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Strategic Plan for Fit Ltd

   

Added on  2023-03-31

7 Pages1873 Words474 Views
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The Business Strategy Game (BSG) organizes students into small groups as co-managers
leading their company’s business strategy through a “real life” simulation leveraging a series of
market forces to provide continual feedback. Students will create 2 three year strategic plans.
The first plan will be created Week 4 (after Simulation Years 11-14 are completed) and guide the
company through their Simulation Years 15-17. The second strategic plan will act as a synthesis
of all of their learnings over the ten years of simulations and cover the next logical steps to
continue building the company’s success over Years 21-23
Basically, the sections below was the first plan (Year 15-17) but the professor said we
could use it for the second plan as well but the second strategic plan and will act as a synthesis of
all learning over the 10 years of the simulation and cover the next logical steps to continue
building the company’s success over Year 21-23. The components of this paper will be the same,
but most of the sections will be similar but shouldn’t be the same. I am looking for your
individual descriptions in your Executive Summary(1/2page), KPIs(1/2page), Goals(1/2page),
team(1/2page), Operation plan(1/2page), competitive analysis & Advantages(1page),
Conclusion(1/2page).
These were done in a group, but my professor wants an Individual description. See components
and sections of the paper below, Thank You!
Goals and KPIs shouldn’t be bullet listed
Strategic Plan for Fit Ltd_1

Executive Summary
Fit Ltd manufacture, distributes and sells shoes and other footwear. The company target a
diverse market ranging from children to adults in athletics. The company competes with various
other producers in the industry whose products offers perfect substitutes to its products.
Nevertheless, Fit Ltd has identified its niche geographic regions of operation, and hence, it
operates in North America, Latin America, Europe, Africa, and the Asia Pacific. The company
has established its plants in North America and the Asia Pacific as the most strategic for
operations. To get through intense competition, the company engage in Branded Production,
Production Facilities, Celebrity Endorsements, among others but harness internet and the whole
market. The management began trial marketing in 2014 using Private Label Operation. However,
it was a risky approach, and the future strategy was needed to mitigate any threat that might
arise. The company made a gross sale of $470 million by selling over 2 million units, had EPS of
2.63 and ROE of 22.3% in the first year of operation. Surprisingly, the demand went up higher
by 1.5 percent than anticipated.
Fundamentally, the company devised various strategies to keep up with the competition
and create growth. The main goal was to increase the market share in regions of operation by
more than 50 percent. The company intends to achieve this by increasing the production of
various shoe brands, use six sigma quality and selling at affordable prices and conveniently by
use of the internet.
Goals
Fit Ltd leveraged the advantage of Opportunistic Approach Strategy that position it as
high quality and affordable products. The primary goal is to make quality shoes at affordable
prices for the target market. The company required an ambitious, competitive strategy that will
Strategic Plan for Fit Ltd_2

keep it afloat in the coming years. As such, Fit Ltd will need to increase Net Revenues, net profit,
and EPS by at least 14%, 20% and $10.04 respectively in 2015. It also aims to increase net
revenues and net profit by 7 percent and EPS by 8 percent in the following years. The
management target to exceed investors’ expectations to 36 percent besides increasing stock price
by 7 percent every year.
Additionally, the company’s organizational strategy is to apply price dynamics, balance
S/Q ratings, and high capacity production to keep up with the high sales and demand. Consumers
will receive low-cost and high-quality shoes and the convenience of online shopping and free
shipping. The strategy will ensure higher sales and higher net profits. Also, the company will
engage in repurchasing maximum available stocks to increase EPS and ROE.
Key Performance Indicators
The company will need metrics to measure the performance of its strategies to take
appropriate measures. The key performance indicators will help the company evaluate and have
control of its future. The main aim is to keep up with the trend o beyond the investors’
expectations. Among other indicators, the main one includes higher and increasing net revenue
and profits and increase in market share in the regions of operations. The company will ensure
rising trend revenue, profits, and market share. The EPS and ROE should always exceed the
investors’ expectations besides having higher credit and image rating of at least A-rating.
Competitive Analysis and Advantages
Fit Ltd has been performing well in the previous year. The company had a higher market
share, net profits, and sales compared to Rea Company in the four areas of operations. As such,
the management will be committed to using a mix of strategies to maintain being competitive in
Strategic Plan for Fit Ltd_3

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