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CAPSTONE SUGGESTED FORMAT FOR YOUR YEAR 11 EXECUTIVE MEETING REPORT COVER PAGE Prepare a cover page and Table of Contents. 1. EXECUTIVE SUMMARY a. Description of overall strategy b. 3 primary...

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CAPSTONE
SUGGESTED FORMAT FOR YOUR YEAR 11 EXECUTIVE MEETING REPORT
COVER PAGE
Prepare a cover page and Table of Contents.
1. EXECUTIVE SUMMARY
a. Description of overall strategy
. 3 primary strategies - eg low cost provider – which did you choose (Refer lecture 2)>
c. Summary key outcomes eg: against key benchmarks, image ,ROI, ROE, profit (you
need to refer to the BSG for these benchmarks – investor expectations – also see
‘Lecture 2’)
d. Comment on changes from previous year to year 11, in profit and revenue
e. Changes in share price and effect on shareholders wealth
f. Forward strategies
Start on a new Page
2. MAIN REPORT
a. FINANCIAL PERFORMANCE
i. SUMARRY OF Key Performance indicators
Y10 Y11
Revenue
Expenses
Net Profit
Net Profit %
ROI
ROE
As each year progresses you will need to add to this, Yr 12 AND Yr 13
ii. Comment other financial results eg revenue / wages
Chose those that a relevant and outline why.
iii. Financial data re balance sheet / financing/share issues, effects on ROE
iv. Apply/determine some liquidity ratios and analysis
You will need to determine these – Please see Financial Ratios Summary on
Moodle.
v. Comment on the company’s cash position
eg: Do you have too much cash? Why? eg: do you expect to expand, etc?
vi. Decisions made /strategies taken
Explain how the decisions you made relate to your chosen strategy.
Comment on the position
. OPERATIONS
i. Stock levels
Comment on your inventory levels – did you have stockouts?
Do you have excessive inventory ? Why?.
ii. Production levels
Did you meet demand through your productions or in some other way? For
example buying excess capacity from the market. Explain the process.
iii. Worker productivity pairs/worker /yea
Why has this improved or not?
iv. Were there any upgrades of capacity required
What was the basis of your decision? Why did you chose this rather than say
purchase capacity from the market?
v. Was plant capacity utilised fully or underutilised
If underutilised, why did you not fully exploit your capacity…eg: sell capacity
to the market?
If fully utilised, what are your considerations for next year?
vi. Commentary on above
vii. What else do you feel relevant to communicate?
 What is your ‘good news story?
 What are the opportunities and challenges for the year
ahead?
c. CUSTOMER MARKETING
Y10 Y11
i. Sales per region (dollars)
You will need to add the results with each successive year ie: Yr 10 through
to Yr 13.
ii. Sales per region (units sold)
Ideally present this in a summary table and show trends each year.
iii. Pricing - average
1. Internet
2. Wholesale
Comment on this and relate to your positioning? How do you compare to
the rest of the industry?
iv. Sales per dollar of advertising spend
This is a measure of marketing effectiveness. Remember if you have
cele
ity endorsement, you need to support your cele
ity with advertising?
v. Commentary on above
Provide an over-arching summary of the above.
d. RESOURCES /LEARNING
i. Number of staff employed
What is the employee productivity (number of shoes produced per
employee)
ii. Pay increases and bonuses
 effect on corporate image
 effect on productivity
iii. Training strategies and expenditure
Has this paid off? Has your investment in training resulted in improved
productivity? What is the financial benefit?
CONCLUSION
You should provide a logical summary based on the overall results.
STRATEGIES FOR NEXT DECISION ROUND
A
ief explanation how you will overcome weak performance and what you will do to
exploit a superior position.
Relate this to the decisions available within the Business Strategy Game. DO NOT
embellish your discussion around i
elevant points or areas which you cannot influence.
eg: do not say you will advertise on TV or other media – you do not have the ability to
make these decisions in in simulation.
Please Note: This is not an exhaustive list.
It is expected that you will use this as a guide.
Not all ratios /analysis are important, however highlighting the areas that relate to the
strategies you have chosen for your company and the associated analysis and commentary
is.
In particular, seek to explain reasons for changes from the previous year and forward
strategies.

