Executive Summary Play

EXECUTIVE SUMMARY

The purpose of this document is to describe how Company C, “C as in Comfy” performs in the business strategy game from year 10 through year 17. All the information is obtained by the BGS program and from company team members. The Company strategies were to expand to the Latin American beginning year 13 to capture this potential market, a niche with millions of possible costumers that is filled with various ethnicities, interests and lifestyles therefore increasing our net revenue and our market share. The Asia-Pacific plant has the highest production capacity, and this is why our strategy was to upgrade the plant with the newest technology and distribution system so our market share grows or competes hand by hand with our current competitors in internet, wholesale and private label segments.

We also, strategized to investing TQM/ Six- Sigma programs and obtain the best quality materials from our suppliers, for the production of shoes in all of our plants, and therefore decreasing our rejection rate from year 10 to year 17, in the branded production and in the private label, to a percentage lower than 5%;And obtaining an S/Q rating of not less than 4 stars. By meeting these ratings, we can offer higher prices in our products due to the high quality of our materials, and subsequently not eroding our price advantage.

WHAT WE DO RIGHT AND WRONG

As we followed our strategy through the years, we encountered our first mistake which was that we did not price aggressively enough while our competitors were doing so. In the first year (year 10) our company and the competitors started with different prices for each segment, but the same price for each continent within the segment (see Exhibit 1) in the following years (year 11 and year12) we kept our prices high and we did not offer our products in the private label segment, however our competitors did take advantage of their capacity and sold their products in the private label segment. During the 7...