What is the average stock price gain for the footwear industry?
Stock Price The stock price for the footwear industry is to achieve gains averaging 7% annually through Year 15 and about 5% annually thereafter. Our firm believes such stock price gains are within reach if we meet or exceed the annual EPS targets and pay rising dividends to shareholders.
What are the growth targets for the footwear industry?
Grow earnings per share at least 7% annually through Year 15 and at least 5% annually thereafter —The Board of Directors believes these EPS growth targets are well within reason given that the global footwear market is expected to grow 7-9% annually through Year 15 and 5-7% annually in Years 16-20.
What is the projected growth in buyer demand for branded footwear?
The projected growth in buyer demand for branded athletic footwear is 9-11% annually in Latin America and Asia-Pacific during Years 11-15 and 7-9% annually in these two regions during Years 16-20. The factors that affect worker productivity include
What determines a company's price competitiveness in selling branded footwear?
A company's price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by How favorably its wholesale price compares with the average wholesale price of all companies competing in the region The interest rate a company pays on loans outstanding depends on Its credit rating
What are the four strategies you could use during BSG competition?
Any and all competitive strategy options—low-cost leadership, differentiation, best-cost provider, focused low-cost, and focused differentiation—are viable choices for pursuing better company performance and competitive advantage in the branded footwear segment.
How does BSG increase market share?
To increase market share, we use strong advertising, high model number, higher S/Q to get as much demands as possible, we also support strong retailers to get more every years. We continued apply strong advertising, often 200% of Ind.
Which are the five measures on which a company's performance is scored in the BSG?
To get a score of 100, a company has to be the highest performing company—termed the best-in-industry performer—on all five performance measures during the year, meet or beat the EPS, ROE, stock price, and image rating targets, and have an A+ credit rating.
What are the three or four key elements of your company's strategy BSG?
The four most widely accepted key components of corporate strategy are visioning, objective setting, resource allocation, and prioritization.
What affects EPS in BSG?
A second means of boosting EPS is to repurchase shares of stock, which has the effect of reducing the number of shares in the possession of shareholders—net income divided by a smaller number of shares yields a bigger EPS.
How do you succeed in BSG?
3:024:17Business Strategy Game BSG 2020 | Best Way to Win as a GroupYouTubeStart of suggested clipEnd of suggested clipAnd you have a group before. For example not everyone will be able to have. One. Also you're relyingMoreAnd you have a group before. For example not everyone will be able to have. One. Also you're relying on your teammates to make really strong decisions. To get a good grade.
Which of the following are the three factors used to determine a company's credit rating?
Credit Rating—Company credit ratings are a function of three factors: (1) the debt-equity percentage; (2) the interest coverage ratio (defined as annual operating profit divided by annual interest expense); and (3) the current ratio (defined as current assets divided by current liabilities).
Which of the following are factors in determining a company's credit rating?
Which of the following are factors in determining a company's credit rating? its default risk ratio, debt-asset ratio, and interest coverage ratio.
How can I increase my net profit in BSG?
Answer: To increase your company's net income you should focus on improving your bottom line as well as your top line, try to trim labor, materials, warehouse, and delivery expenses.
What are the factors that big businesses should build into their decision making when they formulate their strategic plans?
6 Key Factors to Successful Strategic PlanningCreate a Collaborative and Inclusive Process. ... Operate Off Data, Not Assumptions. ... Set an Expectation for Shared Responsibility and Ownership. ... Prioritize Transparent Communication. ... Think Past The Strategic Plan. ... Commit To Making Changes — Especially Leadership.
What are the factors to consider in strategic planning to cope in the future?
So there you have it: Five steps to a more secure future. Just remember as you get ready to plan for your next — or very first — plan, that truly effective strategic planning requires equal measures of leadership, commitment, patience, trust, and the participation of many stakeholders.
What are strategic factors?
Strategic factors are those key issues that are strategically relevant and that will determine the success of any company in a particular industry and at a given stage in its life cycle. The economics, technology, and socio-political setting of the industry determine what they are.
What are the factors that determine the bargaining power of a supplier?
There are five major factors when determining the bargaining power of suppliers: Number of suppliers relative to buyers. Dependence of a supplier’s sale on a particular buyer. Switching cost (switching costs of suppliers) Availability of suppliers for immediate purchase. Possibility of forward integration by suppliers.
What is the bargaining power of suppliers?
