Strategic Management Analysis

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Summary This report is setting out to perform a Strategic Management Analysis of Foot Locker Inc, whose industry definition is Apparel & Footwear: Retailer and Brands, according to Standard and Poor’s (1st December 2011). Analysis includes, Company Business Environment (Micro & Macro), CSF (Critical Success Factors), Strategic Capability and Strategic Fit. The overall conclusion is that Foot Locker Inc has continued to maintain strategic fit throughout difficult economic times. Introduction Top athletic shoe retailer Foot Locker Inc was known up till 1998 as the Woolworth Corporation and until 2001 as Venator Group Inc. In 2001 Venator renamed itself Foot Locker Inc after its best-performing chain. (fundinguniverse. 2011). Foot locker Inc is a multinational retailer with stores and support operations in 21 countries, including North America, Europe, Australia and Asia. Its chains include Foot Locker (and its Kids and Lady Store versions), Footaction USA and Champs Sports, totally 3,500 stores worldwide. It employs around 38,764 employees of whom around 25,493 are part-time. Their headquarters are based in New York. In the financial year ending January 2010 the company recorded revenues of $4,854 billion (FY2010) with the operating profit being $80 million (FY2010) and the net profit being $48 million (FY2010), (Datamonitor plc.2011). Below is a table to indicate Foot Locker Inc placement against its direct competitors for 2009, (Table 1). | | | FL | FINL | PVT1 | WMT | Industry | Market Cap: | 3.41B | 1.03B | N/A | 195.19B | 738.04M | Employees: | 12,688 | 3,200 | 14,2401 | 2,000,000 | 4.57K | Qtrly Rev Growth (yoy): | 16.30% | 10.10% | N/A | 8.10% | 4.10% | Revenue (ttm): | 5.40B | 1.28B | 3.05B1 | 440.14B | 998.87M | Gross Margin (ttm): | 43.23% | 40.92% | N/A | 25.04% | 45.20% | EBITDA (ttm): | 493.00M | 149.96M | N/A | 34.23B |

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