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Strategic Audit Jog N Shop

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Bryan Willkomm

on 4 May 2010

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Transcript of Strategic Audit Jog N Shop

Threats Online Competition

Local "Big Business Competition"

Richardson Grove Expansion

Volatile Shipping Costs/Fuel

External Environment:

Current Situation
Strategic Posture
Corporate Governance Strategic Audit:
Jogg 'N Shoppe
Arcata, CA Internal Environment Online Competition allows direct channels of distribution and wide variety of products

Big 5

Foot Locker Ross
Mike Williams Owner/ Sole Proprietor Since 2006 Forest Williams Mike's Father

Employee of Jogg 'N Shoppe since 1980

Goodwill of Name

Location of Store

Returning Customers

Superior Customer Service Weaknesses Accounting Distribution Location Inventory Buildup Opportunities Sports Programs in Humboldt County Online Exposure Niche Market of Speciality Shoes West Coast Shoe Manufacturers The Jogg 'N Shoppe is a small business located
at 1090 G Street in Arcata, CA The Jogg 'N Shoppe is a retail store for athletic shoes, accessories, and sporting goods
Inventory includes a selection of brand name shoes including Nike, Addidas, Asics, and Brookstone. Clothing line includes running shirts, shorts, socks, spandex, and first aid/preventative care Mission Statement: No Written Statement "Goal of business would be to help all
local runners and youth sports programs" Objectives: None time related or measurable
"Objective would be to fulfill inventory and
have merchandise available for customers." Employee since 2002
Attended HSU where he studied Business
Management experience at sporting good stores in Bay Area Task Environment Bryan Willkomm
Thomas Wilhelm
Linjie Yu
John Harlowe
Greg Johnson Threat of New Entrants Medium Bargaining Power of Buyers Medium to High Threat of Substitute Products Product-High
Service-Low to Medium Bargaining Power of Suppliers Medium to High Rivalry Among Competing Firms Medium to High Relative Power of Government/Unions Medium to High Corporate Culture The Corporate Culture at Jogg' N Shoppe is very unique
Many people stop in just to say Hi to Mike and Forest
Athletes will stop by and ask what events are coming up in town
Customers stop in and ask for running advice
Culture supports diversity and aims to bring active lifestyles to all types of individuals "Cheers" type of environment. Policies: Take back all returns.

Make the customer happy they did business with Jogg' N Shoppe Natural Physical Environment Jogg' N Shoppe relies on petroleum via
shipping to receive products

Rubber costs of shoes may rise as well

Earthquakes Cardboard recycling could become more costly

New regulations on recycling cardboard may
result in higher costs P.E.S.T Analysis Political
Economic Social Technological
Tougher laws on imports
Nationalization of foreign plants
Workers rights Tough Economic environment would have negative effect on sales
Less people can afford to go to Humboldt State
Inflation would cause shoe prices to rise rapidly Rapidly changing technology results in ability to change shoes designs/styles quickly
Advancements in shipping vehicles could result in lower shipping costs
Mobile Internet technology puts customers closer to products via E-Commerce Increased health awareness may result in more runners
Exposure to new sports would result in new footwear demands Societal Environment Recommended Strategy Strategic Alternatives Horizontal Growth
Diversification Horizontal Growth Pause/Proceed with Caution Concentric Diversification Growth Stability No-Change Pause/Proceed with Caution Profit Strategy Vertical Growth
Retrenchment Turnaround Sell-Out/Divesture Bankruptcy/Liquidation Evaluation and Control Within 3 months accounting system should be outsourced System would include metric of profitability and efficiency Metrics would be used to measure efficacy of programs Metrics reviewed and re-evaluated quarterly Questions?
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