1. Cornel Daniel Gherman GB-574 – International Managerial Competencies Dr. James Wood

2. REVENUES EPS ROE CREDIT RATING

3. STOCK PRICE IMAGE RATING GLOBAL UNIT SALES MARKET SHARE

4. STRATEGIC VISION

5. PERFORMANCE TARGET FOR THE NEXT TWO YEARS Previous years show increases in performance year over year. EPS ($) ROE (%) INV. EXP. = INVESTOR EXPECTATION. ACT. RESLT. = ACTUAL RESULTS STOCK PRICE ($/SHARE) CREDIT RATING IMAGE RATING

6. INTERNET MARKET – competitive strategy The Internet retail price up until year 17 the company’s price was the highest in the industry at $76.75 per pair across all the geographic regions. This price has increased year over year. -The S/Q rating (stars) was also the highest at 5 starts for Y11-Y17. -Models offered, and celebrity appeal were also competitive advantages. -Advertising varied by years depending on competition and demand.

7. WHOLESALE MARKET – competitive strategy Competitive advantages in this segment were: s/q rating, rebate offers, retail outlets, and celebrity appeal. NORTH AMERICA EUROPE – AFRICA

8. WHOLESALE MARKET – continued ASIA – PACIFIC LATIN AMERICA

9. PRIVATE LABEL – competitive strategy -The advantages of the Private Label segment were the high demand in North America and Europe-Africa regions. The company dominated the market there. -The S/Q rating also has increased from 4 to 5 starts. 5 stars for the last 4 consecutive years. -All the pairs that were offered were sold, there were no rejections. Initially (Y10) there were 185 pairs offered/sold and there were 1100 pairs offered/sold for Y17. An increase of 594.59% -The market share has also increased year over year starting with 20% in Y10 and reaching 66.5% in Y17.

10. PRODUCTION STRATEGY -The strategy here was to work just with the two plants that were set up first, the North America and Asia-Pacific. The only things were the improvement and investment in making them more efficient. -Also the production capacity increased in these two plants to meet demand. -In Y15 a new plant was built for the Europe-Africa segment producing 1,000,000 pair. -Y17 new plant production in Latin America with 1,500,000 pairs, totaling 12,400,000 pairs from all the plants. -The pairs of shoes that were produced in overtime were mainly used for the private label segment. -The compensation for the employees has increased year over year across all the regions. -The quality in materials and the TQM/6 Sigma quality program has been implemented and has increased yearly. (Thompson, A., Stappenbeck, G., Reidenbach, M. (2010).

11. FINANCE STRATEGY -Dividend offered: -Y13 - $0.10/share -Y14 - $0.20/share -Y15 - $0.25/share -Y18 - $0.25/share - Actions taken to achieve/maintain a strong credit rating was to not have any debt, and when possible to sell stock instead of borrowing or buying stock to increase ROE and EPS. NET PROFITS

12. COMPETITORS - Years 16 and 17 INTERNET MARKET DiaFol Footwear WHOLESALE MARKET – MARKET SHARE Diafol Footwear PRIVATE-LABEL MARKET – MARKET SHARE Companies B, C, and E in North America Y16 and Y17 Companies B, C, and E in Europe-Africa Y16 and Y17 Company DiaFol Footwear in Y16 with 100% and Y17 with 69.6% in Asia-Pacific Companies B, C, and E in Latin America Y16 and Y17 with 33.3% Both years, 16 and 17, this company has beat company A in pairs sold and slight increase in market share. Company A’s advantage in both years were the S/Q rating and celebrity appeal in some areas.

13. ACTIONS TO OUT-COMPETE THE RIVALS – for all geographical areas 1. Corporate Citizenship – awarded 1 Gold Star in Year 17 and 18 - participate in corporate responsibility actions like energy and green materials 2. Sales forecast – keep marketing efforts as low as possible, but maintaining a high S/Q ratio and high celebrity appeal 3. Plant capacity – increase capacity as needed to meet demand 4. Branded production – increase compensation and training, styling, superior materials 5. Internet marketing – reasonable online price to increase market share 6. Wholesale marketing – 6 Star S/Q rating, reasonable wholesale price to increase market share 7. Celebrity bids – keep the current contracts and keep biding to obtain contracts to increase celebrity appeals 8. Private-Label operations – keep a high S/Q rating and use overtime production 9. Finance and cash flow – keep repurchasing stock and give out dividends

14. -Keep up with the international demand -Keep prices reasonable -Offer high quality products -Corporate responsibility is important for the image of the company -Use finances wisely to keep a high credit rating -Offer retail support -Compensate employees and give good incentives to keep productivity high (Thompson, A., Stappenbeck, G., Reidenbach, M. 2010). -Make all the necessary efforts to increase investor expectations, EPS, and ROE

15. REFERENCES Thompson, A., Stappenbeck, G., Reidenbach, M. (2010). The business strategy game: competing in a global marketplace. Playes’s guide. 2010 Ed. McGraw-Hill Irwin. Burr Ridge, IL.