Bsg Plan

1. strategic vision from bsg

2. roe 10% eps 2.50 credit a+ image 70 stock 40

3. high sq rating lower models offered to reach target market ( the lower model of shoes the more differentiaition more brand awarness) consitently had one the lowest internet prices

4. in the beginning (yrs 11-17) the competitive strategy was cost leadership. So we tried to offers the lowest price in the industry. We also invested a lot towards our advertising budget to increase our demand. As the years progressed( years 17-20) we moved to the differention strategy because we were in danger of default risk and not meeting our profit margins per shoe. With this change of strategy we increased our prices and lowered our advertising budget. We also lowered the number of models offered and increased our S/Q rating.

5. We did not partake in the private label market throughout most of the game and when we did, the bid that we had placed was not won. The strategy was just to risky for us and didn’t provide enough profit margin to be beneficial towards our strategy

6. As far as our plant capacity goes we stayed with leaving all our production at the North American and our Asian Pacific plant. In the beginning of the game (years 11-17) we used all of our plant capacity including overtime so we could potentially reach our demand. Then we actually increased some capacity at the A-P plant so we could expand and reach our demand. Then once we changed our strategy because of our default risk problems, we started to sell away some of our capacity to decrease some of our plant expense and to get cash that we could reinvest back into company. As far as our compensation/training strategy goes, we really didn’t change with this measure because would have increased our expense and possibly could have lowered our scoring measures

7. Our financing strategy changed a little bit over the years but mainly