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Insane Kicks Presentation

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  1. 1. MANAGERS REPORT Insane Kicks Prepared By: Michelle Walker, CEO
  2. 2. EARNINGS PER SHARE
  3. 3. RETURN ON EQUITY
  4. 4. STOCK PRICE
  5. 5. GLOBAL MARKET SHARE
  6. 6. Insane 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.
  7. 7. 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
  8. 8. INSANE KICKS STRATEGY? Differentiation We want to provide the top quality shoes with more features, styles, and models than the competition.
  9. 9. 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
  10. 10. 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
  11. 11. IMPACTYEARS11-13 InsaneKicks 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
  12. 12. ENDING STRATEGY YEARS 14-18 Maintain strategys 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
  13. 13. IMPACTYEARS14-18 InsaneKicks 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
  14. 14. IMPACTYEARS14-18 InsaneKicks 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
  15. 15. Rate each competitor as: 1 = weakest, 10 = strongest The 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 1 Quality 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 2 Product Availability 7 1 10 2 3 5 4 6 9 3 Retail Outlets 9 10 6 7 4 2 3 4 8 8 Inventory Control 4 10 9 8 7 3 2 5 6 1 Production Capacity 5 7 6 10 8 4 2 3 9 1 SUBTOTAL 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
  16. 16. 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
  17. 17. 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!
  18. 18. YEAR19&20COMPETITIVE ACTIONS InsaneKicks Increase Celebrity Appeal Reach a 10 in my Asia Pacific SQ Rating Increase Capacity Produce More Private-Label Build EA plant
  19. 19. LESSONSLEARNED InsaneKicks 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!!
  20. 20. QUESTIONS??