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MANAGERS REPORT Insane Kicks Prepared By: Michelle Walker, CEO

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MANAGERS REPORTInsane Kicks

Prepared By: Michelle Walker, CEO

EARNINGS PER SHARE

RETURN ON EQUITY

STOCK PRICE

GLOBAL MARKET SHARE

MISSION STATEMENTInsane Kicks’ mission is to be the global leader in

quality, variety, and innovative styling for the athletic shoe market.

We are committed to continuously strengthening our brands and products to improve our competitive position.

We are consumer focused and therefore we continuously improve the quality, look, feel and image of our products and our organisational structures to match and exceed consumer expectations and to provide them with the highest value.

We are committed to providing our employees with a dynamic and interesting work environment that offers opportunities for improvement and growth.

We are committed to increasing value for our shareholders through smart and effective business practices while maintaining a reputation of ethical and socially responsible behavior.

INSANE KICKS STRATEGIC VISION STATEMENT

To provide top quality and innovation for the footwear market by using quality materials and extensive training to provide excellent quality for the value.

To maximize shareholder value through cash flow generation, managing costs, and above average earnings per share, return on investment, and stock price through value enhancing growth, improved products, and a focus on continuous improvement.

To capitalize on the growing internet market by gaining increased market share.

To increase wholesale segment market share through increased spending on advertising and improved target market advertising.

To better our employees through added training and learning opportunities, allowing for growth and opportunity within the company

INSANE KICKS’ STRATEGY?

DifferentiationWe want to provide the top quality shoes with more features, styles, and models than the competition.

HOW WILL WE ESTABLISH DIFFERENTIATION?

Followed a Differentiation Strategy Utilize above average marketing budgets, Six

Sigma, TQM, and Best Practices Training to increase productivity, product awareness

Increase SQ Rating, Image Rating, and number of models to separate our products from the competition.

Continue to invest in the business through upgrades, expansions, and increased construction

Higher than average price Utilize Retail Support

BEGINNING STRATEGY YEARS 11-13

Improve productivity through plant upgrades Increase SQ Rating Increase advertising budget Increase Capacity Increase number of models available Increase Retailer Support Increased % of Superior Materials Increased Six Sigma/TQM expenditures Increased Best Practices Training Pay Dividends

IMPA

CT Y

EA

RS

11-

13 Ins

ane Kicks

Built Latin America Plant in Year 12

SQ Rating 5 7

Advertising Budget $7,000 $11,000

Models Available 200 350

Retailer Support 400 600

Superior Material Usage 54% 74%

Six Sigma/TQM Expenditures $.50 $1.60

Best Practices Expenditures $1,000 $2,900

ENDING STRATEGY YEARS 14-18

Maintain strategy’s from Years 11-13 Increase Celebrity Appeal (Identified Weakness)

Increase Market Share Repurchase Stock to increase EPS, ROI, &

Stock Price Invest in expansion Reduce expenses More competitive pricing by region rather

than across the board pricing strategy Yearly inventory sales to manage inventory

costs

IMPA

CT Y

EA

RS

14-

18 Ins

ane Kicks

Expanded capacity Years 14,15,16, & 17

SQ Rating 8 9 (AP & EA) 10 (NA & LA)

Advertising Budget $12,000 $19,000

Models Available 350 350

Retailer Support 700 700

Superior Material Usage 84% 100%

Six Sigma/TQM Expenditures $1.70 $2.50

Best Practices Expenditures $4,333 $4,667

IMPA

CT Y

EA

RS

14-

18 Ins

ane Kicks

Celebrity appeal Year 14: 70 Year 15: 265 Year 16: 265 Year 17: 155 Year 18: 55

Market Share Improved Overall Repurchased Stock in years 13,

15, 16, &18 Expanded Capacity Years 14-17 Reduced Expenses

Best In Industry Expenses and/or Profit each year

Adjusted pricing according to region & competitors highest price

Inventory Ranged from 16-44 days

Rate each competitor as: 1 = weakest, 10 = strongestThe higher the number, the stronger their standing.

Numbers based on year 18

Competitive Factor A B C D E F G H I J

Cost Control 6 8 7 10 5 3 2 4 9 1Quality 8 7 9 6 4 3 5 1 10 2

Brand Image 7 8 6 9 4 2 1 5 10 3

Models 6 10 7 8 5 4 1 3 9 2Product Availability 7 1 10 2 3 5 4 6 9 3Retail Outlets 9 10 6 7 4 2 3 4 8 8Inventory Control 4 10 9 8 7 3 2 5 6 1Production Capacity 5 7 6 10 8 4 2 3 9 1SUBTOTAL 52 61 60 60 41 26 20 31 70 19

AVERAGE (Add column then divide by the number of factors)

6.5 7.6 7.5 7.5 5.1 3.3 2.5 3.9 8.8 2.4

CLOSEST COMPETITION (BASED ON YEAR 18)

More models available (NA)

More retail support Free Shipping Lower Prices

Higher revenues Year 18

Market Share-wholesale

Private Label market share

More retail support Lower Prices

AirMark Destroyer Shoes

CLOSEST COMPETITION (BASED ON YEAR 18)

Celebrity Appeal More pairs sold Higher wholesale

market share Lower Prices

Higher retailer demand

More pairs sold Higher wholesale

market share Lower Prices

Cicks Athletic Shoes Bionic!

YEA

R 1

9 &

20

C

OM

PETIT

IVE A

CTIO

NS

Insane Kicks

Increase Celebrity Appeal Reach a 10 in my Asia Pacific SQ

Rating Increase Capacity Produce More Private-Label Build EA plant

LESS

ON

S L

EA

RN

ED

Insane Kicks

Take Risks!Stay true to your strategy

Pay attention to details

Monitor profit margins closely

Establish goals each year

It takes a lot of time to do well!!

QUESTIONS??