Globus - Hummingbird

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Glo-Bus global business strategy simulation

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  • Good enough = every year during third quarter we have to take loan to make up for the high production cost So unless we are in position where we can operate without taking any loan we will not give dividend
  • Good enough = every year during third quarter we have to take loan to make up for the high production cost So unless we are in position where we can operate without taking any loan we will not give dividend
  • Globus - Hummingbird

    1. 1. Ketaki|Megha|Neha|Sugan|Team|Yash DIARIES
    2. 2. VISION & MISSION
    3. 3. Vision To be the global leader of the Innovative Digital Camera Industry Mission Provide Quality Entry Level & Multi Featured Cameras by motivating our employees to deliver at their highest potential while also having a strong sense of CSR.
    4. 4. Trial – The game begins…
    5. 5. OBSERVING OBSERVING COMPETITION COMPETITIO
    6. 6. The game begins before first round  How competitors do?  What decisions went well?  What decision went wrong?
    7. 7. HERD MENTALITY
    8. 8. D-Company was the best Everybody will learn: What D did? How D did? Why D did it? And follow suit
    9. 9. The Rise of Hummingbird
    10. 10. BUSINESS STRATEGY BUSINESS STRATEGY
    11. 11. We are in business to make MONEY
    12. 12. PRODUCT STRATEGY
    13. 13. PRODUCT STRATEGY Entry Multi • Global best cost • Standard P/Q • Reasonable price • 5 models • High R&D
    14. 14. PRODUCT STRATEGY Entry Multi • Global best cost • Standard P/Q • Reasonable price • 5 models • High R&D
    15. 15. MARKETING STRATEGY
    16. 16. PRODUCTION STRATEGY
    17. 17. FINANCE STRATEGY
    18. 18. WHY DID WE DO
    19. 19. Entry-level High model, Low quality, Higher price To get higher profit margin But lower market share High price = above industry average We refused to take part in price wars
    20. 20. Multi-Featured High model, lower quality, lower price Lower quality = higher profit margin Lower price = bigger market share First-mover advantage Capitalize on the market share
    21. 21. Hummingbird flying to the TOP
    22. 22. Humming bird flying to the top Winning strategy Industry leader Global top 100 best performing team
    23. 23. All good things must come to an end
    24. 24. The Fall of Hummingbir d
    25. 25. What went wrong? Myopic Vision – only Focussed on MF. Poor planning - lost market share in EL. Did not develop strategy to keep low Cost/unit for EL. - Forced us to keep a higher price Our image rating was below our main competitors
    26. 26. Competition is heating up Price War had begun in EL. Big Drop in Quality, Huge Drop in Price Competitors dropped both quality and price
    27. 27. Changing Market Dynamics
    28. 28. Changing market condition Failed to adopt to the dynamic Market trend ( Apple vs Samsung) Unable to maintain 20% Market share in MF Market share in entry dropped Clash of opinions in boardroom
    29. 29. The biggest enemy lies within Lower profit margin Higher volume Higher market share High profit margin Lower volume Lower market share HAMMERED!!!!
    30. 30. Poor Decision Making  Sales & profit drop by 47%  Image rating went crashing (33%)  Stock price go down (36%)  Team dynamics gone sour  Competitors laugh their ways to the banks
    31. 31. Lost Opportunities Demand(000's of units) Market Share 97 92 17.9% 17.0% 46 84 64 66 54 39 8.5% 15.5% 11.8% 12.2% 10.0% 7.2%
    32. 32. Final Result  #3 in Competition.  Overall Score of 98.  Overall Game to date Score of 99
    33. 33. Decision making process  Chose Collaborative Effort to craft strategy  Assigned Functional Area Strategists  Jointly chose among strategic alternatives by evaluating Pro/Cons  Every Team Members buy-in was required
    34. 34. What we could have done better?  Failed to create Conflict Management System  For Year 10 - Conflict in Board Room  Resorted to Democracy.  Conflicting & Inconsistent strategic elements impaired firms performance
    35. 35. Competitors analysis
    36. 36. Entry-level  F & D- our biggest competitor  How they did it?  Low P/Q rating = Low production cost = Low price
    37. 37. Multi-Featured  F & B - our biggest competitors  Good P/Q rating at lower price  How did we beat them?  Best- cost leadership
    38. 38. Always stick to the plan • Make Decision by Strategy • Do not rely on Gut Feeling or Projection Numbers • Have a Proactive and reactive Strategy
    39. 39. Leader today, irrelevant tomorrow • Never Relax in the game of Business • Use Competitive Intelligence Reports to keep an eye on Competitors Strength & Weakness • We were market leaders for first 4 rounds. We should have evaluated how our competitors were catching up to us.
    40. 40. Different region, different strategy • Focus Decision Making on Geographical Regions • We had same prices and same marketing prices for each region. Forex was the only reason for price change
    41. 41. To be the best, you need the best • Invest in compensations, benefits and PAT training • Improve productivity due to high incentive for reduced warranty claims ($2.5/ unit). • Reduce absenteeism by giving highest quarterly bonus for attendance ($250/PAT member) • To attract and retain the best employees.
    42. 42. Don’t depend on single source of income -Warren Buffet • We were too dependent on multi-level segment • Things may not go according to plan • We couldn’t rely on entry-level
    43. 43. Don’t let finance control your business, use business to control your finance • Finance was controlling our strategy • We adjusted our decisions according to the financial projection • We abandon long-term goals for short-term gains
    44. 44. What you can learn from us? COMPANY/STATIS NET SALES TICS REVENUE NET INCOME DIVIDEND DECLARED RETAINED EARNINGS A 1,328,439 64,353 8,647 55,706 B 1,695,374 144,153 17,488 126,665 C 1,283,218 104,241 36,755 67,486 D 1,446,558 123,083 56,600 66,483 E 990,544 57,744 23,886 33,858 F 2,033,440 163,175 76,276 86,899 G 1,414,503 73,185 23,320 49,865 H 1,423,306 159,509 11,343 148,166
    45. 45. Taking the learning beyond simulation • Do not get comfortable with your current position, always strive for more. • Respect opinions from every member of the team. • Never take hasty decisions based on intuition.
    46. 46. Project Hummingbird was a FAILURE!
    47. 47. We will rise again! Thank you

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