Performance Highlights - Clasay Shoes Analysis

1. Performance Highlights – Executive Summary

[pic 1]Figure 1

        As shown on Figure 1 above, year 14 and 15 reflected the best performance of CLASAY Shoes. In year 14, our company were able to achieve a net revenue of $347,111 million, earnings per share (EPS) of $7.42, return on equity (ROE) of 29.4%, and our stock price is at $155.95 per share. Furthermore, CLASAY Shoes managed to be in the Global Top 100 list for our performance on ROE in this year. In Year 15, we managed to keep the momentum going, witnessing a net revenue of $364,025 million, EPS of $8.17, ROE of 28.8% and a stock price of $135 per share. Additionally, the credit rating of our company in Year 14 and 15 improved to A+ and the image rating were 65 and 63 respectively. It can be concluded that based on the figure above, we managed to make a good progress from year 12 to Year 15 in transforming CLASAY Shoes overall growth, positively.

        Nevertheless, the lowest point of our company’s performance was Year 17. As we can see on the table above, our EPS, ROE and stock price saw a major drop, falling to $1.87, 5.5% and $39.01 per share respectively. Moreover, our net revenue also fell to $315,383 million. Due to the unfortunate downturn of performance, the credit rating of our company dropped drastically to B+ while image rating decline to 58.

Main Strategies & Theoretical Support

From the execution period towards the conclusion of the Business Strategy Game (BSG), our company CLASAY Shoes have implemented and executed various strategies in order to respond to changes in the market, as well as to keep in line with our company’s vision and mission statements. Our main focus while carrying out our strategies was to outperform our competitors by establishing a competitive and renowned brand. Our main strategies were based from an external environmental analysis through PESTLE and a competitive industry analysis using Porter’s Five Forces Analysis with respect towards utilizing theoretical framework of "The Five Generic Competitive Strategies”. Throughout the BSG, we adopted a Broad Differentiation strategy, a Best – Cost Provider strategy, as well as a Low – Cost Provider strategy. This section of the report will firstly highlight the in-depth analysis on how the external and internal environments of the industry affected our decision making process throughout the entire game followed by the 3 strategies implemented.

1. Main Strategies

External Analysis – PESTLE

1. Political

With the opportunity to conduct plant operations in two separate regions and conducting sales activities among a total of 4 regions, there are different government policies related to the existing regions in the game; North America (NA), Asia Pacific (AP), Europe – Africa (EA), and Latin America (LA). One of the examples related to this matter would be the different exchange rates and tariffs mechanisms present in the game whereby such as the case with a real-life global business, severe consideration must be placed on the currency exchange rate between home-country and host-country of operations. Additionally, the import and export duties from regions that had our operating plants established on were also a defining factor in the game. We could not continue our operations in LA as the tax and currency rate were not in our favour relative to the disadvantageous financial position that we were in during Y17.