22/06/2020 BSG Decisions & Reports
https:
www.bsg-online.com/users/sim/co
financials 1/7
All Sports Shoes Co.
(Industry 50)
FACILITIES  AND  EQUIPMENT Year 12
FACILITY  SPACE
Facility Space Available in Year 11 (000s of pairs)
Completion of New/Additional Space (construction initiated in Y11)
Facility Space Available (to house construction equipment in Y12)
North America
5,000 pairs
0
5,000 pairs
Europe-Africa
0 pairs
0
0 pairs
Asia-Pacific
6,000 pairs
0
6,000 pairs
Latin America
0 pairs
5,000
5,000 pairs
Total
(all facilities)
11,000 pairs
5,000
16,000 pairs
Beginning Gross Investment in Facility Space ($000s)
+ Investment in Additional Facility Space (initiated in Y11)
+ Capital Cost for Improved Working Conditions (CSRC)
Gross Investment in Facility Space ($000s)
– Accumulated Depreciation (through Year 11)
– Cu
ent Year 12 Depreciation (2.5% of gross investment)
Net Investment in Facility Space ($000s)
$ 96,000
0
0
96,000
21,900
2,400
$ 71,700
$ 0
0
0
0
0
0
$ 0
$ 114,000
0
0
114,000
15,200
2,850
$ 95,950
$ 0
80,000
0
80,000
0
2,000
$ 78,000
$ 210,000
80,000
0
290,000
37,100
7,250
$ 245,650
Construction Work-In-Progress (new space to be available in Y13)
Capital Cost of Construction Work-In-Progress ($000s)
0 pairs
$ 0
0 pairs
$ 0
0 pairs
$ 0
0 pairs
$ 0
0 pairs
$ 0
FOOTWEAR  PRODUCTION  EQUIPMENT
Purchase of Additional Equipment
(at the beginning of Year 12)
New
Refu
ished
Production Equipment In-Place in Y11 (000s of pairs without OT)
Equipment Sold (at the beginning of Year 12)
Production Equipment Available in Y12 (000s of pairs w/o OT)
Percentage of New vs. Refu
ished Equipment in Y12
North America
4,000 pairs
0
0
0
4,000 pairs
100.0% 0.0%
Europe-Africa
0 pairs
0
0
0
0 pairs
0.0% 0.0%
Asia-Pacific
6,000 pairs
0
0
0
6,000 pairs
33.0% 67.0%
Latin America
0 pairs
3,000
0
0
3,000 pairs
100.0% 0.0%
Total
(all facilities)
10,000 pairs
3,000
0
0
13,000 pairs
69.0% 31.0%
Beginning Gross Investment in Equipment (000s)
+ Capital Cost of New Equipment (purchased in Year 12)
+ Capital Cost of Refu
ished Equipment (purchased in Y12)
+ Capital Cost of Production Improvement Options
+ Capital Cost of Energy Efficiency Initiatives
– Capital Cost of Equipment Sold
Gross Investment in Produciton Equipment
– Accumulated Depreciation (through Year 11)
– Cu
ent Year 12 Depreciation (10% of gross investment)
Net Investment in Produciton Equipment ($000s)
$ 80,000
0
0
0
0
0
80,000
56,000
8,000
$ 16,000
$ 0
0
0
0
0
0
0
0
0
$ 0
$ 97,600
0
0
15,000
0
0
112,600
32,800
11,260
$ 68,540
$ 0
60,000
0
0
0
0
60,000
0
6,000
$ 54,000
$ 177,600
60,000
0
15,000
0
0
252,600
88,800
25,260
$ 138,540
Production
Improvement
Options
New Option Ordered in Year 12
Capital Cost of Option Ordered ($000s)
Options in Place (ordered in prior year)
$ 0
none
none
$ 0
none
none
$ 0
none
A
$ 0
none
none
 
 
 
