Believe

DecisionPrintout- Year 17

Industry 8

(internetandwhoresare) BRANDEDSALES FORECAST Nonrn Auenrcn Eunope.Arnlcn AsnPncrrrc LnnH Amenrcl

Factors Affecting Interent Sales

FactorcAffecting Salesto Retailerc

Co. B's Your Co. B's Your Go. B's Your Go. B's Your Proposed EstimateProposed EstimateProposed EstimateProposed Estimate Mafieting ofthe Marketing ofthe Marketing ofthe Marketing ofthe
Effort lnd

Effoi Ind Co. B's Your Wholesale Price (g perpair) 55.40 Proposed Estimate (1)t to lott) 10 Mafieting ofthe S/Q Rating Models Available z4 Effoft lndAvg online Price($tl-5dfd-l l-6.l--6il Advertising Budget ($Ooos) 20800 Rebate Offer ($o-$10 perpair) 6 Models (offereo) l-Zdii-l l-i6-l Retail Outlets (number uritized) 2743 FreeShippinglTo I l-iion6l Retailer Support ($ perouflet) 450 Delivery Time (1 to 4 weeks) 2 In Year18theInternet Market will Celebrity Appeal 140 account for 12%of totalbranded Companies Competing in
footweardemand.

59.99
I

24

15000
3

Efioft M,40 I 246 5500

lnd

Effoil

53.20 10
204 10870

153E
500

1300
650
3 175

3
1ZO

6 1309 610 3 120

the Region (totat number)

-rl

Inventory Clearance (% of beginning inventory cleared at discount)

l-6-1"u"

fe-l ll-lv"

-rl
ll-lv"

Clpncw SALEs Pum / UPGMDES / ADDITIoNs N.A.

Sale of Existing Capacity (OOOs of pairsof regutar-time capacity) Plant Upgrade Options + Ordered Option Option Option Option A B C D (reject rate) (production-run setup) (S/Qrating) (worker productivity) (tocomeontine in y18)

E.A Pum

A-P Punr

L.A. Purr
f-jd-l1ooo p"irs1

@tooo

tr tr tr tr

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tr tr tr tr

c"ir") f[l{oooo"i'.)

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tr tr tr

tr tr tr tr
L.A. Plmr
%
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Self-Construction of Additional Capacity

F-llooopairsl

@{ooo

n"ir.) l-6dd-l(ooopairs) [-6-11ooo pairsl

BRANDED PRODUCTION
SuperiorMaterials Usage(oto 1oo%) Number (s0, of Models 1oo, 1s0,200,250, 3so, orsoo) Enhanced Styling/ Features ($o per to$2sk modet) TQM/ Six SigmaQualityProgram($o-2 perpair ofcapacity) Compensation Change in AnnualBaseWages(%) and Training Incentivepay ($pernon-rejecl pair) Best Pnctices Training($perworker) BrandedPairsto be Manufactured in year 18 (ooos)

N.A.Plmr f-65-lv" slJ6-lr

$ $

E-A Purr

A-PPuu

12501
k
G

$rzaol

$
D

$
RegularOvertlme

$ $
RsgularOvertlme

RogularOvertlms

l--1]-d-l
N.A.Plmr l-Tsio--l

li4-6dl t=td-l

Fno-d]tT5d-l

Bnmoeo Snlpprrue
Shipmentsfrom Plantsto (000s of pairs)

E.APuHr

A-PPuHr
I 1630|

L.A. Puu

NorthAmericanWarehouse Europe-Africa Warehouse Asia-Pacific Warehouse Latin AmericanWarehouse

l-T1

lresl @
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ffi
MARKET

trf-t

f i3T6--]

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l--l lr!_J 11801

| 1063I

InteRner MARKETING oF BRANDED FooTwEAR

lnternet Marketing Decisions Online Price ($perpair atretait) ModelsOffered FreeShipping (from whse. tocustomer)

Mnnxer BlockAll tr BbckAil tr BlockAtt tr BtockAlt tr Intemet Orders Internet Orders Intemet Orders Intemet OrdeF fromCustomelsfromCustomeFfromCustomens fromCustomeF in North Americain Europe-Africa inAsla-Pacific in Latin America

MARKET

WxousRI.E MARKETING oF BRANDED FooTwEAR

lllfl6lss6l6 -Wholesale Price to Retailers ($ perpair)

