For this assignment, discuss some key challenges that project managers may face when directing and managing project execution and provide some strategies for

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Reflection and SWOT Analysis – Year 12 and Year 13

MGT6203.E1 Strategic Management

Decision Year 12 AND 13

Company C

Katharine Johnson

Karla Matise

Robert Kidd 

Sandesh Khadka

Amberton University

YEAR 12 AND YEAR 13

MGT 6203

Identify your vision, mission, and competitive strategy.

Vision

We continually strive to enhance lives by manufacturing the highest quality athletic footwear.

Mission

Our mission is to design and deliver high-quality athletic footwear that enhances performance, comfort, and durability. We are committed to supporting athletes and fitness enthusiasts by providing innovative products that meet their needs. Through continuous innovation and expansion across North America and Asia, we aim to build a globally recognized brand that empowers individuals to achieve their best.

Competitive Strategy

To accomplish the most competitive edge in our industry, our team will focus on product differentiation. Our goal is to distinguish our products from those of competitors through quality, features, branding, and marketing efforts. Our expansion of branded production across North America and Asia as well as our focus on digital marketing will thus far help us to accomplish this goal. 

1. Compensation & Training

· Decisions Made: 

. We increased compensation and training efforts in both NA and AP.

. We kept best practices for both NA and AP static. 

. Our incentive pay is slightly lower than the previous year. 

. Fringe benefits are currently static. 

. Best practice training is set at $600 per worker in North America and $400 per working in Asia Pacific. 

· Results: 

. As a result of these changes, projected productivity in both North America and Asia Pacific dropped (4750 compared to 5000 in North America and 3479 compared to 3500 in Asia Pacific)

· What Caused the Results: 

. Workers may have less incentive to be productive due to the drop in incentive pay from previous years. 

2. Branded Production

· Decisions Made: 

. Expanded branded production in North America and Asia Pacific to accommodate growing demand.

. Decreased use of superior materials in North America and Asia Pacific. 

. Increased number of models available in North America and Asia Pacific. 

· Results: 

. Market shares increased the most in North America – which means this region experienced the largest growth. 

· What Caused the Results: 

. Improved production efficiency and demand-driven inventory adjustments.

. Improved quality of product through use of higher % of superior materials. 

3. Production Facilities

· Decisions Made: 

. We sold old equipment and kept the purchase of new and refurbished equipment to a minimum. 

. We decided on construction of new space in EA and LA to increase new capital in Year 12.

· Results: 

. Purchasing new equipment enhanced efficiency and quality

. Output was increased by the purchase of new production equipment

· What Caused the Results: 

. Strategized with facility upgrades and process automation implemented  reduced manual labor which minimized errors and sped up manufacturing

4. Distribution & Warehouse

· Decisions Made: 

. Optimized shipping routes to minimize transit time and cost.

. Implemented a demand-based allocation strategy to ensure stock availability in high-performing regions.

. Leveraged warehouse automation to streamline inventory handling and reduce manual errors.

. Strategic allocation of distribution to destination warehouses from origin warehouses based on import tariffs.

. 0% inventory clearance in North America and no inventory reduction in other areas.

· Results: 

. Transportation costs were reduced as a result of optimized shipping routes, contributing to a more cost-effective distribution process and faster delivery times.

. The Warehouse utilization improved by 80-90%, reducing storage inefficiencies.

. Cost of branded pairs sold decreased by approximately 5-10%

· What Caused the Results: 

. Optimized distribution and warehouse automation reduced inefficiencies, improving stock management and alignment with market demand.

. Reduced storage inefficiencies improved warehouse utilization.

5. Internet Marketing

· Decisions Made: 

. We increased the retail prices across the board and kept the search engine advertising static.

. Increased digital marketing spending in Asia-Pacific, Europe-Africa, and Latin America, while cutting back in North America, to improve brand visibility and drive online sales in those regions.

. Focused promotional efforts on strategies other than free shipping, such as enhancing brand visibility through digital channels .

. Spending on digital marketing was reduced in North America, but increased in Asia-Pacific, Europe-Africa, and Latin America to enhance brand visibility and drive online sales in those regions. 

. Free shipping options were not provided in any market, as the focus was on other promotional strategies.

· Results: 

. C Company’s sales performance in key regions like Asia-Pacific, Europe-Africa, and Latin America showed potential for recovery, despite the decrease in market share, reflecting the positive impact of increased digital marketing spending.

. Online sales increased by about 20% in Asia-Pacific,  Europe-Africa, and Latin America due to the increased investment in digital marketing in these regions. 

