question
D company
Fill in the template in the files section for the 1st week covering both Practice Years 11 & 12 (1 evaluation covering the 2 years).
ANSWER (edit this section)
1. Describe your main activities for the submissions this past week and how they align with your corporate strategy.
The organization deals with the sale of footwear with different styles. The organization is established to offer the best footwear products in the industry. That is why they offer different size footwear at favorable prices by ensuring they have reduced the cost of production. The organization sells different footwear in different regions globally.
2 Have you adjusted your basic strategy in the past week? If so why or why not?
The organization has to adjust the strategy in the production of footwear. This is to ensure that the expectation of the investor is in line with what will be produced. Investors expect that the business will generate more revenue from the sale of footwear. That is why the approach in production has to be adjusted so that the cost of production can reduce and create room for more profits.
3 Describe your results with respect to the 5 measures below. Goals attained?
EPS- This is earnings per share. The investors expected an EPS of $3 while the organization attained an EPS of $2.4. this means the variance in prices is $0.6 per share.
ROE- The investors expected a 22% return on equity while the year actualized a return on equity of 17.1%. The range may be very high but the organization is making positive returns.
Stock Price – 29.34
Credit Rating- The investors expect that the business is relatively risky with a higher than average chance of default as they anticipated a B+ rating, but it is a fitch rating of A.
Image Rating- The organization’s performance as anticipated by the investors is 72 while the actual ratings are 69. The organization needs to adjust its operations to ensure the goals are met efficiently and effectively.
5 Comment on your production capacity and inventory management supporting your analysis with quantitative measures (amounts, key ratios/metrics)
The organization can only produce 5,000 pairs of footwear in year 11 without overtime and if it incorporates over time, it can produce 6,000 pairs in North Africa. The Asia Pacific Facility can only produce 6,000 pairs without overtime and 7,200 with maximum overtime. The production needed in year 11 is 8,600 pairs which the organization will supply optimally. The organization should ensure that it does not produce many pairs that will lag as dead stock.
6 What will you be focusing on for the next annual submissions?
Branded footwear production will focus on projecting more sales while reducing the cost of production. The organization expects to meet the demand for footwear.
