The Business Strategy Game © 2009 GLO-BUS Software, Inc. All rights reserved.

INDUSTRY 26 Friday, May 22, 2009 YEAR 20

YEAR 20 SCOREBOARD
Investor Best-In-
Expectation Industry Overall Change
Rank Company Name Score Score Score from Y19
1 C-going down company 116 85 101 +4
2 H1N1 117 78 98 0
3 Ice Cold Killers 105 82 94 –6
4 Bailout Inc 115 68 92 –1
4 All about the money! 115 69 92 –11
4 F Company 110 73 92 +1
7 Git Sum 111 52 82 +2
8 DogZ 108 52 80 +2
9 E (deleted) 0 0 0 0
9 J (deleted) 0 0 0 0
9 K (deleted) 0 0 0 0
9 L (deleted) 0 0 0 0

GAME-TO-DATE SCOREBOARD
Investor Best-In-
Expectation Industry Overall Change
Rank Company Name Score Score Score from Y19
1 C-going down company 115 88 102 +7
2 All about the money! 116 84 100 –7
2 H1N1 116 84 100 +3
4 Bailout Inc 114 79 97 0
5 Ice Cold Killers 105 80 93 –2
6 F Company 107 75 91 +4
7 Git Sum 95 56 76 +3
8 DogZ 91 56 74 +7
9 E (deleted) 0 0 0 0
9 J (deleted) 0 0 0 0
9 K (deleted) 0 0 0 0
9 L (deleted) 0 0 0 0

Investor Expectation ———

Investors and company boards of directors have established annual targets for five key performance measures and the
Score (I.E.) importance weighting of each: EPS (20 points), ROE (20 points), Stock Price (20 points), Credit Rating (20 points), and
Image Rating (20 points). Pages 2 and 3 of this report show the investor expectation targets (in parenthesis just under
the column heads for each year). 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 Expectation Score ranges from 0 to a max of 120 (if all targets are
exceeded by 40% or more).
Best-In-Industry —————
This scoring standard is based on how well each company performs relative to the best-performing company in the
Score (B-I-I) industry on EPS (20 points max), ROE (20 points max), Stock Price (20 points max), Credit Rating (20 points max), and
Image Rating (20 ponits max). In order to get a score of 100, a company must be the best performing company in the
industry on all 5 measures, achieve no lower than the investor expectation on EPS, ROE, Stock Price, and Image
Rating, and have an A+ Credit Rating.
Overall Score ——————
This measure is used to determine each company's ranking in the Year 20 Scoreboard and Game-To-Date Scoreboard
above. The overall score is determined by combining the Investor Expectation Score and the Best-In-Industry Score
into a single score using the 50%-50% weighting that was specified by your instructor.
Industry 1 REVIEW OF COMPANY PERFORMANCES Year 20

EARNINGS PER SHARE ($)

Scores are based on a 20% or 20-point weighting. Bold numbers indicate achievement of the investor-expected EPS target shown below
each yearly column head. Best-In-Industry performers earn the top score, and scores of other companies are a percentage of the industry-
leading EPS performance. Game-To-Date scores are based on weighted average annual EPS performances.
11 12 13 14 15 16 17 18 19 20

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Wgt. Avg. Y20 Score G-T-D Score
(2.67) (2.85) (3.05) (3.26) (3.49) (3.66) (3.84) (4.03) (4.23) (4.44) (3.55) I. E. B-I-I I. E. B-I-I
2.67 2.85 3.05 3.26 3.49 3.66 3.84 4.03 4.23 4.44 3.55 24 20 24 20

A 2.80 3.93 1.60 3.31 3.32 5.84 6.86 10.13 13.92 10.66 5.99 24 14 24 20 A
B 2.36 1.18 -2.52 2.89 1.96 3.97 4.57 9.75 9.80 10.87 4.47 24 14 23 15 B
C 4.68 4.22 2.38 0.81 0.96 2.57 4.14 6.50 12.52 15.27 5.21 24 20 24 17 C
D 3.71 2.21 -1.87 -3.24 -3.62 0.65 2.18 4.22 4.20 4.67 1.38 21 6 8 5 D
E 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 E
F 1.74 3.21 0.99 -1.62 0.77 3.05 3.83 7.56 9.19 11.76 3.78 24 15 21 13 F
G 3.20 3.61 -2.30 -3.55 -0.73 2.56 3.65 4.66 4.62 4.87 2.07 21 6 12 7 G
H 2.63 3.77 1.13 0.36 0.68 3.57 5.94 8.80 11.71 13.48 5.01 24 18 24 17 H
I 2.05 3.60 -3.47 1.97 1.88 2.37 4.58 8.87 12.99 13.98 4.80 24 18 24 16 I
J 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 J
K 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 K
L 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 L

