Athletic Footwear Company:
Your company starts out with two factories. One in north America and the Second in
Asia Pacific.
The company currently sells shoes in North America, Latin America, Asia Pacific &
Europe Africa.
The market currently allows each company to sell an average o...
Athletic Footwear Company:
Your company starts out with two factories. One in north America and the Second in
Asia Pacific.
The company currently sells shoes in North America, Latin America, Asia Pacific &
Europe Africa.
The market currently allows each company to sell an average of 4.84 million
branded shoes and 800k private label shoes.
Branded shoes will grow 57% in the first five years for North America and Europe
then fall to 35% the next five years. In Asia Pacific & Latin America, branded shoes will
grow 911% in the first five years and 79% the last five years.
Private label is expected to grow 10% universally in the first five years and 8.5%
during the next four years vary up to 2% due to competition levels.
Your company can produce 6 million pairs of shoes during normal time and an
additional 1.2 million if overtime is used.
Shoes shipped from factories to distribution centers are subject to tariffs (according
to region) and any exchange rate effects.
Your factory’s workers are compensated through a base pay and incentive pay (not
including defects) and overtime pay if applicable.
Plant Upgrades:
Upgrade A reduces defective pairs by 50%.
Upgrade B cuts production run setup costs by 50%.
Upgrade C increases SQ rating one star.
Upgrade D increases worker productivity 25%.
Business Strategy Game Quiz 1 Game
Mechanics:
Your company’s score is based on:
EPS (Earnings Per Share.)
ROE (Return on Equity.)
Stock Price.
Credit Rating.
, Image Rating.
Exchange rates are tied to real world rates based on:
The U.S. Dollar.
The Euro.
The Brazilian Real.
The Singapore Dollar.
Your interest rate is determined by our credit rating. Your credit rating is determined
by:
Your default risk ratio.
Your debtasset ratio.
Your interest coverage ratio.
Factors that effect SQ Rating:
Percentage of superior materials
TQM & Best Practices.
Styling and Features.
Plant upgrade C.
Factors effecting reject rates include:
Plant Upgrade A.
Your incentive pay.
Best Practices training.
TQM/Six Sigma.
Model numbers available.
Worker productivity is based on:
Plant upgrade D.
Incentive pay relational to other companies.
Base pay relational to other companies.
Best practices training relational to other companies.
Standard and Superior material prices are based on demandsupply conditions
within the game and pegged to real world prices.
Your price competitiveness for a particular region is based on how you relate to the
average price of all your competing companies.
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