Final Team BACAT (wk 16) power point

Hyperion
EXECUTIVE BRIEFING
Angela Ruffner ~ Chief Executive Officer
Tommy Duncan ~ VP of Brands and R&D
Adam Blanton ~ VP of Human Resources
Carrie Davis ~ VP of Sales Management/Marketing
Brandon Dobson ~ Chief Operations Officer

City Hyperion
Global
TECKS
ADAPTIVE Success City Hyperion
Global
TECKS
Global
TECKS
ADAPTIVE Success
New York X X X X Curitiba X X Shanghai X X
Atlanta X X X X
Rio de
Janeiro
X X Tianjin X X
Chicago X X X Sao Paulo X X Guangzh X
Los
Angeles
X X X X
Belo
Horizonte
X X Beijing X X
Web
Center
X X X
Web
Center
Web
Center
City Hyperion
Global
TECKS
Global
TECKS
ADAPTIVE Success
Montreal X X Paris X X X
Toronto X X X Rome X X
Calgary X Berlin X X X
Vancouver X X X London X X X X
Web
Center
Web
Center
Competitors in City - China
Competitors in City - Europe
Competitors in City - United States
Competitors in City - Canada
Competitors in City - Brazil
2Sales Office Locations

Demand Projection
Q8 Q7 $ Change % Change
Total Demand Projected 38,000 25,375 12,625 49.75%
Total Demand (Actual) 31,260 25,375 5,885 23.19%
In Q8 demand was short of
Projection by: 31,260 38,000 (6,740) -17.74%
3

Sales Force 4
Q8 Q7 $Change %Change
TotalNumber of Sales
Offices 421 280 141 50.36%
Units per Sales Person 74 91 (17) -18.68%
Number
of Sales
People
Units
Demanded per
Sales Person
Total
Demand
Sales
Offices
396 74 29,478
Web
Center
25 71 1,782
Total 421 31,260
Q8

Sales Force Compensation 5
Total Yearly Expense
per Sales Person in
the U.S 74,936$ 64,237$ 10,699 16.66%
Sales Person
Productivity in U.S. 93% 84.4% 8.6 10.19%

Sales Force Expense 6
Sales Force Expense 10,108,344$ 6,123,419$ 3,984,925 65.08%

Ad Judgment 7
Quarter CostCutter Innovators Mercedes Work Horse Traveler
Q8 71 81 85 78 87
Q7 68 73 72 59 84
Ad Judgment - United States

Advertising Expense 8
Quarter
Local Ad
Placements
Regional Ad
Placements
Q8 152 153
Q7 124 106
# of Ad Inserts Bought
Advertising
Expense 2,382,781$ 1,793,851$ 588,930 32.83%

New Features 9
Desired for:
Mercedes, Innovator
Traveler
Mercedes, Innovator, Traveler
Mercedes, Innovator, Workhorse
Stylish desktop design
Stylish rugged portable design
DVD read/write drive, high speed, capacity
High comfort keyboard with wrist rest
New Features available in Q8

Brand Judgment 10
Quarter CostCutter Innovators Mercedes Work Horse Traveler
Q8 70 91 71 81 83
Q7 61 80 58 73 83
Brand Judgment - United States

Following Strategy 11
Change in Total Price Q8 Q7 $ Change %Change
Revenue/Units Sold (F.A.W.) 3,485$ 3,161$ 324 10.25%

Average Price Comparison 12
Hyperion GlobalTECKS ADAPTIVE Success
Average Price $ 3,568 $ 2,753 $ 2,871 $ 2,688
Hyperion Success $ Change % Change
3,568$ 2,688$ 880 32.74%

Example of Results 13
New York Comparison Hyperion Success
Highest Ad Rating 5 out of 5 0 out of 5
Highest Brand Rating 5 out of 5 0 out of 5
Number of Local Ads 8 0 8
Number of Regional Ads 34 21 13 61.90%
Number of Sales people 25 15 10 66.67%
Sales Force Annual Compensation 74,936$ 56,450$ 18,486 32.75%
First to market Advantage Yes
Avg. Price 3,783$ 2,806$ 977 34.82%
Units Demanded per sales person 72 163 (91) -55.83%
Total Demand 1793 2449 (656) -26.79%