RETURN ON EQUITY (%)

Scores are based on a 20% or 20-point weighting. Bold numbers indicate achievement of the investor-expected 15% ROE target. Best-In-
Industry performers earn the top score, and and other companies earn scores based on their ROE as a % of the industry-leading ROE
performance. Game-To-Date scores are based on weighted average annual ROE performances.

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Wgt. Avg. Y20 Score G-T-D Score
(15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) (15.0) I. E. B-I-I I. E. B-I-I
15 15 15 15 15 15 15 15 15 15 15 24 20 24 20

A 16.9 19.7 7.9 14.3 12.9 19.6 19.5 24.2 26.9 18.8 19.8 23 5 23 14 A
B 15.5 9.7 -24.7 27.8 15.2 25.1 22.8 36.2 28.3 24.8 23.3 24 6 24 17 B
C 27.3 22.5 10.9 3.5 4.0 10.0 14.0 19.0 29.4 28.1 18.8 24 7 23 14 C
D 24.5 20.0 -17.8 -39.9 -72.7 16.1 39.9 48.7 30.7 24.9 15.2 24 6 20 11 D
E 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0 0 0 E
F 10.9 17.0 4.9 -8.2 4.0 14.7 15.9 26.9 28.4 34.8 17.2 24 9 21 12 F
G 19.6 21.7 -13.7 -26.6 -6.6 21.0 23.8 23.9 20.2 19.7 13.0 23 5 17 9 G
H 15.9 19.3 6.0 1.8 3.3 16.2 22.2 25.9 26.5 23.8 19.1 24 6 23 14 H
I 12.8 20.8 -22.1 15.4 12.5 13.3 23.4 33.1 57.2 77.9 27.6 24 20 24 20 I
J 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0 0 0 J
K 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0 0 0 K
L 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0 0 0 L

STOCK PRICE ($ per share)

Scores are based on a 20% or 20-point weighting. Bold numbers indicate achievement of the investor-expected stock price shown below
each yearly column head. Best-In-Industry performers earn the top score, and other companies earn scores based on their stock price as a
% of the industry-leading stock price. Game-To-Date scores are based solely on the most recent year's stock price.

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y20 Score G-T-D Score
(32.00) (34.25) (36.75) (39.25) (42.00) (44.25) (46.25) (48.75) (51.25) (53.50) I. E. B-I-I I. E. B-I-I
32 34.25 36.75 39.25 42 44.25 46.25 48.75 51.25 53.5 24 20 24 20

A 30.92 46.39 23.79 38.38 37.14 93.85 114.19 197.99 299.81 176.09 24 11 24 11 A
B 27.44 15.63 9.06 34.07 22.74 49.97 61.61 173.38 201.42 169.22 24 11 24 11 B
C 79.73 55.30 27.38 15.40 9.25 26.04 60.33 104.99 210.53 321.32 24 20 24 20 C
D 57.73 28.31 16.52 10.29 6.19 5.63 21.24 59.77 67.31 62.89 22 4 22 4 D
E 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 E
F 16.70 38.94 21.29 12.04 7.92 42.48 58.37 140.57 174.73 259.44 24 16 24 16 F
G 41.93 44.56 24.00 13.80 8.79 24.08 49.38 70.46 74.79 78.48 24 5 24 5 G
H 31.17 49.88 25.76 15.16 9.01 45.13 98.81 149.74 216.69 243.00 24 15 24 15 H
I 21.31 42.33 22.97 19.34 18.20 27.99 63.06 142.81 260.31 224.07 24 14 24 14 I
J 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 J
K 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 K
L 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 L

