...This paper will benchmark Payless Shoe Source Incorporated and Kmart as well as explain the purpose of cash budgeting. Cash budgeting is the “primary tool of short run financial planning” (Jaffe, J., Ross, S., Westerfield, R., 2005). Payless Shoe Source Incorporated is a large family footwear retailer in the United States. The store is located in Topeka, Kansas and the store strategy was selling low cost high quality family footwear. Payless Shoe Source Company has retained 2.5 billion in sales and has sold approximately 210 million pairs of shoes as well as served over 150 million customers. Payless Shoe Source Incorporated has “ purchased inventory, property, and trademarks, as well as assumed leases of 186 stores from J. Baker, Inc and the purchase price was equal to approximately 28 million in cash, which it funded for the operating cash flows” (Sec.gov). Each of the Payless Shoes Source stores carries 9000 pairs of fashionable shoes for men, women and children with over 600 styles including canvas, leather, sandals, dress, and boots, and the store operates within a variety of shopping malls, freestanding buildings, and strip malls. The styling of the shoes is updated regularly to keep up with fashion trends, and the shoes are sold within the companies stores at average retail prices of $11.35 a pair. The company has a significant market that focuses on its target customers, which are women within the average age range of 18-64. Payless Shoe Source Company believes that 48...
Words: 817 - Pages: 4
...used to pay the money but had no work for the employees (David Gritten, 2005). In the year 1998 the work force was almost halved and Steve felt heavy responsibility for the remaining 30 people and so he has taken his drastic steps towards his family business. The desperate and reluctant owner inspired by an outrageous drag queen to change his product to fetish footwear for transvestites. The present paper mainly discuss about the analysis made on which strategy will yield better profits for the kinky boots company. Literature review: Organizational issues: For a new emerging organization which is of exposed firm, fluid units retrain comparatively employees and few managers as well as non-central functions contracted exterior to the organization. Such a rising organizations will be definitely focus on improving their significant competencies as well as designing techniques and innovative process which are considered as a part of the organization with the exception from its competition. Further the growth in the manufacturing industry has been motivated by improvement in technology and degree of difference in wage scales. These areas have made the organizations like kinky boots consider them as an element of the incorporated global economy....
Words: 4273 - Pages: 18
...INTRODUCTION 3 Vision and Mission 3 Objectives 3 II. STRATEGIES 3 Market Development 3 Product Development 4 First-Mover and Outsourcing 4 III. EXTERNAL OPPORTUNITIES AND THREATS 4 Competitive Profile Matrix 4 External Factor Evaluation Matrix 5 IV. INTERNAL STRENGTHS AND WEAKNESSES 6 Internal Factor Evaluation Matrix 6 V. STRATEGY MATRIXES 8 Internal-External (IE) Matrix 8 Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix 8 Space Matrix 11 Quantitative Strategic Planning Matrix 13 Alternative Strategies Advantages and Disadvantages 16 VI. RECOMMENDATION 18 Costs of Implementing Alternative Strategies 19 VII. IMPLEMENTATION 21 Forecasted Ratios and Projected Financials Accounts 22 Specific Annual Objectives and Policies 22 VIII. RECOMMENDED PROCEDURES FOR STRATEGY REVIEW AND EVALUATION 24 IX. APPENDIX 25 X. Sources 26 * INTRODUCTION HABI Footwear, a social enterprise established in 2011, produces espadrilles and other styles of shoes from recycled materials. It utilizes rags as shoe components, which are either bought by the community from garment factories or bought by the company for the community. These are weaved by the community and are then brought to shoe manufacturers in Marikina to produce fashionable shoes and espadrilles. Currently, HABI experiences excess (new and old) inventory of woven rags, insufficient stocks, and inefficiency maintaining its shoe inventory. This case analysis will try to address...
Words: 5699 - Pages: 23
...costomers with high comfort through technological innovation. They focus heavily on research and development in order to produce cutting edge technology that will differentiate their brand within the footwear market. The footwear industry is a mature market with many international competitors. In Europe, the footwear is dominated by many small & medium enterprises, which gives firms more flexibility to cater to specific consumer needs. The basic drivers for consumers buying decisions include demography, disposable income, basic needs, style and new materials. Fashion trends have a major influence on the footwear industry as well as new technology. The industry is very labor intensive and most companies follow a delocalization manufacturing strategy to capture lower labor costs. The primary market segments include Sport/Athletic, Work and Brown. Geox competes mostly in the Brown market but acts as a competitor in the Athletic market because of their focus on technology. Competition is harsher in the Sport/Athletic market as it is the largest market in the footwear industry. Geox should continue to exploit new market opportunities embedded in technological innovation and should focus on allocating their resources to maximize returns. They should continue to search for ways for knowledge spill-over as it has lead to positive effects and complementary activities. Geox needs to effectively communicate its brand and innovation by creating uncontested market space and a niche within...
