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Leah's Loafers

Marie Holada Leah Klacko Dean Rowbotham Makenzie Schwartz

Leah's Loafers Marie Holada Leah Klacko Dean Rowbotham Makenzie Schwartz
Leah's Loafers Marie Holada Leah Klacko Dean Rowbotham Makenzie Schwartz
Leah's Loafers Marie Holada Leah Klacko Dean Rowbotham Makenzie Schwartz

Mission Statement

"We are committed to delivering the highest quality shoes to our customers that are made

"We are committed to delivering the highest quality shoes to our customers that are made responsibly in an ethical, diverse setting."

to delivering the highest quality shoes to our customers that are made responsibly in an ethical,
to delivering the highest quality shoes to our customers that are made responsibly in an ethical,

Strategy Formulation

Initial Broad Differentiation Strategy

High Quality Shoes at a High Price Point

Higher S/Q Rating than competitors

More models and more advertising

than competitors ● More models and more advertising ● Retain loyal customer base with rebates and

Retain loyal customer base with rebates and more retailers carrying the products

Best practices training to employees to provide excellent customer service

Financial Objectives

Short Term:

Maintain a credit rating of B+ through the first two years

Maintain a return on equity investment of 15% or more annually.

Long term:

on equity investment of 15% or more annually. Long term: ● Grow earnings per share 7%

Grow earnings per share 7% annually through first five years, and 5% annually after.

Achieve stock price gains of 7% through the first five years, and 5% annually after.

Strategic Objectives

Short Term

Construct an upscale brand that was the leader for its quality product offering and use of superior materials.

Consistently be the leader in advertising and marketing as well as recognized in the global shoe industry.

Long Term

Achieve an image rating of 70+ within the first 5 years.

Incrementally increase prices for our products to remain competitive.

Strategy & Tactics

Invest in environmentally responsible practices to improve our CSR.

Achieve maximum capacity in plants as well

as invest in upgrade options A and D for the

North American Plant.

Free shipping as well as a mail-in rebate.

as well as invest in upgrade options A and D for the North American Plant. ●

Adjustments

● Corporate Citizenship

○ Use of Recycled Boxing and Packaging

○ Energy Efficiency Initiatives

○ Charitable Contributions

○ Ethics Training and Enforcement

○ Workforce Diversity Program

Efficiency Initiatives ○ Charitable Contributions ○ Ethics Training and Enforcement ○ Workforce Diversity Program

Year 18 Corporate Citizenship

Year 18 Corporate Citizenship

Adjustments

● Sales Forecast

○ Inventory Clearance

● Plant Capacity

● Sales Forecast ○ Inventory Clearance ● Plant Capacity ○ Purchase/ Sale of Capacity ○ Upgrade

○ Purchase/ Sale of Capacity

○ Upgrade Option A and C at N.A. Plant and Asia Plant

Adjustments

● Branded Production

○ Achieve highest S/Q rating

○ TQM/ Six Sigma Quality Program

○ Compensation

Adjustments ● Branded Production ○ Achieve highest S/Q rating ○ TQM/ Six Sigma Quality Program ○

Adjustments

● Branded Distribution

○ North America

○ Asia

● Branded Distribution ○ North America ○ Asia

Adjustments

● Internet Marketing

○ Competitive Pricing

○ Increased Models Offered

○ Achieved highest S/Q rating

○ Free Shipping

○ Increased advertising

Pricing ○ Increased Models Offered ○ Achieved highest S/Q rating ○ Free Shipping ○ Increased advertising

Adjustments

● Wholesale Marketing ○ 200 models offered in the market ○ Competitive Pricing ○ Rebates

● Wholesale Marketing

○ 200 models offered in the market

○ Competitive Pricing

○ Rebates offered

○ Support Retail Outlets

● Celebrity Appeal

○ Tiger Green

○ Oprah Letterman

● Private-Label Operations

Year 18 Wholesale Marketing

Year 18 Wholesale Marketing
Year 18 Wholesale Marketing

Finance & Cash Flow

● Paid $1.50 Dividend

● Repurchase 2000 shares @ $39.05 a share

● Allowed Leah's Loafers to significantly raise Return on Equity

● Repurchase 2000 shares @ $39.05 a share ● Allowed Leah's Loafers to significantly raise Return

Assessment - EPS

● Board of Directors Expectations

○ 7% annually through Year 15

○ 5% annually Year 16 on

● Competition ○ Company F EPS ○ Industry Overall
Competition
○ Company F EPS
○ Industry Overall

Assessment - ROE

Expected to have an annual return on equity a 15% or higher.

Struggled year 11 at 4.6%

Significantly better performance for years 12, 13, 14 and 18. All above 15%. Company F
Significantly better performance for
years 12, 13, 14 and 18. All above 15%.
Company F competition
Overall industry

Assessment - Credit Rating

Assessment - Credit Rating

Assessment - Image Rating

Assessment - Image Rating

Assessment - Stock Prices

● Beginning Stock Price ○ Year 11, $16.65 ● Ending Stock Price ○ Year 18,
● Beginning Stock Price
Year 11, $16.65
● Ending Stock Price
Year 18, $101.02

Industry Stock Prices

Industry Stock Prices
Industry Stock Prices

Year 18 Performance

Year 18 Performance

Key Learnings

Key Learnings ● Adapting Strategy to changing market ○ product offering, pricing ● Celebrity behind Leah's

● Adapting Strategy to changing market

○ product offering, pricing

● Celebrity behind Leah's Loafers

○ Tiger Green

● Private-Label Operations

Advice

● Know the demand for the market ● Private-Label Operations ○ Worth it for Leah's
Know the demand for the market
Private-Label Operations
Worth it for Leah's Loafers?
Bomb.com Product Offering
Hard working Workforce
Whose reppin' us?