FIR The Business Strategy Game © 2009 GLO-BUS Software, Inc. Page 2 of 7
Industry 1 REVIEW OF COMPANY PERFORMANCES (continued) Year 20

CREDIT RATING
Scores are based on a 20% or 20-point weighting. Bolded credit ratings indicate meeting or beating the B+ investor-expectation. For the
Best-In-Industry scoring, companies with an A+ credti rating earn a score of 20 points and lesser credit ratings earn lower scores. Game-To-
Date scores are based solely on the most recent year's credit rating.
11 12 13 14 15 16 17 18 19 20

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Default Y20 Score G-T-D Score
(B+)
6
(B+)
6
(B+)
6
(B+)
6
(B+)
6
(B+)
6
(B+)
6
(B+)
6
(B+)
6
(B+)
6
Risk I. E.
24
B-I-I
20
I. E.
24
B-I-I
20

A 5 B 3 C+ 2 C 3 C+ 4 B– 7 A– 8 A 8 A 9 A+ 8 A 2.35

Medium 23 19 23 19 A
B B– C– C– C– C– C B A A A+ 8.62
Low 24 20 24 20 B
C B+ B– C+ C C+ B+ A A A+ A+ 11.56
Low 24 20 24 20 C
D C+ C– C– C– C– C– C– B B B+ 2.8
Medium 20 17 20 17 D
E 0 N/A 0 N/A 0 N/A 0 N/A 0 N/A 0 N/A 0 N/A 0 N/A 0 N/A 0 N/A 0

N/A 0 0 0 0 E
F B+ A– B– C– B– A A+ A+ A+ A+ 7.33
Low 24 20 24 20 F
G B B C– C– C– C+ A– A A A+ 6.56
Low 24 20 24 20 G
H B+ B C C– C B– A– A– A A+ 25.02
Low 24 20 24 20 H
I 5 B 3 C+ 1 C– 1 C– 1 C– 2 C 4 B– 6 B+ 5 B 4 B– 1.78

Medium 12 11 12 11 I
J N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0
N/A 0 0 0 0 J
K N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0
N/A 0 0 0 0 K
L N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0
N/A 0 0 0 0 L

IMAGE RATING
Scores are based on a 20% or 20-point weighting. Bolded image ratings indicate meeting or beating the yearly target of 70. Best-In-
Industry performers earn the top score, and scores of other companies are based on their image rating as a % of the leading image rating.
Game-To-Date scores are based on the average of image ratings in Y18, Y19, and Y20.

Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y18–Y20 Y20 Score G-T-D Score
(70) (70) (70) (70) (70) (70) (70) (70) (70) (70) Average I. E. B-I-I I. E. B-I-I
70 70 70 70 70 70 70 70 70 70 0 21 20 22 20

A 66 67 73 87 87 87 91 87 83 80 83 21 20 22 20 A
B 74 68 71 64 67 64 70 67 67 67 67 19 17 19 16 B
C 69 74 68 72 61 67 67 66 70 71 69 20 18 20 17 C
D 69 79 80 73 68 69 72 80 75 77 77 21 19 21 19 D
E 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 E
F 67 65 67 74 62 66 63 63 60 50 58 14 13 17 14 F
G 79 66 58 70 66 63 67 65 61 65 64 19 16 18 15 G
H 75 71 83 78 72 72 77 72 81 74 76 21 19 21 18 H
I 83 77 79 69 72 67 74 74 87 77 79 21 19 21 19 I
J 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 J
K 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 K
L 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 L

