Year 11:

Branded strategy: High SQ high Model

To achieve this strategy, Best Practices Training, Superior Materials, and Enhanced
Styling/Features were first improved, and eventually SQ was moved to 8.9 and model
to 300.

Production Facilities:

The first is Equipment. Because the labor cost in the North American market is
relatively high, the annual market demand also accounts for a large proportion, so the
North American market remains unchanged at 4,000 pairs. Because the European,
African and Latin American markets could not produce products in the first year, so in
order to meet the first year demand, we added 2000 pairs of new equipment in the
Asia-Pacific market.

Since sapce can only be used next year, we forecast the market demand in 2012 (total
market demand * expected market share). Meanwhile, considering the high tariff in
Latin America market, we need to avoid the import as much as possible, so we built
1000 pairs of space in Europe and Africa, and 2000 pairs of space in Latin America.

Second is Production Improvement Options. Because our strategy is high SQ high

Model, we choose optionB and C.

Distribution & Warehouse:

Regarding the distribution of market products, the Branded market is adjusted

according to the Projected Demand on this page, while the private-label market needs
to forecast by itself. We hope that the market share is 20%. Market demand is
obtained by the total market demand * projected market share, and then adjustment is
made. Generally, after catering to Branded markets, we allocate all the remaining
products to the private market in proportion to market demand.

Wholesale Marketing:

The Wholesale Marketing prices for the first year were adjusted to Shortfall of
Branded Pairs by adjusting this figure to between 0 and 10. Brand Advertising and
Retailer Support are both up from last year.

Internet Marketing:

Since the Retail Price Exceeds Wholesale Price at least by 40%, and the increase of
price will lead to the decrease of EPS and ROE, our price is just 40% of the minimum
price.

Private Label - Operations:

Since orders are obtained through bidding in this market, the priority can be obtained
only if the price is low, so SQ and other indexes are not very important. We adjusted
these data to the lowest value. We guessed that in the first year, there might not be
many companies paying attention to the private market, and the supply would be less
than the demand, so we set the price relatively high.

Celebrity Endorsements:

We chose three celebrities, made a larger investment and limited the Spending Cap to
two celebrities.

Corporate Citizenship:

Because we chose the high SQ high Model mode with a relatively high image rating,
we only chose Ethics Training/Enforcement in this module

Finance & Cash Flow

Last but not least, the financial situation. Stock Repurchase has been raised to the
maximum because the stock price in previous years will be cheaper. Then I borrowed
a 10-Year Bank Loan, and the amount of the loan was adjusted according to the
ending cash to ensure that the figure was within 7000-9000.

Reflection:

1. The private-label price was set too high. We did not notice that the private price
was set according to the average price in the wholesale market, which resulted in no
orders in the first year.

2. Celebrities invest too much and waste a relatively large amount of capital.

3. Branded market prices are too low, and some companies with lower SQ and Model
prices are also higher than ours.

We made some adjustments for the following year based on these three.

4. Only 1,000 pairs of space have been expanded in the European and African
markets, which cannot achieve scale effect.
Tear 12

Branded strategy: High SQ high Model

In order to maintain this strategy, we raised the model to 400, because the market
average SQ is relatively low, so we lowered the SQ a little.

Production Facilities:

The first is Equipment. The North American market remained unchanged, and the
European and African markets were temporarily closed because they could not
achieve the scale effect. The Asia-Pacific markets were reject rate was too high, so we
sold part of the old equipment and replaced it with a new one, and then bought 2000
pairs of equipment in Latin.

Then there is space. Another 1000 pairs of space will be added in order for EUAfrica
to achieve economies of scale the following year, and another 1000 pairs of space will
be added to avoid imports due to high tariffs in the Latin market. The second is
Production Improvement Options. Because the Model is relatively high and the reject
rate wants to be reduced, optionA and D are selected.

Distribution & Warehouse:

Regarding the distribution of market products, the Branded market is adjusted

according to the Projected Demand on this page, while the private-label market needs
to forecast by itself. We hope that the market share is 20%. Market demand is
obtained by the total market demand * projected market share, and then adjustment is
made. Generally, after catering to Branded markets, we allocate all the remaining
products to the private market in proportion to market demand. (same year)

Wholesale Marketing:

We adjusted the Wholesale Marketing price of this year according to the pricing of
other companies, and made sure that the Surplus (Shortfall) of Branded Pairs was not
too high by comparing the SQ and price of our company and other companies last
year. Finally, the price was raised to a more reasonable range. Brand Advertising is up
a bit from last year and Retailer Support is down a bit to save money.

Internet Marketing:

Since the Retail Price Exceeds Wholesale Price at least by 40%, and the increase of
price will lead to the decrease of EPS and ROE, our price is just 40% of the minimum
price. (same year)
Private Label - Operations:

In this year, we changed our strategy and calculated the average price of the Private-
Label market in the previous year (excluding our company, because our company's
price was too high), and made adjustments on this basis.

Celebrity Endorsements:

We chose two celebrities, put in 1,500 each, and limited the Spending Cap to one
celebrity.

Corporate Citizenship:

Because we chose the high SQ high Model mode with a relatively high image rating,
we only chose Ethics Training/Enforcement in this module (same as).

Finance & Cash Flow

Last but not least, the financial situation. Stock Repurchase has been raised to the
maximum because the stock price in previous years will be cheaper. Then I borrowed
a 5-Year Bank Loan, and the amount of the loan was adjusted according to the ending
cash to ensure that the figure was within 7000-9000.