Words: 2185 - Pages: 9
...Unisa Graduate School of Business Leadership MBL 1- 2010 MODULE STRATEGIC MANAGEMENT MODULE CODE MBL 915 P ASSIGNMENT NUMBER TWO STUDENT NUMBER 43095984 STUDENT NAME MELAKU KEBEDE NADIE JULY, 2010 NAZARETH Table of Content Executive Summary ………………………… 1. Introduction ………………………………………………………………… 2. Situation Analysis 2.1. Macro Environment Analysis 2.2. South African Sports footwear /casual Industry Competitive Analysis ………… 2.2.1. Industry Analysis 2.2.1.1 Market Size 2.2.1.2. Market Growth 2.2.2. Industry Competitive Analysis 2.2.2.1. Competitive Forces Analysis …………………………… 2.2.2.2. Driving forces Analysis ……………………………… 2.2.3. Market Position 2.2.4. Industry Key Success Factors 2.3. New Balance South Africa company analysis 2.3.1. Performance Evaluation… 2.3.2. Resource Strength and Weakness. 2.4. Market Opportunities and Threats 3. SWOT analysis...
Words: 10930 - Pages: 44
...Executive Summary The Sneaker Seeker is a new company that sole purpose is to create a shoe that will track the where-a-bouts of not just children, but for people with mental conditions such as, Dementia or Alzheimer's. The goal is to build a shoe that is comfortable and stylish, but can track a person without any boundaries. The research showed that out of 100 people between the ages of 12 to 50 that had done a survey on would they where a sneaker that had a tracking device inside the results was mixed. Surprisingly 40% said that it would be invasion of privacy and wouldn’t wear the shoe, but a whopping 60% said that they would. Throughout this paper you will see the need for a shoe of this caliber. It is better to have safety, then to have a loved one missing for years. The shoes will go through a shoe press, this process takes the materials, such as leather or clothes shape the shoe into various parts, but in this process the GPS tracking device will be securely implanted in the tongue of the shoe. The GPS device will have a special plastic coating on it to prevent electrical shock or water damage to the device itself. The materials used will be made based on the style and type of shoe that is being manufactured. Leather would be used to make the running style, dress, and casual shoes. A cloth material will be used for tennis style shoes and causal walking shoes. Using a...
Words: 6365 - Pages: 26
...IBM 302 05-23-11 Jana Haman Jonathan Chou Andrew Chareunsouk Brent Shannn Zenia Villa Jed Wu Target market Because Nike is such a large and globally recognized company, they offer a large variety of products and thus have many target markets. They market not only footwear but apparel, equipment, and accessory products for men, women, and children. Nike is like Coca-Cola, in the sense that they design and market their products for every possible group imaginable. The different groups of footwear they design for include: running, training, basketball, soccer, sport-inspired casual shoes, kids shoes, aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic activities. Basically, they market their products to anyone who does any physical activity or likes the look of their shoes without being active. Even though Nike promotes itself through every sport and physical activity imaginable, they still have a demographic that they target. They try to create and market their products to people of all ages and sex, regardless of where they live. This is why Nike is successful. They not only start with the youth but progressively make footwear and accessories for people as they age and start to pick up other sports also. Because they market to every sport and physical activity, they also know that with each activity/sport there are a different group of...
Words: 5512 - Pages: 23
...Blue Ocean Strategy Ashleigh Philbrick MKT 421 February 18th, 2015 Professor Edward Mendicino Blue Ocean Strategy The blue ocean strategy in marketing is a unique approach to building a customer base. Rather than try to compete in a crowded marketplace with existing companies, a blue ocean strategy looks to build an entirely new market segment that has no other existing firms. With the rapid growth of technology and globalization, the importance of a blue ocean strategy has grown in recent years. The following essay will analyze the blue ocean strategy and offer suggestions on how it can be employed in the modern business environment. What is a Blue Ocean Strategy in Marketing? Companies must consider the four Ps of marketing when developing a new offering, which include product, placement, price, and promotion. In order to compete successfully, it is necessary to give consumers a certain value proposition. For example, a firm can offer a product at a lower price or at a higher quality than what is presently offered by other firms. But what if a firm could avoid having to deal with competition altogether? This is exactly what the blue ocean strategy attempts to do – create a new marketplace that is free of competitors. Marketers build an entirely new product or service that is currently unknown to consumers. It is necessary to thoroughly educate the public about the new product in order to gain interest and confidence. Once this has been completed, the new product will be positioned...
