Strategic Management Footwear Strategy

Mission Statement

Our mission is to provide value to our customers by presenting a high quality shoe that grants style, comfort and affordability. We will focus our efforts on ethically reducing production costs through intensive employee and management training, as well as sound and responsible production and distribution decision-making, without sacrificing the quality of our footwear. By accomplishing our goals, we will provide above average returns to our shareholders, above average satisfaction to our customers as well as an above average environment for our employees.

Company Goals and Objectives

Our company objectives, set by our board of directors is as follows,

1) Grow earnings per share by 7% annually, with an EPS of $2.67 in year 11.

2) Maintain a return on average equity investment of 15% annually.

3) Consistently maintain a B+ credit rating.

4) Maintain an image rating of 70.

5) Achieve stock price gains averaging 7% annually.

We will comply with all regulatory and legal requirements and we will conduct Embassy Shoes with an honorable and ethical demeanor. We aim to achieve our board of director’s expectations of a 7% annual growth of Embassy’s EPS by lowering our production costs and appealing to a larger customer base, in turn, raising our net income. We will appeal to a larger customer base by offering a shoe no more than $2 above the industry average wholesale price for a shoe with an S/Q rating of 1 point below our own. For example, if the industry average wholesale branded price for a shoe with an S/Q rating of 5 is $48.00, we will offer a shoe with an S/Q rating of 6 for a price between $48.00 and $50.00. If our EPS does not increase by 7% annually, we will buy back some of our shares of stock.

We will attempt to maintain a 15% increase of Embassy’s ROE through the actions mentioned above for EPS. By increasing net income, increasing market share, and/or purchasing back shares of stock to increase stock price will assist in...