Menxer

Marketing Decisions

AdvertisingBudget (gooos) Mail-lnRebateOffer ($o perpair) to$10 RetailOutletsAvailable(willing your tocarry footwear) RetailOutletsUtilLed (totat number) RetailerSupport ($1oO-$2500 perouflet utitized) DeliveryTo Retailers(4,3,2,or 1week)

t-55ri6-t
| 20800|

t--1

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2743

1538

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Page 1

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Printedon 10129106 at 10:13 PM -

Believe

DecisionPrintout.- Year 17
(continued)

Industry 8

BlDs FoR CeLeaRlTYENDoRSEMENT forand won iny17become iny18. contracts bid effective CoNTRACTS cetebrity GeLesnw Appml CuRRemly Cnrcel AMoUNT Yem Colrmcr UproR OrrER PRroRrTy
NmE Or CELEARIV PaytonManyon OprahLetterman AnnikaStockholm TigerGreen Jos6 Montafia KariokiFootsu JaquesLaFeet Serenus Willson NatalieKwan SergioMilano LancedeFrance Yao KungPao NA EA AP LA 45 70 100 80 50 60 90 65 80 85 85 35 SrcHeO BV COnfRACf ($000s/year) SrcHeO LenOn BtO ($000s/year) R1HTHC
5879 12998 0 0 7 'l 0 0

85 100 70 95 60 55 50 70 75 45 . 80 60

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

tr tr tr tr tr tr tr tr tr tr tr tr
N.A. Pum l-Td-lv" sl-5-lr
6*

0 0
3100

T' T' T 7
5

3100
10132 10121

12998
0

T-

Spending Capon AboveBids ($ooos) t@

Oncethe annual costof yourcompanys winning bidsreaches lhis dollaramount, all lower-priority bidswillbe withdrawn. Thiscap helpsyou avoidunwanled spending for celebrity endorsements.

- LReerPRTVATE Pnooucnot
Production Specs-

Long-Wear Materials Usage(oto1oo%) global requirement) Number of Models (Y18 Enhanced Styling/ Features($permodet) S/Q Ratingof P-LabelPairs Produced (ooos rejects) before

100

E-A PuHr A-P Punr L.A.PuHr rTei6l"t F-lv" @n

sF]r
100

slT-lr
6*

100

100 El-6-lr
6*

RegularOvertims RogularOvsrtlme Regular Overtime

Private-Label Pairsto be Manufactured in Year 18 ProposedShipmentsfrom Plants[9 (000s of pairs)

]ilsTtft AmericanWarehouse Europe-Africa Warehouse Asia-Pacific Warehouse LatinAmerican Warehouse

l--ll-40-d] t--ll--l lT6Tl r-d-l

t-r-l
t0l

t0t

- LABELBIDS PRIVATE
Pairs Offered for Sale (ooos thatwiilbe produced andshipped if bidis accepted) pricein Y17) Bid Price (mustbeat least$5.00below regional average whotesate

l0l t0l l0l l{onrxAmrnrcmEunope.Arnrca AsnPncrrc Lm AnEnrcnr MARKET MARKET Manxer Mmxer 393 245 0 0

l--l

rr-l

F-l rr6d]l--lFo--l l--l t-'rd-l | 1s7| l88 l

t--l
t--o-l

RegularOvsrtims

$[8651

$[T6s-o-l

$l-6361

s|o.-d6'l

Fruaruce AND CAsH FLow

SOURCES OFADD[to]'lAL GnSx l-YearBankLoan s-YearBank Loan 1o-Year BankLoan
Stock lssue (000s of shares at $54.41 )

ffi {_E
t--l

FOR USES
AVAILABLE

EarlyRepayment of L-T6 on Balance Loans (Note

Loan #
Loan #

Casx

Dividend (s/share..yl6dividendwas$0.1s) @I

ofshares at$54.41) Stock Repurchase (ooos f-Ed'-l

Borrou.LINE PROJEcTIoNS
Sales Revenues Net Profit Earnings PerShare ReturnOn Equity Credit Rating lmageRating Ending CashBalance $506,724 $60,485 $6.39 17.2% A+ 94 $13,185

The BusinessStrategyGame Copyright@2006 GLO-BUS Software,Inc.

Printed on 10/29/06 at 10:13PM -

Page2