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Company Erie Presentation

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  • G ood evening too Other Board Members, Shareholders, Staff members, Potential investors and other members of the the industry
  • SGA (R&D, Promo, Sales, Admin)
  • Perceptual Map: End of round 2 Product sold to traditional seg: Round 7 results Transition was a tremendous success. We made it a perfect traditional product for round 5 and a leading traditional product after that.
  • Dividend is a reward to the investor of the company.
  • Margin is the profit a company makes on a product calculated by subtracting its variable revenues from its variable costs . A company with a high contribution margin is likely to have an even higher margin during economic expansion . It measures the profitability of the company.
  • ROE is important as a business that has a high return on equity is more likely to be one that is capable of generating cash internally given when a business that creates a lot of shareholder equity is a sound investment, because the original investors will be repaid with the proceeds that come from the business operations. Businesses that generate high returns relative to their shareholder equity pay their shareholders handsomely and create substantial assets for every dollar invested.
  • We have come to the end of our performance review. We will be taking questions from the floor.
  • Transcript

    • 1. Performance Review Year 2011 - 2019
    • 2. Company Structure
      • The team is made up of 4 members.
      • The objective are team collaboration in learning to make good decisions together in order to achieve synergy for the team.
    • 3. Board of Directors
    • 4. Role of Board Members Ms Lauren Low Chief Production Officer
      • Reduce the cost for Research & Development
      • Ensure the product meets customers’ demands
      • Ensure that the company’s expected profit margin is met.
    • 5. Role of Board Members Mr Jason Fung Chief Finance Officer
      • Research on the historical data, other competitors and market development.
      • Manage the finance of company, including cash flow and issue of shares.
    • 6. Role of Board Members Ms Eunice Nicole Lim Chief Marketing Officer
      • Intelligent sales forecasting for each target segment.
      • Estimate the budget needed for marketing activities.
    • 7. Role of Board Members Mr Ivan Kee Chief Operating Officer
      • Ensure that the production is cost effective.
      • Decides on level of automation.
      • Minimize the need of overtime work.
    • 8. Company Mission
      • To be a cost leader with Product Life Cycle focus – RoS and profits
      • To conquer the position of market leader in at least 2 market segments
      • To provide consistent returns to the owners of our business
    • 9. Company Vision
      • Quality products at reduced cost with competitive prices.
      • Efficient strategies to allow the organization to respond rapidly to both market and customers’ needs.
      • Emphasis on awareness, availability and market share.
    • 10. Our Beliefs
      • Effective integration between humans and machines are the key to sustain as the cost leader in our industry.
      • We will continually communicate with and learn from our customers, in order to improve our products.
    • 11. Company Plans
      • Constantly improve on automation.
      • Production to meet sales forecast.
      • Ensure factories can handle the sales forecast.
      • Minimize the need of overtime for our workers.
    • 12. Company Plans
      • Credit and debentures are used to finance our investments in the first 3 years.
      • Retained earnings will be used to finance the operations from year 4 onwards.
    • 13. Selected Financial Stats ERIE INDUSTRY AVERAGE Production 12100 9850 Sales $338,435,461 $245,970,604 EBIT $17,076,029 $12,273,129 SG&A 7.5% 6.75% ROE 4.00% -5.97% ROS 1.10% -0.93% Stock Price $81.67 $51.55
    • 14. Overview CUMULATIVE PROFIT ERIE: $74,127,342 INDUSTRY AVG: $45,492,968 MARKET SHARE ERIE: 22.9% INDUSTRY AVG: 15.44% Regional Office
    • 15. Production
    • 16. Sales
    • 17. SGA (R&D, Promo, Sales, Admin)
    • 18. Human Resource
    • 19. Productivity
    • 20. Contribution Margin
    • 21. Profit
    • 22. Return on Equity
    • 23. Stock Price
    • 24. CHALLENGES
    • 25. Challenges
      • Time needed to build foundation for company
        • Spend two rounds to accomplish, hence lesser profit in that two rounds
        • Round 1
          • Largest spender in the industry: $32,480 on plant improvement, $28,559 on SGA
          • Introduction of new product, Epod
          • Drop of market share price despite better than average sales figure of $123,640.
        • Round 2
          • Largest spender in the industry: $28,800 on plant improvement, $23,208 on SGA
          • ROS increase from -4.8% to 2.6%
          • Highest profit margin: 36.3%
    • 26. Challenges
      • 2) Cashflow Problem
        • We run into emergency loan of $772,061 in round 4 due to inaccurate estimation of our cashflow situation.
        • Correction: We took immediate steps to increase our short term loans to prevent the situation from reoccurring.
    • 27. Challenges
      • 3) Lost our competitiveness in Size Segment
        • Insufficient R&D for the product
        • Eventually drifting away from the customer’s demand
        • Segment was neglected by majority of competing companies, which allows a monopoly situation
    • 28. Challenges
      • 4) New Product: Epod
        • Intend to be a performance product
        • Specifications was a mistake
        • Epod Specs at Round 2
          • Pfmn 8.4, Size 15.3
        • Product could not be sold to any segment as it was wrongly positioned
        • Correction: We recovered by altering the specifications, sliding the positioning of the product to the traditional segment, making it our 2 nd traditional product
    • 29. Challenges
      • Labour Negotiation
        • Competitors are willing to pay huge amount of money for labour to prevent the possibility of strikes
        • First Labour Negotiation: Erie’s production was affected. The maximum penalty of 84 days strike caused our production to fall below our sales forecast.
    • 30. Challenges
      • Labour Negotiation
        • Second Labour Negotiation: Erie decided to take the lead and increase the labour wages by double.
          • Effect: No strike, Lower profit margin, Overtime or 2 nd shift became very expensive
    • 31. ERIE TECH RELEASE FUTURE PLANS Lorem Ipsum In libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. Lorem volumus blandit cu has.Sit cu alia porro fuisset. Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus. Mei eu ubique altera senserit, consul eripuit accusata has ne. In libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. In libris graecis appetere mea. At vim odio lorem omnes, pri id iuvaret partiendo. Vivendo menandri et sed. Lorem volumus blandit cu has.Sit cu alia porro fuisset. Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus. Mei eu ubique altera senserit, consul eripuit accusata has ne. Ea pro natum invidunt repudiandae, his et facilisis vituperatoribus. THE BUSINESS TIMES www.dailynews.com THE WORLD’S FAVOURITE NEWSPAPER - Since 1879
    • 32. Future Plans Erie 22.93%
      • Maintain our level of market share
      • Increase our market share percentage
    • 33. Future Plans
      • Customer satisfaction-oriented
      • How?
      • By increasing
      • Customer awareness
      • and accessibility
      • to our products
    • 34. Future Plans
      • Size segment market focus
      • Why?
      Size segment market statistics Total Industry Unit Demand 7609 Actual Industry Unit Sales 6542 Segment % of Total Industry 12.5%
    • 35. Why invest in ? High End segment
    • 36. Why invest in ? Traditional segment
    • 37. Why invest in ?
      • Experienced management team
      • Popularity of products
      • Excellent branding
      • Global Expansion
    • 38. Global Expansion Program Targeted Market
    • 39. Why invest in ?
      • Proven track record
      • Financial stability and soundness
        • High Dividend pay-out
        • High profit margin
        • High Return On Equity
    • 40. Why invest in ? Dividend pay-out
    • 41. Why invest in ? Contribution margin
    • 42. Why invest in ? Return on Equity
    • 43. Q&A Session