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The Business Strategy Game 2007 GLO-BUS Software, Inc. All rights reserved.

INDUSTRY 8

YEAR 20

Friday, May 4, 2007

COMPANY SCORES : INVESTOR EXPECTATIONS STANDARD


Investors and company boards of directors have established annual targets for five key performance measures and the
importance weighting of each: EPS (20 points), ROE (20 points), Stock Price (20 points), Credit Rating (20 points), and Image
Rating (20 points). The score on a performance measure is equal to the percentage of the target that was achieved. Achieving
higher than targeted performance results in bonus awards of 0.5% for each 1% overachieved (capped at 40% over the target).
Thus, the Investor Confidence Index ranges from 0 to a max of 120 (if all targets are exceeded by 40% or more).

YEAR 20 INVESTOR CONFIDENCE INDEX


Company Name
GFrost Co.
D Company
Killaz
Hell Fire
JamWear!
C Company
E Mengao01
Arches Inc.
Flinder
Best Strategy Champs
I (deleted)
L (deleted)

Year 20
Index

Change
from Y19

119
119
118
115
110
105
94
73
62
35
0
0

+2
+5
+5
+5
+32
+40
+34
+50
13
74
0
0

OVERALL INVESTOR CONFIDENCE AVERAGE


Company Name
Hell Fire
GFrost Co.
Killaz
D Company
Best Strategy Champs
Flinder
JamWear!
C Company
E Mengao01
Arches Inc.
I (deleted)
L (deleted)

G-T-D
Index

Change
from Y19

100
98
97
82
80
77
75
59
47
40
0
0

+2
+2
+3
+4
5
1
+4
+5
+5
+4
0
0

COMPANY SCORES : BEST- IN - INDUSTRY PERFORMANCE STANDARD


This scoring standard is based on how well each company performs relative to the best-performing company on EPS, ROE,
Stock Price, Credit Rating, and Image Rating. In order to get a score of 100, a company must be the industry leader on all 5
measures, achieve the investor expectations on EPS, ROE, Stock Price, and Image Rating, and have an A+ Credit Rating.
Scores of 70 and higher indicate strong overall performance; companies with low scores (<50) trail the industry leaders by a
significant margin. Each company's annual and overall scores are shown on the next two pages.

YEAR 20 PERFORMANCE RANKINGS


Company Name
Killaz
D Company
GFrost Co.
Hell Fire
E Mengao01
JamWear!
C Company
Arches Inc.
Flinder
Best Strategy Champs
I (deleted)
L (deleted)

GAME-TO- DATE PERFORMANCE RANKINGS

Year 20
Score

Change
from Y19

86
80
72
62
58
56
55
37
33
20
0
0

+8
+5
5
7
+29
+8
+19
+20
25
49
0
0

Company Name
Killaz
GFrost Co.
D Company
Hell Fire
Flinder
JamWear!
C Company
Best Strategy Champs
Arches Inc.
E Mengao01
I (deleted)
L (deleted)

G-T-D
Score

Change
from Y19

89
79
77
72
58
57
49
36
31
29
0
0

2
9
0
11
8
0
+9
43
+12
+6
0
0

REVIEW OF COMPANY PERFORMANCES

Industry 1

EARNINGS PER SHARE

Year 20

($)

Bold numbers indicate achievement of investor expectation for EPS shown below each column head. Best-in-industry performers earn a
score of 20 (a 20% weighting in the overall score). Scores of other companies are a percentage of the industry-leading EPS performance.
The overall best-in-industry score is based on a weighted average of the annual EPS performances.
11

12

14

15

16

17

18

19

20

Y12

Y13

Y14

Y15

Y16

Y17

Y18

Y19

Y20

Overall

(2.67)

(2.85)

(3.05)

(3.26)

(3.49)

(3.66)

(3.84)

(4.03)

(4.23)

(4.44)

(3.55)

