTENTS
I Executive Summary

II Finance
Situation Analysis:
Past Financial results globally
Past Financial results by region
Objectives
Strategies

III Marketing
Situation Analysis:
Global sales and market share
Sales and market share by region
Objectives
Strategies

IV Private Label Operations
Situation analysis
Objectives

V Manufacturing
(a) Plant Capacity and Production
Situation Analysis:
Global
By region
Objectives
Strategies
(b) Manufacturing Cost per pair
Situation Analysis:
Global
Plant by plant
Objectives
Strategies
(c)Labour costs and performance
Situation Analysis:
By plant
Objectives
Strategies

EXECUTIVE SUMMARY
Adidaz is a shoe company that manufactures branded and private-label footwear for sale in 4 regions worldwide. We have been in this industry for eight years from year 11 to year 18 and now year 19. In the eight year of our operations we as a company have grown in the market and declined. Year 14 was a tough year for our company which set us back on our growth potential, but in years 15 to 18 we as a company were able to implement strategies which have positively impacted our company’s overall performance. As a result of these strategies our company is back into the industry to compete with other major companies. Adidaz currently operates and manufactures it products solely at the Asia-Pacific plant. We currently hold a 5 star shoe which just above the industry average. Market share is a key component for success in the industry and in year 18 our wholesale market share 18.7% and 27.3% for the internet market share. In coming year we have remained at a 5 star shoe and lowered prices in all for region ($1-$5 decrease). As a result of these changes we believe this will give us a wholesale market share of 20.6% and 29.2% for the internet market share by the end of year 19. Year 18 was by far one of our best years of operation because we exceled in many areas of operation such as our total revenues which were $429,188 which was $12,267 above the industry average. Adidaz ranked third out of five companies in sales revenues and third overall in net profits. Adidaz stock price per share has increased to $30.58 in the year 18. This was important for us because in year 19 Adidaz issued stock in order to use the money to pay down long term bank loans. Cost of pairs sold was an area of concern for us because Adidaz was $1,209 above the industry average. Some of the reasons for a high COGS in year 18 was because we were able to sell 1,362 more shoes. As a result of this our shipping and tariff fees increased as a proportion to pairs sold. Also the cost of standard material has increased by $2.41 in year 18. This is because four out of the five companies are using standard for majority of their production. Going forward into year 19 Adidaz will continue to maintain a 5 star shoe rating and lower prices at a range of $1-$5 per region. Also Adidaz will continue to increase advertising in all four regions by an average of $50,000- $2,200,000 depending on the need for the specific regions. Also we have planned to increase retail outlet spending by $50-$100 for all the regions except the Latin American region. In year 19 Adidaz will continue to offer into the private-label market. We have offered 886 pair only in Europe/African market. All private-label production will be produced at the Asia-Pacific. But as industry demand increases in years 20 and 21 we will increase our capacity in order for Adidaz to continue to offer private-label....
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