Athletic Footwear Company

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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.