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TheZone Sports Corporation

TheZone Sports Corporation, or simply TheZone is a fictional large-scale sporting goods

company. We will be using this case, which provides real-world business examples to illustratethe concepts (using Excel 2013) in each of the lecture sessions, throughout the course; it is not

based on real people or events. I (Prof. Satish Krishnan) will be guiding you through the

solutions to realistic business problems that face various people working for this company. These“employees” represent a variety of business functions: accounting, finance, human resources,

marketing, operations management, and sales. The following background on TheZone will giveyou perspective on the situations you will encounter throughout the course of the lecture

sessions.

The Company

TheZone is an international sporting goods company that provides sports equipment, apparel,

and footwear to thousands of retail locations primarily in the United States and Canada. Its

corporate headquarters are located in Fort Collins, Colarado. The company is noted for itsinnovative product designs and quality. TheZone employs approximately 15,000 people working

on three continents to provide the highest quality products and services possible.

The Brand

TheZone has paid particular attention to managing its brand image with an emphasis on

associating the company’s products with an athletic lifestyle that pushes individuals to be theirbest, while having fun. This philosophy is reflected in the company’s moto: “Play right: Get in

TheZone”.

Key Players

William Broadacre–Founder and Chairman of the Board: William Broadacre is chairman of

the board of TheZone Sports Corporation, a position he has held since he founded the companyin 1993. Prior to founding TheZone, William was the owner of the Broadacre Sporting Goods

store in Fort Collins, Colorado. He holds a B.A. degree in business from Colorado State

University and an M.B.A. from Indiana University. A sports enthusiast himself, William hasbeen able to turn a lifelong passion for athletics into a successful and rewarding business venture.

Una Baatar–President and Chief Executive Officer:  Una Baatar is president and chiefexecutive officer (CEO) of TheZone, a position she has held since the company’s founding in

1993. Like William, Una attended Colorado State University, from which she earned her B.A.

degree in marketing and finance. Una is the driving force behind TheZone’s successfulexpansion from the original sporting goods retail store into an international supplier of sports

equipment, apparel, and footwear. Una’s truly innovative approach to business has allowedTheZone brand name to become an icon that represents the best in sports and athletic endeavors.

 Molly Richardson–Senior Vice President and Chief Financial Officer:  Molly Richardson

 joined TheZone in 1998 as vice president (VP) and controller. She was named senior vice

president and chief financial officer (CFO) in April 2001. Prior to joining TheZone, Molly wasemployed by Williams Corporation, a leading national advertising firm specializing in print

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media, as its executive VP and CFO. She earned a B.S. degree in industrial engineering fromCornell University and also holds an M.B.A. from Ohio State University.

Company Goal: Expand the Product Line

TheZone’s strength as a company lies in its design, marketing, and distribution capabilities. The

company retains in-house manufacturing for some key products, such as certain shoes and skis,but has also been able to expand its product lines through acquisition. The Company usually

targets business that are struggling with manufacturing costs, but have strong product designsthat will fit well within TheZone brand image. TheZone works with its manufacturing partners to

bring the costs under control. From its humble beginnings over 20 years ago, TheZone hasgrown into an international sporting goods company with hundreds of product in the sports

equipment, apparel, and footwear market segments of the industry.

How is Excel Used at TheZone?

Employees of TheZone use Excel in the day-to-day management of business functions across thecompany, such as the following specific examples:

 Finance:  The finance group is looking at different pricing alternatives for a new shoe beingdesigned. This group is also using Excel to analyze projected revenues and costs/expenses for a

new swimwear product, primarily to decide whether to carry the new product, and if so, to help

set a pricing policy for it.

 Marketing:  The marketing group uses Excel to monitor and chart both industry trends and

company performance for all of its product lines.

 Accounting: The accounting group monitors accounts receivable to determine what terms should

be offered to the company’s customers based on payment history and credit rating. This group is

also using Excel to develop a projected income statement for a new sunglasses product line.

Operations Management: The operations management group is using Excel to monitor quality

control values in an effort to identify production problems in the ski product line. This group is

also looking at ways to optimize production schedules and product distribution (transportation)for other product lines.

Sales: The sales group is using Excel to create a tool that will help the sales force quickly priceproduct orders. This group, along with the marketing group, is also analyzing different marketing

plans/options for the sweatshirt category of apparel products.

 Human Resources: The human resources group is using Excel to compile and track data about

the company’s employees, which can then be used to create summary reports and calculatecertain information based on salary data.