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Similar to Managing a Billion Dollar Shoe Company Under 40 Characters
Similar to Managing a Billion Dollar Shoe Company Under 40 Characters (20)
Managing a Billion Dollar Shoe Company Under 40 Characters
- 1. One Shoe at a time Managing a Billion Dollar Company
- 2. Ryan Aman Amy hedlunD LUCAS PETTIT MEGHAN UPSON Craman Company
- 3. Mission and Vision Statements Mission Statement: Our goal is to provide the finest footwear products on a global scale near the market average price. Our product will reach our consumers, retailers, and wholesalers in a fast and cost effective manner. Vision Statement: We will invest the majority of our resources in superior materials and enhanced shoe design to ensure our customers that our product is better than the rest.
- 5. Provide and produce shoes with quality and features above the market average
- 6. Keep the shoe price in-between the market average and the most expensive shoe
- 7. Distribute shoes to accommodate market demand
- 9. Significant Steps Yr. 11 Over priced in all segments, built in Europe Yr. 12 Still over priced, no sales, acquired huge debt Yr. 13 Stop Distributing to North America and Latin America, added capacity. Yr. 14 Social responsibility too expensive, lost money on isolation of markets, extreme warehouse costs from inventory
- 10. Steps Continued…. Yr. 15 Sold off North America plant, did not produce due to so much inventory Yr. 16 Sold more capacity, make cash, play with the numbers, reentered the global market Yr. 17 Repurchased stock, decrease shoe quality to better compete Yr. 18 Repurchased stock, decrease over all costs
- 11. SWOT Analysis Weaknesses Yr. 15-18 Celebrity Appeal Retail Price Models Offered Advertising Weaknesses Yr. 11-14 Retail Outlets Retail Support Advertising Retail Price Models Offered
- 12. SWOT Analysis Strengths Yr 15-18 S/Q Rating Wholesale price Free Shipping Delivery time Strengths Yr 11-14 Free Shipping Celebrity Appeal
- 13. SWOT Analysis Opportunities Adaptability to Change Radical Strategy- Entering Asia and Europe Africa Threats Capacity and Building Strategy Cost effective strategy entering Europe Africa and Asia
- 14. Main Competitors Example… Dynasty Shoes Very close in price (generally within $.50-$1.00) Very close S/Q rating (same or +/- 1 star) Similar spending on advertising Similar model availability Performance
- 15. Competitors Continued… Global Shoes Similar wholesale pricing ( generally +/- $1.00) Similar S/Q rating (+/- 1 star) Similar number of retail outlets Similar delivery time Similar market share Performance
- 16. What Worked Well? As of Year 17 our company turned around due to: Repurchasing stock Decreasing S/Q ratings Identified weaker demand in North America Loan Maxed out available outlets
- 17. What Did Not Work Well? Year 11- set too high of a price, for a low quality shoe -Too high rebate offer Year 13- we attempted a total market share takeover of Europe-Africa and Asia-Pacific “Tunnel Vision” Advertising and Marketing Production/Distribution
- 19. Annual Earnings Per Share
- 20. Annual Return On Equity
- 26. Produced units in North America
- 27. Offer more retailer support
Editor's Notes
- Yr. 11 We tried to hit a specialty market of high price, high quality, price point was so skewed that it didn’t work. Built in Europe in anticipation of having to deal with high demand and tarriffs.Yr. 12 Still tried to hit a specialty market, no success, huge debts from not selling shoes impeded us from reaching a high quality shoe.Yr. 13 Stopped distributing to North America, increased capacity in North America in expectation of gaining market share due to consolidating costs to two markets. Yr. 14 Trying to find any way to cut costs, make money and get out of debt. Looking like isolation theroy may not work. Attempt to hold out.
- Yr. 15 Not cost effective to not produce, made some money on North America plant but poor strategy in having to close the plant down. Attempted a profit strategy of a sort, epic fail due to fixed costs.Yr. 16 Determined that this really isn’t working, reenter into markets, gained sales, sold some capacity for cash, increase retailer support, advertising and outlets around world.Yr. 17 Repurchase to increase EPS and ROE, decrease shoe quality to fit market need, really work on finding the sweet spot for our distribution.Yr. 18 Repurchase, decrease quality, just try to stay afloat and make costs.
- In year 11 internet price was 121.99 for all countriesWholesale price was 80.00North America production plant was still running and had costs associated with it but no units were being produced there