Strategic Management, Task1

Name: Strategic Management, Task1
Brand: Academic Documents Platform
Price: 2 USD
Availability: InStock
Author: Ava Martinez

Foundational study of strategic management principles and frameworks.

Ava Martinez

Contributor

4.8

2 days ago

Preview (7 of 20)

Strategic Management, Task1
Subject: Strategic Management, Task1
A. Final Cumulative Balanced Scorecard, Income Statement, and Balance Sheet
Cumulative Balanced Scorecard based on performance Evaluation:
Cumulative Balanced scorecard of Excellent Footwear based on Industry Report:
Cumulative industry results for last four years ending in year 18
Minimum Maximum Average Excellent Footwear
Total Overall 0.00 1.68 0.24 0.00
Financial Performance 26.32 30.94 28.95 28.95
Market Performance 0.01 0.38 0.20 0.20
Marketing Effectiveness 0.16 0.72 0.55 0.16
Investment in Future 1.00 98.87 16.99 98.87
Wealth 0.01 0.33 0.18 0.07
Asset Management 0.04 4.54 1.59 0.04
Manufacturing Productivity 0.17 0.54 0.38 0.17
Financial Risk 0.48 1.00 0.84 1.00
Cumulative industry report of Excellent Footwear for year 18

Income Statement:
Particulars of Cumulative Balanced Scorecard
based on Industry Report
Investors
Expectation
Score
Best Industry
Score Overall Score
Earnings Per Share ($) 24.00 12.00 4.77
Return on Equity (%) 16.00 13.00 15.93
Stock Price ($ per share) 24.00 9.00 9.00
Credit Rating 24 20 00
Image Rating 15.00 10.00 55.00
Corporate Social Responsibility and Citizenship N/A N/A N/A
Total Overall Balanced scorecard 103 64 84
Income Statement
Consolidated Income Statement Year-18
Gross Revenues: $000s
Internet 65120
Wholesale 230903
Private-Label 0
Gross Revenues from Footwear Sales 296023
Exchange Rate Adjustment -10764
Net Revenues from Footwear Sales 285259
Operating Cost:
Cost of pairs sold 134447
Warehouse expenses 20761
Marketing Expenses 43297
Administrative Expenses 8830
Operating Profit (Loss) 77924

Balance Sheet:
Balance Sheet Balance Sheet
Year-18
Assets $000s
Cash on hand 343171
Accounts Receivable 71315
Footwear Inventories 19945
Total Current Assets 434431
Net Plant Investment 120074
Construction WIP 0
Total Fixed Assets 120074
Total Assets 554505
Liabilities $000s
Accounts Payable 11195
Overdraft Loan Payable 0
1-year Bank Loan Payable 0
Current portion of LT loan 10000
Total Current Liabilities 21195
Long Term Bank Loan Outstanding 40000
Interest Income (Expenses) 909
Other Income (Expenses) -779
Pre-Tax Profit (Loss) 78054
Income
Taxes
23416
Net Profit (Loss) 54638

Total Liabilities 61195
Shareholders’ Equity $000s
Common Stock 9400
Additional Capital 75493
Retained Earnings 408417
Total Shareholders’ Equity 493310
B. Generic Competitive Strategy of the Excellent Footwear Company
Low price and product differentiation are the two factors that drive the customers.
Based on the idea, cost leadership or product differentiation is the two basic competitive
advantages that a firm can possess (Porter's Generic Strategies, 1996).
Figure: Competitive Strategies available to the company
The Excellent Footwear Company employed a combination of both the cost leadership
strategy and product differentiation strategy. Cost Leadership plus the product
differentiation strategy helped the company to concentrate on the low cost offering but at
the same time not compromising the quality of the product. The cost leadership strategy
helps to attract the customers who search for good quality footwear with low cost. On the

other side, the product differentiation strategy helps to attract the customers who search
for distinct and fashionable footwear. The main strategic goal of the ‘Excellent Footwear
Company’ was to provide customers the best value for their money. It attempted to
ensure so much performance as possible, within the given price that the customers are
willing to pay.
Figure: Competitive Strategies pursued by the Excellent Footwear Company
Strategic plan (actions) to achieve competitive advantages & financial success
Game Plan # 1 Choosing Target Market
At first the company chose its target market to which the company will offer its
products. The company offered its footwear goods for all the men, women and children.
In one tale, the company chose the ‘cost cutter’ customer segments to design & offer its
low cost product. The ‘cost cutter’ segment included the bargain based customers who
make demand for cost-effective footwear products instead of branded and stylish
footwear products. On the other tail, the company chose the ‘Innovators’ market segment
to design & offer its low cost product. The ‘innovator’ segment included customers who
are less cost concern and make demand for branded and stylish footwear products. Both

Loading page 6...

of the target markets better align with the company’s generic strategy of offering
customers the best value for their money.
Available Market Segments
Figure: Pursued market segments of the Excellent Footwear Company
Game Plan # 2 Designing the brand for each of the target markets
The company initially served to the ‘Cost cutter’ and ‘Innovator’ market
segments. Then it began to design its brands for each target market by considering the
Price
Performance
Mercedes
Innovator
Traveler
Cost Cutter
Work Horse

Loading page 7...

6 more pages available. Scroll down to load them.

Preview Mode

100%

Study Now!

XY-Copilot AI

Unlimited Access

Secure Payment

Instant Access

24/7 Support

Document Chat

Document Details

Subject

Business Management

Strategic Management, Task1

Study Now!

Document Details

Related Documents

Ethical Considerations in Global Expansion

International Organizational Behavior

Strategic Management, Task3

Project Charter A website creation project

Organizational Assessment of Apple Inc.

BOLC 2015 Final Exam

Management Functions In Apple

Final Case Study and Strategic Plan

Implementing a Strategic Plan

Individual value & Organization value

Company

Explore

Study Tools