Words: 961 - Pages: 4
...eCEMP: Corporate Environmental Program The University of Michigan Sustainable Enterprise Program A program of the World Resources Institute DEJA SHOE (A): Creating the Environmental Footwear Company Recognizing the changing role of the corporation in society, the University of Michigan’s Business School and the School of Natural Resources created the Corporate Environmental Management Program (CEMP). The program is designed to develop leaders, executives, and managers – whether they work in the private sector, public sector, or for an environmental non-profit – with the skills and knowledge required to create economically and environmentally sustainable organizations Permission to reprint this case is available at the BELL case store. Additional information on the Case Series, BELL, and WRI is available at: www.BELLinnovation.org. Julie Lewis’ interest in recycling began in the early 1960’s when recycling wasn’t fashionable. Recycling in her home was done out of necessity. She helped her mother crush aluminum cans and return them to the local recycling center. She became concerned with environmental issues as a high school student when national attention was focused on the first Earth Day and water restrictions made news in her native California. With the encouragement of her teacher, Lewis made a video on the “State of the Environment” for a class project. Combining her environmental awareness with her instilled habit of recycling, she endeavored to launch a program...
Words: 5358 - Pages: 22
...around 80% of the market share in which Nike is the clear market leader. Majority of other smaller players account for less than 5 % market share individually. The firms fight for market share through non-price competition, on strategies such as strengthening brand image, developing product innovation and identity, and expansion of Customer loyalty. The success of each firm is greatly dependent on its marketing campaign with the requirement of substantial investment in marketing strategy. Real household disposable income is an important demand factor for footwear. The leading firms manufacture most of the products from overseas contracted suppliers owing to cheaper costs. Nike, itself, manufactures all of its footwear from outside United States. This is a mature industry. Risk Analysis: Following characteristics are present in the industry of contract athletic footwear manufacturers for leading global firms, in which PTSI operates in: 1. Rivalry among existing firms: High This is a mature industry with high entry level barriers. It is driven mostly by non-price competition, product differentiation capability, quality control and cost efficiency. There is relentless pressure to reduce fixed costs. This increases rivalry when firms pass on manufacturing savings to Customers. Most firms have the means to manufacture the demanded output. 2. Threat of new entrants: Low * High barriers to entry with the requirement of heavy capital investment. * An outsourced firm...
Words: 5940 - Pages: 24
...positioning in the footwear industry. We use this theoretical framework to analyze Geox, an Italian footwear manufacturer that, in less than a decade, has grown to be one of the world largest brown shoe manufacturers, outperforming the industry in terms of market and financial results. We describe Geox’s choices within four stages along its value chain: product design, marketing and communication, production and supply chain, distribution and retail. We show that, though grounded on product innovation (the Geox breathes® patented system which allows ventilation in waterproof rubber sole shoes), Geox’s competitive advantage has not grown out of operational excellence in single activities in the business, but, rather, derives from a unique and consistent configuration of complementary activities. Such configuration represents an innovative strategic position and corresponds to a high performance peak in the footwear industry performance landscape. The case study provides anecdotal evidence in support of complementarity-based economic theory, showing how complementarities among activities help understand increasing returns to scale, firm size and business growth even without the standard assumptions about economies of scale. It also confirms that, in the presence of complementarities, rivals find strategy imitation and reverse engineering difficult due to the unique nature of the relationships...
Words: 9899 - Pages: 40
...of Marketing University of Dhaka Submission date: 21th April, 2012 AbuReza Mohammad Muzareba Lecturer University of Dhaka Dept. of Marketing Subject: Letter of transmittal Dear Sir, Enclosed is a report on the Game theory Between Gallerie Apex and Bata. This report is about the internal and external business strategies of the pioneer footwear company Gallerie Apex and Bata. We were assigned to submit this report in 21th April 2012 to be submitted as a term paper for our Business Mathematics 2 course in the 3rd semester of our BBA program, from the department of Marketing of University of Dhaka. We have completed it whilst trying to meet all its broad and specific objectives within the allotted time. We are submitting the report to you only, as our course instructor and will be keeping a copy for any future references. We have organized our findings about the business strategies of the above mentioned trading companies. This paper includes an introduction to the company in focus, in terms of their business strategies and an analysis of those processes with some possible recommendations. It has been completed with a conclusion. At the end of the report references and appendix are added for more information. For further queries and/comments please contact us in the following email address paul.ronoy@gmail.com, or call 01680018535. We are thankful to you and hope to work with...
