BSG_main_tips

BSG_main_tips - The industry setting is modeled to closely...

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Unformatted text preview: The industry setting is modeled to closely approximate the real-world character of the globally competitive athletic footwear industry. Cause-effect relationships and revenue-cost- profit relationships are based on sound business and economic principles. Company operations are made as realistic as possible and the functioning of the marketplace in BSG closely mirrors the competitive functioning of the real-world athletic footwear market. The company had: Year 10 revenues of $238 million, net profits of $25 million (equal to $2.50 per share), an ROE of ~17%, a solid B+ credit rating. The marketplace is worldwide production and sales activities can be pursued in North America, Latin America, Europe-Africa, and Asia Pacific There are 12 market segments 4 geographic segments each for branded footwear sales to retailers, for online footwear sales direct to consumers, and for private-label sales Price Number of models/styles Styling/quality (S/Q) rating Advertising Size of retailer network Celebrity endorsements Delivery time Retailer support Mail-in rebates Shipping charges (Internet sales only) Competitive Variables That Determine Company Competitive Variables That Determine Company Sales and Market Shares Sales and Market Shares Board members and shareholders/investors have set five performance objectives for the company: 1. Grow earnings per share at least 7% annually through Year 15 and at least 5% annually thereafter. 2. Maintain a return on equity investment (ROE) of 15% or more annually . 3. Maintain a B+ or higher credit rating. 4. Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter . 5. Achieve an image rating of 70 or higher (the image rating is tied to the styling/quality of a companys branded footwear and to its market share penetration). Shortly after registering, you and your co- managers should decide on a name for your athletic footwear company. Your companys name must begin with the letter of the alphabet that you have been assigned. Names can be up to 20 characters. To name the company, click on the link at the top of the Corporate Lobby, and enter your companys full name in the space provided. All company names are public and appear in the Footwear Industry Report; thus you should select a name that you are proud of and that reflects the image you want to project to your customers, shareholders, and other company stakeholders. 2 plants North America and Asia Current annual capacity 7,200,000 pairs Sales volume in Year 10 5.2 million pairs (4.5 million branded pairs and 740,000 pairs of private label) Companys Operations Milan Europe-Africa Bangkok - Asia Rio de Janeiro Latin America Memphis North America Orders can be delivered in 1-4 weeks (you can determine) from the time the order is placed....
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This note was uploaded on 01/20/2012 for the course SM 402 taught by Professor Staff during the Fall '11 term at Ball State.

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BSG_main_tips - The industry setting is modeled to closely...

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