BSG is an online exercise where you manage an athletic footwear company in competition against companies run by other class members. The marketplace is worldwide — production and sales activities can be pursued in 4 regional markets: North America Market, Europe-Africa Market, Asia-Pacific Market, and Latin America Market. And in each region there are 3 market segments: 

-Internet Segment (online footwear sales direct to retail customers)

-Wholesale Segment (footwear sales to local retailers)

-Private-Label Segment (unbranded sales to large retailers)

Company Situation

All companies start out in the same position with equal sales volume, market share, revenues, profits, costs, and so on.

Each decision-making round represents one year of company operation. There are 10 years of history and you will assume

management of the company beginning with Year 11. In Year 10 the company had:

-Sales Revenues of $433 million 

-Return On Equity of about 20%

-Net Profit of $40 million 

-a Stock Price of $30.00

-Earnings Per Share of $2.00 

-a Credit Rating of B

 The company is in sound financial condition and is performing adequately.

Question:

Amax Footwear is an athletic footwear company in competition against 9 other rival companies (the industry). The company has operated for 10 years. Throughout the BSG, Amax has stayed near the bottom of the scoreboard for most of the game, consistently at 7th or 8th place. However, towards the end of the game, Amax seems to have miraculously turned around their misfortunes. By year 20, they end the game at 5th place. Look at the graphs below and explain how the company could have possibly solved their issues.

   

Transcribed Image Text:

S/Q Rating 10.0 8.0 6.0 4.0 2.0 0.0 North America 11 12 13 14 15 16 17 18 19 20 Year AMAX Indutry AVG S/Q Rating 10.0 8.0 6.0 4.0 2.0 0.0 North America 11 12 13 14 15 16 17 18 19 20 Year AMAX Indutry AVG

Answer rating: 100% (QA)

Based on the graphs presented we can make several observations to understand how Amax Footwear managed to improve its position in the industry from be... View the full answer