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Leah's Loafers

Marie Holada
Leah Klacko
Dean Rowbotham
Makenzie Schwartz
Mission Statement

"We are committed to delivering the highest


quality shoes to our customers that are made
responsibly in an ethical, diverse setting."
Strategy Formulation
Initial Broad Differentiation Strategy

High Quality Shoes at a High Price Point

Higher S/Q Rating than competitors

More models and more advertising

Retain loyal customer base with rebates and more retailers carrying the products

Best practices training to employees to provide excellent customer service


Financial Objectives
Short Term:

Maintain a credit rating of B+ through the first two years

Maintain a return on equity investment of 15% or more annually.

Long term:

Grow earnings per share 7% annually through first five years, and 5% annually after.

Achieve stock price gains of 7% through the first five years, and 5% annually after.
Strategic Objectives
Short Term
Construct an upscale brand that was the leader for its quality product offering and
use of superior materials.

Consistently be the leader in advertising and marketing as well as recognized in


the global shoe industry.

Long Term
Achieve an image rating of 70+ within the first 5 years.

Incrementally increase prices for our products to remain


competitive.
Strategy & Tactics
Invest in environmentally responsible practices to improve our CSR.

Achieve maximum capacity in plants as well

as invest in upgrade options A and D for the

North American Plant.

Free shipping as well as a mail-in rebate.


Adjustments
Corporate Citizenship
Use of Recycled Boxing and Packaging
Energy Efficiency Initiatives
Charitable Contributions
Ethics Training and Enforcement
Workforce Diversity Program
Year 18 Corporate Citizenship
Adjustments

Sales Forecast
Inventory Clearance

Plant Capacity
Purchase/ Sale of Capacity
Upgrade Option A and C at N.A. Plant and Asia Plant
Adjustments
Branded Production
Achieve highest S/Q rating
TQM/ Six Sigma Quality Program
Compensation
Adjustments
Branded Distribution
North America
Asia
Adjustments
Internet Marketing
Competitive Pricing
Increased Models Offered
Achieved highest S/Q rating
Free Shipping
Increased advertising
Adjustments
Wholesale Marketing
200 models offered in the market
Competitive Pricing
Rebates offered
Support Retail Outlets

Celebrity Appeal
Tiger Green
Oprah Letterman

Private-Label Operations
Year 18 Wholesale Marketing
Finance & Cash Flow
Paid $1.50 Dividend
Repurchase 2000 shares @ $39.05 a share
Allowed Leah's Loafers to significantly raise
Return on Equity
Assessment - EPS
Board of Directors Expectations
7% annually through Year 15
5% annually Year 16 on

Competition
Company F EPS
Industry Overall
Assessment - ROE
Expected to have an annual return on equity a 15% or higher.

Struggled year 11 at 4.6%

Significantly better performance for


years 12, 13, 14 and 18. All above 15%.

Company F competition

Overall industry
Assessment - Credit Rating
Assessment - Image Rating
Assessment - Stock Prices
Beginning Stock Price
Year 11, $16.65
Ending Stock Price
Year 18, $101.02
Industry Stock Prices
Year 18 Performance
Key Learnings

Adapting Strategy to changing market


product offering, pricing
Celebrity behind Leah's Loafers
Tiger Green
Private-Label Operations
Advice
Know the demand for the market
Private-Label Operations
Worth it for Leah's Loafers?
Bomb.com Product Offering
Hard working Workforce
Whose reppin' us?

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