Performance Targets Y14 - Y16 Help Print Save Plan STEP 2: OBJECTIVES / PERFORMANCE TARGETS Your target objectives should be at least as high as investor expectations. Higher scores are awarded for setting objectives and achieving performances that exceed investor expectations. Lower scores are awarded for setting objectives and achieving performances that are below investor expectations. Performance Targets Year 14 Year 15 Year 16 Earnings Per Share (EPS) 0.00 0.00 0.00 Return on Average Equity (ROE) 0.0 % 0.0 0.0 % Stock Price 0.00 $ 0.00 0.00 Credit Rating ? ? ? Image Rating 0 0 0STEP 3: STRATEGY FOR ACHIEVING PERFORMANCE TARGETS Which of the following best describes the generic competitive strategy that company management intends to use over the next three years? What evidence is there to indicate that pursuit of this strategy is currently on track? The company will employ a global low-cost leadership strategy and pursue a competitive advantage keyed to having lower costs and selling both branded and private-label footwear at low prices relative to rivals. The company will employ a global differentiation strategy that sets the company's footwear apart from rival brands based on such attributes as a higher S/Q rating, more models/styles, more advertising, greater celebrity appeal, higher mail-in rebates, or a bigger network of retail outlets carrying the company's brand. O The company will employ a global best-cost or "more value for the money" strategy (e.g., providing 7-star footwear at lower prices than other 7-star brands) where the competitive advantage is an ability to incorporate appealing attributes (styling/quality/selection) at a lower cost than rivals. The company will employ a focus strategy aimed at being a global leader in a particular market segment. The company will pursue a combination of strategies because our approach is not well-matched with any generic competitive strategies. Our company has no consistent competitive strategy - we prefer to "re-invent" our strategy each year to pursue whatever opportunities look most promising. Our plan over the next three years is to continue our "opportunistic" approach to strategy and not commit the company to any long-term strategy or any specific market focus. We like this strategy-for-a-year approach and believe it works well for us.FOR YOU Operating Projections Y14 - Y16 Help Print Save Plan Private-Label Operations Income Statement STEP 4: OPERATING PROJECTIONS BY GEOGRAPHIC REGION Branded Market Performance Historical Operating Performance Company F's Projected Operating Balance Sheet & Cash Flow Year 11 Year 12 Year 13 Performance Footwear Operations in Company Industry Company Industry Company Industry 3-YEAR STRATEGIC PLAN North America F Average F Average F Average Year 14 Year 15 Year 16 Strategic Vision Statement Branded Performance Targets Internet Price ($ per pair) 67.00 71.10 67.00 74.40 71.00 79.76 0.00 0.00 0.00 Strategic Approach Pairs Sold Online (000s) 347 400 367 446 496 501 0 0 0 Operating Projections Wholesale Price ($ per pair) 48.00 48.90 48.00 51.20 50.00 56.08 0.00 0.00 0.00 DATA EXPORT / RESET OPTIONS Pairs Sold to Retailers 2,078 2,055 2,060 2,187 (000s) 1,889 2,269 0 0 Export Options & Data Reset $ 1 2 19 170 Cost Per Pair Sold ($ per 25.33 26.28 25.48 26.02 27.62 27.23 0.00 0.00 0.00 pair Private-Label Instructor Lavoie Price ($ per pair) 32.00 33.21 0.00 36.00 0.00 32.94 0.00 0.00 0.00 Claudie Mae Tawoy Pairs Sold (000s) 200 226 0 202 0 330 0 0 0 Cost Per Pair Sold ($ per 28.14 27.90 0.00 30.85 0.00 28.98 0.00 0.00 0.00 pair) Warehouse Expenses Branded ($ per pair sold) 5.20 5.41 5.27 5.45 5.98 5.58 0.00 0.00 0.00 Private-Label ($ per pair sold) 1.00 1.02 0.00 1.00 0.00 1.03 0.00 0.00 0.00 Marketing Expenses