Executive Summary

Our company utilizes a methodology of offering a support to the whole market. While we will
zero in on our two essential client sections (dynamic families and sprinters), we offer an item
that practically every shopper requires.

We will make an environment that is interesting to the "genuine athletic footwear client." The
equilibrium of clients will come since they will consider this to be the "place" where competitors
purchase their shoes.

The store will be marketed in an energizing, athletic environment. TVs will constantly play tapes
of games and live games communicates. There will be banners featuring the top competitors and
their athletic shoe decisions. There will likewise be a part to get data about forthcoming races,
occasions, and courses. In the long run, race recruits will happen in the store just as introductions
from shoe makers, item agents, nutritionists, mentors, mentors, sprinters and ideally, proficient
competitors.

Following the business normal execution of Year 10 with all organizations at an in any event,
battleground, beginning solid and making with a solid situating will empower us to separate both
our items and our presentation in the long haul. Making a motivator plan dependent on quality,
with help for representative accepted procedures, and improved working conditions while we
extend our traction across areas. Whenever we have set up ourselves, like the cell phone
technique, we will keep on moving upwards in the worth chain and cover the centre and moving
towards the interest for better quality where we will make a brand picture and catch a decent
benefit for our investors in the long haul. To do that, we should fabricate the establishment where
our arrangement is going in the following 3 years. The arrangement beneath traces every thought
from both monetary and non-monetary choices to accomplish the goals.

Table of Contents
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Executive Summary 1
Table of Contents 2
Introduction 3
Company Vision 3
Company Mission 3
Core Culture 4
Objectives 5
Company Strategy 6
Industry Reports Analysis 7
Competitive Intelligence Report Analysis 9
Conclusion 11

Introduction

Company Vision

Company Mission
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Company Strategy

Actigear will engage the market with a differentiation strategy while maintaining value for
money.

Objectives
Key Objectives should include

Finance

The five key areas for the next 3 years

Two parts
First part
Key aspects of plan should comprise what is going to be achieved ie key objectives

Key Objectives should include

The five key areas for the next 3 years

    targets  
  Y11 Y12 Y13
Credit Rating      
Image rating      
ROE      
EPS      
Share price      
● Maintaining a return on average equity investment (ROE) of +20% annually from 20% to
23%.
● Achieving an A- credit rating by Year 13
● Achieving and maintaining an “image rating” from 70 to 86 by Year 13.
● Maintaining a S/Q level of 6.0 star to 7.0 star by Year 13
● Achieving stock price gains averaging about an additional 20% annually through Year 13
from $30 to $65
● Ensuring Reject Rates are industry average or below 5%

This can also include objectives for other key areas

Eg reject rates
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Growth in revenue
Cash potion
Dividend policy

Second part indicates how the strategy is going to be achieved

initiatives to achieve strategy

Y11 Y12 Y13
average pricing      
star rating      
cost per pair of
shoes      
     
     
     

Note the industry benchmarks

Marketing initiatives
initiatives to achieve strategy
Y11 Y12 Y13
Market share target      

     
cost per pair of
shoes      
Rebates to retailers      
Advertising      
     

We will enlist at least one endorser to be our brand ambassador starting at Year 12 that will
represent the brand best in the regions we believe will need the most push. Once we have built
our foundation for production in each region, we will enlist the celebrity that has the capacity to
be our ambassador for all the regions.

We will seek for the middle ground of the high end and middle affordability and be the leader in
that space. As for the S/Q Rating, our minimum would be around 6* - 7* SQ Rating depending
on the average global market rating. However, we will keep the consistency at an improving rate
to ensure we capture the market shares upward.
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Examples of initiatives

Growing earnings per share/ profit at least +20% annually through Year 13 from $2 to $3.50.

Production/Operations
initiatives to achieve
strategy
Y11 Y12 Y13
Average Quality
rating      
     
cost or production
per pair of shoes      
     
     
     

for each region. Reducing reject rates to below 5% would be necessary to maximise production
at its current level and minimise lost sales.

Human Resources
initiatives to achieve strategy
Y11 Y12 Y13
     
     
productivity      
     
     
     

Industry Reports Analysis

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Management Team
Use these reports at the end of Year 11 to identify industry benchmarks you and your company
can use as a base for your decisions

 In Year 10, unit sales of branded footwear in North America and Europe Africa regions
were about 50% larger than the unit volumes in the Latin America and Asia Pacific
regions, with the ongoing operations, Net Profits, Stock Price, Earnings Per Share, Credit
Image and Image Rating are ensure to be improved and the prospects of long-term
growth in the sales of Actigear footwear are positive.

for keeping a continuous record to track the company’s debit to asset ratio, default risk ratio and
the interest coverage ratio. Our firm plans to maintain a credit rating of at least an A-, which will
give us the bargaining power if and when we decide to take out a loan in which will also give us
the advantage in lowering our overall cost to borrow for investing in the facilities upgrades and
updates.