What is Bargaining Power of Suppliers? The Bargaining Power of Suppliers, one of the forces in Porter’s Five Forces Industry Analysis Framework, is the mirror image of the bargaining power of buyers and refers to the pressure that suppliers can put on companies by raising their prices, lowering their quality, or reducing the availability ...
What is the difference between low supplier power and high supplier power?
When doing an analysis of supplier power in an industry, low supplier power creates a more attractive industry and increases profit potential, as buyers are not constrained by suppliers. High supplier power creates a less attractive industry and decreases profit potential, as buyers rely more heavily on suppliers.
What are the different types of suppliers?
A list of types includes: Manufacturers and Vendors: Sell products to distributors, wholesalers, and retailers. Distributors and Wholesalers: Purchase goods in medium/high quantity for sale to retailers or local distributors.
What is bargaining power?
The bargaining power of suppliers is one of the forces that shape the competitive landscape of an industry and help determine the attractiveness of an industry. The other forces include competitive rivalry, bargaining power of buyers, ...
What is the rule of BSG?
The rule of the game is to compete with the other students’ teams to stay ahead to gain a competitive advantage over other teams. Acquiring success is the primary objective in business, and it requires working on all the vital factors to achieve it. However, in the BSG game, the main aims are to increase image rating and staying ahead in ...
What are the main aims of BSG?
However, in the BSG game, the main aims are to increase image rating and staying ahead in the competition, maintaining the growth of the earnings, return on average equity investment, among other things. These are the factors that need working to increase image rating in the BSG game.
What is a BSG game?
Well, this is possible through the Business Strategy Game (BSG). The Business Strategy Game (BSG) is online games in which students form teams that are assigned tasks and compete in running the business of an athlete footwear company. The rule of the game is to compete with the other students’ teams to stay ahead to gain a competitive advantage ...
What to do if you have a surplus of shoes?
If you get a high surplus of shoes, be sure to lower the percentage of shoes the following year . Branded Distribution. When it comes to the distribution of branded shoes, make sure you have typed or labelled the number of boxes you want to distribute to each region.
Why are low percentages for the cost of pairs sold generally preferable to higher percentages?
Low percentages for the cost of pairs sold are generally preferable to higher percentages because they signal that a bigger percentage of the revenue received from footwear sales is available to cover delivery, marketing, administrative, and interest costs, with any remainder representing pre-tax profit.
What does higher EPS mean?
Higher EPS values indicate the company is earning more net income per share of stock outstanding. Because EPS is one of the five performance measures on which your company is graded (see p. 2 of the FIR) and because your company has a higher EPS target each year, you should monitor EPS regularly and take actions to boost EPS.
What is the payout ratio for dividends?
Generally speaking, a company’s dividend payout ratio should be less than 75% of net profits (or EPS), unless the company has paid off most of its loans outstanding and has a comfortable amount of cash on hand to fund growth and contingencies.
How to boost EPS?
One way to boost EPS is to pursue actions that will raise net income (the numerator in the formula for calculating EPS). A second means of boosting EPS is to repurchase shares of stock, which has the effect of reducing the number of shares in the possession of shareholders—net income divided by a smaller number of shares yields a bigger EPS.
How much does a dividend increase affect?
A rising dividend has a positive impact on your company’s stock price (especially if the dividend is increased regularly, rather than sporadically), but the increases need to be at least $0.05 per share to have much impact on the stock price.
Is it better to keep fewer pairs in inventory?
Fewer days of inventory are usually better up to a point (but keeping too few pairs in inventory impairs the delivery times to footwear retailers and runs the risk of not having enough pairs in inventory to fill retailer orders should sales prove to be higher than expected).
Is total shareholder equity larger than total shareholder equity?
Total shareholder equity at the end of the year turns out to be larger than total shareholder equity at the beginning of the year whenever the company’s dividend payments are less than its net profits (such that some earnings are retained in the business—all retained earnings add to the amount of shareholders’ equity).
How does a stock repurchase help?
Answer: Significant stock repurchase will help to push up your stock price. Spending on employee ethics training, and green initiatives will improve your corporate image. In a dead heat race - all other things equal having the best Corporate image will give you the will with socially conscious investors.
What are the key considerations for teams?
Whether to customize the firm’s offerings in each country market to match local buyer's taste or offer standardized products worldwide. 2. Whether to employ the same competitive strategy in all countries or to modify the strategy country by country. 3.
What is the greatest effect on a company's credit score?
The amount of loans the company carries has the greatest effect on the company’s Credit Rating. However, once an A+ Credit Rating is achieved it doesn’t get any better than that, therefore, instead of paying down loans consider stock repurchase or some other investment.
