Executive Summary Year 17
Vision
Our vision is to globally manufacture and distribute low priced shoes with an emphasis on quality.
Mission Statement
Our mission is to produce quality athletic footwear, using environmentally friendly materials and recycled packaging that create value for our retailers and consumers.
Business Level Strategy
Footloose business level strategy is to compete through a differentiated model. The differentiation strategy will be employed in North America, Europe-Africa, Asia-Pacific, and Latin America. Also, offering a lower priced shoes and good quality.
Strategic Objectives
Provide a wide variety of product models for our consumers to choose from.
Worldwide distribution through retailers and Internet.
Financial Objectives
Grow EPS 9% annually through year 15 and 6% annually thereafter
Maintain a return on average equity investment (ROE) of 17%
Maintain a B+ credit rating
Achieve stock price gains 8% annually through year 15 and 6% annually thereafter
Achieve an “image rating” of 70 or higher.
Decisions Entries:
Corporate Citizenship
Footloose decided to contribute to charities with $2000k, for a better image of the company.
Sales Forecast
Plant Capacity
Plant Capacity Decisions Year 17
Capacity Sales/Upgrades/Addition
N.A Plant
E-A Plant
A-P Plant
L.A Plant
Regular
Overtime
Regular
Overtime
Regular
Overtime
Regular
Overtime
Production Capacity at the End of Year 17 (000s of pairs)
Capacity Additions (ordered and paid for in Y17, available for Y17)
Capacity Purchases:
Current Production Capacity (000s of pairs)
Sales of Existing Capacity (000s of pairs of regular-time capacity)
Selling Price / Cash Received in Y17 (100% of net book value)
Capacity Available for Y17 Production (000s regular+overtime)