Metropolitan State University499-53Coach Case Appendix AnalysisSummer 2015Here are the main points I will be looking for in your appendixes, I have looked yours over andthe overall format is good. Make sure you have addressed these key points in each appendix andyou should receive full credit. If you have not addressed these points, be sure to include them inyour appendix and your overall analysis:Macro Environment AnalysisLuxury market has been growing 7 to 8 % annuallyRising incomes in developing economiesThere was an economic slowdown in 2007 and 2008 which impacted luxury sale itemsThere is a growing desire for luxury goods in the middle income consumer marketThere are more and more two income families and they like to reward themselvesThere has been an increasing trend in counterfeit goods (2/3 produced in China)There needs to be better piracy enforcement lawsPorters Five Forces AnalysisSubstitute products: Medium to High threatBargaining power of buyers: Medium threatRisk of entry by potential competitors: Medium threatBargaining power of suppliers: Low threatRivalry : Very High ThreatValue ChainStrengths:Flexible sourcing and procurement contracts, access to highest quality leatherOff shore production of a high quality product at a low costSelection of sites for locations is goodGood customer communicationGood market research; monthly product launches which increase traffic in storesGood leveraging of brand name; especially through licensingStrong brand recognitionIn house architect group for designing retail storesWill refurbish or replace damaged handbagsSpecial request service; deliver to home if not available in storeFormal design process based on market researchMetropolitan State University499-53Coach Case Appendix AnalysisSummer 2015Regular customer service trainingStrong balance sheet and good fiscal managementInternational offices to control qualityWeaknesses:Small European presencePenetration of mens market is smallCurrently not pursuing knockoffs aggressivelyFinancial Ratio AnalysisIf I see major issues with your ratio calculations I will get back to you within a day of youturning in your final case and we can discuss getting the major issues corrected. If there areminor calculations I will ignore them if you have a good overall summary written that makessense based on the financial performance data provided in the case.SWOTI will be looking to see that your SWOT analysis is consistent with the analysis of yourappendixes.I will be looking for strengths and weaknesses to be consistent with what you have provided onthe Value Chain and the Financial Ratio analysis.I will be looking for opportunities and threats consistent with your Macro Environment andPorters Five Forces analysis.Good luck with writing your narrative, if I can provide additional assistance on the narrativeplease reach out to me and we can work through your issues or questions. I am available for aphone conference or a face to face session on the weekdays in the evenings and I can also beavailable on Sunday August 2nd for either.Professor Sjoquist651-276-4941