2.67

A
B
C
D
E
F
G
H
I
J
K
L

13

Y11

2.85

3.05

3.26

3.49

-2.25
4.82
0.43
1.30
-1.94
2.28
3.39
3.77
0.00
2.88
5.52
0.00

0.14
1.24
-2.99
1.54
-1.28
3.98
-2.46
2.58
0.00
1.88
1.93
0.00

0.87
2.76
-2.74
0.78
-3.79
-1.29
1.42
1.16
0.00
0.24
0.51
0.00

1.10
-0.39
0.64
0.67
-2.16
-4.95
0.95
2.82
0.00
-0.73
2.90
0.00

1.85
2.73
2.91
2.70
1.90
4.87
3.25
3.55
0.00
2.13
4.10
0.00

3.66

1.14
3.51
2.38
2.05
-1.45
2.75
3.80
3.52
0.00
2.53
4.86
0.00

3.84

4.03

-0.86
4.89
1.83
3.36
1.36
6.72
5.48
3.81
0.00
0.86
5.43
0.00

-0.81
2.24
3.13
2.60
0.96
7.32
5.71
4.03
0.00
3.27
5.41
0.00

4.23

-0.44
5.35
2.29
5.26
1.24
2.77
5.75
5.03
0.00
2.26
6.35
0.00

RETURN ON EQUITY

4.44

2.60
-3.68
5.39
8.14
4.98
5.20
7.62
6.38
0.00
4.48
11.01
0.00

Best-In-Ind. Score
Year 20
Overall

3.55

0.35
2.36
1.42
2.67
0.02
3.27
3.47
3.57
0.00
1.92
4.60
0.00

20

5
0
10
15
9
9
14
12
0
8
20
0

20

A
B
C
D
E
F
G
H
I
J
K
L

2
10
6
12
0
14
15
16
0
8
20
0

(%)

Bold numbers indicate achievement of investor expectation for ROE shown below each column head. Best-in-industry performers earn a
score of 20 (a 20% weighting in the overall score). Scores of other companies are a percentage of the industry-leading ROE performance.
The overall best-in-industry score is based on a weighted average of the annual ROE performances.

Y11

Y12

(15.0)

Y13

(15.0)
15

A
B
C
D
E
F
G
H
I
J
K
L

12.7
16.5
18.2
16.3
11.9
30.4
19.4
21.6
0.0
13.1
24.0
0.0

Y14

(15.0)
15

Y15

(15.0)
15

Y17

(15.0)
15

7.6

22.8
6.7
6.0

-39.8
-21.0

-17.9

-35.2

-37.7

52.3

7.0
6.2
0.0
1.5
2.4
0.0

-20.1

13.9
25.2
17.2
0.0
14.4
20.6
0.0

11.2
22.4
14.5
0.0
12.0
15.8
0.0

0.8
6.8

-22.4

-38.8

3.9

-14.7
-53.2

5.0
15.5
0.0
-4.2
14.7
0.0

12.4
0.0
11.3
8.4
0.0

-13.3

Y18

(15.0)
15

7.0
13.9
30.4
8.8

5.0
17.1

6.1
-2.2
3.9
3.7

Y16

(15.0)
15

Y19

(15.0)
15

Y20

(15.0)
15

-4.9
7.8
29.5
10.1
26.8
22.2
26.3
15.4
0.0
14.3
15.1
0.0

-5.5
16.2
12.3
11.4
28.7
33.4
20.0
13.2
0.0
3.8
13.1
0.0

STOCK PRICE

Overall

(15.0)
15

-2.9
15.4
13.4
16.6
20.5
234.0

17.5
16.1
0.0
10.0
14.1
0.0

(15.0)
15

16.1
-10.3

26.9
23.7
54.3
0.0
19.2
18.8
0.0
19.1
21.8
0.0

Best-In-Ind. Score
Year 20
Overall

15

2.1
9.7
10.8
11.1
0.2
23.5
15.0
14.7
0.0
9.7
14.5
0.0

20

20

2
8
9
9
0
20
13
13
0
8
12
0

6
0
10
9
20
0
7
7
0
7
8
0

A
B
C
D
E
F
G
H
I
J
K
L

($ per share)

Bold numbers indicate achievement of investor expectation for stock price shown below each column head. Best-in-industry performers
earn a score of 20 (a 20% weighting in the overall score). Scores of other companies are a percentage of the industry-leading stock price.
The overall best-in-industry score is based solely on the most recent year's stock price.

Y11

Y12

Y13

Y14

Y15

Y16

Y17

Y18

Y19

Y20

(32.00)

(34.25)

(36.75)

(39.25)

(42.00)

(44.25)

(46.25)

(48.75)

(51.25)

(53.50)

