Strategic business plan for year 11-13

Company: GWOP

Report by
Pranay Patel 1482457
Sunil Reddy kundavarm 1479275
Company Mission
To be a leader in the athletic footwear industry by
maintaining a sustainable business model & focusing the
need of the customer.

Mission
GWOP will focus on producing the best quality athletic
footwear for a reasonable price throughout the world.

Company Strategy
Gwop strives to be the industry's lowest-cost maker. With
this approach, Gwop can gain a cost advantage over other
major players and seek to provide wide-ranging quality
products on the market. The aim is to create large-scale
goods that allow businesses to leverage economies of scale.
Objectives

YEAR 11 YEAR 12 YEAR 13

EPS $2.75 $3.3 $4

ROE 22% 24.2% 26.6%
STOCK PRICE 40 50 65
CREDIT A- A A+
RATING
IMAGE 70 75 80
RATING

One of the main objectives of the company is to satisfy

needs of the shareholders by achieving Earnings per share(
10 %) per annum for following years, Return on Equity is
projected to grow from 20% year 10 to 26.6% in year 13,
company we also focus on credit rating for better bank rates
and setting up a goal to get A+ in year 13. Considering a
socially responsible GWOP will taking steps towards CSR in
the following years.
Total Production Cost

REGIONS YEAR 11 YEAR 12 YEAR 13 INDUSTRY

AVG.
NORTH 23 22 21 23.98
AMERICA
EUROPE 0 0 0
AFRICA
ASIA 20.15 19.15 18.15 21.15
PACIFIC
LATIN 0 0 0
AMERICA

To reduce the production cost, GWOP focusing to adopt

additional equipment resulting in lowering the overall cost of
the production process aim is to achieve low running costs
below the industry average cost.
Distribution and Warehouse Costs
($ per pair)
REGIONS YEAR 11 YEAR 12 YEAR 13 INDUSTRY
AVG.
NORTH 5.6 5.2 4.9 6.12
AMERICA
EUROPE 12.7 12.1 11.6 13.27
AFRICA
ASIA 6.1 5.7 5.2 6.59
PACIFIC
LATIN 17.1 16.5 16.0 17.59
AMERICA

To achieve competitive advantage on price GWOP will

emphasis on reducing the distribution cost by selling more
products in North America and the Asia Pacific as demand
for shoes in high in that region the production will be high
that regions to avoid risk from the exchange rates and will
also reduce the distribution costs.
Internet Segment-Marketing Expenses

REGIONS YEAR 11 YEAR 12 YEAR 13 INDUSTRY

AVG.
NORTH 15.83 14.71 13.54 21.68
AMERICA
EUROPE 17.76 16.50 15.13 23.33
AFRICA
ASIA 21.79 20.27 18.53 28.22
PACIFIC
LATIN 21.46 19.95 18.21 27.89
AMERICA

The above showed figure can be achieved by reducing the

expenditure spend on the search engines adverting. With this
company will aim to achieve a competitive advantage in the
market.
Reject Rate
REGIONS YEAR 11 YEAR 12 YEAR 13 YEAR 10.
NORTH 3.5% 3.5% 3.5% 7.0%
AMERICA
EUROPE
AFRICA
ASIA 5.0% 5.0% 5.0% 10.0%
PACIFIC
LATIN
AMERICA

Rejection rate plays a vital role in production costs as aim to

reduce it by more than 50% from year 10 by adopting six
sigma quality program and purchase of new equipment in
Asia pacific will help to reduce rejection in that region.