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David Wright

on 13 November 2014

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Transcript of Talaria

"All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved."

-Sun Tzu Through investments in our employees, plants, and business practices, Talaria relentlessly strives to be the sustainable global leader in footwear. Maximizing employee moral and productivity allows Talaria to offer a high-quality product at a reasonable cost. Implementing innovative solutions enables Talaria to be a proactive company, aiming to solve problems before they materialize. Fostering and maintaining a positive relationship with all of Talaria’s stakeholders is of the utmost importance, it is through their investments (financial and intangible) that we are able to continue working towards our goals. Team: A Matt Schrum: Computer Information Systems
John Gilliam: Administrative Mgt.
David Wright: Supply Chain Mgt.
Daniel Kopp: Supply Chain Mgt.
Jed Neet: Supply Chain Mgt. Mission Statement Talaria strives to be the global leader in quality footwear, by maximizing customer service, minimizing environmental impact, and optimizing our value chain. Marketing Slogan "Enlightened Soles, Two Feet Ahead of the Competition" Vision Statement TALARIA
2nd Place: 95 Strategy (cont.) Strategy (cont.) Conclusion / Review Expectations and Lessons Stock Price, Credit, and Image Rating Price decreased as the number of models increased per year.
Talaria's shoes S/Q rating increased until year 15 when our strategy changed.
Advertising budget increased at a steady 10%-15% yearly.
Retail Network utilization grew at a steady rate till year 15 during the new implementation of our new strategy.
Support continued to increase at 15% per year, and retailer demand grew at a steady rate. EPS & ROE Name and Logo Talaria is the name of the golden sandals created by the Greek god Hephaestus, presented to Hermes.
The logo is inspired by classical Greek typesets and the wings are a representation of Hermes' Sandals.
Translated in Latin as "of the ankle" Reasoning
Behind Slogan General Strategy Early on we adopted a low market price, with a large quantity offered, the highest quality, and took a large market share.

We knew that obtaining a large market share meant we had to have the capacity to handle it, thus we increased current production and built new plants. Strategy (cont.) In Year 16 of the game our focus changed from a best-cost to a cost-leadership strategy.

We recognized the economic driver in the market was not quality or image rating, but price. Expected:
Each group to aim for High Quality and High Price
To start slow and move to the top around halftime
Register the Highest Market Share amongst competition
Exchange Rate Fluctuations & High Tariffs
The competitive environment aimed for Lower Quality and Lower Prices
"Festina Lente" - Make haste slowly, don't become over-ambitious, making swift decisions can lead to swift declines! Goal: To Exceed Investor Expectations Every Year
High: $11.90 in Year 18
Low: $1.44 in Year 13 Stock Price Credit Rating "Enlightened Soles"
Our "Place" in consumers minds
"Two feet ahead of the competition"
A Play on Words
Literal & Figurative Meanings
Positive Connotations Passion Best Earnings Per Share Operations On-line Shipping Charge: Not until Y16

Delivery Time: Never less than 2 weeks, and never more than 3 weeks

Retailer Support: $1000 per outlet by Y18

Mail-in Rebate: a steady increase from $2-$5 until year 15 when we changed to a cost-leadership strategy

Celebrities: Image Rating latin america North america Strategy (cont.) World-Wide Sales Leader
Highly Competitive Individuals
DESIRE TO WIN! Passion Best Economies of Scale
Agile A- B B- C C B- C+ B B+ Winner in years 14, 15, and 16
Presented by World Council for Exemplary Corporate Citizenship
Highest % of revenue spent on Social Responsibility and Citizenship Initiatives "Enlightened Soles, Two Feet Ahead of the Competition" The Growth Trap is very real.
Projections & forecasts are WRONG or LUCKY.
Fluctuations in the market are common and often.
Good teaching tool, we would play again!
The game could be modified to allow more complex strategies to be played out. (e.g. vertical integration for a more sustainable value chain) Goal: To Exceed Investor Expectations Every Year
High: 41.80% in Year 18
Low: 8.50% in Year 13 Goal: To Exceed Investor Expectations Every Year
High: $181.00 in Year 18
Low: $17.00 in Year 13 FREEDOM
FRAMEWORK Goal: To Exceed Investor Expectations Every Year
High: A- in Year 10
Low: C in Year 13-14 Goal: To Exceed Investor Expectations Every Year
High: 100 in Year 15
Low: 70 in Year 10 BEST-COST: Price, Quality, Quantity Economic
Driver Revenue Global Sales:
Private Label "All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved"

-Sun Tzu
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