The company currently sells shoes in North America, Latin America, Asia Pacific & Europe Africa.
The market currently allows each company to sell an average of 4.84 million branded shoes and 800k private label shoes.
Branded shoes will grow 5-7% in the first five years for North America and Europe then fall to 3-5% the next five years. In Asia Pacific & Latin America, branded shoes will grow 9-11% in the first five years and 7-9% the last five years.
Private label is expected to grow 10% universally in the first five years and 8.5% during the next four years vary up to 2% due to competition levels.
Your company can produce 6 million pairs of shoes during normal time and an additional 1.2 million if overtime is used.
Shoes shipped from factories to distribution centers are subject to tariffs (according to region) and any exchange rate effects.
Your factory’s workers are compensated through a base pay and incentive pay (not including defects) and overtime pay if applicable.
Upgrade A reduces defective pairs by 50%.
Upgrade B cuts production run setup costs by 50%.
Upgrade C increases SQ rating one star.
Upgrade D increases worker productivity 25%.
Business Strategy Game Quiz 1 Game Mechanics:
Your company’s score is based on:
EPS (Earnings Per Share.)
ROE (Return on Equity.)
Exchange rates are tied to real world rates based on:
The U.S. Dollar.
The Brazilian Real.
The Singapore Dollar.
Your interest rate is determined by our credit rating. Your credit rating is determined by:
Your default risk ratio.
Your debt-asset ratio.
Your interest coverage ratio.
Factors that effect SQ Rating:
Percentage of superior materials
TQM & Best Practices.
Styling and Features.
Plant upgrade C.
Factors effecting reject rates include:
Plant Upgrade A.
Your incentive pay.
Best Practices training.