2. SESSION’S LANDMARKS
A. EXECUTIVE SUMMARY
C. COMPANY’S OVERVIEW
B. ORANGE TECH: EVOLUTION DURING FIRST YEAR
D. STRATEGY FOR THE NEXT YEAR IN BUSINESS
E. DESCRIPTION OF THE TEAM, ITS DYNAMIC AND EVOLUTION
F. CLOSING
4. THE COMPANY: CORPORATE
STRATEGY
HIGH QUALITY GOODS
+ FRESHNESS
+ SERVICE
----------------------------------
BE YOUR PERFECT HALF
OUR MISSION
1. Be the profit margin leader
2. Be the technology leader
3. Be the high service provider in
the market
4. Provide the most reliable product
on the market
OUR VISION
AUSTIN
BUSINESS
ORIENTATED
8. MARKET RESEARCH
USE OF THE PRODUCT
1. CUSTOMER NEEDS
2. USE OF THE PRODUCT
3. DEMAND PER CITIES
4. PRICE WILLING TO PAY PER CITIES
FEATURES
NEEDED IN
EACH BRAND
CITIES TO
OPEN SALES
/WEB OFFICES
PRICE AND
ADVERTISEMENT
10. SALES AND WEB CENTERS
REVENUES = MAXIMUM PRICE X DEMAND
COSTS = PRODUCTION COST + OPEN COSTS + SHIPPING COSTS
PROFITABILITY
FIRST ROUND
SECOND ROUND
THIRD ROUND
WEB CENTER
13. MACROECONOMIC ASPECTS
LATAM has been taking a
serious look into advancing
its technology and
infrastructure
Production Cost
Index is low (74)
Market Size is huge and
shipping cost is low
from LATAM to NORAM
LATAM: SAO PAULO
PLANT LOCATION
FINANCIAL ASPECTS MARKET ASPECTS
14. 12 units/ day (Through
prediction from the
productivity of our sales
people)
Incur a huge debt if
we buit 50 units/day
High end products-
we do not expect
huge surge in sale
FINAL DECISION: 25 UNITS/ DAY
FIXED PLAN CAPACITY
DEBT-FREE POLICYMACROECONOMIC ASPECTS SEGMENT CONSIDERATIONS
15. • GOOD COMPENSATION + HIGH SALARY --> HIGH PRODUCTIVITY
EXPECTED (around 80%)
• INVESTMENT IN R&D CHANGEOVER
• REPLENISHMENT POINT: SECURITY CUSHION 150 INVENTORY
UNITS
PRODUCTION DECISIONS
16. • QUARTER 3: REPLENISHMENT POINT
• FIRST MOVE: Prioritized O’WAYS against O’REKA
• CORRECTION APPLIED: Current Priority O’REKA
• QUARTER 4: MARKETING AND MANUFACTURING DECISION
• BRAND IMPROVEMENT: New and improved brand, O’WAYS LITE
• Lower Price
• Better Features.
• UNWANTED INVENTORY DECISION: Selling of O’WAYS Stock.
CHANGES IN PRODUCTION
POLICIES
17. In production, we try to minimize stock out and meet customers demand
In order to minimize stock outs, we have to increase the
changeover frequency of our production.
MANAGING STOCKOUT
19. HR. STRATEGY
NUMBER OF EMPLOYEES
SALES FORCE WEB SALES FORCE
LABORAL POLICY
INITIAL
COMPENSATIONS
IMPROVEMENTS
POLICY
20. COMPENSATION POLICY
Focus on achieving the best level of
compensation in the market
COMPENSATION CRITERIA
Increase of productivity- high salaries and
minimum health benefits package
21. CHANGES APPLIED
IMPROVEMENT OF NORAM WORKFORCE COMPENSATION
Due to the importance
given to health care
benefits, we
implemented an
EXPANDED COVERAGE
25. FINANCIAL OVERVIEW
FIRST among competitors in…
A. Total Performance
B. Financial Performance
C. Human Resource
Management
D. Asset Management
26. FINANCIAL OVERVIEW
Generated 4.5 million revenues in last two
quarters of the year
Trend: Upward slope
GROSS PROFIT MARGINREVENUES
45% gross profit margin in the last quarter
28. MARKET OVERVIEW
ORANGE TECH SHARES MILESTONES
- One third of the market share in the
computer industry
- Obtained over 40% market share in both
innovator & traveler market
29. MARKET OVERVIEW
ORANGE TECH SHARES
MILESTONES
- HIGHEST brand judgement for O’REKA
in innovator segment
- HIGHEST brand judegement for O’WAYS
LITE in traveler segment
- Both brands are recommended
byCustomer Union
- HIGHEST Reliability index of the industry
30. STRENGHTS
GENERAL PERFORMANCE: BEST Balanced Scorecard in the
Market
LOYALTY: BEST Reliability score in the Market, TOP Rated
brands for Innovator and Cost Cutter
SEGMENT SHARE: BEST Performers in Traveler and
Innovator
LIQUIDITY: GROWING Tendency in Revenues, GROWING Cash
levels, DEBT-FREE Company
WORKFORCE SATISFACTION: MOST Productive and Satisfied in
the Market
SWOT ANALYSIS
31. WEAKNESSES
ADVERTISEMENT RATING: ACCEPTABLE for O’WAYS and O’GOLD,
POOR for Innovators.
PROFITABILITY: NEGATIVE RE and Operating Margin for the
moment, but improving.
INVESTMENT IN THE FUTURE: WORST in the industry
DIVIDEND POLICY: DIFFICULT To provide dividends until next
year because of the investment required to make the firm
grow.
SWOT ANALYSIS
35. FUTURE STRATEGIES
To respond to the changing external environment, competitors’ moves, and customer
needs…
1. IMPROVE CURRENT BRANDS: We will review market research reports and
invest in R&Dof computer components so as to improve our brands tofit customers’
needs better
2. INTRODUCING NEW PRODUCT BRAND: We will expand our brands to satisfy
a larger & highermargin market to maximize earnings and profits
36. FUTURE STRATEGY
To respond to the changing external environment, competitors’ moves, and customer
needs…
3. ADD NEW SALES CHANNELS: We will open new sales offices and web centres in
different locations so as to diversify risks
4. MANAGE HUMAN RESOURCE: We will pay our employees better than the
averagesalary in the market so as to encourage and motivatethem
5. MANAGE MANUFACTURING PRODUCTIVITY: We will invest in improving the
changeover time and production cost.
