CALLAWAY GOLF COMPANY

Callaway Golf Company ("Callaway") has driven the overall golf-hardware industry
through seeking after fixation and separation methodologies that outcome in
imaginative items. It delivers creative golf clubs and putters, balls, and attire and
extras, in spite of the fact that offers of its drivers and woods have been declining.
The business is obliged by confinements on golf-club execution in USGA-authorized
competitions, endures heightening rivalry, and has less golfers overall playing the
game. Callaway's money related results are blended. Its incomes declined 5.4%
since 2000, its aggregate resource turnover and ROA both declined 12% and 30%
separately since 2000, and ACP hopped 35.6% in 2002.
On the other hand, NIAT expanded 19.0% in 2002 (after a 27.9% drop in 2001) and,
since 1999, its present and speedy proportions have stayed well more than 1.0. Its
D/E proportion is beneath 25%, and its Z-Score more than 5.4, well in the protected
locale. Callaway's center abilities are its inventive capacity and the Helm Stetter
Test Center. It additionally has an in number brand and unbelievable client benefit,
and is in great money related condition. In any case, its piece of the overall industry
in drivers and woods has declined, unfavorably influencing incomes, and it slacks in
inspiring masters to underwrite its items. The USGA regulations have profited
different contenders, and the economy in its worldwide markets has mellowed.
Should it dispatch a backup to deliver reasonable clubs, make an intuitive site to
build deals and make a virtual golf experience, make toons and computer games 2
through a vital partnership with Nintendo, grow new golf itemsco-planned by top
expertswith higher quality, dispatch a hipper line of apparel, support nine-opening
courses in low-pay regions, venture into China and South America, or expand
supports by masters?
Callaway has four key choices. Initially, it could make an intuitive site to offer its
items, make a virtual golf experience, and make kid's shows and computer games
through a key organization together with Nintendo. Also, it could make its items
more moderate through statistical surveying, shaping a backup to make a
reasonable line of clubs, supporting youth occasions, making a nine-opening course
in low-pay ranges, and creating hipper golf attire. Thirdly, it could include top
experts in planning an inventive line of clubs of higher quality and control, and
support the new line. At long last, it could concentrate on global extension,
particularly in China and South America. All groups incorporate proceeding with its
present methodologies, publicizing, expanding piece of the overall industry, and
financing through money and obligation.
Callaway ought to make an intuitive site to draw in more clients and offer more item
that will yield the most noteworthy income development and shareholder esteem,
and require the minimum venture. Item moderateness would create the minimum
income and benefit development and require the most culture change. Coadvancement with golf experts would be the least secure, while growing universally
would require the most venture. 3 In 2003, Callaway ought to build incomes 15%
and NIAT 5%, expansion piece of the pie, expand R&D, make an intelligent site,
make a virtual golf experience and kid's shows and computer games through a vital

organization together with Nintendo, and proceed with its present methods. On the
off chance that the decrease in number of golfers keeps, creating incomes to slack
projections by 15%, then Callaway ought to raise costs on new items. By 2005,
Callaway ought to expand incomes 20%/yr. what's more, NIAT 8%/yr., expand piece
of the overall industry, keep on enhancing its site's adequacy and range, grow more
virtual golf encounters, keep its dress line tense, and proceed with its present
techniques. In the case of delivery expenses rise, creating NIAT to slack projections
by 15%, then Callaway ought to pass those expenses on to its online purchase