Athletic Co.
Industry 5

Said Arafeh
President & Vice-President of North America
Bhavna Bhoodhoo
Vice-President, Finance & Europe Africa
Matthew Christopher
Vice-President, Marketing & Asia Pacific
Amandeep Sidhu
Vice-President, Production & Latin America

April 1, 2015

Table of Contents
I. EXECUTIVE SUMMARY 1
II. FINANCE 3
Situation Analysis 3
Past financial results globally 3
Past financial results by region 8
Objectives 9
Strategies 10
III. MARKETING 11
Situation Analysis: 11
Global sales and market share 11
Sales and market share by region 12
Objectives 13
Strategies 14
IV. MANUFACTURING 15
PART A Plant Capacity and Production 15
Situation Analysis: 15
Overview of the Global Situation 15
Overview of the regional situation 15
Objectives 15
Strategies 16
PART B Branded Manufacturing Costs per Pair 16
Situation Analysis: 17
Global 17
Plant by plant 17
Objectives 17
Strategies 17
PART C Labour costs and performance 17
Situation Analysis, by plant 17
Objectives 17
Strategies 17

I. EXECUTIVE SUMMARY

Athletic Co. operates in the branded and private label sector producing athletic footwear all around the world. The company manufactures shoes in 3 different regions: North America, Asia Pacific and Europe-Africa. The consumers are targeted by the high celebrity besides that there’s a high demand because of the very low price compared to major competitors.
After the downfall that occurred in year 13 because of the unsuccessful change in the company from a competitive price to a low price low quality, the company lost a lot of market share but in year 15 and 16 we started growing our revenues and market share by being very competitive with the price. The main reasons for profit lagging was the low quality produced compared to other competitors with the bigger share in the market who are producing high quality athletic shoes. After year 14 failure to get the bid accepted in the region of North America because of the higher price than the average bid the company’s inventory ended with lots of unsold products.
With the strong optimistic growth of the market in the next three years. Athletic Co. will self-assure a much higher market share in the four regions, and certainly getting higher revenues and return on investment by being confident that we’ll confidently overcome our weaknesses. SWOT Analysis on Company Operations To-Date:
Strength:
Low price of branded products
Fast delivery to retailers
Credit Rating of A+
Weaknesses:
Low quality shoes compared to competitors
High days of inventory
Low Numbers of retailers
Low Advertising
Opportunities:
Forecasted Strong growth in the world market
Private label undersupplied in Latin America and Europe Africa regions
High celebrity appeal in the market
Threats:
Competition from D-Way Shoes with high quality shoes
Free Shipping offered by other competitors
Objectives

The company’s objectives for the next three years are stated in the following Pro Forma income statement.

Actual 16
Forecasted 17
Forecasted 19

$000
%
$000
%
$000
%
Revenue 291,129
100
401,854
100
577,855
100
COGS 171,612 59 188,847 47 244,659 42
Gross Profit 119,517 42
144,750
36
213,748
37
Operating Expense 74,300 26 81,157 20 98,087 17
Operating Income 45,217 16 63,593 16 115,661 20
EPS
3.27
5.43
8.69

Strategies
Athletic Co. plans to achieve these planned results with a combination of the following strategies:

To increase market share and sales revenue:
Increased expenditures on advertising in all regions in order to achieve and maintain the strongest marketing program in the industry.
Introduction of free shipping in order to increase the company’s share of the internet markets.

To increase profit margins:
Maintenance of the company’s low price with more use of costly superior materials to increase S/Q rating and increased emphasis on other factors such as TQM quality control, training, styling and features at all plants
Increased