At Mercury International Ltd., just about 4,800 workers are employed internationally using operations in more than 170 states. Mercury leads the industry and gives main attention to sporty or athletic footwear and apparel. The paper is mainly a memo to the Board of Directors summarizing Mercury Shoe’s performance under leadership. A SWOT analysis of Mercury offers information supportive in setting up a future for the company. Mercury Shoes will be commencing a novel brand for the market in the year 2010. This particular brand will necessitate tactical marketing attempts that will start in the state of U S. United States, Asia, and Europe are the three countries, Mercury International Ltd., is presently working in. Mercury International Ltd. scrutinizes itself as an international leader in shoe manufacturing. It will carry on to internationally obliging the brand name as the modernizer of scientifically superior sporty shoes. This worldwide approach, in addition to the provincial capability, to adapt will construct the most successful commercial or business strategy. Very strong leadership must be essential to strongly maintain an international strategy for shoe manufacturing.
Performance under leadership
In connection with marketplace dynamism, it is practical to presently fit and acquire a competitive benefit over other participants. Product modernization and functionality have turned out to be very essential. Mercury Shoes has given main attention to design innovation. So that it is very much difficult to keep up its market place share. The existing marketplace dynamics speak that the business desires to productively react and discover explanations to the wants and expectations of its worldwide clients in concert by way of a superior marketplace. Based on the examination of Mercury’s 2009 supply chain information and marketplace study, we can say that Mercury should pursue a product leadership assessment authority to achieve its competitive advantages in the marketplace; the foundation of the asset resources required to effectively and profitably practice a merchandise leadership. “Through the Mercury Business Portal, which serves as the chief interface between the simulation and learners, participants gain access to content, tools, and models that challenge them to think systemically across the functional areas of business — from operations and finance to sales, marketing, human resources fancy word for “people.” The human resources department within an organization, years ago known as the “personnel department,” manages the administrative aspects of the employees.
Moreover, provincial leadership from the monetary area will facilitate to construct superior knowledgeable decisions on administration of the various parts of the Mercury International Ltd., The provincial leadership will also have the capability to investigate and analysis various trends in trades and marketing, which will show the way to a more useful overall policy of the company. All business functions such as promotion, financing, construction, sales, human resources etc., of the Shoes will be prepared in the course of the main company office. Without the strong leadership performances, all this functioning is not possible. So, besides the typical leadership configuration, it will be inserting a leadership chain committed to the brands. Monetary position for Mercury Footwear Inc. has demonstrated accomplishment by way of extraordinary revenue figures evaluating by way of further brands. “The main distribution of products are to independent footwear retailers carrying athletic footwear such as department stores, retail stores, discount chains, sporting good stores and athletic pro shops. For examples of current retailers includes: Dicks Sporting Goods, Dunham’s Sports, the Sports Authority, Inc., and DSW Shoes, And Foot Locker Inc” (Krause, et al, 2010, para.3). Besides, by way of deliveries prepared to retailers in the United State, Mercury also is a large distributor to consumers categorizing online from the business website.
To increase the performance and growth of Mercury International Ltd., company, there should be some strategic objectives which will boost the developments, thereby making the company reach the top level in the leading market.
- Marketing: Marketing will be the most important area for the key success of a company. Communicating to the customers about the new technologies and latest trends will be essential in the success. The market is always changing and the customers are keeping their eyes on the latest fashions in apparels. Most of the customers are youth. These people are more concerned about the latest trends. They are keen on studying the market for their new apparels according to the situations. So a good marketing technique will surely make a deep impact on these customers and thus the performance of the company will increase. The mode of marketing channels is also very important. This must be through various social sites like face book and twitter where the younger generations are attracted. Another important step in marketing is to create a brand impact on the customers from Mercury. We have to show the peculiarities of our brand in its apparels and the differences between the competitors. “A reputed brand besides being a style statement for a consumer also provides something more such as quality assurance. The status, goodwill and reputation associated with the brand helps in promoting the goods among brand conscious customers” (Majumdar, n.d). By creating and promoting the brand name, it will be helpful to increase the business in Mercury International Ltd.
- Distribution: Marketing and distribution are two important areas to be developed to expand the business. These two areas are mutually related. A good distribution channel will show the company’s growth. By way of faster distribution, with the demand in the industry, the brand will make a huge impact on the market. Through this, Mercury can attain the top spot on business and can capture the leading market share. The company has to narrow the supply chains so that the products can reach the targeted customers without much cost variations.
- Management: A proper management network will enhance the whole company growth. There should be proper interactions from the top management level to the bottom level. With this, the production, distribution, marketing, and financing teams can function effectively. A good management can impose new developments in the company to increase the performance of the company. For better results, there must be skilled and experienced administrators who can make proper changes according to the market changes. They should involve in every department and there must be a co-ordination between the different managers in the various departments of the company.
- Product innovations: The product development will be another important factor to the progression of Mercury. “Focused by a creative orientation, it arises from unsatisfaction with the current state of art, by leveraging technological and social new opportunities” (Piana, 2003, para.2). It should be according to the companies’ ability to produce and market. There should be a proper Research and development department who has to carry out the research of the product. There should be separate research departments in sales and marketing also. The product innovations should be made according to the requirements of customers and a proper study has to be carried out to know the reaction of the consumers. The promotion of the new product will be according to the company standards by attracting people to the product. It has to try to capture the larger portions of markets of Asia and America.