How to become successful at simulation?
To become successful at the simulation the first order of business is to integrate with team members learn of the different ways that members complement each other. Teams become better assets than individuals when members are able to fit into the grooves of each other like the gears on a well-oiled machine. This will create synergy. The game requires a level of precision which can only be achieved if the team is pushing the same strategy, therefore, it is very important to select a strategy that is compatible with the various points of views of members. Diverse opinions should be encouraged especially if they are grounded in research. Follow the instinct that says there is a better option, always investigate this thought and never be afraid to challenge the soundness of a decision. For example, one team member offered the opinion that giving employees an increase in base wages would lower the total cost of compensation as well as the total cost of production. This notion was met with resistance but after toggling the percentage increase back and forth it became apparent that our team member who didn’t allow herself to be drowned out was well informed.
What is the best cost strategy?
The best-cost strategy means offering customers a product with the highest attributes of quality and style at a lower price thus allowing them to gain the best value for their money.
Is warehouse cost fixed?
Answer: Warehouse cost is a fixed cost. I believe what your're looking at lowering is the cost of having excess inventory on hand, and because some inventory is necessary in order to fill orders quickly... correctly forcasting sales is the only way to right size the inventory on hand.
In Year 11, footwear companies can expect to sell
an average of 3.8 million branded pairs and an average of 2.3 million private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
A footwear-maker's price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
how favorably its wholesale price compares with the wholesale price of the company having the highest S/Q rating in any of the four geographic regions.
The company's shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
tariffs of $3 per pair, shipping fees of $2.00 per pair, and exchange rate shifts of as high as 10%.
Which of the following is not an accurate characteristic of your company's plant operations?
The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
Which of the following is not an accurate characteristic of your company's plant operations?
The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
The factors that affect worker productivity include
the size of a plants work force, whether workers are making branded or private-label shoes, whether a plant has been upgraded and modernized within the past three years, and the complexity of the new features and styling that has been designed into the models/styles of footwear being produced.
Which of the following are factors in determining a company's credit rating?
Its times-interest-earned ratio, debt-equity ratio, and return on capital investment
Where are Nike shoes made?
The company currently has production facilities to make athletic footwear in. Latin America and Asia-Pacific. North America and Europe-Africa. North America and Latin America. North America and Asia-Pacific. Middle East, India, and China.
What factors affect productivity?
The factors that affect worker productivity include. the size of a plant's work force, whether workers are making branded or private-label shoes, whether a plant has been upgraded and modernized within the past three years, and the complexity of the new features and styling that has been designed into the models/styles of footwear being produced.
Corporate Citizenship
- This decision page is mainly a waste of money and we will not spend a lot of time with this page. As already mentioned earlier, not every decision has to make sense. You might think that using green footwear materials or using recycled boxing / packaging is a good decision, especially with the currently ongoing environmental debates. It is not. Mos...
Sales Forecast
- This is probably the most important decision entry page in the game and you will be spending most of your time here. On this page, you will optimize your entries and toggle each value until your reach the maximum profit possible for each entry. Do not worry about your market share percentage or any other value than your net profit. Market share is not crucial for your success i…
Branded Production
- Do not worry about the Plant Capacity / Upgrades page. I did not forget it, but we will take a look at it later. On this page, you will set your values for your branded production. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. Again, maximizing net profit is all you care about with our strategy determined at th…
Branded Distribution
- Here, you will plug in your previously calculated regional total sales volume for each region. Important: Your Sales volume, not the production volume that includes the rejected pairs! As already mentioned, it is important that you ship all your shoes for the North American warehouses and the Latin American warehouses from the North American plant. Ship all the other shoes for t…
Private-Label Operations
- Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. You can ignore the Internet Marketing andWholesale Marketing pages because they will just reflect your internet and wholesale decisions that you already plugged in on the previous pages. I will talk about the Celebrity Endorsements page later. The private-label sec…
Plant Capacity / Upgrades
- This decision page deals with your plants. You can decide to sell or purchase available capacity, upgrade your plants, build new plants in other regions, or add capacity to already existing plants.
Celebrity Endorsements
- On this decision page, you can bid on celebrities. Celebrities will enhance your marketing efforts and help you sell more shoes. When contracting a celebrity, your advertising efforts in the Sales Forecastsection should not be low. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. The higher your celebrity endorsement val…
Finance & Cash Flow
- Almost done, the last decision page. On this screen, you can handle your financial decisions for your company.