CORPORATE SOCIAL RESPONSIBILITY AND CITIZENSHIP
GOLD STAR AWARD

Industry 26 Expenditures for Corporate for Corporate Citizenship
Social Responsibility and Citizenship Image Rating Points
Generated from Beginning in Year 14, the World Council for
Total ($000s) Per Pair Sold ($ / pair) CSRC Expenditures Exemplary Corporate Citizenship presents a
Gold Star Award to the company spending the
High Avg. Low High Avg. Low High Avg. Low highest % of its revenues for social
responsibility and citizenship initiatives.
Year 11 10950 2014 0 2.31 0.37 0.00 3 1 0
Year 12 17261 2432 0 3.58 0.49 0.00 6 3 0 Award Winner 2nd Place
Year 13 17169 1947 0 3.94 0.43 0.00 11 4 0
Year 14 19617 2038 0 2.73 0.28 0.00 15 4 0 Y14 K Company F Company
Year 15 17364 1833 0 2.03 0.22 0.00 17 5 0 Y15 K Company F Company
Year 16 14028 1503 0 1.96 0.21 0.00 17 4 0 Y16 K Company I Company
Year 17 13940 2052 0 2.08 0.28 0.00 17 4 0 Y17 K Company H1N1
Year 18 13976 2097 0 2.03 0.28 0.00 16 5 0 Y18 K Company DogZ
Year 19 10592 1912 0 2.46 0.35 0.00 15 5 0 Y19 K Company Git Sum
Year 20 6792 1199 0 0.70 0.11 0.00 9 4 0 Y20 Git Sum Bailout Inc

FIR The Business Strategy Game © 2009 GLO-BUS Software, Inc. Page 3 of 7
Industry 1 INDUSTRY OVERVIEW Year 20

FOOTWEAR PRODUCTION (000s of pairs) N.A. E-A A-P L.A. All

Plants Plants Plants Plants Plants COMMENTARY
Total Year 20 Production 25,837 1,800 58,200 13,066 98,903 Pairs produced before rejects
– Pairs Rejected 1,471 67 3,452 628 5,618 Average reject rate = 5.7%
Net Y20 Production (after rejects) 24,366 1,733 54,748 12,438 93,285 Available for shipment to warehouses

Superior Materials Usage 25.6% 100.0% 38.6% 26.7% 34.8% % usage down by 2.3 points from Y19
Capacity Utilization (branded + P-L prod.) 119.1% 120.0% 120.0% 96.8% 116.1% % utilization down by 3.8 points from
Y19

MATERIALS PRICES ($ per pair) Base Year 20 Price Adjustments for Year 20 Lower than normal (34.8% industrywide)
Price Materials Usage Capacity Utilization Price superior materials usage led to superior
materials prices that were 7.6% below the
Standard Materials 6.50 + 1.98 + 0.40 8.88 base and standard materials prices that
Superior Materials 14.00 – 1.06 + 0.85 13.79 were 30.4% above the base. Industrywide
capacity utilization above 110% resulted in
materials price increases of 6.1% from the
BRANDED WAREHOUSES (000s of pairs) N.A. E-A A-P L.A. base.
Market Market Market Market Worldwide
Ending Y19 Inventories 1,719 1,864 1,651 1,677 6,911
– Pairs Cleared (inventory clearance) 376 490 427 432 1,725 Average inventory clearance of 25.0%
Beginning Y20 Inventories 1,343 1,374 1,224 1,245 5,186
+ New Production (shipped from plants) 21,631 21,094 21,217 20,462 84,404
Pairs Available for Sale in Y20 22,974 22,468 22,441 21,707 89,590 7.3% higher than Y20 demand

BRANDED DEMAND & SALES (000s of pair) N.A. E-A A-P L.A.
Market Market Market Market Worldwide
Projected Y20 Demand (see Y19 FIR) 23,082 21,894 21,479 21,208 87,663 Actual demand in Year 20 was 4.7%
Actual Year 20 Demand 21,672 20,597 20,909 20,330 83,508 less than expected due to increases in
industry average prices.
Branded Pairs Sold 21,203 20,532 20,648 20,029 82,412
Required Y20 Ending Inventories 1,771 1,594 1,793 1,678 6,836 Needed to achieve delivery times
Inventory Surplus (Shortfall) -659 164 -453 -421 -1,369 Low in N.A. Okay in E-A
-0.031080507 0.007987532 -0.021939171 -0.021019522

Low in A-P Low in L.A.