44.25

46.25

51.25

53.5

32

A
B
C
D
E
F
G
H
I
J
K
L

FIR

20.75
32.94
42.48
31.40
17.73
76.24
49.42
64.35
0.00
20.79
72.67
0.00

34.25

11.97
18.13
22.14
17.61
11.10
34.96
25.53
35.32
0.00
12.17
33.83
0.00

36.75

7.61
29.96
12.71
10.57
7.08
19.22
14.06
19.51
0.00
7.82
18.95
0.00

39.25

5.08
17.19
7.75
13.83
4.85
66.05
8.57
29.07
0.00
17.19
18.33
0.00

42

4.80
64.30
5.34
13.85
4.97
31.16
45.18
51.13
0.00
36.79
80.34
0.00

10.66
6.28
38.23 23.34
23.51 43.93
27.61 31.36
5.80
9.37
32.06 103.44
59.49 105.99
54.56 55.85
0.00
0.00
34.06 49.98
62.59 66.96
0.00
0.00

48.75

4.65
58.45
23.57
45.54
15.43
92.50
77.67
47.48
0.00
26.12
60.59
0.00

5.63 29.53
72.22 34.21
22.47 70.14
70.30 167.45
14.93 63.66
39.14 45.31
75.57 106.70
69.17 92.75
0.00
0.00
29.44 83.45
78.62 196.94
0.00
0.00

Avg Annual Best-In-Ind. Score


Change
Year 20
Overall
0

0 %
+1
+9
+19
+8
+4
+14
+12
0
+11
+21
0%

The Business Strategy Game 2007 GLO-BUS Software, Inc.

20

3
3
7
17
6
5
11
9
0
8
20
0

20

3
3
7
17
6
5
11
9
0
8
20
0

A
B
C
D
E
F
G
H
I
J
K
L

Page 2 of 7

REVIEW OF COMPANY PERFORMANCES (continued)

Industry 1

Year 20

CREDIT RATING
Bolded credit ratings indicate meeting or beating the B+ investor expectation shown below each column head. For the best-in-industry
scoring, companies with an A+ credit rating earn a score of 20 (which equals a 20% weighting in overall score). Lesser credit ratings earn
lower scores. The overall best-in-industry score is based soley on the most recent year's credit rating.
11

12

14

15

16

18

17

19

20

Y12

Y13

Y14

Y15

Y16

Y17

Y18

Y19

Y20

(B+)

(B+)

(B+)

(B+)

(B+)

(B+)

(B+)

(B+)

(B+)

(B+)

A
B
C
D
E
F
G
H
I
J
K
L

13

Y11
B+
A
B+
B
C+
B
A
A
N/A
B+
A
N/A

C+
C
C
C
C
C
C+
B+
N/A
C
C+
N/A

C
C+
C
C+
C
C
A
B
N/A
C
C
N/A

C
C+
C
B+
C
C
B+
B+
N/A
B+
C
N/A

C
B
C
B
C
C
A+
A
N/A
A+
B
N/A

C
B+
C
B+
C
C+
A
A
N/A
A+
B
N/A

C
B+
C
A
C
B
A+
A+
N/A
A+
B+
N/A

C
A
C
A
C
C
A+
A+
N/A
B+
A
N/A

Default
Risk

C
A
C+
A
C
C
A
A+
N/A
A+
A
N/A

Best-In-Ind. Score
Year 20
Overall

C+
C
B
A
C
C
A+
A+
N/A
A+
A
N/A

20

0.9

1.82

3.07

0.37

0.59

4.93

10

9.41

4.59

High
N/A

8
0
14
19
4
0
20
20
0
20
19
0

Medium

Low
High
High
Low
Low
N/A
Low
Low
N/A

20

8
0
14
19
4
0
20
20
0
20
19
0

A
B
C
D
E
F
G
H
I
J
K
L

IMAGE RATING
Bolded image ratings indicate meeting or beating the 70 target image rating shown below each column head. Best-in-industry performers
earn a score of 20 (equal to a 20% weighting in overall score). Scores of other companies are a percentage of the industry-leading image
rating. Overall best-in-industry scores are based on the average of the image ratings in Y18, Y19, and Y20.

Y11

Y12

(70)