Words: 3169 - Pages: 13
...initiative, signed an exclusive deal with Fogdog sports that allowed NIKE products to be sold by a pure internet company for the first time, and had grown from twelve to 150 employees. But nike.com faced countless critical decisions in the coming months. Specifically, nike.com needed to plan not only its own direct-to-consumer sales strategy, but also its policies and rules for on-line sales of NIKE products by other vendors. COMPANY HISTORY, STRATEGY AND STRUCTURE BRS, the company that would evolve into NIKE, was founded in 1964 by Phil Knight. The purpose of the company was to make high-performance athletic shoes for the U.S. market. Knight, a Stanford MBA and middle distance runner at the University of Oregon, recognized an unmet need for quality athletic footwear that could be filled inexpensively with well-made Japanese imports. Knight started selling these imported shoes directly to runners at track meets in his spare time and NIKE was born. Over the following 35 years, NIKE grew from a part-time job for Phil Knight into the world’s dominant athletic footwear and apparel company by following a consistent and logical strategy: to capitalize on the importance of sports in people’s lives and to be identified with competition and victory in consumers' minds (the company is named for the Greek goddess of Victory). Located on a bucolic campus in Beaverton, Oregon, NIKE stood out as atypical for a large apparel company. The NIKE culture was famous for its internal...
Words: 5386 - Pages: 22
...often require a manager to determine how to use the company’s limited resources most efficiently. In order to see how linear programming is used to solve such problems, let’s investigate a problem experienced at the High Step Shoe factory. The High Step Shoe problem is just a fraction of the size of those actually encountered in the real world. Step 1: Understanding the problem Mr. B. Ball, director of manufacturing for the High Step Sports Shoe Corporation wants to maximize the company’s profits. The company makes two brands of sport shoe, Airheads and Groundeds. The company earns $10 profit on each pair of Airheads and $8.50 profit on each pair of Groundeds. The steps in manufacturing the shoes include cutting the materials on a machine and having workers assemble the pieces into shoes. A = number of pairs of Airheads produced each week G = number of pairs of Groundeds produced each week Mr. B. Ball’s goal is to make the most money or maximize his profits. Using A and G, write a function to model the profit. 1. Profit = _______ A + _______ G This function is called the objective function. The number of machines, workers, and factory operating hours put constraints on the number of pairs of shoes that the company can make. High Step Sport Shoe Corporation has the following constraints. There are 6 machines that cut the materials, 850 workers that assemble the shoes, and the assembly plant works a 40 hour week. Step 2: A System of Inequalities: Constraints Machine...
Words: 1215 - Pages: 5
...business strategy Program: BBA (H) Section: a Assignment # 2 BATA: STRATEGIC CHOICES Submitted to: Mr. Ghulam Ahmad Rana Submitted by: Sohail Mazhar 083805013 Moeez Saleem 083805016 Umer Ashraf 083805027 Shahbaz Arshad 083805030 Zain fazal Ahmad 083805032 Furqan Tariq 083805046 Omer Sher 083805129 DATE: 26-03-12 BATA PAKISTAN LTD PAKISTAN FOOTWEAR INDUSTRY: ➢ Pakistan has a large footwear industry. It had a footwear market of above 150 million pairs per year. ➢ In Pakistan footwear industry can be divided into two sectors formal sector and informal sector ➢ Formal sector consist of about 500 small manufacturers, each producing from 500 to 40,000 pairs per day. Firms in this sector included giants such as Bata and servis ➢ Informal sector has the big market share of about 80 percent, was comprised of over 17,000 units, each with the average of two employees. ➢ Exports About dozen firms are involved in the exports but only Servis, Bata, Firhaj, Epcot. Shafi and Rajex participated regularly in the major annual footwear exhibitions in the Dusseldorf, Germany. ➢ Government Policy has big influence on the large players of the footwear industry through their import and export policies and duty rates. ➢ Sales Tax Small manufacturers prefer not to grow too large. They just want to remain under...
Words: 2586 - Pages: 11