Company Operating Reports Copyright © GLO-BUS Software, Inc. Printed 22-Jun-20 at 9:07 pm — Page 1
22/06/2020 BSG Decisions & Reports
https:
www.bsg-online.com/users/sim/co
financials 2/7
All Sports Shoes Co.
(Industry 50)
PRODUCTION  AND  WORKFORCE Year 12
PRODUCTION  STATISTICS
Footwea
Production
(000s of pairs)
Regular-Time Pairs
Overtime Pairs
Rejected Pairs
Net Footwear Production
S/Q Rating of Pairs Produced
Number of Models Produced
North America
Branded
4,000
0
–336
3,664
5.8★
400
P-Label
0
0
–0
0
4.7★
100
Europe-Africa
Branded
0
0
–0
0
0.0★
0
P-Label
0
0
–0
0
0.0★
0
Asia-Pacific
Branded
6,000
0
–312
5,688
6.1★
450
P-Label
0
0
–0
0
4.6★
100
Latin America
Branded
3,000
600
–252
3,348
6.6★
400
P-Label
0
0
–0
0
3.0★
100
Total
(all facilities)
Branded
13,000
600
–900
12,700
 
 
P-Label
0
0
–0
0
 
 
Cost of Rejected Pairs $ Thousands
$ Per Pai
Reject Rate (% of regular + overtime pairs)
Branded
8.4%
9,490
2.59
P-Label
5.6%
0
0.00
Branded
0.0%
0
0.00
P-Label
0.0%
0
0.00
Branded
5.2%
7,508
1.32
P-Label
3.3%
0
0.00
Branded
7.0%
6,294
1.88
P-Label
4.2%
0
0.00
Branded
6.6%
23,292
1.81
P-Label
0.0%
0
0.00
Production Capability (000s of pairs without OT)
Total Production (including rejected pairs)
Utilization of Production Capability (max = 120%)
4,000 pairs
4,000 pairs
100%
0 pairs
0 pairs
0%
6,000 pairs
6,000 pairs
100%
3,000 pairs
3,600 pairs
120%
13,000 pairs
13,600 pairs
105%
WORKFORCE  STATISTICS
Workforce
Compensation
(in Year 12)
Base Wages
Incentive Pay
Fringe Benefits
Total Regular Comp.
Overtime Pay
Total Compensation
Best Practices Training Expenditures (in Y12)
Supervisory Compensation (salary + benefits)
North America
Annual
$ pe
Worke
34,683
3,376
3,007
41,066
0
41,066
800
60,600
Total
Cost
($000s)
28,232
2,748
2,448
33,428
0
33,428
651
2,485
Europe-Africa
Annual
$ pe
Worke
0
0
0
0
0
0
0
0
Total
Cost
($000s)
0
0
0
0
0
0
0
0
Asia-Pacific
Annual
$ pe
Worke
12,241
2,526
1,536
16,303
0
16,303
600
25,250
Total
Cost
($000s)
20,675
4,266
2,594
27,535
0
27,535
1,013
1,061
Latin America
Annual
$ pe
Worke
12,120
1,750
1,500
15,370
3,986
19,356
600
25,250
Total
Cost
($000s)
9,660
1,395
1,196
12,251
3,177
15,428
478
1,010
Total
(all facilities)
Total
Cost
($000s)
58,567
8,409
6,238
73,214
3,177
76,391
2,142
4,556
Incentive Pay as % of Regular Compensation
Cumulative Best Practices (total $ per worker)
8.2%
2,200
0.0%
0
15.5%
1,600
11.4%
600
 
 
Workforce Productivity (pairs per worker per year)
Number of Workers Employed
Number of Supervisors Employed
Year 11
5,045
793
32
Year 12
4,912
814
41
Year 11
0
0
0
Year 12
0
0
0
Year 11
3,607
1,663
33
Year 12
3,552
1,689
42
Year 11
0
0
0
Year 12
3,764
797
40
Year 11
 
2,456
65
Year 12
 
3,300
123
BRANDED  PRODUCTION  COSTS
This section lists
costs for
anded
production only.
Private-Label pro-
Answered Same Day Jun 22, 2021

