EASTERN INTERNATIONAL UNIVERSITY

BUS 496 CAPSTONE: BUSINESS STRATEGY

THE FIRST BSG PERFORMANCE REPORT
Group 6
Instructors
Mr. Nguyen Tan Loi
Dr. Pham Hoang Hien
1232300315

L Hunh Kh i

ai.le.k2sba@eiu.edu.vn

1232300003

B Tuyt Phng

phuong.bo.k2sba@eiu.edu.vn

1132300272

Phan L Hng Ngc

ngoc.phan.k1sba1@eiu.edu.vn

1232300148

Nguyn Th Nht H

ha.nguyen.k2sba1@eiu.edu.vn

1132300120

Ng Tho Trm

tram.ngo.k1sba@eiu.edu.vn

I.

Introduction
Up to this point, Fancy has been grown up for 10 years with certain accomplishments.

Especially, we are proud of fulfilling our customers, in each market we are present. And to keep
track of what it did in order to achieve its future goals, it is necessary to set out the strategic plan
for the firm in the next 20 years. That is a reason why we draw up this report to adapt as well as
adopt our Vision, Mission as well as long-term and short-term objectives of Fancy.

II.

The contents
1. Strategic Vision Statement
Vision:
Fancy aims to be a benchmark in the market, with brands that are admired and favored in

our sectors.
Mission:
Fancy is committed the best to fulfill our clients' dreams, desires, and expectations as
well. Remarkably, inspired by fashion possibilities for the family, we strive to deliver more
chances for every member of the family to acquire a trend-right and comprehensive range of
everyday and special occasion shoes and accessory items at affordable prices. To accomplish the
goals set out, we must always adapt to the changing social, economic and professional
framework conditions. With our mission statement, we determine what gives us direction and
helps us in our daily tasks to be successfully fulfilled. In addition, we put emphasis on
environment protection, labor security, human right and provide a pleasant working condition for
our people.

2. Performance Target
1.
2.
3.
4.

Earnings per Share (EPS)

Return on Average Equity (ROE)
Stock Price
Credit Rating

3. Strategic Approach
The strategy plays an important role in the survival and development of each enterprise.
The right strategy would create a reasonable direction for the enterprise and lead to the success.
There are different strategies between companies. Doing the right strategy makes the company
achieve the competitive advantages and gain market share as well as benefit.
At the beginning, there is not much information about rivals strategy, so it is quite for us
to decide the strategy we are going to apply. We have decided to employ the low-cost leadership
strategy in which we want to gain competitive advantages by offering the lower prices in
comparisons with other rivals. In order to reduce the price, we need to consider the cost of
operation, efficiency, and production scale as well.
At the moment, we are running two production plans, one is in North America and
another is in the Asian Pacific continent. For the North America plant, we produce around 2000
pairs yearly and it is 4500 pairs for the Asian Pacific plant. We want to achieve the low cost of
operation, so we exploit our plant capacity and expand production to reduce cost margin of the
products. We are also planning to build a new plant in Latin America to expand production and
occupy the market share. In regard to S/Q rating, we try to main the rate around 5 and 6 because
we know that if we want to raise the ratio, it will cost more for our products.
On marketing, we do not spend much money for Advertising as well as Celebrity appeal
because that would cost us much, so we only pay around 4,000,000 and 5,000,000 $ for those
activities. We realize that the wholesale segment is more potential that internet segment, so we
focus more on this segment to sell our products thought we were selling our products in both of
the segments.
In regard to private labor segment, we start to sell our products from the year of 13 to
increase our profit