Blair Cannon Nikita Gowin Joey Fleming

North America

Europe-Africa

Asia-Pacific

Latin America

BEST in Industry KSF- (FIRST ranked team) Economy of Scale  Costs/total assets $352,929,000/$832,080,000=.42 Lower EOS is better with growth strategy  Increased operating capacity  Built new plant in unsaturated market Maintaining 3 manufacturing plants in 3 different regions First mover’s into the Latin America region  Leads to lower costs/expenses per unit More effective and efficient operations  Leads to more profit and increased profit margin

BEST in Industry KSF- (FIRST ranked team) Celebrity Appeal  Multiple long-term contracts with celebrities  Effects: Increased branded sales volume Increased market share Increased image rating

BEST in Industry KSF– (FIRST ranked team) G* (index of sustainable growth)  G*=(1-dividend payout ratio)*ROE G* = (1- 387/73174)30=  Higher the G* the better it is for growth  Long term financing/debt Used funding to increase capacity and equipment allowing for economy of scale  Financial leverage also helps in magnifying ROE

BEST in Industry KSF- (Last ranked team) Economy of Scale  Costs/total assets $150,985,000/226,390,000=.67  Have not achieved Economies of Scale  Increased their spending but not enough to meet Economies of Scale

BEST in Industry (LAST ranked team) G*(index of sustainable growth)  Have a low G* because of their low ROE  G*=(1-dividend payout ratio)*ROE  G*=(1-0)*6.4= 6.4  Compared to the first ranked company who has a G* equal to 29.84

BEST in Industry KSF- (LAST ranked team) Celebrity Appeal  Have 2 celebrities in Europe, but not utilizing European market.  Not taking enough risks with investing in advertising. Only increased by 1000  Effects: Increased market share in internet Decreased market share in wholesale Lost sales increased significantly