Strategic Management Essay

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BUSA 4185: The Business Strategy Simulation

Case Questions

Download and print out the case on the website (click on “BSG Player’s Guide” button). It is VERY important that you read and study this guide before you begin to make your decisions on the game simulation program!! Spend some time on it and your company will be better equipped to perform than others. Be sure to save it for future reference – you might need to refer back to it as you are entering your company decisions.

(1) Where are your company’s plants located? What is the capacity level at each plant?

North America – 2,000,000 pairs
Asia – 4,000,000 pairs

Both plants can be operated at overtime to boost annual capacity by 20%, giving the
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State each separately.

United States - $0
Europe – $4
Latin America - $6

(6) What is the five-year forecast for global annual growth in the athletic footwear industry? In which regions of the world is growth expected to be highest?

The five-forecast for athletic footwear is 7–9% annual growth.

The Asia-Pacific and Latin American regions are where the growth is expected to be the highest.

(7) What are S/Q ratings? How are they calculated (in other words, what are the things that affect S/Q ratings)? Note: You will find this information in several sections of the Player’s Guide – not just one section!

S/Q ratings are ratings given by the International Footwear Federation, a well-respected consumer group. The ratings are based on style and quality are given or 0 to 10 stars.

(8) Discuss the different channels of distribution available to athletic footwear manufacturers. Which channel is predicted to experience the fastest growth in unit sales?

There are three distribution channels available for athletic footwear manufacturers: - Wholesale sales to independent footwear retailers – department stores, retail shoe and apparel stores, discount chains, sporting goods stores, and pro shops at golf and tennis clubs. - Online sales to consumers at the company’s

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