A
B
C
D
E
F
G
H
I
J
K
L

Y13

(70)
70

62
68
61
94
71
72
84
72
0
65
79
0

Y14

(70)
70

65
83
52
87
100
100
74
68
0
69
94
0

72
98
69
96
91
68
87
74
0
82
83
0

Y15

(70)
70

Y16

(70)
70

64
62
64
97
95
100
82
68
0
65
87
0

72
77
50
88
99
100
72
72
0
65
86
0

Y17

(70)
70

Y18

(70)
70

70
65
63
93
93
100
89
68
0
64
85
0

Y19

(70)
70

75
70
59
98
89
100
97
70
0
64
86
0

77
64
63
96
93
100
100
68
0
64
82
0

Y20

(70)
70

79
68
68
100
96
94
99
69
0
67
92
0

Best-In-Ind. Score
Year 20
Overall

Overall

(70)
70

(70)
70

70

20

15
17
14
20
19
19
20
14
0
13
19
0

77
75
66
99
93
96
99
69
0
66
90
0

77
87
70
100
93
94
100
69
0
67
93
0

20

16
15
13
20
19
19
20
14
0
13
18
0

A
B
C
D
E
F
G
H
I
J
K
L

INVESTOR CONFIDENCE INDEX


The degree to which a company meets or beats the annual targets for each performance measure drives investor confidence in
management's ability to deliver good results. An index score below 70 indicates subpar achievement of the annual performance targets.
Index scores of 100 or more reflect consistently excellent or superior performance in meeting investor expectations.

Y11

Y12
115

A
B
C
D
E
F
G
H
I
J
K
L

FIR

82
102
103
100
69
104
113
113
0
85
115
0

Y13
101

51
35
42
48
29
39
59
101
0
29
90
0

Y14
85

40
85
22
46
28
34
69
58
0
28
39
0

Y15
94

25
55
18
69
26
94
44
88
0
75
58
0

Y16
110

20
106
32
62
26
71
110
105
0
97
110
0

Y17
113

40
94
66
78
26
76
113
101
0
87
106
0

Y18
120

24
70
81
87
56
112
120
105
0
99
110
0

Y19
119

23
108
56
98
60
100
119
100
0
58
106
0

23
109
65
114
60
75
117
110
0
78
113
0

Average
Index

Y20
117

119

73
35
105
119
94
62
119
115
0
110
118
0

Overall
Confidence

100

40
80
59
82
47
77
98
100
0
75
97
0

The Business Strategy Game 2007 GLO-BUS Software, Inc.

Subpar
Good
Subpar
Good
Subpar
Fair
Very Good
Excellent
N/A
Fair
Very Good
N/A

A
B
C
D
E
F
G
H
I
J
K
L

Page 3 of 7

INDUSTRY OVERVIEW

Industry 1

Year 20

N.A.
Plant

E-A
Plant

A-P
Plant

L.A.
Plant

Industry
Total

26,190
555
25,635

14,502
396
14,106

56,379
1,757
54,622

12,590
414
12,176

109,661
3,122
106,539

Superior Materials Usage


45.8%
Capacity Utilization (branded + P-L prod.) 118.5%

35.4%
107.4%

38.8%
101.4%

32.2%
101.5%

39.3%
105.9%

Year 20 Price Adjustments for

Capacity Utilization

Year 20
Price

+ 1.39
0.75

0.00
0.00

7.89
13.25

FOOTWEAR PRODUCTION

(000s of pairs)

Total Year 20 Production


Pairs Rejected
Net Y20 Production (after rejects)

MATERIALS PRICES

Base
Price

($ per pair)

Standard Materials
Superior Materials

Materials Usage

6.50
14.00
N.A.
Market

E-A
Market

A-P
Market

L.A.
Market

Industry
Total

Ending Y19 Inventories


1,377
Pairs Cleared (inventory clearance)
57
Beginning Y20 Inventories
1,320
+ New Production (shipped from plants) 22,535

2,761
440
2,321
22,713

1,527
151
1,376
22,303

3,601
539
3,062
21,093

9,266
1,187
8,079
88,644

Pairs Available for Sale in Y20

23,855

25,034

23,679

24,155

96,723

BRANDED DEMAND & SALES

N.A.
Market

E-A
Market

A-P
Market

L.A.
Market

Industry
Total

Projected Y20 Demand (see Y19 FIR)


Actual Year 20 Demand

23,641
23,588

23,352
23,618

22,867
23,518

22,202
22,618

92,062
93,342

Branded Pairs Sold


Required Y20 Ending Inventories
Inventory Surplus (Shortfall)

23,086
690
-692

23,569
743
-32

22,963
716
-872

22,612
643
748

92,230
2,792
-848

BRANDED WAREHOUSES

(000s of pairs)

(000s of pair)

-0.029974877

DEMAND FORECAST

(000s of pair)

Year 21

-0.001357716

Year 22

-0.037974132

Year 23

Year 24

24,531 25,512 26,532 27,593


24,562 25,544 26,566 27,629
24,929 26,425 28,011 29,692
23,975 25,414 26,939 28,555
97,997 102,895 108,048 113,469

