AKA Collections Board of Directors-Company C Industry 44 AmandeepKataria Accounting with Financial Analysis May 2011 Aashka Shah Accounting with Financial Analysis May 2011
BSG Strategic Group Map Year 17 North-America Europe-Africa C C Asia-Pacific Latin America C C
Key Success Factors • BSG • Celebrity Appeal • S/Q Ratings • Inventory turnover • Footwear Industry • Economies of Scale • Establishment of Brand Names • Prompt Delivery to Market • Sources: • IBISWorldIndustry Report 42234 Footwear Wholesaling in the US • IBISWorld Industry Report 31621 Footwear Manufacturing in the US
Critiques of Top Management • MaintainS/Q Ratings • continue to use superior material without spending more on quality • Increase Logistics Efficiency • economies of scale • increasing inventory turnover • Continue to Increase EPS, ROE, and Stock Price • cash on hand can be used to repurchase stocks • increase operating profit by meeting customer demand which will lead to higher sales
Critiques of Top Management Continued • Maintain Retail Outlets Utilized • key factor is customer satisfaction • providing outstanding customer service • Maintain Market Share • economies of scale • increase prices to make up for lost sales Source: Apple Ranks Third in Business Week Customer Service Rankings
Recommendations • For customers: • Since top management will maintain S/Q ratings, they should focus on meeting customer demand by increasing their inventory turnover rate. • For shareholders: • Top Management should maintain their market share so they can cut down on lost sales by enforcing economies of scale and increasing their prices.
Citation • Panteva, Nikoleta. IBISWorld Industry Report 42234 Footwear Wholesaling in the US.IBISWorld, June 2010. Web. 4 Nov. 2010. <http://www.ibisworld.com.www.lib.ncsu.edu:2048/industryus/d efault.aspx?indid=969>. • Panteva, Nikoleta. IBISWorld Industry Report 31621 Footwear Manufacturing in the US.IBISWorld, Oct. 2010. Web. 4 Nov. 2010. <http://www.ibisworld.com.www.lib.ncsu.edu:2048/industryus/d efault.aspx?indid=369>. • Slivka, Eric. Apple Ranks Third in Business Week Customer Service Rankings. 22 Feb. 2010. 12 Sep. 2010.http://www.macrumors.com/2010/02/22/apple-ranks-third- in-businessweek-customer-service-rankings/. • Company C Industry 43 News Blog- Kristen Daye • Dr. Young’s Lecture Notes • BSG Reports