DEMAND FORECAST (000s of pair) Year 21 Year 22 Year 23 Year 24 GLOBAL SUPPLY / DEMAND ANALYSIS FOR YEAR 21
Branded ————— North America 22,539 23,441 24,379 25,354 Supply ——Beginning Year 21 Inventory 7,178
(internet + wholesale) Europe-Africa 21,421 22,278 23,169 24,096 (000s) Potential Production (at max OT) 102,840
Asia-Pacific 22,164 23,494 24,904 26,398 Potential Global Supply 110,018
Latin America 21,550 22,843 24,214 25,667
Total 87,674 92,056 96,666 101,515 Demand —Branded Sales Forecast 87,674
(000s) Private-Label Sales Forecast 14,968
Private-Label —————
North America 3,768 3,768 3,768 3,768
Europe-Africa 3,720 3,720 3,720 3,720 Expected Global Demand 102,642
Asia-Pacific 3,752 3,752 3,752 3,752
Conclusion: Even at full overtime production, capacity is
Latin America 3,728 3,728 3,728 3,728
shy of what's needed to meet future
Total 14,968 14,968 14,968 14,968 demand. Opportunistic companies should
consider building new capacity or
purchasing used capacity.
PLANT CAPACITY (000s of pairs w/o overtime)
Construction
Capacity at Beginning of Year 20 Capacity Purchased (Sold) Capacity Available for Y20 Production Initiated
N.A. E-A A-P L.A. N.A. E-A A-P L.A. N.A. E-A A-P L.A. Total in Year 20
A 0 0 6,700 5,500 0 0 500 0 0 0 7,200 5,500 12,700 0 A
B 0 0 9,400 0 0 0 0 0 0 0 9,400 0 9,400 0 B
C 5,400 0 4,800 1,000 0 0 500 0 5,400 0 5,300 1,000 11,700 500 C
D 5,700 0 4,300 0 0 0 0 0 5,700 0 4,300 0 10,000 0 D
E 0 0 0 0 0 0 0 0 0 0 0 0 0 0 E
F 4,100 0 3,500 0 0 0 0 0 4,100 0 3,500 0 7,600 0 F
G 3,500 0 4,200 0 0 0 1,000 0 3,500 0 5,200 0 8,700 0 G
H 0 1,500 6,300 2,500 0 0 0 0 0 1,500 6,300 2,500 10,300 0 H
I 3,000 0 7,300 4,500 0 0 0 0 3,000 0 7,300 4,500 14,800 0 I
J 0 0 0 0 0 0 0 0 0 0 0 0 0 0 J
K 0 0 0 0 0 0 0 0 0 0 0 0 0 0 K
L 0 0 0 0 0 0 0 0 0 0 0 0 0 0 L

21,700 1,500 46,500 13,500 0 0 2,000 0 21,700 1,500 48,500 13,500 85,200 500

FIR The Business Strategy Game © 2009 GLO-BUS Software, Inc. Page 4 of 7
Industry 1 FINANCIAL PERFORMANCE SUMMARY Year 20

INCOME STATEMENT DATA ($000s) Total Shares

Dividend of Stock
Net Sales Cost of Warehse Marketing Admin Operating Interest Income Net Payment (000s of shares
Revenues Pairs Sold Expenses Expenses Expenses Profit Exp (Inc) Taxes Profit ($000s) outstanding)

A 534,085 342,319 30,354 26,332 15,119 119,961 5,741 34,266 79,954 90,000 7,500 A
B 557,855 293,946 33,792 92,525 12,719 124,873 8,382 34,947 81,544 0 7,500 B
C 698,083 349,217 52,985 110,500 14,118 171,263 7,625 49,091 114,547 6,825 7,500 C
D 577,408 359,904 45,938 66,652 12,419 92,495 27,171 19,597 45,727 0 9,800 D
E 0 0 0 0 0 0 0 0 0 0 0 E
F 494,896 237,622 33,226 84,020 10,021 130,007 3,993 37,804 88,210 75,000 7,500 F
G 435,464 263,791 27,015 67,995 12,170 64,493 5,317 17,753 41,423 8,500 8,500 G
H 679,394 330,529 52,167 128,683 13,419 154,596 10,220 43,313 101,063 750 7,500 H
I 847,560 427,984 47,484 152,498 18,420 201,174 51,387 44,936 104,851 0 7,500 I
J 0 0 0 0 0 0 0 0 0 0 0 J
K 0 0 0 0 0 0 0 0 0 0 0 K
L 0 0 0 0 0 0 0 0 0 0 0 L

