Footlocker, Oz: Strategic Macro Analysis Foot Locker, Essay

PAGES
3
WORDS
1028
Cite

Footlocker, OZ: Strategic Macro Analysis

Foot Locker, Inc. is a New York headquartered sports product company with strong market presence in Australia. The leading resource for athletic shoes and apparel, with 4000 speciality stores in more than twenty countries across the globe in North America and Europe, as well as Australia and New Zealand, the company is well recognized by the globetrotting Australian consumer republic which finds trusted synchronicity in price point and brand identification wherever it travels. Subsidiary stores, Lady Foot Locker, Kids Foot Locker, Footaction, Champs Sports, and CCS all fall under the banner of the corporate conglomerate, augmented by its virtual direct-to-customer unit dedicated to sports gear distribution of catalog sales through retailer Eastbay at Footlocker.com. Footlocker is a member of the Australian Sporting Goods Association (Footlocker.au, 2010).

Responsive to the decline in sales prompted by the global economic crisis of 2008,-Foot Locker is posed to focus on improvement of profitability and sales by 2015 from $4.8 billion reported in the recent fiscal cycle, to $6 billion a year as part of the Company's new strategic plan made public in March of 2010 (Hoovers, 2010). The company recorded revenues of $5,237 million during the financial year ended January 2009 with a decrease of 3.7% compared to FY2008. The operating loss of the company was $103 million during FY2009, in comparison to $50 million in FY2008 with a net loss of $80 million in FY2009 versus $45 million in FY2008 (Datamonitor, 2009). Action items to the strategic plan include an integrated plan to optimize product buying, merchandising placement and sales tactics to enhance productivity...

...

A weakness in Foot Locker's current strategy where merchandise is concerned is that the company has traditionally limited purchase and concessions to vendor/distributors to the point that its concentrated supplier base has resulted in reduced bargaining power. At present, Foot Locker is the number one seller of Nike products in the United States, yet more than a quarter of company earnings are derived from national markets outside of the U.S., and performance of external markets represents the fastest growing option within the corporation's current direct sales share (Hoovers, 2010).
Macro-environmental analysis of the Australian athletic apparel industry reveals a strong outlook for Foot Locker, Inc., where there is no sign that interest in sports and related products will decline. From a business management perspective, the positive outlook is consistent where government openness to U.S. businesses, lower wages and broad discretionary purchasing power continue to result in perhaps the best possible scenario for a retailer that is affected negatively by these same factors in its home market. Consistent with the criteria to Porter's Five Forces illustrated in…

Sources Used in Documents:

References

Foot Locker, Inc., Australia (2010). Retrieved from: http:/ / www.footlocker.au

Foot Locker, Inc. (2010). Hoovers. Retrieved from: http://www.hoovers.com

Foot Locker, Inc. (2009). Datamonitor. Retrieved from: http://www.datamonitor.com

Porter's Five Forces -- The Missing Link (2010). The Marketers. Retrieved from: http://www.themarketers.in/?p=446


Cite this Document:

"Footlocker Oz Strategic Macro Analysis Foot Locker " (2010, November 13) Retrieved April 18, 2024, from
https://www.paperdue.com/essay/footlocker-oz-strategic-macro-analysis-49032

"Footlocker Oz Strategic Macro Analysis Foot Locker " 13 November 2010. Web.18 April. 2024. <
https://www.paperdue.com/essay/footlocker-oz-strategic-macro-analysis-49032>

"Footlocker Oz Strategic Macro Analysis Foot Locker ", 13 November 2010, Accessed.18 April. 2024,
https://www.paperdue.com/essay/footlocker-oz-strategic-macro-analysis-49032

Related Documents

Macro-Environment of Southwest Airlines (Revised Text) Economic Environment: encompasses all factors that have a direct effect on GDP, unemployment, inflation, interest rates, and exchange rates (Gimbert 48). The most fundamental are; fuel prices, and the effect of economic cycles. Economic downturns brought about by such factors as the 2007 financial crisis and the September 2011 tragedy drive airline customers across the U.S. To cut down on personal expenditure. The company, as

Moreover, considering that the country has a tradition in consuming cereal products due to its agricultural background and preoccupation for healthy lifestyle, the technology adopted by a market entrant should also allow for flexibility in terms of receipts or changing health requirements from both the customer and the authorities. Political (legal) General food safety requirements refer to the health and hygiene of the food handlers, their food handling skills and knowledge, the

The best alternative is to divert Microsoft resources from copycatting an attempt a better, bolder form of technology to rival these competitors. Resistance to change Dropping out of the Internet search engine and downloadable music markets until a real, innovative change can be offered may be met with resistance from marketing staff, who wish to establish Microsoft as a continual player in these areas. But if Microsoft does not release a

Macro-Environment Socio-cultural and demographics Demand for green products Legislation Economic environment Technology Business Level Strategy Protection from the Five Forces Threat of New Entrants Competition Substitutes Supplier Power Competition The building of relationships Business partners/transactions Strategic management Improved value chain Inbound logistics Manufacturing operations Outbound logistics The sales and marketing techniques The virtual value chain The macroeconomic environment of any enterprise is indeed a very vital thing to all the operations of the enterprise. This is brought about by the fact that both the present and the future operations of the business

They must comply with the legislation imposed in their country, as well as that in other countries where they operate. Also, in terms of international operations, fashion designers must act in accordance with the regulations imposed by the international regulators, such as the World Trade Organization. Microenvironemnt - Luella works with a team of talented specialists who are devoted to supporting the company reach its objectives in both creations, sales

Macro and Micro Environment in Management Planning is an important function of management. It is an act of formulating a program for a definitive course of action. The management defines a goal and puts forward its strategies to accomplish the objectives defined. STEPS IN THE PLANNING PROCESS For an organization to begin its planning, it needs to evaluate and assess whether it is ready. An organization need to realize where it is standing