It's a MUST that the EXPERT onto which this assessment be assigned to is someone who had an experience with "The Business Strategy Game" by GLO-BUS Software published by McGraw Hill Education. Assessment is an Executive Management Report for Company A (All Sport Shoes Company) in YEAR 12. Guide can be found on this file - "REQUIRED - New Executive Meeting Report SAMPLE Template and Guide".
CAPSTONE SUGGESTED FORMAT FOR YOUR YEAR 11 EXECUTIVE MEETING REPORT COVER PAGE Prepare a cover page and Table of Contents. 1. EXECUTIVE SUMMARY a. Description of overall strategy b. 3 primary strategies - eg low cost provider – which did you choose (Refer lecture 2)> c. Summary key outcomes eg: against key benchmarks, image ,ROI, ROE, profit (you need to refer to the BSG for these benchmarks – investor expectations – also see ‘Lecture 2’) d. Comment on changes from previous year to year 11, in profit and revenue e. Changes in share price and effect on shareholders wealth f. Forward strategies Start on a new Page 2. MAIN REPORT a. FINANCIAL PERFORMANCE i. SUMARRY OF Key Performance indicators Y10 Y11 Revenue Expenses Net Profit Net Profit % ROI ROE As each year progresses you will need to add to this, Yr 12 AND Yr 13 ii. Comment other financial results eg revenue / wages Chose those that a relevant and outline why. iii. Financial data re balance sheet / financing/share issues, effects on ROE iv. Apply/determine some liquidity ratios and analysis You will need to determine these – Please see Financial Ratios Summary on Moodle. v. Comment on the company’s cash position eg: Do you have too much cash? Why? eg: do you expect to expand, etc? vi. Decisions made /strategies taken Explain how the decisions you made relate to your chosen strategy. Comment on the position b. OPERATIONS i. Stock levels Comment on your inventory levels – did you have stockouts? Do you have excessive inventory ? Why?. ii. Production levels Did you meet demand through your productions or in some other way? For example buying excess capacity from the market. Explain the process. iii. Worker productivity pairs/worker /year Why has this improved or not? iv. Were there any upgrades of capacity required What was the basis of your decision? Why did you chose this rather than say purchase capacity from the market? v. Was plant capacity utilised fully or underutilised If underutilised, why did you not fully exploit your capacity…eg: sell capacity to the market? If fully utilised, what are your considerations for next year? vi. Commentary on above vii. What else do you feel relevant to communicate? What is your ‘good news story? What are the opportunities and challenges for the year ahead? c. CUSTOMER MARKETING Y10 Y11 i. Sales per region (dollars) You will need to add the results with each successive year ie: Yr 10 through to Yr 13. ii. Sales per region (units sold) Ideally present this in a summary table and show trends each year. iii. Pricing - average 1. Internet 2. Wholesale Comment on this and relate to your positioning? How do you compare to the rest of the industry? iv. Sales per dollar of advertising spend This is a measure of marketing effectiveness. Remember if you have celebrity endorsement, you need to support your celebrity with advertising? v. Commentary on above Provide an over-arching summary of the above. d. RESOURCES /LEARNING i. Number of staff employed What is the employee productivity (number of shoes produced per employee) ii. Pay increases and bonuses effect on corporate image effect on productivity iii. Training strategies and expenditure Has this paid off? Has your investment in training resulted in improved productivity? What is the financial benefit? CONCLUSION You should provide a logical summary based on the overall results. STRATEGIES FOR NEXT DECISION ROUND A brief explanation how you will overcome weak performance and what you will do to exploit a superior position. Relate this to the decisions available within the Business Strategy Game. DO NOT embellish your discussion around irrelevant points or areas which you cannot influence. eg: do not say you will advertise on TV or other media – you do not have the ability to make these decisions in in simulation. Please Note: This is not an exhaustive list. It is expected that you will use this as a guide. Not all ratios /analysis are important, however highlighting the areas that relate to the strategies you have chosen for your company and the associated analysis and commentary is. In particular, seek to explain reasons for changes from the previous year and forward strategies. 