603,093 325,664 40,370 91,151 13,551 132,358 14,980 35,213 82,165 22,634 7,913

SELECTED BALANCE SHEET DATA ($000s) DIVIDEND DATA

Shareholder Equity Year 20 No. of
Cash Current Total Current Long-Term Beginning Stock Sales Earnings Ending Dividend Changes
on Hand Assets Assets Liabilities Debt Equity (Purchases) Retained Equity ($ / share) (+ / –)

A 15,681 177,981 526,884 39,454 68,000 429,478 0 -10,048 419,430 12.00 9 /1 A

B 102,422 273,430 503,688 37,568 96,000 288,554 0 81,566 370,120 0.00 3 /3 B
C 28,339 224,351 563,778 41,521 82,560 375,649 -43,672 107,720 439,697 0.91 3 /3 C
D 10,762 187,023 414,982 54,353 168,000 174,925 -28,024 45,728 192,629 0.00 3 /3 D
E 0 0 0 0 0 0 0 0 0 0.00 0 /0 E
F 22,076 164,639 319,908 23,615 36,000 247,082 0 13,211 260,293 10.00 9 /1 F
G 11,051 128,633 317,847 30,756 64,000 197,735 -7,567 32,923 223,091 1.00 2 /2 G
H 67,993 269,614 558,684 38,586 45,000 374,782 0 100,316 475,098 0.10 9 /1 H
I 26,618 272,969 740,153 112,702 474,000 115,846 -67,248 104,852 153,451 0.00 1 /2 I
J 0 0 0 0 0 0 0 0 0 0.00 0 /0 J
K 0 0 0 0 0 0 0 0 0 0.00 0 /0 K
L 0 0 0 0 0 0 0 0 0 0.00 0 /0 L

35,618 212,330 493,240 47,319 129,195 275,506 -18,314 59,534 316,726 3.00 5 /2

SELECTED FINANCIAL AND OPERATING STATISTICS CREDIT RATING DATA

Costs and Profits as a % of Net Revenues Interest Debt to Default
Cost of Whse. Mktng. Admin. Operating Net Current Days of Coverage Assets Risk Default
Prs. Sold Expenses Expenses Expenses Profit Profit Ratio Inventory Ratio Ratio Ratio Risk
A 64.1 % 5.7 % 4.9 % 2.8 % 22.5 % 15.0 % 4.51 45 20.90 0.15 2.35 Medium A
B 52.7 6.1 16.6 2.3 22.4 14.6 7.28 39 14.90 0.21 8.62 Low B
C 50.0 7.6 15.8 2.0 24.5 16.4 5.40 25 22.46 0.17 11.56 Low C
D 62.3 8.0 11.5 2.2 16.0 7.9 3.44 34 3.40 0.46 2.80 Medium D
E 0.0 0.0 0.0 0.0 0.0 0.0 0.00 0 0.00 0.00 0.00 N/A E
F 48.0 6.7 17.0 2.0 26.3 17.8 6.97 30 32.56 0.13 7.33 Low F
G 60.6 6.2 15.6 2.8 14.8 9.5 4.18 12 12.13 0.23 6.56 Low G
H 48.7 7.7 18.9 2.0 22.8 14.9 6.99 35 15.13 0.09 25.02 Low H
I 50.5 5.6 18.0 2.2 23.7 12.4 2.42 35 3.91 0.75 1.78 Medium I
J 0.0 0.0 0.0 0.0 0.0 0.0 0.00 0 0.00 0.00 0.00 N/A J
K 0.0 0.0 0.0 0.0 0.0 0.0 0.00 0 0.00 0.00 0.00 N/A K
L 0.0 0.0 0.0 0.0 0.0 0.0 0.00 0 0.00 0.00 0.00 N/A L

54.0 % 6.7 % 15.1 % 2.2 % 21.9 % 13.6 % 4.49 32 15.67 0.27 8.25 Low
60.075 7.4 15.4 2.6 6.575 4.45 1.82 45 8.14 0.585 6.255

48 5.6 4.9 2 26.3 17.8 7.28 32.56 0.09 25.02

Bold = best in industry = needs management attention

FIR The Business Strategy Game © 2009 GLO-BUS Software, Inc. Page 5 of 7
Industry 1 PERFORMANCE BENCHMARKS Year 20

