Essay on Strategic Management

2208 Words Apr 16th, 2015 9 Pages
BUSA 4185: The Business Strategy Simulation

Case Questions

Download and print out the case on the website (click on “BSG Player’s Guide” button). It is VERY important that you read and study this guide before you begin to make your decisions on the game simulation program!! Spend some time on it and your company will be better equipped to perform than others. Be sure to save it for future reference – you might need to refer back to it as you are entering your company decisions.

(1) Where are your company’s plants located? What is the capacity level at each plant?

North America – 2,000,000 pairs
Asia – 4,000,000 pairs

Both plants can be operated at overtime to boost annual capacity by 20%, giving the
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(9) What % of total sales does the internet channel represent?

The current % of sales is 5% with an expected to 15% of total branded sales by year 20.

(10) What are the typical retail markups for athletic footwear? Then, calculate what would be the typical retail price range for a pair of shoes wholesaling for $50?

Retail markups range from 40% at discount chains to as high as 100% at premium retailers. A pair of shoes wholesaling for $50 usually retails for between $70 and $100.

(11) What are the factors that most influence consumers’ choice of which brand to purchase in the athletic footwear industry? (Note: these are the industry’s “key success factors”!)

Price, styling/features/quality (S/Q ratings), and a wide choice of appropriate stules and models typically have the most influence on a buyer’s choice of which brand to purchase.

(12) Discuss the different competitive factors that drive market share and how (to what extent) they each affect market share.

1. Wholesale selling price for branded footwear. 2. S/Q ratings. 3. Product line breadth, as measured by the number of models/styles comprising each company’s branded offering. 4. Advertising expenditures. 5. Mail-in rebates. 6. Appeal of Celebrities endorsing the Company’s brand. 7. The number of weeks it takes to deliver orders to

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