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Strategic Management, Task 2

Analysis of strategic decision-making in various business scenarios.

Ava Martinez
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Strategic Management, Task 2Subject:Strategic Management, Task2A. Analysis of the success of thecompanyinstrengthening or compensating for resourceweaknesses at a key point during thefirst yearof the simulation.The team involved in the simulation process of the company was not very successfulinall aspects of the simulation for the first year.The analyst failed to forecast the operatingexpenses of the company and the consequence of whichcould bethe highlycost short andmedium term emergency loanrequirement.But thecompany got revivesfrom this due tothelarge amountofcash balance holding fromprevious year.Also, the analyst team was muchambitiousregarding the selling strategy of the companyin the internet sale.The ultimate result ofwhichwas the low revenueincomethantheexpectationandthe negative impact on the operatingprofit of the company for the first year(The revenue from the internet segment declined to$36295000 from $41905000).Income StatementConsolidated Income Statementyear-14year-15( Year 1)year-16( Year 2)year-17( Year 3)year-18( Year 4)year-19(projected)Gross Revenues:$000s$000s$000s$000s$000s$000sInternet419053629560690572056512079376Wholesale230013237953231589241949230903225345Private-Label50752952240660000Gross Revenues from Footwear Sales276993303770332939299154296023304721Exchange Rate Adjustment5666-6057294282-10764-1201Gross Revenues from Footwear Sales282659303165340233299436285259303520Operating Cost:Cost of pairs sold144937154491160715136910134447136624Warehouse expenses183941963722295204612076122578Marketing Expenses387413552145504416784329740983Administrative Expenses857686378698876588308898Operating Profit (Loss)7201184879103021916227792494437Interest Income (Expenses)-9955-8909-5052-1669092713Other Income (Expenses)-720-849-1030-916-779-944

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Business Management

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