Industry Low Industry Average Industry High

PLANT AND PRODUCTION BENCHMARKS Year 19 Year 20 Year 19 Year 20 Year 19 Year 20

Materials Costs ———— Branded Footwear 8.04 8.07 10.61 10.01 12.98 12.37
($ per pair produced) Private-Label Footwear 7.37 7.41 9.00 8.04 11.82 8.94
Labor ———
North ————
Total Compensation ($/year) 18,131 18,145 23,427 25,451 24,286 24,836
America Productivity (pairs/worker/year) 3,915 4,286 5,699 6,253 5,882 6,035
Labor Cost ($/pair produced) 4.25 4.23 5.59 5.70 5.32 4.85
Europe ————
Total Compensation ($/year) 17,399 17,596 17,399 17,596 17,399 17,596
Africa Productivity (pairs/worker/year) 4,199 4,300 4,199 4,300 4,199 4,300
Labor Cost ($/pair produced) 4.54 4.49 4.54 4.49 4.54 4.49
Asia ————Total Compensation ($/year) 7,428 7,497 8,248 8,479 9,780 9,892
Pacific Productivity (pairs/worker/year) 2,464 2,476 3,082 3,202 4,092 4,222
Labor Cost ($/pair produced) 2.39 2.41 2.99 2.97 3.61 3.80
Latin ————
Total Compensation ($/year) 7,623 7,687 16,289 15,194 11,348 8,739
America Productivity (pairs/worker/year) 2,852 2,866 6,834 6,886 4,024 4,110
Labor Cost ($/pair produced) 2.89 2.91 5.67 5.29 3.81 3.14
TQM / 6Σ
Σ Quality Expenditures ———
Year 20 0.21 0.30 1.11 1.08 2.50 2.50
($ per pair of capacity) Cumulative 0.45 0.43 1.31 1.28 2.41 2.42
Reject Rates —————
Branded Production 3.9% 4.0% 5.9% 5.9% 8.4% 8.5%
Private-Label Production 1.8% 2.9% 3.3% 3.3% 4.4% 4.2%
Total Manufacturing ——— Branded —————
N.A. 22.09 22.59 25.70 24.52 29.39 29.24
Costs ($/pair produced) E-A 28.90 27.80 28.90 27.80 28.90 27.80
A-P 20.44 20.15 24.79 23.54 30.26 29.72
L.A. 22.14 21.80 24.45 23.84 26.76 25.87
Private-Label ———
N.A. 19.51 18.80 26.99 24.42 32.87 30.03
E-A 24.17 0.00 24.17 0.00 24.17 0.00
A-P 22.71 22.58 26.26 22.58 30.56 22.58
L.A. 16.90 18.81 19.48 21.02 22.81 23.22

Industry Low Industry Average Industry High

OPERATING BENCHMARKS Year 19 Year 20 Year 19 Year 20 Year 19 Year 20

Branded ———
Costs of Pairs Sold ————— N.A. 23.59 24.09 27.67 26.80 30.99 30.74
Market ( $/pair sold. Includes manufac- E-A 30.71 30.47 34.43 33.38 40.00 39.74
Segments turing, shipping, import tariffs, A-P 21.94 21.65 27.20 25.68 34.49 33.98
and exchange rate adjustments.) L.A. 23.27 23.33 27.99 28.65 34.15 35.72
Warehouse Expenses —— Internet 10.35 12.36 10.61 12.46 11.38 12.64
($ per pair sold) Wholesale 2.00 2.00 2.36 2.18 3.38 2.43
Marketing Expenses —— Internet 5.82 5.59 11.67 12.04 15.79 16.48
($ per pair sold) Wholesale 2.59 2.50 8.33 7.93 11.23 11.17
Administrative Expenses ($/pair sold) 1.17 1.14 1.42 1.35 2.12 2.12
Operating ——Internet ——–— N.A. 7.90 8.86 15.63 16.57 20.45 22.84
Profit E-A 2.61 3.51 11.91 13.00 17.70 17.99
($ per pair sold) A-P 7.45 8.90 17.68 20.03 23.66 27.30
L.A. 16.33 11.61 22.25 16.80 30.01 24.68
Wholesale ———
N.A. 5.21 6.01 8.60 11.77 18.34 17.77
E-A 1.75 2.17 10.43 12.42 18.13 19.35
A-P 2.88 7.19 9.54 12.53 15.06 16.43
L.A. 9.25 6.84 14.14 10.95 18.44 15.13

