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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 illustrate
the 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 give
you 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 its
innovative 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 companys products with an athletic lifestyle that pushes individuals to be their
best, while having fun. This philosophy is reflected in the companys moto: Play right: Get in
TheZone.
Key Players
William BroadacreFounder 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 company
in 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 has
been able to turn a lifelong passion for athletics into a successful and rewarding business venture.
Una BaatarPresident and Chief Executive Officer: Una Baatar is president and chief
executive officer (CEO) of TheZone, a position she has held since the companys 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 TheZones successful
expansion from the original sporting goods retail store into an international supplier of sports
equipment, apparel, and footwear. Unas truly innovative approach to business has allowed
TheZone brand name to become an icon that represents the best in sports and athletic endeavors.
Molly RichardsonSenior 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 was
employed by Williams Corporation, a leading national advertising firm specializing in print

media, as its executive VP and CFO. She earned a B.S. degree in industrial engineering from
Cornell University and also holds an M.B.A. from Ohio State University.
Company Goal: Expand the Product Line
TheZones 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 designs
that 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 has
grown 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 the
company, such as the following specific examples:
Finance: The finance group is looking at different pricing alternatives for a new shoe being
designed. 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 companys 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 price
product 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 companys employees, which can then be used to create summary reports and calculate
certain information based on salary data.

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