Solution

Parul answered on Jun 25 2021
124 Votes
THE BUSSIness sTRATEGY GAME
THE BUSSIness sTRATEGY GAME
Contents
1    EXECUTIVE SUMMARY    2
1.1    Overall Strategy    2
1.2    Explanation of Strategies Contemplated for the Business    2
1.3    Summary key outcomes    3
1.4    Reflecting on changes in Profit and Revenue from FY2011 to FY2012    5
1.5    Changes in share price and effect on shareholders wealth    6
1.6    Forward strategies    7
2    MAIN REPORT    7
2.1    FINANCIAL PERFORMANCE    8
2.2    Other financial results    9
2.3    Effect on ROE    10
2.4    Liquidity ratio - Cu
ent Ratio    10
2.5    Cash Position of the Company    11
3    CUSTOMER MARKETING    11
4    RESOURCES /LEARNING    12
5    OPERATIONS    13
6    CONCLUSION    14
EXECUTIVE SUMMARY
Overall Strategy
With tremendous amount of competition targeting the audience, as an organization we need to formulate a strategy that urges user to purchase our product, thereby increasing sales for the business. Furthermore, overall strategy of the company can be at macro-level which might differ as the company penetrate into different geographies like Europe-Africa, Asia-Pacific, Latin America along with establishing strong presence in North America. Therefore, the overall strategy takes into consideration lot of factors like competitors actions, production of goods, performance of the company and forecast for future.
Explanation of Strategies Contemplated for the Business
In order to be successful in the business, we had holistically analyzed the market and cu
ent situation of the company and came out with the three business strategy that can help us capitalize our strength while enhancing the environment variables in the favor of the business. These three primary strategy that we contemplate to implement after analyzing the cu
ent situations and market dynamics are explained below
First is the Differentiation Strategy - We intend to deploy a plan that would provide us differentiation in the market with respect to our products. We come up with the attributes in the footwear like features, or styling or quality that would allow the customer to easily identify our
and. We can also do this by the
eadth of the product line, endorsements and cele
ity associations that can help us to garner more penetration of the
and as well as lead generation in the fan following of the cele
ity.
Second is More Value for Money Strategy - This is our second strategy that we have selected. By the virtue of this strategy, we intend to provide best quality products at least price or at a price much lower than what other companies are offering. This strategy demands to provide ability to incorporate captivating footwear at much lower price relative to the competitors. This strategy can help us to underprice the competitors those have close characteristics and similar attributes
Third is the Market leader approach that urges to focus on the wholesale of the footwear retailer, sales on internet as well as private label footwear to the various chain retailers. Particularly focusing on investing efforts that can make the company as market leader either in different geographies or as an overall global
and.
Summary key outcomes
ROE - Return on Equity - For the FY 2010, ROE was 20%, which got reduced in FY 2011 to 17%. However, the Company has made a dramatic recovery increasing it a significant 40%. This is essentially a ratio that evaluates the rate of return which investor of the common stock of company gets on their invested shareholdings. As the company's ROE has, substantially increased to 40% this displays good health in garnering return on the investment that will be received to its shareholders.
Image Rating - It is the product of two parameters, first is the company's performance and subsequent rating in styling as well as quality department. Second parameter is market share for both
anded as well as private label footwear. Third is the company's community responsibility or sustainable ways to conduct operation. Image rating of the company has improved from FY2010 to FY 2012 exhibiting that company is producing quality products which are considered stylish by the people. Furthermore, organization bases its operations on pillars of sustainable development.
ROI - One of the very critical performance parameter is ROI, which stands for Return on Investment. It is used to comprehend the investment efficiency of the company. Essentially, it finds out return on a specific investment with respect to the cost investment. It is calculated by dividing profit or return received on the investment upon the cost of investment. The outcome is expressed in ratio or percentage. As we can see that, there is substantial increase in the ROI of the company that exhibits that the company is profitable and indication of healthy business operations
For Financial Year 2011
Net Profit in FY2011 = $39,754
Net Investment in FY2011 = $88,800
ROI = 44.7%
For Financial Year 2012
Net Profit in FY 12 is $120,988
Net Investment in FY 12 is $138,540
ROI = 87.3%
Revenue - There is substantial increase in revenue of the company from FY2010 to FY2012. This growth in revenue means that product is been appealing to the customer who are purchasing it. This also indicate that company is able to sell what it produces and is growing in numbers. We can calculate growth of revenue that will give the percentage increase in sales. As one can easily comprehend, there is significant increase in revenue of the company that displays substantial increase in the top line and exhibiting growth in the business.
    
    Yr. 2010
    Yr. 2011
    Yr. 2012
    Revenue
    432,646
    454976
    664930
    % growth
    
    5%
    46%
Reflecting on changes in Profit and Revenue from FY2011 to FY2012
Revenue is in its literal meaning implies capital
ought to the company through its business activities. As we analyses the revenue of the company we can comprehend that sales of product has substantially increased year on year. This implies the company is growing and there is market acceptance for the product sold. Secondly, increase in revenue implies more...
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