Global Business Strategy for DVS Shoes

This report discusses various strategies of which DVS Shoes should apply for 3-5 years which will help their business to achieve growth in the market and become a brand which is liked by the consumers. For analysing those strategies, strategic analysis of DVS Shoes has been done with the help of matrix which help the company to improve its growth with various strategies resulted from this analysis.

Global Business Strategy.

Table of Contents
Executive summary..............................................................................................................................3
Strategic Audit......................................................................................................................................4
Analysis ...............................................................................................................................................6
Critical Reflection..............................................................................................................................12
Conclusion & Recommendations.......................................................................................................13
References..........................................................................................................................................15
Appendix............................................................................................................................................17

Executive summary
This report discusses various strategies of which DVS Shoes should apply for 3-5 years
which will help their business to achieve growth in the market and become a brand which is liked
by the consumers. For analysing those strategies, strategic analysis of DVS Shoes has been done
with the help of matrix which help the company to improve its growth with various strategies
resulted from this analysis. The suggested strategies which is analysed with the help of models that
are: customer analysis, competitor analysis, five forces model, PESTLE analyse, key factors of
success, industry life cycle , four corner analysis, environment basics and degree of turbulence.
which will help in improving the growth of the company can be product development, market
development, and market penetration. These strategies will help the company to satisfy the needs of
the consumers as well as attract the new customers. Which will result in high growth rate for the
company, and they can compete with their competitor.
First strategy is product development in which the company will have to introduce new
products in the market which improves the customer base. So here the DVS Shoes should improve
the quality of their products as well as increasing the product range which can be offered to the
consumers.
Second strategy is executing market development, in this the company introduce the
products in the new market to increase the sales of the product. DVS Shoes should improve their
targeting strategies as they are not giving appropriate focus on their current targeting strategies.
Third strategy is the market penetration, where the organization is targeting the existing
consumers in the existing market by providing various offers to improve the customer trust. Here
DVS Shoes will be trying to improve customer relationship by adopting various strategies which is
beneficial for the business.

Strategic Audit
For analysing the business and financial performance of DVS Shoes various ratios is being
used which will help to analyse the position of the company (Otenko, and Parkhomenko, 2019).
(All the values will be in $ thousands)
Current Ratio
Current ratio will show us that is firm able to pay to their short term liabilities when
compared to its current assets (Nuryani, and Sunarsi, 2020).
Current assets of the company
2018 – 92564
2019 – 58826
2020 – 66331
Current Liabilities of the company
2018 – 63552
2019 – 40442
2020 – 42166 (ANNUAL REPORTS, 2022)
Current ratio = Current Assets/Current Liabilities
2018 – 92564/63552 = 1.456508056:1
2019 – 58826/40442 = 1.454576925:1
2020 – 66331/42166 = 1.573092065:1
As the ideal current ratio is 2:1 and the company's current ratio for all the 3 years are lesser than the
idle ratio but more than 1. The assets of company are more than the liabilities which shows that the
company is not investing the cash in profitable manner.
Return on Equity
This shows the effectiveness of the company while incurring returns on the investment
received (Rashid, 2018).
Net Income/losses of the company
2018 — (10,484)
2019 —(159,403)
2020 — (89,420)
Shareholders Equity
2018 – 344,644
2019 – 173,040
2020 – 72,579 (ANNUAL REPORTS, 2022)
Return on equity = Net income/Shareholder's equity

2018 — (10,484)/344,644 = -0.030419795
2019 — (159,403)/173,040 = -0.921191632
2020 — (89,420)/72,579 = -1.232036815
Here the ratios are in negative which shows that the DVS shoes is not able to provide return to their
shareholder's. This is not good for the reputation of the company as the shareholders will lose their
interest in the company and the funds will reduce.
Net Profit Margin
This shows the net income of the company compared to the total sales of the company. If the
ratio is higher than it will imply the efficiency of the company.
Net Income of the company
2018 – (10,484)
2019 – (159,403)
2020 – (89,420)
Net Revenue of the company
2018 – 127,290
2019 – 101,576
2020 – 89,811 (ANNUAL REPORTS, 2022)
Net profit margin = (Net income/Net Revenue)*100
2018 – ((10,484)/127,290)*100 = -8.236310786
2019 – ((159,403)/101,576)*100 = -156.929786564
2020 – ((89,420)/89,811)*100 = -99.564641302
As the company is incurring losses also, the net profit margin is in negative which implies
that the company is not able to gain profit from the sales of product. This shows that the business
performance of DVS shoes is not beneficial for the growth of the company (Nyame-Asiamah, and
Ghulam, 2019).
Overall Financial and Business performance
The DVS shoes financial and business performance is not good as the company is incurring
losses (10484), (159403) & (89420). Their shareholders are withdrawing the invested money as the
share capital decreased from 344644 to 72579. Also, the DVS Shoes are not capable to pay off their
short term liabilities as the current assets are not appropriate for paying off the liabilities.
DVS shoes total assets is decreasing which shows that they are selling their assets to pay off
their liabilities which is not good for any company. Then also the companies creditors are increasing
which shows they are at the loss of funds to pay their liabilities.

Analysis
The basic analytical tools.
The analytical tools refer to the resources that provides the data or information for the
research and evaluation purpose. These tools help in the growth and development of the business
and also helps in making strategies and decision-making process of the organization. Below
mentioned are some effective analytical tools that are used DVS shoes in order to evaluate the
market.
Environment basics: It is used as an analytical tool for evaluating and identifying the internal and
external elements of the business. It refers to the environmental analysis or scanning of the business
environment. It is a strategic tool that identifies all the direct and indirect factors of environment
that effects the DVS shoes. Analysis these factors can help the organization in making relative
decisions for the business (Falsetti, and et. al 2022). Environmental basics helps in forecasting the
future needs and identifying the threats and allows them to form new strategies. It also helps in
achieving the objectives of DVS shoes. It also plays effect role in improving the performance of the
organisation (Belaid, and et. al 2022).
PESTLE analysis: It is known as the concept of marketing principles, that helps in analysing the
external factors of the environment that effects the business of the DVS shoes.
Political – Under this factor DVS shoes has to deal with the political aspects of the
environment, that includes the policies and taxes. Organisation has to follow the legal policies that
are formed by the government. It includes the industrial and factory acts. The goods and services
tax and wages act.
Economic – Under this factor the organization will deal with impacts of inflation and
interest rates that affects in the prices of the product of DVS shoes.
Social- It includes the tastes and preferences of the customer and the social environment of
the market that determinants the new cultural and trends in the market that helps DVS shoes in its
product development according to the needs and wants of the customer.
Technological – The technological factor includes the online marketing of DVS shoes. It
includes the innovation in technology that effect the operations of the business and market of DVS
shoes favourably and unfavourably.
Legal- These are the laws and acts that effect the business environment of DVS shoes. They
have to deal with laws like footwear legislations and regulation on personal protective equipment
(Blind, and Fenton, 2022).

Environmental - This factor includes all those that influence, or they are surrounded by the
environment. DVS shoes will affect the climate, weather, and geographical location of the
organization.
Industry life cycle: It refers to the phases of growth, consolidation and eventual extinction of an
industry. It includes five major stages that are: introduction, that focus on creating awareness about
the product or service or to provide knowledge to the customer. The second stage is Growth, under
this stage the organization DVS shoes focuses on increasing sales rate of business, to grow the
market share and to innovate or to do the betterment of the existing product. The stage refer to
Shake-out, during this phase the organization faces competition in the market and the percentage of
growth falls down by certain percent. Then it focus to regain the market share and increase in sales.
The fourth stage is considered as Maturity, at this stage DVS shoes reached at the maximum
size where the industry growth is likely to be zero or negative. Consumer awareness is maximum at
this stage, the firm enjoys an oligopoly market. The last stage is known as Decline, under this stage
the sales number drops to very low. The drop in sale occurs due to the internal and external
environment, such as new alternative product in the market. Change in rules and regulation and
issue with supply of raw material can also impact on the drop in sale of DVS shoes.
Key success factors: These are known as the competitive emphasis or strategic postures that helps
in evaluating the market. Key factors of success are one of the element of a organization's
management team must articulate as a part its strategic planning process (Dahlberg, and et. Al,
2022). The key factors of success are: money, management, people and marketing.
Money is the investment that concerns with capital of the organization. It also includes the budget
of the business.
Management is the pillar factor in the success of the organization because a well managed
organisation always leads to success in the existing industry.
Customer analysis: A customer analysis refers to the critical part of a organization business plan or
the marketing plan. It focuses on identifying and targeting the customers needs and wants about the
product. It involves behavioural analysis of customers that seeks to identify and weigh the relative
importance of elements consumers to choose one product over another.
It also includes the customer demographic factor. It refers to the targeted market segment
under which the customers segmented according to their locations. Customer analysis also concerns
with purchase process and patterns of the consumers of DVS shoes. It includes questions like,
reason for purchase. Number of times a consumer purchases. And how much time a consumer will
take in making a decision before purchasing.

Five forces analysis: Porters five forces is a model that helps in identifying and analysing the
competitive forces that shape DVS shoes and helps in determining the weaknesses and strengths of
the organization.
Competition in the industry - It refers to the number of competitors and capability to
undercut a company. The larger the amount of competitors, along with the number of equivalent
products and services that they offered, the lesser the ability of DVS shoes.
Potential of new entrants into an industry- The power of a company is also impacted by the
force of new entrants in the market. An industry with strong barrier to entry is a ideal for the
current existing companies among the industry since DVS shoes would be able to high prices and
negotiate in good terms and conditions.
Power of suppliers- The suppliers has more power that they can drive up the input costs and
push for other advantages in trade.
Power of customers- Customers have the ability and power to drive prices lower. A small
and more powerful customer base means that every customer has more power to negotiate for cheap
prices and better trade.
Threats of substitutes- The last force focuses on the substitutes. DVS shoes may have the
threat of substitute of product and services that they provide to customer. Company have the threat
of loosing customer base because a customer can easily and quickly shifts from one product to
another.
Four link analysis: It is also known as four corner analysis, developed by Michael Porter. This
model structured to help DVS shoes to form strategies. The four main corners of model are:
Motivation- It looks for the drivers at different stages and dimensions so that organization
can gain into the future goals.
Current strategy- It concerns with existing strategies of the competitors in the industry that
impacts on the business of DVS shoes.
Capabilities- It includes the strengths and weaknesses of the competitor in the market.
Management assumptions- It includes predictions or assumptions that are made by the
competitors in the existing industry.
Degree of turbulence: It includes the height of turbulence that impacts on the organization. The
changes that impacts on organization are such as, change in laws, forming of new strategies in the
market by the competitors. Environmental turbulence is also a main factor that impacts on the
organization. It is defi9ned as the combined measurement of change ability and predictability that is

reflected in the complexity and novelty of change in environment.
Competitor analysis : It refers to the evaluation or analysis of the competitors strategies that effect
on the business of DVS shoes. Competitor analysis involves the evaluation existing marketing
strategies that a companies uses to increase its sales in the market.
Product Development
In the product development strategy the company improves their product for the consumer
so that they will give positive feedback. Here the DVS Shoes will increase their product range by
innovating new designs which will be what the consumer wants from then company. Company
should conduct research for knowing about the consumers preferences so that the company can
cater to the needs of the customers. This new range of products will be introduced in the market
with an eye-catching advertisement which will be shown on television, social media, in their stores
and various other places (Jensen, Laursen, and Haase, 2021).
The company can also do some changes in the existing product as they can provide products
with correct sizes. These changes in the product and its range will improve the brand image of the
company so that DVS Shoes can improve their company's growth which may also result in increase
in the profit. DVS Shoes while increasing their range of products should also improve the quality of
the products according to the price charged. As the consumers now-a-days are very conscious about
the quality of the product which is associated with the price of the product (Cooper, 2019).
Market Development
In this market development strategy the organization introduce their product in the new
market, this can also be said changing their targeting strategies to gain more customer. DVS Shoes
can improve their targeting strategies with various ways but first they should be clear with the
strategies as to whom their market should be. In targeting they can also select some specific areas
which is to be targeted along with the persons. They can take help of google ads as it will help them
to know what target market should they select so that they can cater to them without any problem.
In google ads there are various options which can help the company to know about the target
market, also this will help the company to run ads to promote their new targeting strategies
(Mukhametgaliev, and et.al., 2020).
DVS Shoes can also appoint a manager in the organization who will form the targeting
strategies and also ensures that those strategies are properly implemented. This will also ensure that
the past mistakes will not be repeating because then it will harm the image of brand. The manager
should be made aware of the past mistakes as well as what he has to do in the organization it should
be made clear from the start so there is no scope for any mistake (Dawson, Findlay, and Sparks,

2020).
Market Penetration
In market penetration strategy the companies cater to the needs of an existing market with
the existing products. DVS Shoes can adapt this strategy to improve their relationship with their
customer so that the customer can easily recall their brand which will improve their sales. There are
various ways with the help of which the company can improvise the relationship with their
customer which will be discussed further. The benefit of market penetration is that the DVS Shoes
will not have to do research or expenses for going into new market, here they are already familiar
with the market and customers they just have to improve the relationships.
Firstly they can organize a event where the customers will be invited for playing various
games as well as their products will be advertised there so that they can achieve both the objectives.
The company manager can also visit the event as it will give an impression that the company is
really interested in improving the relationship. DVS Shoes can also organize membership policy
where the member will be getting various offers such as discount, buy one get one free, and various
others. In the membership policy customers can also get various types of gifts which will be based
on the purchase points (Al Hawaj, and Buallay, 2022).
The purchase points which will be allotted to the member will provide discounts on future
purchase which will benefit the customers. This strategy will need time as it will require long term
relationship with the company to earn various points which will lower the cost of purchase in the
future. The membership policy will also allow DVS Shoes to send wishes of birthdays and
anniversaries which will make the customer feel like a part of the family of the company.
Critical Reflection
While completing this report I learned how to apply strategic analysis model which help to
analyse the areas where strategy is needed. During the report I studied about models such as Matrix
for analysing the company. From this, I learned about application of model and various types of
strategies which helps the company to improve its growth. The knowledge I gained from the
learning about those strategies assisted in making decision about the suitable strategies to be
adopted by the company. The company will have to complete these strategies in the upcoming 3-5
years so that the organization can increase their growth rate. Hence, I further learnt about the
decisions related to implementation of strategy within the required time period.
I also learnt the methods to do strategic audit for the company. This provided me with
information about analysis of ratios of the company for determining its performance. I analysed
various ratios of the company such as net profit margin, current assets & return on equity. It helped

me to understand how a company can affect their shareholder's interest. This report also taught me
the ways' ion which each factor like assets or debt and various others can affect the company
position. These factors are responsible for the positive as well as the negative condition of the
company. This report also taught me that what is the importance of managing the assets as well as
effectiveness while selling so that the company will not suffer losses.
I learned about how the suggested strategies will be applied by the company which will help
them to improve their brand image. There are various techniques I learned while trying to apply
those strategies such as how a company can improve the quality of products, what will the reason
for improving the position of the company in the market. I learned how can a company can change
its weak areas in the gaining areas so that they can improve their position in the market. I also
learned about various products of the company so that it will help to analyse the problem which is
to be corrected to increase the profit. I further learnt about the aspects of making a report and its
appropriate structure. I also learnt about the writing style to be adopted while making the report.
Conclusion & Recommendations
It is concluded from this report that the financial position of the company is not beneficial
for the performance of the business and it needs for which they have to change various factors. This
report shows that model is applied to grab the knowledge of the weak points of the companies.
There are various strategies suggested in the report which will improve the growth of the company.
Those strategies are market penetration, market development & product development which will
help the company to improve its position in the market. There are various ways suggested which
will help the company to fulfil those strategies.
It is recommended to the company that:
 DVS Shoes should utilize their cash balance effectively so that they can generate income of
the company which will help to improve the position of the company.
 DVS's shoes should employ the workforce who are efficient while they sell their products
which will improve the revenue and profit of the company. Improvement in the profit will
also ensure that the shareholder's will start investing in the companies which will provide
funds to the company.
 If DVS Shoes want to improve their business performance than they can also do some
innovation in their products which will generate sales for the business. This generated sales

will increase the profit margin as well as improve the customer base.
 They can also reduce the cost of utilities or prices of the products so that they can start
getting profit for the company. This will help the company in many ways as it will be
beneficial when they are implementing the strategies.
 DVS's shoes should improve their raw material as well as its cost so that they can provide
good quality of the products at affordable prices to their customer. They can also appoint a
manager who will analyse the quality of the products so that it will help them to fulfil the
needs of the consumer. This will also help them to improve the financial performance.
 DVS shoes can also improve their range of the products in the market which will ensure that
the customers will not shift towards their competitors.
 Targeting strategies should also be improved as they are not giving justice to their present
target strategies. It can be done after they provide their products to every target market,
research about target areas will also help them.
 DVS shoes while accepting various customer relationship strategies should improve their
relationship. As the customers are losing their interest in the company with various reasons
which is mentioned in the report.
 The profit of the company can also be improved if the company is organizing a event where
their new products range is shown. This event will increase the interest of consumer towards
the company when they will see the innovative products of the company. This is beneficial
because in advertisements consumers doesn't have belief on the quality of the products
offered by the company.

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Online References
ANNUAL REPORTS. 2022. [Online]. Available Through:
<https://www.sequentialbrandsgroup.com/annual-reports-and-proxies>.

Appendix