North America
Private-Label
Europe-Africa
Asia-Pacific
Latin America
Total

4,710
4,700
4,770
4,740
18,920

4,710
4,700
4,770
4,740
18,920

PLANT CAPACITY
Capacity at Beginning of Year 20
N.A.
E-A
A-P
L.A.
A
B
C
D
E
F
G
H
I
J
K
L

FIR

4,710
4,700
4,770
4,740
18,920

Capacity Purchased (Sold)


L.A.
N.A.
E-A
A-P
0
0
0
0
0
0
100
0
0
0
0
0

0
0
0
0
0
0
1,000
0
0
0
0
0

0
0
0
0
0
0
600
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

22,000 12,500 55,000 12,400

100

1,000

600

1,100 4,200
2,000 5,700
0 5,200
1,400 5,400
0 4,300
6,000 10,400
0 4,500
1,000 4,000
0
0
1,000 3,000
0 8,300
0
0

Available for shipment to warehouses


% usage up by 2.6 points over Y19
% utilization down by 3.0 points from
Y19
Lower than normal (39.3% industrywide)
superior materials usage led to superior
materials prices that were 5.4% below the
base and standard materials prices that
were 21.4% above the base.

Average inventory clearance of 12.8%

3.6% higher than Y20 demand

Actual demand in Year 20 was 1.4%


greater than expected due to decreases
in industry average prices.
Needed to achieve delivery times
Low in N.A.
Low in A-P

Low in E-A
Okay in L.A.

GLOBAL SUPPLY / DEMAND ANALYSIS FOR YEAR 21


Supply Beginning Year 21 Inventory
(000s)
Potential Production (at max OT)
Potential Global Supply

3,540
124,320
127,860

Demand Branded Sales Forecast


(000s)
Private-Label Sales Forecast

97,997
18,920

Expected Global Demand

116,917

Conclusion:

Even at full overtime production, capacity is


shy of what's needed to meet future
demand. Opportunistic companies should
consider building new capacity or
purchasing used capacity.

(000s of pairs w/o overtime)

1,200
1,500
0
1,200
0
5,500
0
0
0
0
3,000
0

1,600
2,000
3,600
2,600
2,300
0
4,400
2,000
0
1,000
2,500
0

Pairs produced before rejects


Average reject rate = 2.8%

0.033079781

Branded
North America
(internet + wholesale) Europe-Africa
Asia-Pacific
Latin America
Total

4,710
4,700
4,770
4,740
18,920

COMMENTARY

Capacity Available for Y20 Production


N.A.
E-A
Total
A-P
L.A.
1,600
2,000
3,600
2,600
2,300
0
4,500
2,000
0
1,000
2,500
0

1,100 4,200
2,000 5,700
0 5,200
1,400 5,400
0 4,300
6,000 10,400
1,000 5,100
1,000 4,000
0
0
1,000 3,000
0 8,300
0
0

Construction
Initiated
in Year 20

8,100
11,200
8,800
10,600
6,600
21,900
10,600
7,000
0
5,000
13,800
0

0
0
0
0
0
0
0
0
0
0
0
0

22,100 13,500 55,600 12,400 103,600

1,200
1,500
0
1,200
0
5,500
0
0
0
0
3,000
0

The Business Strategy Game 2007 GLO-BUS Software, Inc.

A
B
C
D
E
F
G
H
I
J
K
L

Page 4 of 7

FINANCIAL PERFORMANCE SUMMARY

Industry 1

INCOME STATEMENT DATA

A
B
C
D
E
F
G
H
I
J
K
L

Net Sales
Revenues

Cost of
Pairs Sold

407,376
533,097
493,453
499,361
473,677
809,852
580,794
474,974
0
298,508
710,988
0

237,820
265,071
275,650
279,548
252,335
460,915
334,173
239,322
0
158,148
387,940
0

27,047
29,881
35,415
29,954
25,950
56,179
42,952
33,697
0
21,879
41,388
0

80,149
241,720
86,801
82,984
104,880
123,303
93,539
122,795
0
62,438
134,449
0

10,519
13,618
11,218
13,021
9,020
24,318
13,018
9,421
0
7,419
16,219
0

528,208

289,092

34,434

113,306

12,779

Interest
Exp (Inc)

Income
Taxes

Net
Profit

51,841
-17,193
84,369
93,854
81,492
145,137
97,112
69,739
0
48,624
130,992
0

18,154
10,408
22,800
6,593
26,704
87,189
4,627
1,409
0
613
13,011
0

2,507
0
18,471
26,178
16,436
17,384
27,746
20,499
0
14,403
35,394
0

78,597

19,151

17,902

Warehse Marketing Admin Operating


Expenses Expenses Expenses
Profit

(000s of shares
outstanding)

