Company Background
G Gear operates within the footwear industry, which is characterized by a high income level and fierce rivalry. The main competitors are Dynamic Kicks, Feet Picks, and Echelon Elevation. Thus, G Gear produces different types of footwear, offering up to 500 models. The company operates in both the Internet and wholesale segments, which helps to generate additional income and remain competitive. Moreover, the company goes global and has North America, Asia-Pacific Region, and Latin America facilities. In general, during the 10-year operations, G Gear evolved and increased its earnings per share from $2.00 to $4,97, creating the basis for further improvement.
Implementation Analysis
The graphs above show that the G company enjoys overall favorable positions and can struggle with its closest rivals. First, sales revenue per unit remains high, meaning it is possible to compete within the sphere. Furthermore, manufacturing unit cost reduces, which makes the production process more effective and helps to reduce overall spending.
At the same time, the administrative unit costs remain high, which requires additional attention as it might require extra finances and costs. In general, the investigation of the graphs proves that G Gear might compete with the closest rivals as the main showings are similar. The reduced spending on production creates growth opportunities.
Global Analysis
The company’s decision to globalize its business and function in specific regions is linked to global trends. First, the availability and price of the workforce are considered. The Asia-Pacific and Latin America regions offer stable access to a comparatively cheap workforce, meaning that focusing on operating in the region is possible.
Second, the branded production costs also remain moderate, which creates the opportunity for the brand’s evolution in the future. Moreover, the demand for the product in these regions will remain high in the future, which is essential for competing with the closest rivals and ensuring the company will continue its growth. In general, their choice of regions and markets is linked to the opportunities they offer.
Corporate Social Responsibility
G Gear devotes much attention to corporate social responsibility and associated issues. First, it invests in energy efficiency incentives to use renewable sources. It helps to improve the company’s image and address the problem of climate change.
Second, the brand makes charitable contributions of around $4,000 to promote sustainability issues within communities and guarantee they are ready to cooperate with the brand. Moreover, the brand invests in ethics training, which increases administrative expenses by $400.000 annually. However, it also helps to avoid more severe conflicts in the future, which might require even more significant spending.
Corporate social responsibility incentives also imply the enhancement of working conditions. These include a cafeteria and child facilities for all plant employees, as well as additional safety equipment. The incentive costs $600,000 and $500,000 per facility, respectively. However, it raises employees’ motivation and satisfaction levels, which are essential for boosting performance. Moreover, it helps avoid injuries and saves money on health issues.
Finally, G Gear monitors supplier employment practices and working conditions as part of its sustainability incentives. This ensures that the brand will not suffer from claims about a lack of commitment to sustainable development practices. Moreover, it will cultivate a better image and help find new loyal clients. By investing in corporate social responsibility, G Gear creates the basis for further evolution and minimizes the risks of ethical issues in the future.