The footwear industry market currently allows each company to sell an average of 4.84 million
branded shoes and 800,000 private label shoes. The projected global demand for branded shoes
in North America and Europe will grow at 5-7% in the first five years. In Asia Pacific and Latin
America, branded shoes will grow 9-11% in the first five years and 7-9% in the last five years.
Private label on the other hand, is expected to have a growth of 10% universally in the first five
years and 8.5% during the next four years vary upto 2% due to competition levels.

Competitive Intelligence Report Analysis

Evaluating the previous expenditure and performance on Year 10, we have noticed the following
opportunities:
● High spending on Search Engine Optimisation
● High spending on Marketing Support for Retailers
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● No spending on CSR, Improved Working Conditions
● No Free Shipping
● Industry Average S/Q Rating and spending to improve quality
● High Reject Rates (7% NA, 10% AP)
● Existing Short Term Loan

First, to bring down the SEO and Marketing Support to minimal levels but still be enough to help
move the inventory across the different regions. Reducing Europe and Latin American marketing
from $9,000 and $7,500 to $7,000 and $5,500 expenses while the production expenses are still
being setup helps to lower unnecessary spending, while minimising the North American and
Asia Pacific spending from $10,000 and $8,000 to around $8,000 and $6,000 respectively. It is
expected the other competitors will also bring down their marketing expenses, but this is
forecasted as an above average expense for Y11.

Working overtime for the duration of the first 3 years so we have enough Revenue and Cash for
investment is essential to be done for facilities upgrades. Due to the additional manpower
expense and production costs, we will avoid Private Labels due to low margins and the risk of
losing the contract.

Workforce compensation will be kept minimum, removing fringe benefits but an incentive is to
be given for non-rejected pairs as well as the best practices training. While our wages are not
competitive, the training we will provide for our staff and improved working conditions will
offset that.

Based on the income statement data of the company, Online sales contributed only 20% of the
total net sales revenue. Hence the lion’s share of the marketing spend should be given to the
Wholesale market (contributing 72%). This will be reallocated so that relative to their
contributions 75% will be given to wholesale and 25% will be given to retail with 0 going to
Private label as we will cease production of it. The other competitors have such similar sales
revenues on Year 10, and so it is essential to gain above average spending in the channel with the
most contribution for sales. Considering this, we will increase some aspects of retailer spending
including improving serviceability of delivery so that retailers can order more in line with their
supply chain capabilities.
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Following the huge demand in both North America and Europe Africa, it is important to
establish footholds in both regions as early as possible to capture more market share. This is to
prepare a foundation for the future growth expected in Asia Pacific and Latin America following
Year 15 onwards.

. We will also offer free shipping as a competitive edge, playing in the medium to high market
requires incentive for customers to feel the value of their purchase to be worth its cost.

The industry begins its pricing strategy at an average of 67 for retail and 48 for wholesale, we
will increase our range of pricing to 75-80 for retail and 50-55 for wholesale to be at the range of
value-for-money. Low-cost providers will aim for below the industry average and niche high-end
market will aim for near high from 100 and onwards. Total Cost per production for pairs in NA
and AP will be $26.84 and $23.36 respectively.

Conclusion
Actigear would maintain a solid foundation of a good quality shoe that is not only worth every
penny, but also has varied designs to capture more market segments. A key component that we
would have is that all Actigear operations is geared towards creating significant change in
sustainability and ensuring the wellbeing of both customers and employees.
Technology will help streamline operations and lower reject rates in the future, but in order to

 The current $2 Earning Per Share (EPS) is expected to exceed investor’s expectations on
a consistent basis year after year, to provide growth for the shareholders. Actigear is
heavily concentrating its focus on brand image and balancing profit maximisation and
value-for-money strategies to gain maximum market share while our competitors seek to
practice low-cost,
 we will optimise differentiation by capturing uncontested market spaces while
maintaining our standard of quality. Shareholders look forward for our company to
maintain a return on equity of 21.0% from 19.6% or more annually and this expectation
is what we set on as we drive up our net income during the expansion of our foothold
across regions. We also yearn to let our shareholders believe that our actions are in the
best interest of gaining market share.

The company stock in Year 10 price averaged at $30 per share which is anticipated to grow at an
average of 20% annually through Year 15 and about 5% annually in the next 5 years. In line with
achieving or exceeding Earnings Per Share targets, it will also carry off stock price gains and
distribute rising dividends to shareholders.
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The importance of maintaining a high Credit Rating is what our company highly values so as to
our shareholders who expects a credit rating of B+ or to even obtain higher. Actigear intends to
exceed the industry benchmark by designing a strategic financial plan that will be an instrument
ensure that future, employees must be taken care of and talents are given the opportunity to
perform and be incentivised. Having the presence across all territories might be costly in the long
run, but we will maximise profitability through service lead-times and ensuring everyone who
orders through our online channels will receive free shipping. Ensuring marketing and sales
support in the retail space however will take priority over online promotions due to the large
chunk of demand in getting retail superiority or parity over the top spenders in the channel space.