31,180
-27,601
43,098
61,083
38,352
40,564
64,739
47,831
0
33,608
82,587
0

0
0
0
50,625
0
0
0
8,250
0
30,000
33,750
0

12,000
7,500
8,000
7,500
7,700
7,800
8,500
7,500
0
7,500
7,500
0

41,544

12,263

8,150

Shareholder Equity
Current Long-Term Beginning Stock Sales Earnings
Equity (Purchases) Retained
Liabilities
Debt

Year 20
Dividend

Ending
Equity

No. of
Changes

Current
Assets

Total
Assets

29,368
21,688
37,054
10,388
9,288
678
12,390
21,730
0
32,478
74,926
0

144,628
172,378
179,894
137,858
135,895
226,322
165,264
151,452
0
109,563
266,844
0

359,083
425,456
370,948
384,200
260,550
882,504
460,614
291,353
0
204,799
611,499
0

79,815
39,650
56,947
40,111
170,759
195,655
46,184
20,227
0
16,105
52,115
0

70,000
132,000
145,000
91,200
0
773,000
45,000
0
0
11,200
156,735
0

178,089
281,408
151,186
261,716
51,438
-56,710
304,690
236,781
0
173,885
353,813
0

0
0
-25,280
-19,287
0
-70,005
0
-5,240
0
0
0
0

31,180
-27,602
43,095
10,460
38,352
40,564
64,741
39,584
0
3,609
48,837
0

209,268
253,806
169,001
252,889
89,791
-86,151
369,430
271,126
0
177,494
402,649
0

0.00
0.00
0.00
6.75
0.00
0.00
0.00
1.10
0.00
4.00
4.50
0.00

1
0
3
3
0
0
1
8
0
4
2
0

24,999

169,010

425,101

71,757

142,414

193,630

-11,981

29,282

210,930

1.64

2 /2

Net
Profit

Current
Ratio

Days of
Inventory

6.6 %
5.6
7.2
6.0
5.5
6.9
7.4
7.1
0.0
7.3
5.8
0.0

19.7 %
45.3
17.6
16.6
22.1
15.2
16.1
25.9
0.0
20.9
18.9
0.0

2.6 %
2.6
2.3
2.6
1.9
3.0
2.2
2.0
0.0
2.5
2.3
0.0

12.7 %
-3.2
17.1
18.8
17.2
17.9
16.7
14.7
0.0
16.3
18.4
0.0

7.7 %
-5.2
8.7
12.2
8.1
5.0
11.1
10.1
0.0
11.3
11.6
0.0

1.81
4.35
3.16
3.44
0.80
1.16
3.58
7.49
0.00
6.80
5.12
0.00

25
28
25
7
12
20
12
17
0
7
16
0

54.7 %

6.5 %

21.5 %

2.4 %

14.9 %

7.9 %

2.36

17

6.925

37.775

2.725

2.3

-0.85

1.8725

49.7

5.5

15.2

1.9

18.8

12.2

7.49

Bold = best in industry

(+ / )

($ / share)

/1
/1
/4
/2
/1
/1
/2
/1
/0
/2
/2
/0

A
B
C
D
E
F
G
H
I
J
K
L

CREDIT RATING DATA

58.4 %
49.7
55.9
56.0
53.3
56.9
57.5
50.4
0.0
53.0
54.6
0.0
56.225

A
B
C
D
E
F
G
H
I
J
K
L

DIVIDEND DATA

Cash
on Hand

Costs and Profits as a % of Net Revenues


Cost of
Mktng. Admin. Operating
Whse.
Prs. Sold Expenses Expenses Expenses Profit

FIR

Shares
of Stock

($000s)

($000s)

SELECTED FINANCIAL AND OPERATING STATISTICS

A
B
C
D
E
F
G
H
I
J
K
L

Total
Dividend
Payment

($000s)

SELECTED BALANCE SHEET DATA

A
B
C
D
E
F
G
H
I
J
K
L

Year 20

28

Interest Debt to
Coverage Assets
Ratio
Ratio

Default
Risk
Ratio

Default
Risk
High
N/A
Medium
Low
High
High
Low
Low
N/A
Low
Low
N/A

2.86
-1.65
3.70
14.24
3.05
1.66
20.99
49.50
0.00
79.32
10.07
0.00

0.36
0.35
0.49
0.27
0.58
1.06
0.13
0.00
0.00
0.06
0.28
0.00

0.90
0.00
1.82
3.07
0.37
0.59
4.93
10.00
0.00
9.41
4.59
0.00

18.37

0.36

3.57

A
B
C
D
E
F
G
H
I
J
K
L

Low

18.5925

0.81

2.5

79.32

0.06

10

= needs management attention

The Business Strategy Game 2007 GLO-BUS Software, Inc.

