{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info icon This preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Image of page 2
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
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 4
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 company’s branded footwear and to its market share penetration).
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Shortly after registering, you and your co- managers should decide on a name for your athletic footwear company. Your company’s 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 company’s 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.
Image of page 6
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) Company’s Operations
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Milan – Europe-Africa
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern