Strategy Effectiveness and Idealism - Assignment

KICK SHOE COMPANY
Investor survey.
Name: XXX
Finance Manager
Name: XXX
Operations Manager
Name: XXX
Marketing Manager
STRATEGY
Category Focus area Review
Strategy
impact
Strategy effectiveness and
idealism
Did the company strategy for year 13
have any impact?
-Yes
If so what? If not, why?
-The company in year 13 through its laid
out strategy was able to:
a) Increase revenue generation

b) Increase the plant output
c) Increase per worker out put
d) Positively improve its credit rating
e) An increase return on equity
f) Expand the plant’s production
capacity
g) Increase the cash in hand by end of
business year 13.
Was the strategy ideal to the company?
Comment:
- The strategy was ideal for the company
visions of positive contribution and
productivity.
Strategy ;
a) Quality
improvement,
b) Increased worker
training,
c) Checking expenses
d) Promoting product
awareness
e) After sale services
to increase retailer
support
Was there a Strategy change?
- The company strategy laid at the end of
business year 12 was adopted all through
year 13
Why was it so?
- Kick Shoe company adopts a product
oriented approach in business and
therefore focuses on maximizing
product quality through utilization of
available resources. In line, we focused
on increasing quality through worker
training and investing more on the
sigma project.
- In year 13 we had a minimalist expense
approach with which we intended to
achieve year 12 goals.
Comment:
- At the end of every financial year,
Kick Shoe™ lays a strategy for
succeeding year for what the
company should take as its next
step and the strategy include
what the company believes in.
“Quality and affordability, for
sustainability.”
-
FINANCE
Category Focus area Review
Balance
sheet
Balance sheet:
a) Checking
balance
What was the Company’s year 12 cash position?
Comment:

b) Balances
summary
c) Bookkeeping
- By end of financial year 13, the company had
$326,299,000 cash in hand
Is your company in funds or in overdraft?
Comment: In funds
By how much?
Comment: The company has an excessive cash
carried on from year 13 of $326,299,000
What was the causal influence?
Comment:
Diversity and the need to be dynamic.
- Current changes in technology and
emerging business trends require shift in a
company structure so as to be able to
understand the market and act accordingly
to stay relevant and up to par. We adopted
advertising policy to increase our sale and
market share. With $326,299,000, we can
be able to finance our cash demands
beginning financial year 14.
Was the cash in hand from previous year
utilized?
Comment: We ventured to invest in quality
and product promotion to boast our sales, so
yes the funds were fully utilized
Profit
and
loss
Company’s profit loss
statement
a) Company view on its
profit and loss
returns
b) Strategy to boast
profit returns
Were there revenue generation initiatives for sales
generation?
- The company adopted an increased product
output strategy to make available the products in
the market, this availability of product influenced
customer access to product and hence boasted out
sales, which in turn increased profits.
Were there any specific Initiatives for expense
control?
Comment:
- The revenue generated increased in year 13
compared to year 12, we cut administrative
expenses and celebrity endorsement costs, the
worker incentive in Latin America and Asia
Pacific remained the same for year 13. We
therefore managed to boast revenue returns and
increase net profits for the company after

checking on excess expenses.
What was the company net profit %?
Comment:
- The company recorded a net profit of $29,389,
000
What was the company’s net return?
Comment:
- In year 13 the company revenue stood at
$ 309,451,000
Sharehol
ders
return
Shares growth and
profitability:
a) Earnings per shares
b) Shares quoted
c) Shares sold
Was there a share buyback in financial year 13?
Comment:
No
What was the impact on Earnings per share?
Comment:
The earnings per share decreased from $3.17 to
$3.03
Dividend
Dividend payment for 3-
year period year 10-13
What dividend policy did company adopt?
Comment:
- In year 11, we adopted a 25% dividend
increase per year policy, in that year the
dividend rate was $1.2 per share, in year 12,
however, in year 13 there was no dividend
payouts.
Did the policy hold in year 13?
Comment:
Yes
Is there any plan to change that in future?
- Once the optimum rate of dividend earning is
attained, we will revise the dividend policy, to
be idealistic to both the company, its
philosophy and the shareholder..