Mercury Shoes is a branded company that produces athletic shoes. The company has a wide scale of operations in different countries like America, Asia and Europe.
- According to the cost of goods sold by round summary, in America, the material cost per unit has been constant from the year 2007. The unit cost per material has not changed over the years like the Booster Insoles and cost has been $5.50 in the year 2007 while it is the same in the 2010 1st and 2nd quarters. Booster Insoles is a product which needs much attention on improving its standards because the product has been earning negative margin of profits in American, Asian and European markets and the negative profit is huge in European markets in comparison to Asian and American Markets.
- The labor cost has come down comparatively over the years and has reduced from $3.80 in 2007 to $ 3.46 in 2010. The supply chain overhead cost has also reduced by around 4.7% approx. from the 2007 to 2010. Under my leadership, I will try to further reduce the supply chain overhead cost further in all the three markets so that there is no obstacle in earning profits.
- The product development cycle time has also reduced from 12 months to comparatively 11.92. Under my leadership, I will try to further reduce the product development cycle to 11 months so that the production is faster and more amount of progress can be made to establish and capture the markets in Asia, Europe and America.
- The total cost of goods sold has increased by 1.64% approx from $912 millions in 2007 to $ 927 millions in 2010. Even though the supply chain cost has reduced and the labor cost is stagnant the total cost of goods has increased by around 1.64%. In Asia, the total cost of goods sold has increased by 7% approx., from 2007 to the year 2010. By comparing Asian, European and American markets, the unit material cost for Boost Branded Athletic shoes is the same in all the three markets. The total cost of goods sold in the European market has increased by 45% approx from the year 2007 to the present year 2010. The product development cycle time has improved in the Asian market in comparison to the European and the American markets.
- In America, the revenue from the product line Sweatless Apparel has reduced very considerably from 26.1 in the year 2007 to 6.97 in 2010. The revenue from the Sweatless Apparel was apparently zero in the 3rd and 4th quarter of the year 2010. Sweatless Apparel has also earned negative profits in all the three markets but in Asia, the negative profit is less in comparison to the American and European markets. Under my leadership, I will try to further improve the product line Sweatless Apparel by incorporating new strategies. Better advertising of Sweatless Apparel can be done to improve its market and new labels of this product line can be introduced. The decline in the product line of sweatless apparel is a weakness which needs to be changed.
- According to the Margins by round summary, the margin percentage per service for mercury clinics has increased in the 4 quarters of the year 2010 from 0 to 1.96% in the Asian market while in the European market it has improved more considerably from negative percentage to 1.96%. The American market had a positive percentage in Mercury clinics and has further increased from 1.03% in 2007 to 2.04% in 2010. According to the investments in debt securities, the percentage of cash in cash management is high in European market in comparison to Asian and American markets.
- According to the Balance Sheet report in all the years, the total current assets in a year’s 4th quarter are always less than the year’s 1st quarter current assets. According to the consolidated balance sheet, there has been a decline in the total current assets in 2010 in comparison to 2009. The major reduction in the total current assets is due to the deteriorated amount of cash and equivalents in the year 2010. Long term debts in American and European markets are high in comparison to the Asian markets. I would reduce the long term debts in the American and European markets and exercise a control of debts over these markets.
Mercury’s leadership skills are deteriorating and now bulk shoes and boots production are done elsewhere. “But now it appears that she produces only half of the boots and shoes made in the country, and that her leadership has been taken away by new industrial centers in the Middle West” (Mencken, 2003, p.139).
In the Human resource department, I would recruit further personnel as marketing staff to strengthen the Human resource in the firm. Therefore, I added further 200 staff for the three markets to strengthen Asia, Europe and America. I would further reduce the price of Sweatless Apparel to capture new markets.
In view of the fact that the 80’s Mercury International has guided the modern footwear scenario. Past promotion plans have fallen little of conversing the accurate value that goods provide the buyer. Mercury Shoes will be commencing a novel brand to the marketplace in 2010. The novel brand will necessitate a tactical marketing attempt that will establish in the US. Some of the weaknesses in the company are related with its small size compared to others and the present strategy of marketing is not associated with the customer overviews. The company has to reach on the right path by meeting the targeted goals in the profitable growth. The company has to restructure the image it has on the investors. The problems with the investors will be a disadvantage in keeping the progress of the firm and the management should be optimistic and has to clearly study the market. This will ensure the exponential development over the subsequent years. It has to care in the world wide market share, inventory returns, factory utilization, operating margin, stock price and has to set the goals to create more profits. Mercury has to make an effort in the American and European market by pleasing the customers with its high quality.
Krause, R., et al. (2010). Global organization of a company. Oppapers.Com. Web.
Majumdar, S. (n.d.). Branding and trademarks in marketing textile, apparels and lifestyles: Case studies. Patent India.Com.
Mencken, H. L. (2003). American mercury magazine september to december 1926. Kessinger Publishing, p.139. Web.
Piana, V. (2003). Innovation. Economics Web Institute.
Regis learning solutions revolutionizes Business acumen training with the launch of mercury shoes simulation. (2010). The Free Library. Web.