Costs of Pairs Sold —————

Private-Label ——— N.A. 21.01 20.30 26.92 23.79 34.37 27.27
Market ( $/pair sold. Includes manufac- E-A 25.67 29.26 30.42 31.04 35.61 32.81
Segments turing, shipping, import tariffs, A-P 24.21 24.08 29.21 27.23 32.06 30.38
and exchange rate adjustments.) L.A. 18.40 24.72 23.93 28.78 29.09 32.83
Warehouse Expenses ($ per pair sold) 1.00 1.00 1.03 1.00 1.20 1.00
Margin Over Direct ————N.A. 0.43 1.73 6.33 4.50 11.24 7.26
Costs ($ per pair sold) E-A 3.15 6.18 8.10 13.32 15.00 20.45
A-P 1.14 10.88 6.09 12.76 11.36 14.63
L.A. 10.10 2.42 10.64 3.19 11.04 3.96

FIR The Business Strategy Game © 2009 GLO-BUS Software, Inc. Page 6 of 7
 Industry 1 CELEBRITY ENDORSEMENTS AND INDUSTRY TRENDS Year 20

CELEBRITY ENDORSEMENTS
CONSUMER APPEAL CURRENTLY CONTRACT YEAR CONTRACT MOST RECENT ROUND OF BIDDING
CELEBRITY NA EA AP LA SIGNED BY ($000s/year) SIGNED LENGTH # OF BIDS HIGH BID 2nd BID AVG BID LOW BID
Payton Manyon 85 45 35 40 Company H 11,988 Y19 2 years 5 11,988 10,000 7,103 1,313
Oprah Letterman 100 70 65 75 [unsigned] 0 N/A 3 years 0 0 0 0 0
Fifa Beckham 70 100 70 55 Company I 9,242 Y16 5 years 5 9,242 7,777 5,215 551
Tiger Green 95 80 85 75 [unsigned] 0 N/A 2 years 0 0 0 0 0
José Montaña 60 50 60 95 Company B 8,759 Y18 3 years 5 8,759 8,300 4,926 1,234
Kobioshi Jones 55 60 95 90 [unsigned] 0 N/A 4 years 0 0 0 0 0
Ace Federar 50 90 50 85 [unsigned] 0 N/A 1 year 0 0 0 0 0
Danica Andretti 70 65 55 60 Company H 11,988 Y19 3 years 5 11,988 10,000 8,035 1,313
LaBron Game 75 80 95 50 Company I 9,421 Y17 4 years 5 9,421 8,257 6,114 1,111
Lorena Lopez 45 85 60 100 Company H 11,988 Y19 2 years 7 11,988 10,000 8,411 1,313
Lance deFrance 80 85 75 70 [unsigned] 0 N/A 3 years 0 0 0 0 0
Yao KungPao 60 35 100 50 Company G 10,234 Y18 4 years 5 10,234 8,759 7,170 1,234

BRANDED PRICE AND S/Q RATING TRENDS

NORTH AMERICA EUROPE-AFRICA

$100 $100

$90 $90
INDUSTRY AVERAGE PRICE

INDUSTRY AVERAGE PRICE

$80 $80

$70 7
7
7
7
$70 7
7
7
7

6
6
6
6
6
6
6
6
6
6
6
6

$60 $60
5
5

$50 $50

$40 $40

$30 $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

ASIA-PACIFIC LATIN AMERICA

$100 $100

$90 $90
INDUSTRY AVERAGE PRICE

INDUSTRY AVERAGE PRICE

$80 $80

$70 7
7
7
7
7
$70 7
7
7
7
7

6
6
6
6
6
6
6
6
6
6

$60 $60
5
5

$50 $50

$40 $40

$30 $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) Wholesale Price (industry average)
S/Q Rating (industry average)

FIR The Business Strategy Game © 2009 GLO-BUS Software, Inc. Page 7 of 7