www.pwc.

com/dconstruct

Sports Inc.

Request for Proposal

10 September 2014

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Table of Contents
Background ............................................................................................................................................................... 3
Engagement Objectives .............................................................................................................. 4
Submission Requirements .......................................................................................................... 5

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Background
Context
Sport Inc. (hereby referred to as the Company) is an American corporation that is engaged
in the manufacturing and selling of footwear, apparel, sports equipment and accessories. The
company is headquartered near Miami, Florida and is one of the America's largest suppliers
of athletic shoes and apparel with revenue in excess of US$19 billion in its fiscal year 2014
(ending May 31, 2014). As of 2014, it employed more than 20,000 people. In 2013 the brand
alone was valued at $20.7 billion, making it the one of the most valuable brand among sports
businesses.
Currently, the company is structured into two broad divisions: Sports Inc Marketing &
Sports Inc Manufacturing. Sports Inc Marketing owns the Marketing and R&D functions
while Sports Inc Manufacturing owns the Manufacturing and Distribution functions. The
Company has 300 company owned stores (not a franchise model) spread across US and
mainly sells its product through these stores. The company is considering investing in
transportation infrastructure and IT infrastructure to cut costs.
A broad overview of the Companys departments is represented below.

Situation
The market for the range of sports goods that Company sells is fairly competitive and
fragmented with stable revenue and growth trends. However, the Company has been facing
declining profitability over the past 2 years in-spite of stable revenues. There has been a
recent change in company management. The new management is very concerned about the
declining profitability trends especially in the Manufacturing and retailing division given that
the largest investors expect the firm to meet stringent net profitability target of 12% by FY 17.
The company is in the process of planning its store rationalization and growth strategy to
meet those targets.
The company would like PwC-Diamond (hereinafter referred to as "the firm") to determine
possible reasons for decline in profitability and recommend an appropriate store
rationalization and growth strategy.

All Rights Reserved by Sports Inc. and PwC-Diamond

D'conStruct 2014

Engagement Objectives

Identify the drivers that explain the profitability decline the company has seen in
recent years
Define the framework for store rationalization and execution roadmap for
implementation of the same
Determine the appropriate levers and roadmap for future growth strategy both in U.S.
and emerging markets like South East Asia

All Rights Reserved by Sports Inc. and PwC-Diamond

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Submission Requirements
The response submitted by the firm, on 17th September 2014, should detail out the following
mandatory information required by the company for evaluation of the proposal:
Project Understanding: A brief description of the objectives of the current project
engagement as understood by the firm. (1 slide)
Approach and Methodology: This section will detail out how the firm intends to
perform the analysis and the underlying framework for the same. For example, identify the
critical drivers and corresponding data analysis to ascertain their impact on firms
profitability. (3 to 5 slides)
Data Requirements: This section should contain the detailed data requirement for a
successful execution of the project as envisioned by the firm. In general, the firm may use any
third party data from a reliable source as long as it is publicly available. (1 slide)
List of Deliverables: This section will detail out the list of deliverables (along with
samples as applicable) that the firm will provide to the company (1 to 2 slides)
Project Timelines: This section should detail out the timelines for the project, along with
any time commitment required from the company. Senior management from the company
will be available for a conversation to shortlisted proposals to answer any further queries (1
slide)
Resource Requirement & Cost: This section should detail out the engagement team for
the project with description of work assigned to each team member and their experience in
the subject (1 slide)
The submission is to be in a power point format with not more than 12 slides + relevant
appendix

All Rights Reserved by Sports Inc. and PwC-Diamond