Strategic Analysis

At the beginning of the simulation, I decided to play around with numbers to see how the different performance indicators would be affected. At the start of Year 11, we decided to sell an expensive internet shoe. I priced the shoe at $75 at the price of retail with low S/Q stars of 4 in the North American plant, with a minimum price of $48 wholesale with low S/Q Ratings as well. The shoes were also sold at the same price of retail in the Europe-Africa, Asia-Pacific, and Latin America markets as well. Only difference is the Asia-Pacific and the Latin-America wholesale prices were $41 and $42 respectively. I was thinking with a higher priced shoe; there wouldn’t be much pressure to sell numerous amounts of shoes to be a top competitor in the industry. We didn’t offer free shipping because that would lower our chances to increase revenue. The opportunity to have customers pay for shipments is a great chance for our company to increase revenue as well. We spent $7000 dollars on advertising, and decided not to hire on a celebrity in order to keep expenses down. We also keep our strategy for the internet segment parallel to our wholesale segment. After our Year 11 decisions we accumulated $214,000,000, and had an EPS of $1.41 a share. Our ROE was 9.01%, and our stock price was $17. In year 12, we increased our retail price by $5 ($75 to $80) in all markets in hopes to acquire more shoe sells. We also increased our S/Q to 5 stars in North America to increase. Considering how we stacked up against competition in the industry; we decided to offer free shipping to lure more customers into buying our product. We increased spending on advertisements in our North American and Europe-Africa markets, but stayed the same in our other two markets. We continued to not hire any celebrities to remain cost-effective, but we did increase our image rating by +5 points to help sell our product. We also noticed we were having a shortage problem in all of our warehouses; therefore we decided to offer fewer models. After our Year 12 decisions we accumulated $236,000,000, and gained an EPS of $2.18 a share. Our ROE was 13.10% and our stock price was $21. Overall our company was generating profits but there was always room for improvement to be top competitors. In year 13, we kept our prices the same in both the internet segment and wholesale segments. All strategies from the previous year were implemented again in Year 13. The only key