Problem
The company is a prominent player in the athletic footwear market and also serves as a key supplier of quality athlete footwear. The business is currently selling over five million pairs annually. The main problem faced by the company was that its operational activities were not efficient. The past few years have not been good for the company, and the board of directors suggested increasing the return on sales would help in increasing the efficiency.
Analysis
As a CEO, I have proposed a plan that involves revision of strategies such as product design, R&D, sales, production operations, value chain and finance. The major concern for our company is that of profit and the decreasing return on sales. Since all the footwear companies have the same market share, the company needs to renew the strategies to increase the return on sales. The profit problem stems from the old school traditional techniques incorporated by the company. It is opinionated that the business needs to expand its administration department or form a committee to work on the ideas and strategies to eradicate the profit problem.
Integration
The managerial decisions are taken by prudent managers to make our company number one in the market. Since the market for athletic footwear is vast and securing position in the competitive market is not an easy task. The business needs to take an immediate action to make sure that the company survives in the competitive market. As a CEO, I need to make decisions relating to corporate social responsibility, branded and private label footwear, the addition or sale of plant capacity, up gradation of the existing plant, worker compensation, pricing, marketing, bids to sign celebrities to endorse footwear, and the financing of company’s operations. Currently, business profit problem is stemming from the reduced return on sales because the company has not addressed these elements in a proper manner (Glasgow 5).
Solution
Online branding of the footwear is another source of profit problem, since our company lacks online branding department, therefore the company needs to make sure to do online branding and maintain a website to increase return on sales. If our company carefully works on the pricing and marketing strategy, then it can easily increase return on sales and satisfy the board of directors. The company faced issues in getting the desired return on sales because of not properly advertising the product. The company needs to improve its marketing strategy and deliver higher value to its customers. However, it is expected from the company’s management to implement the strategies and change the strategies according to the demand for athletic footwear in the competitive market.
The company is also focusing on research and development department to increase the return on sales. Initially the work on R&D was not advanced therefore, the company has decided to work on the R&D to increase the efficiency in the operational activities. The department is focused in producing contemporary and comfortable footwear for the valued customers. The strategy will help in the growth of the company. The business can also reduce profit problem by increasing the pool of suppliers to avoid problems stemming from supply chain. The company will focus on the value chain so that value is created for the products at every stage and the entire management of the goods is done efficiently. With every new season, the footwear company comes up with the new design, performance features and alters the number of models in the product line-up to enhance the return on sales. The company is working more on such efforts to enhance the sales volume and standing against the competitors. The company is focusing on increasing the shares by renewing the financial statements. Since adults and children widely accept athletic footwear, the long-term market growth is promising (Glasgow 7).
Boss Footwear focuses on the advantages of athletic footwear and the potential of the market growing over the time. Therefore, the company seems adamant about implementing all the strategies. It can be concluded that the business can increase its revenue by carefully planning the company’s strategies and gain a significant position in the market. The company is working on the business to increase the sales by effective marketing of the product, producing more quantity than before, revising the financial statements, and other operations.
Works Cited
Glasgow, Roy. Business Strategy Game Guide: A 10 Page Quick Guide of All the Points You Need. Raleigh: Lulu.com, 2014. Print.
