1. TOP MANAGEMENT TEAM OF
Industry 43 Team A

2. Top Management Team Andy Johnson BJ Granack Anna Neugent
Business Administration
Concentration in Marketing
Graduating December 2010
BJ Granack
Concentrations in Info. Technology and Marketing
Graduating May 2011
Anna Neugent
Concentrations in Finance and Marketing

3. Intensity of Competition in Industry 43
5-Forces Analysis
Intensity of Competition in Industry 43
Competitive Forces
Power of Force
Reasoning
Suppliers
High Power Threat
The Cost of Superior Materials has continually increased in congruency with the demand
Buyers
Low Power Threat
The supply in this industry is not meeting the demand of the customers.
Substitutes
Customers are unable to substitute the capabilities of athletic shoes with any other type of shoe.
Rivalry
Moderate Power Threat
Customers buy frequently and in small orders. However, as the years have gone by rivalry has increased in our industry.
Threat of Entry
There is not opportunity for other companies to enter this industry in the BSG industry.

4. Strategic Group Maps (Year 17)
Europe-Africa
North America
Asia-Pacific
Latin America
North America
Year 15

5. Key Success Factors In the BSG: In the Footwear Industry:
Production Capacity
Low Internal Cost
S/Q Rating
In the Footwear Industry:
Production Capacity
Low Internal Cost
Good Brand Image

6. Response to Strength Assessment
Strength Assessment from TNT (Company 42 A)
Inventory Turnover
Higher than industry average because of accurate sales forecasting and the production to match in order to not create a large inventory surplus or shortfall
Scale of Operations
Over the past few years the production capacity of each company in our industry has been growing. We have increased capacity in year 15 and year 16 in order to meet the product demands of our customer and not fall behind our industry rivals
Manufacturing Efficiency
We have upgraded our 2 main plants with both Option A (Reduce Reject Rate) and Option C (Equipment Upgrade) in order to not only create more shoes our customers can wear, but to create better quality shoes at the same time

7. Response to Financial Performance
Capacity Available for Year 16
Financial Performance chart from TNT (Company 42 A)
Factors Contributing to Decreased Performance in Year 15
Use of Superior Materials
Over the past 6 years the average cost of superior materials has increased 9% over the base price ($12)
5-Year Loan
In year 15 we took out a small loan in order to cover the cost of:
Increase in plant capacity in order to meet growing customer demands
Increasing cost of superior materials (largest annual increase in Year 15)
Allow us to buyback a small portion of our stock to reduce negative effects on EPS and ROE
Our credit rating in Year 15 was, and still is, an A+

8. Response to Recommendations
Wholesale Supplier Relationship
We currently utilize all of the available retail outlets
In order to maintain a favorable relationship we have increased both advertising and retailer support
Issuance of Dividends
The issuance of dividends is not the top priority for our use of capital. Due to our differentiation strategy, the majority of our funds are tied to ensuring our product is not imitated. We do, however, realize the importance of issuing dividends and will try to allocate more funds to it in the future

9. Looking Forward..
In order to maintain shareholder value and the continuance of profitable revenues, we will take proper action to sustain our competitive advantage as a differentiator in Industry 43 based on our current strategy and the recommendations from Industries 42 and 44. K-Powers Footwear Inc.