Business Strategy Game (BSG) Strategic Plan: Years 21-23 Analysis

This project presents an individual strategic plan for the Business Strategy Game (BSG), focusing on Years 21-23 of a simulated business environment. The plan includes key components such as an executive summary, outlining the company's performance, target market, and strategic approach. It also defines Key Performance Indicators (KPIs) to measure success, and sets specific, measurable goals for revenue, profit, and market share growth. The project analyzes the team's structure and management roles, and details an operations plan to increase production capacity, improve efficiency, and maintain competitiveness. Furthermore, it provides a competitive analysis, comparing the company's performance against rivals across different geographic regions and identifying strategic advantages. The plan incorporates learnings from the previous years of simulation, with the intent of synthesizing these insights into a robust plan for continued success. The plan focuses on maintaining and improving the company's market share, profitability, and competitiveness in the footwear industry.

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

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

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

the industry. Mainly, below is the comparative competitive analysis between Fit Ltd and Rea
Company performance in the four regions of operations.
North America
Both companies target the internet market. Rea Company acquired 33.4 percent of the
internet segment, which was higher, with 7.7 percent than that of Fit Ltd. Rea won big in this
segment because of the long-term goodwill it has created with its customers by offering low
online prices over the years as compared to Fit Ltd which has been in operation for less than two
years. Besides, Rea Company had been offering free shipping to online shoppers for years, which
led to having a larger market. Rea company also won in the wholesale market by 7.1 percent
higher than that of Fit Ltd. The management noted that Rea Company has been offering a
wholesale price of $6.5 less than that of Fit Ltd. Rea company also managed to win in the
wholesale market by using various models compared to other companies in the industry and
hence made its products sell high in the market.
In this regard, Fit Ltd will require to keep up with various strategies like offering free
shipping and more brand awareness to remain competitive. Also, to avoid losing big in the
wholesale market, Fit Ltd should work to reduce fixed and overhead cost to lower overall prices
to a competitive level. Intense internet marketing will also help to keep up with market trends.
Europe-Africa
Fit Ltd performed well in the internet market share in this region. Over the past years, it
has outperformed Rea Company in market share in terms of sales and services. The gain was
derived from less spending on advertising and less S/Q rating. The market share in the wholesale
market is also higher by 10.2 percent for Fit Ltd than Rea Company in Europe-Africa. Lower

wholesale prices and quality models contributed to the higher market share compared to
competitors.
Fit Ltd will require to keep up with various strategies like offering free shipping and
more brand awareness to remain competitive. Also, to avoid losing big in the wholesale market,
Fit Ltd should work to reduce fixed and overhead cost to lower overall prices to a competitive
level. Intense internet marketing will also help to keep up with market trends.
Asia-Pacific
The company performs very well in this region with internet segment market share
having 25 percent higher than Rea Company. The broader market is attributed to low retail
prices, online brand awareness, and the use of better models. On the other hand, the company
gained 33.2 percent of the wholesale market, which was 10 percent higher than Rea Company.
The Private Label segment acquired 37.3 percent of the wholes sale market. The competitive
advantage was attributed to the higher investment in brand awareness like advertising, relative
higher prices to cut down the demand so that we can meet the supply vs. demand expectations
Latin America
Like in other regions, Fit Ltd performed well in both internet and wholesale markets in
Latin America. The company applied similar strategies used in other areas which have been
proved to work better than rival companies. However, online marketing and sales as well as free
shipping needed to be intensified to continue capturing the significant market in both segments.
Most importantly, need to maintain three-years growth in all regions and in so doing it will need
to take every step elaborated in each of the areas. The strategies will ensure the company remains
profitable and competitive in the industry.

Team
Fit Ltd performance for the previous years is commendable relative to others in the
market. The company will need a stable management team to maintain growth and
competitiveness. As such, the company has four managers co-managing with each of them
having specific dispensation and roles. The management does not see the need to increase the
number of the management team in the next three years. Also, there was no need to change the
existing management structure since changing it will affect critical decision making when
employees adjust to the new structure. Instead, the current structure and management should be
maintained for the company to have sustainable performance.
Operations Plan
The company’s strategic plan is to remain competitive in all areas of operations. The idea
is to produce quality shoes that are affordable at competitive prices. As such, the management
has devised an operation plan to focus on increasing the market share, competitive advantage,
and high profitability.
The company intended to increase profitability by 7 percent. Therefore, the management
decided to increase production capacity in North America, Asia-Pacific, and acquired robots to
help in production. The use of the machine-assisted output aims to increase production by 50
percent in the following years. The higher performance in productivity and sales will
subsequently increase profitability. As such, EPS and ROE are high when the profits are high.
The performance can also be boosted by repurchasing shares of stock or taking credits to
increase cash flow.
The company opened 2000 capacity facility in 2015 in Europe-Africa region to contain
the fluctuations in shipment tariffs. The decision was vested on the tremendous increase in the

shoe market in this region, which has doubled over the previous years. Notably, the company has
invested in the private labels segment, which has high growth prospects. The company project
growth in the private label market is higher than that of branded footwear in the future. The
management has observed that private label contracts are fetching higher profits in the market.
Thus, the segment has the potential of full capacity production, which helps spread the fixed
costs, increasing total production worker compensation, and enhancing the company’s
profitability, brand reputation, and overall performance.
Conclusion
Although Fit Ltd has not been performing consistently in the previous years, it has
tremendously increased its global market share and hence meets investors’ expectations. The
company focuses on acquiring spaces for use in future and establishing regional facilities like
Europe-Africa help reduce on costs of shipping while lowering prices to more competitive levels.
The focus on the production of model products and selling at lower prices is critical in building
on broader market and high sales and revenues. The company will maintain its S/Q rating by
continuing to produce quality products for price and increase investment in private label
operations to boost EPS and ROE further.