Page 5 of 7

PERFORMANCE BENCHMARKS

Industry 1

PLANT AND PRODUCTION BENCHMARKS


Materials Costs Branded Footwear
($ per pair produced)
Private-Label Footwear

Industry Low Industry Average Industry High


Year 19 Year 20 Year 19 Year 20 Year 19 Year 20
7.66
7.65

7.38
7.32

9.98
8.79

9.96
8.46

11.39
10.61

11.39
10.19

Labor North Total Compensation ($/year)


America Productivity (pairs/worker/year)
Labor Cost ($/pair produced)

17,895
3,894
3.19

15,455
3,878
3.67

23,418
4,757
5.00

23,625
4,845
5.04

29,723
5,998
5.94

32,086
6,341
5.95

Europe Total Compensation ($/year)


Productivity (pairs/worker/year)
Africa
Labor Cost ($/pair produced)

15,612
4,031
3.68

15,575
4,111
3.39

18,799
4,741
4.18

19,681
4,869
3.95

22,850
5,303
4.90

26,533
5,470
4.52

Asia
Total Compensation ($/year)
Pacific
Productivity (pairs/worker/year)
Labor Cost ($/pair produced)

3,929
2,512
1.25

4,442
2,520
1.27

5,230
2,953
1.83

5,494
3,033
1.83

9,047
3,551
2.90

9,566
3,711
2.92

Latin Total Compensation ($/year)


America Productivity (pairs/worker/year)
Labor Cost ($/pair produced)

4,764
2,623
1.39

4,521
2,657
1.40

4,921
2,960
1.70

5,006
3,059
1.67

5,317
3,570
1.97

5,835
3,704
1.99

TQM / 6 Quality Expenditures Year 20


($ per pair of capacity)
Cumulative

0.21
0.44

0.38
0.44

1.31
1.30

1.34
1.33

2.50
2.29

2.50
2.31

Reject Rates Branded Production


Private-Label Production

1.8%
1.3%

1.6%
1.5%

3.2%
2.2%

2.8%
2.3%

6.1%
3.2%

6.1%
3.4%

Total Manufacturing Branded N.A.


Costs ($/pair produced)
E-A
A-P
L.A.

23.57
22.52
19.43
19.55

23.47
22.54
19.22
19.32

26.79
25.82
21.98
24.19

26.82
26.61
22.53
22.45

29.86
30.09
25.54
27.94

30.53
33.37
26.13
28.05

N.A.
Private-Label
E-A
A-P
L.A.

19.67
18.35
16.43
19.85

19.12
18.10
16.74
19.65

21.71
21.10
21.37
21.11

21.54
21.81
20.36
20.99

26.14
22.72
27.43
22.36

26.24
23.28
25.39
22.33

Industry Low Industry Average Industry High


Year 19 Year 20 Year 19 Year 20 Year 19 Year 20

OPERATING BENCHMARKS
Costs of Pairs Sold N.A.
Branded
E-A
Market
( $/pair sold. Includes manufacSegments
turing, shipping, import tariffs,
A-P
and exchange rate adjustments.)
L.A.

25.57
24.49
21.50
21.75

24.16
24.53
21.24
21.38

27.86
28.68
24.20
28.78

27.65
28.30
24.74
27.33

30.89
31.53
28.03
33.50

32.20
32.79
28.00
32.70

Warehouse Expenses
Internet
Wholesale
($ per pair sold)

10.30
1.87

10.31
1.85

10.62
2.41

10.59
2.36

10.93
2.84

10.92
2.87

Marketing Expenses Internet


($ per pair sold)
Wholesale

6.40
8.42

5.77
7.38

13.76
13.86

12.57
13.32

20.86
18.97

26.77
28.17

Administrative Expenses

0.97

1.03

1.46

1.45

2.30

2.23

N.A.
Operating Internet
Profit
E-A
($ per pair sold)
A-P
L.A.

2.57
7.05
10.45
7.03

1.89
4.22
3.61
7.64

13.95
14.17
18.92
14.90

14.60
15.19
17.93
18.51

25.98
25.52
35.31
33.36

25.28
25.01
29.56
30.56

Wholesale N.A.
E-A
A-P
L.A.