22/06/2020 BSG Decisions & Reports https://www.bsg-online.com/users/sim/cor/financials 1/7 All Sports Shoes Co. (Industry 50) FACILITIES AND EQUIPMENT Year 12 FACILITY SPACE Facility Space Available in Year 11 (000s of pairs) Completion of New/Additional Space (construction initiated in Y11) Facility Space Available (to house construction equipment in Y12) North America 5,000 pairs 0 5,000 pairs Europe-Africa 0 pairs 0 0 pairs Asia-Pacific 6,000 pairs 0 6,000 pairs Latin America 0 pairs 5,000 5,000 pairs Total (all facilities) 11,000 pairs 5,000 16,000 pairs Beginning Gross Investment in Facility Space ($000s) + Investment in Additional Facility Space (initiated in Y11) + Capital Cost for Improved Working Conditions (CSRC) Gross Investment in Facility Space ($000s) – Accumulated Depreciation (through Year 11) – Current Year 12 Depreciation (2.5% of gross investment) Net Investment in Facility Space ($000s) $ 96,000 0 0 96,000 21,900 2,400 $ 71,700 $ 0 0 0 0 0 0 $ 0 $ 114,000 0 0 114,000 15,200 2,850 $ 95,950 $ 0 80,000 0 80,000 0 2,000 $ 78,000 $ 210,000 80,000 0 290,000 37,100 7,250 $ 245,650 Construction Work-In-Progress (new space to be available in Y13) Capital Cost of Construction Work-In-Progress ($000s) 0 pairs $ 0 0 pairs $ 0 0 pairs $ 0 0 pairs $ 0 0 pairs $ 0 FOOTWEAR PRODUCTION EQUIPMENT Purchase of Additional Equipment (at the beginning of Year 12) New Refurbished Production Equipment In-Place in Y11 (000s of pairs without OT) Equipment Sold (at the beginning of Year 12) Production Equipment Available in Y12 (000s of pairs w/o OT) Percentage of New vs. Refurbished Equipment in Y12 North America 4,000 pairs 0 0 0 4,000 pairs 100.0% 0.0% Europe-Africa 0 pairs 0 0 0 0 pairs 0.0% 0.0% Asia-Pacific 6,000 pairs 0 0 0 6,000 pairs 33.0% 67.0% Latin America 0 pairs 3,000 0 0 3,000 pairs 100.0% 0.0% Total (all facilities) 10,000 pairs 3,000 0 0 13,000 pairs 69.0% 31.0% Beginning Gross Investment in Equipment (000s) + Capital Cost of New Equipment (purchased in Year 12) + Capital Cost of Refurbished Equipment (purchased in Y12) + Capital Cost of Production Improvement Options + Capital Cost of Energy Efficiency Initiatives – Capital Cost of Equipment Sold Gross Investment in Produciton Equipment – Accumulated Depreciation (through Year 11) – Current Year 12 Depreciation (10% of gross investment) Net Investment in Produciton Equipment ($000s) $ 80,000 0 0 0 0 0 80,000 56,000 8,000 $ 16,000 $ 0 0 0 0 0 0 0 0 0 $ 0 $ 97,600 0 0 15,000 0 0 112,600 32,800 11,260 $ 68,540 $ 0 60,000 0 0 0 0 60,000 0 6,000 $ 54,000 $ 177,600 60,000 0 15,000 0 0 252,600 88,800 25,260 $ 138,540 Production Improvement Options New Option Ordered in Year 12 Capital Cost of Option Ordered ($000s) Options in Place (ordered in prior year) $ 0 none none $ 0 none none $ 0 none A $ 0 none none Company Operating Reports Copyright © GLO-BUS Software, Inc. Printed 22-Jun-20 at 9:07 pm — Page 1 22/06/2020 BSG Decisions & Reports https://www.bsg-online.com/users/sim/cor/financials 2/7 All Sports Shoes Co. (Industry 50) PRODUCTION AND WORKFORCE Year 12 PRODUCTION STATISTICS Footwear Production (000s of pairs) Regular-Time Pairs Overtime Pairs Rejected Pairs Net Footwear Production S/Q Rating of Pairs Produced Number of Models Produced North America Branded 4,000 0 –336 3,664 5.8★ 400 P-Label 0 0 –0 0 4.7★ 100 Europe-Africa Branded 0 0 –0 0 0.0★ 0 P-Label 0 0 –0 0 0.0★ 0 Asia-Pacific Branded 6,000 0 –312 5,688 6.1★ 450 P-Label 0 0 –0 0 4.6★ 100 Latin America Branded 3,000 600 –252 3,348 6.6★ 400 P-Label 0 0 –0 0 3.0★ 100 Total (all facilities) Branded 13,000 600 –900 12,700 P-Label 0 0 –0 0 Cost of Rejected Pairs $ Thousands $ Per Pair Reject Rate (% of regular + overtime pairs) Branded 8.4% 9,490 2.59 P-Label 5.6% 0 0.00 Branded 0.0% 0 0.00 P-Label 0.0% 0 0.00 Branded 5.2% 7,508 1.32 P-Label 3.3% 0 0.00 Branded 7.0% 6,294 1.88 P-Label 4.2% 0 0.00 Branded 6.6% 23,292 1.81 P-Label 0.0% 0 0.00 Production Capability (000s of pairs without OT) Total Production (including rejected pairs) Utilization of Production Capability (max = 120%) 4,000 pairs 4,000 pairs 100% 0 pairs 0 pairs 0% 6,000 pairs 6,000 pairs 100% 3,000 pairs 3,600 pairs 120% 13,000 pairs 13,600 pairs 105% WORKFORCE STATISTICS Workforce Compensation (in Year 12) Base Wages Incentive Pay Fringe Benefits Total Regular Comp. Overtime Pay Total Compensation Best Practices Training Expenditures (in Y12) Supervisory Compensation (salary + benefits) North America Annual $ per Worker 34,683 3,376 3,007 41,066 0 41,066 800 60,600 Total Cost ($000s) 28,232 2,748 2,448 33,428 0 33,428 651 2,485 Europe-Africa Annual $ per Worker 0 0 0 0 0 0 0 0 Total Cost ($000s) 0 0 0 0 0 0 0 0 Asia-Pacific Annual $ per Worker 12,241 2,526 1,536 16,303 0 16,303 600 25,250 Total Cost ($000s) 20,675 4,266 2,594 27,535 0 27,535 1,013 1,061 Latin America Annual $ per Worker 12,120 1,750 1,500 15,370 3,986 19,356 600 25,250 Total Cost ($000s) 9,660 1,395 1,196 12,251 3,177 15,428 478 1,010 Total (all facilities) Total Cost ($000s) 58,567 8,409 6,238 73,214 3,177 76,391 2,142 4,556 Incentive Pay as % of Regular Compensation Cumulative Best Practices (total $ per worker) 8.2% 2,200 0.0% 0 15.5% 1,600 11.4% 600 Workforce Productivity (pairs per worker per year) Number of Workers Employed Number of Supervisors Employed Year 11 5,045 793 32 Year 12 4,912 814 41 Year 11 0 0 0 Year 12 0 0 0 Year 11 3,607 1,663 33 Year 12 3,552 1,689 42 Year 11 0 0 0 Year 12 3,764 797 40 Year 11 2,456 65 Year 12 3,300 123 BRANDED PRODUCTION COSTS This section lists costs for branded production only. Private-Label pro-