Driven Athletic Footwear Executive Summary Essay
Driven is a key competitor in the footwear industry and we have some pretty impressive results in terms of revenue generated and market share. However, this report will outline some areas where we needed to improve and correct. Specifically, this relates to how to handle supply issues, how to reduce costs and overhead charges and how to continue to increase value to our shareholders.
In order to counter the above issues we have determined that Driven could have:
1. Retained capacity in our plants to continue to produce and supply the market with our goods and:
a. Over-produce in early years and hold inventory for when demand jumped in …show more content…
Earlier, in the years we took advantage of the low interest rate and obtained a loan to build capacity and restructure the smaller termed debt we had on our books. The A.P. and L.A regions were the most lucrative areas to build capacity. They had cheaper labor and we could decrease operating cost in the long-run. We created efficiencies by upgrading our three plants to reduce rejection rate