Net Operating Revenues 15
Segment
Quarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7
Cost Cutter - 1,167 0.0% 4.5% -$ 2,332,899$ -$ 1,999$
Workhorse 6,851 3,321 22.1% 12.7% 20,128,362 9,249,725 2,938 2,785
Innovator 10,099 9,252 32.5% 35.5% 36,580,394 31,753,655 3,622 3,432
Mercedes 3,481 - 11.2% 0.0% 15,421,108 - 4,430 -
Traveler 8,343 9,269 26.9% 35.5% 27,979,462 29,362,707 3,354 3,168
Unwanted
Inventory 2,266 3,072 7.3% 11.8% 2,362,142 2,332,130 1,042$ 759$
Total 31,040 26,081 100.0% 100.0% 102,471,468$ 75,031,116$
Average 3,301$ 2,877$
Change 4,959 424.42$
Revenue change due to price change 5,158,630$
Revenue change due to volume 14,266,297
Revenue change due to sales mix 8,015,425
Total sales change 27,440,352$
Units Sold Sales Mix Net Sales Revenue Price per Unit

Profit for each segment 16
Segment Net Profit Q8 Q7 $ Change % Change
Cost Cutter -$ 354,961$ N/A N/A
Work Horse 6,793,522$ 3,406,633$ 3,386,889 99.42%
Innovator 12,483,844$ 11,291,839$ 1,192,006 10.56%
Traveler 12,558,308$ 11,866,012$ 692,296 5.83%
Mercedes 6,483,788$ -$ N/A N/A

Operating Capacity 17
Manufacturing Q8 Q7 $ Change % Change
Operating Capicity Units per Day 600 450 150 33.33%
Operating Capicity Units per Quarter 39,000 29,250 9,750 33.33%
Q8 Comparison of Competitors
production capabilities
Hyperion GlobalTECKS ADAPTIVE Success
Max Fixed Capacity Available 600 400 175 250
Chosen Operating Capacity 600 275 150 240

Cost of Production 18
Quarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7 Quarter 8 Quarter 7
Average Unit Cost 1,143$ 1,103$ 379$ 315$ 22$ 36$ 1,544$ 1,454$
% Change
Direct Costs of
Production
-39%4% 20%
Variable Cost per Unit
6%
Materials Cost per Unit Labor Cost per Unit Changeover per Unit

Manufacturing Compensation 19
Company
Total
Yearly
Cost
Productivity
Relative to
Potential
Company
Total Yearly
Cost
Productivity
Relative to
Potential
GlobalTECKS 21,689 95.50%
Competitors` Compensation for
Factory Workers - China
Hyperion 32,682 100.00%ADAPTIVE 24,072 99.80%
Success 25,254 100.00%
Competitors` Compensation for
Factory Workers - Brazil

Operations Overhead Expenses 20
Unutilized operating capacity 6,000
Excess operating capacity 15%
Overhead costs charged to excess operating capacity 223,380
Unutilized labor charged to excess operating capacity 2,273,829
Overhead Charged to Excess Capacity
Operations overhead
expenses Q8 Q7 $ Change % Change
Excess capacity 2,497,209 444,565 2,052,644 461.72%

Profit Per Unit 21
Profit per Unit Sold Q8 Q7 $ Change % Change Explanation
Cost Cutter 0 304 N/A N/A Discontinued Market Segment
Work Horse 992 1,026 (34) -3.31% Increased Sales force expense for this segment by 172%
Innovator 1,236 1,220 16 1.31% Price Increase, but also increase COGS due to new brand features
Traveler 1,505 1,280 225 17.58% Price Increase and decreased feature COGS cost
Mercedes 1,863 0 N/A N/A New brand/segment

Results of Operations 22
Results of
Operations Q8
% of
Revenue Q7
% of
Revenue $ Change % Change
Net Income 20,007,840 19.5% 10,340,740 13.8% 9,667,100 93.49%
Revenue 102,642,743 100.0% 75,053,556 100.0% 27,589,187 36.76%
Gross Profit 54,066,916 52.7% 36,828,144 49.1% 17,238,772 46.81%
Expenses 23,576,331 23.0% 20,811,660 27.7% 2,764,671 13.28%

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