Thursday, August 8, 2019

Business strategy of the footwear company Essay

Business strategy of the footwear company - Essay Example The study will start with an insight into the company’s performance. In this case the data shows the performance of each of the eight companies under the footwear industry. The performance is rated against the investor’s expectation. Investor set the target for the performance of each company over a particular period, and in this case it is one year. From the information gathered most of the companies are quite scoring well on the scoreboard by exceeding the investor’s expectation and as such earning some bonus point. The company leading with the highest point is the bold footwear company which up to date is shown having 6 bonus points. Looking at some of the scoreboard performance over the few years, we see quite a fluctuation with companies showing a positive trend by increasing from the previous year’s while others going down the trench. Significant of this is the last year. That is year 20 where all the companies showed a significant reduction from the previous year. But something to note is that there is quite a good trend in the industry since the companies show quite good performance higher than the expectation of the investor. The earning per share shows quite a starling performance for three companies, company B, E, F. This is by the fact that these companies are scoring high above the investors’ expectation on the EPS. Greatly performed is company B with an average performance of above 15 while the other two have an average performance of between 2 and three. ... The other companies are performing quit below the expectation, with company H having the lowest weighted expectation. These results are replicated on the stock price per share and the return on shares. It is quite evident to mention that, there is a great correlation between these three because the company scoring high on the ROE similarly scores high on EPS. The credit rating shows a starling performance for three companies A, B, F, all of them scoring an A. That is high beyond the expectation of the investors. The other companies’ though not scoring that high, they are still within the range of the investors’ expectation. The image rating only gives three companies scoring beyond the expectation in the period of ten years. Page 4 of the report gives an insight on the company’s production and how they have been fairing in the market. The rate of production is compared against the consumption and rejected items. The rate of rejected production seems to be reduced and maintained below five percent in the last five years, but there appears to be a significant change in the year 20th year were the percentage moved up beyond 5 percent, on the footwear production. Page five of the report is a look at the financial performance that is the profit earning of each company. The records show quite a level performance at year 10. All the companies have a similar performance. At year 14, there is quite a very significant change with company B scoring a very high net profit while company H is scoring losses. The trend is replicated in the subsequent years with company B having the highest profit level while company F still scoring the great losses. It would be clear to mention that the decisions made by the companies H are the ones

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