1.66
1.73
1.47
0.08

-2.38
1.57
-9.33
-0.06

5.08
5.29
4.82
5.37

6.32
6.97
4.32
8.47

9.77
8.94
10.75
10.79

11.03
12.69
9.40
13.84

Private-Label Costs of Pairs Sold N.A.


Market
( $/pair sold. Includes manufacE-A
turing, shipping, import tariffs,
A-P
Segments
and exchange rate adjustments.)
L.A.

20.40
20.35
18.43
21.85

20.84
20.10
18.74
21.65

23.39
26.06
22.50
25.82

24.17
25.18
19.48
25.12

28.14
33.10
29.43
32.82

27.69
29.98
20.53
31.93

1.00

1.00

1.00

1.00

1.00

1.00

-4.14
-5.44
-5.47
-0.36

-1.54
1.10
-3.13
0.05

0.88
5.15
-0.79
3.37

1.50
8.03
0.34
2.40

4.88
20.59
3.73
8.06

3.48
20.89
2.38
6.69

Warehouse Expenses

($/pair sold)

($ per pair sold)

Margin Over Direct N.A.


Costs ($ per pair sold)
E-A
A-P
L.A.
FIR

Year 20

The Business Strategy Game 2007 GLO-BUS Software, Inc.

Page 6 of 7

CELEBRITY ENDORSEMENTS AND INDUSTRY TRENDS

Industry 1

Year 20

CELEBRITY ENDORSEMENTS
CONSUMER APPEAL
CELEBRITY

LA

CURRENTLY
SIGNED BY

85 45 35 40
100 70 65 75
70 100 70 55
95 80 85 75
60 50 60 95
55 60 95 90
50 90 50 85
70 65 55 60
75 80 95 50
45 85 60 100
80 85 75 70
60 35 100 50

Company B
[unsigned]
Company D
[unsigned]
Company B
Company H
Company F
Company B
Company D
Company B
[unsigned]
Company H

NA EA AP

Payton Manyon
Oprah Letterman
Annika Stockholm
Tiger Green
Jos Montaa
Karioki Footsu
Jaques LaFeet
Serenus Willson
Natalie Kwan
Sergio Milano
Lance deFrance
Yao KungPao

CONTRACT YEAR CONTRACT


MOST RECENT ROUND OF BIDDING
($000s/year) SIGNED LENGTH
# OF BIDS HIGH BID 2nd BID AVG BID LOW BID
27,500
0
23,109
0
26,000
27,999
22,401
27,500
23,046
27,500
0
26,001

BRANDED PRICE

AND

Y19
N/A
Y16
N/A
Y18
Y20
Y20
Y19
Y17
Y19
N/A
Y18

$90

$90

$70

8 8 8 8 8
7

$60

5
$50
$40
$30

8 8 8

$80

$70

14,001
26,999
8,888
26,999
21,003
27,999
22,401
17,847
9,000
22,401
26,999
20,001

8 8 8 8 8
7

$60

5
$50
$40

$20
Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20

Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20

YEAR

YEAR

ASIA-PACIFIC

LATIN AMERICA

$100

$100

$90

$90

$80

8 8 8
7

$70

8 8 8 8 8
7

$60

5
$50
$40
$30

INDUSTRY AVERAGE PRICE

INDUSTRY AVERAGE PRICE

19,329
26,999
17,840
26,999
23,748
27,999
24,700
23,449
19,069
25,311
26,999
23,214

$30

$20

$80

8 8 8
7

$70

8 8 8 8 8
7

$60

5
$50
$40
$30

$20

$20
Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20

Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20

YEAR

YEAR

Internet Price (industry average)

FIR

16,487
0
22,099
0
26,000
0
22,401
25,001
22,199
27,000
0
26,000

EUROPE-AFRICA
$100

INDUSTRY AVERAGE PRICE

INDUSTRY AVERAGE PRICE

NORTH AMERICA

8 8 8

27,500
26,999
23,109
26,999
26,001
27,999
26,999
27,500
23,046
27,500
26,999
26,001

S/Q RATING TRENDS

$100

$80

3
1
7
1
5
1
2
3
7
5
1
6

2 years
3 years
5 years
2 years
3 years
4 years
1 year
3 years
4 years
2 years
3 years
4 years

Wholesale Price (industry average)

S/Q Rating (industry average)

The Business Strategy Game 2007 GLO-BUS Software, Inc.

Page 7 of 7