BUSA 4185: The Business Strategy Simulation
Case Questions
Download and print out the case on the bsg-line.com 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
ASOS is an international fashion retailer, which offers an extensive line of products, varying from high street to
4. Further Research—Gather information on Nike’s recent moves and accomplishments, and those of its rival Adidas. Are both firms following the same strategies and using the same structures to support them? Or, is one doing something quite different from the other? Based on what you learn, what do you predict for the future? Will Nike stay on top, or is Adidas the next industry leader?
sale of Nike’s high-margin products to high-end customers. Regardless of the low cost of the World Shoes, they
world, while Asia-Pacific has the fastest growing shoe market at 7.9% CAGR. From 2007 to 2011,
5. The biggest question facing Schoenfeld now is “how to drive that next stage of growth” (case p. 2). The first option is to focus on the shoe category. The
The concept of market structures and competitive strategies are important when attempting to compete in any market. Understanding what market structure your product falls under can help companies develop better competitive strategies and identify potential for loss and gains. The athletic footwear industry in the United States is highly profitable and continuously growing. In this paper I will identify market structure of the athletic footwear industry, the major retailers, and competitive strategies that can be used to maximize profits.
For the simulation my company name was H Company. Below you will find the results to the 8-year simulation. H Company has been highlighted in the majority of screen-shots.
Ques 1: Draw a detailed process flow map of the current process at receiving Plant#1. What is the capacity of each operation in the process?
Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.
Keep the Status quo. As they are already doing, they just need to keep finding more distributors and increase manufacturing either by finding factories to make the shoes, or improving the existing machinery used to make the shoes
4. What is your assessment of the strength of competitive pressures stemming from suppliers to the marketers of performance sports apparel?
In the calculation it can be said that they only 7 stations are needed. With this number of workstations one could achieve the highest efficiency at this moment. But the company will grow rapidly. Therefore they had to add new stations every year.
* Production capacity is 10,000 units a year however they hope to construct a $45 million facility with a capacity of
5. All of the companies are free to trade in all of the areas. The
Currently there are two ideal plants; management should not stop mid-stream and allow the remaining 16 to operate less than optimally.