performance is well below the average of 12.45% for the top four performers, we used 12.45 as our target ROA. In order to achieve such an improvement in ROA Reebok management would need to increase sales by 130%, not likely in a short time frame. Nevertheless, expansion into new market segments should be explored as a possible solution to increasing sales Reebok's low ROA is due to a low profit margin which can be increased by addressing sales prices or costs. Since Reebok's costs rank higher than their peers, management may wish to focus on controlling costs to increase ROA. The SPM indicates that a 3.76% reduction in COGS would enable an increase in ROA to the 12.45% level Likewise d reduction in variable expenses of 7.19%, will provide the