. Online sales decreased by 100% in North America, likely due to the reduction in digital marketing efforts. 

. Market share decreased across all regions, reflecting the impact of reduced marketing efforts and potentially decreased visibility in key markets. 

· What Caused the Results: 

. The shift in digital marketing investment played a key role, with increased spending in Asia-Pacific, Europe-Africa, and Latin America helping to boost sales, while the reduction in North America led to a significant decline in sales in that region. 

. Digital marketing is an important factor in sales results. As such, decreasing in any certain area can be detrimental to sales and market shares.

. The availability of free shipping did not seem to have much effect on sales. 

6. Wholesale Marketing

· Decisions Made: 

. We significantly lowered our retailer support

. We increased our delivery time

. We lowered our mail-in rebate.

. Launched targeted incentives for wholesale partners to encourage larger orders and promote the brand’s visibility in regional markets.

· Results: 

. Wholesale demand increased across the board.

. Maintained brand reputation from previous year. 

· What Caused the Results: 

. Incentive programs and better partner engagement played a crucial role in increasing orders and solidifying relationships with key wholesale partners.

. Increase in wholesale prices across multiple regions drove sales and strong demand. 

. Increase of advertising and decreased delivery times created a higher sales volume. 

7. Private-Label Operations

· Decisions Made: 

. Increased number of models in North America and Asia Pacific to make contacts more appealing. 

. Increased S/Q rating in North America and Asia Pacific (3.0) 

· Results: 

. Asia Pacific production increased by 75% for private label pairs. 

. Other areas are static in terms of private label production. 

· What Caused the Results: 

. Increasing the number of models was helpful in the context of private label production in Asia Pacific.

. Production cost of private label pairs in most regions exceeded the projected revenue leading to financial losses – especially in North America and Asia-Pacific. 

8. Celebrity Endorsements

· Decisions Made: 

. We set a spending cap of $10,000 for celebrity endorsements in Year 11. We applied $2000 each to Judy Judge, Bud Birkenstock, Samuelle Jackson, Steff Caraway, and Jay XYZ.

· Results: 

. We made offers to five celebrities, and hope to be awarded contracts with two of those celebrities.

. Projected results are for these two celebrity endorsements to be effective towards our customer base. 

· What Caused the Results: 

. Celebrity endorsements are effective in the context of our customer base. 

    

9. Corporate Citizenship

· Decisions Made: 

. Increased charitable contributions by 1% of pretax profit.

. Continued ethics training.

. Discontinued childcare onsite and improved working conditions. 

· Results: 

. Increase of ethics training helps employees act as better company stewards – which improves employee and supplier relationships. 

. Increase of ethics training and recycled packaging increases profitability and helps with the environment, which improves company image. 

· What Caused the Results: 

. While we leaned in on recycled packaging and ethics, we were lacking in improved working conditions. 

10. Finance & Cash Flow

· Decisions Made: 

. Issued 5000 stocks

· Results: 

. Projected cash balance at the end of Year 11 is +$208,677. This cash balance is obviously positive, and can generate interest income of $4.2M in Year 12. 

. Increase of the company's cash position substantially (+$202,000)

. Maintained a positive cash balance. 

· What Caused the Results: 

. Generation of positive cashflow was necessary, and the decision was made to issue stock. 

. Deciding against borrowing funds improved our standing financial position.

Summary of Performance

In Year 11, the company showed strong liquidity, ending a positive cash balance, driven by robust footwear sales, a stock issue, and proceeds from the sale of used production equipment. The company maintains a conservative approach by not issuing dividends or repurchasing shares, to preserve cash for future investments. Moving forward, we’ll focus on improving profitability and managing debt more effectively, this will be crucial for sustained financial health. 

· What were the results of 

. Stock Price = 12.29

. EPS = -1.67

. ROE = -16.7

. Credit Rating = C

. Image = 46

SWOT ANALYSIS

(Note: Decision Year 11 will have two S,W,O,Ts under each category. Each year after Decision Year 11, the SWOT will increase by one.)

Strengths

· Expansion of branded marketing 

· Focus on digital marketing 

Weaknesses 

· Decrease in incentive pay

· Discontinued focus on childcare onsite and improved working conditions

Opportunities 

· Focus more on digital marketing in North America specifically 

· Provide free shipping to test if providing increases sales 

Threats 

· Changing consumer preferences for free shipping and faster service.

· Competitors may outpace you in digital marketing and market share.

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