Globus ppt


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Globus ppt

  1. 1. Digital Kean Cameras Azuka Omesiete Richa Arora Florent Mialhe04/03/12 1
  2. 2. Net Revenues Digital Kean Cameras (millions of dollars) Y6: 191M Y7: 168M Y8: 179M Y9: 167M Y10: 172M Y11: 203M Y12:167M Y13: 189M Y14: 274M04/03/12 2
  3. 3. Earnings Per Share Digital Kean Cameras (EPS $) Y6: 2,40 $ Y7: 2,26 $ Y8: 3,27 $ Y9: 2,95 $ Y10: 3,15 $ Y11: 5,04 $ Y12: 3,94 $ Y13: 2,68 $ Y14: 5,64 $04/03/12 3
  4. 4. Return On Equity Digital Kean Cameras (ROE %) Y6: 21% Y7: 18,4% Y8: 23,8% Y9: 20,5% Y10: 26,8% Y11: 41,4% Y12: 30,6% Y13: 22,7% Y14: 37,5%04/03/12 4
  5. 5. Stock Price Digital Kean Cameras (Dollars per share) Y6: 35,75 $ Y7: 33,34 $ Y8: 48,81 $ Y9: 48,68 $ Y10: 52,76 $ Y11: 77,24 $ Y12: 62,13 $ Y13: 49;06 $ Y14: 71,84 $04/03/12 5
  6. 6. Credit Rating Digital Kean Cameras Y6: A- Y7: A- Y8: A Y9: A+ Y10: A- Y11: A- Y12: A- Y13: B Y14: A-04/03/12 6
  7. 7. Image Rating Digital Kean Cameras Y6: 63 Y7: 54 Y8: 53 Y9: 45 Y10: 47 Y11: 45 Y12: 32 Y13: 42 Y14: 4704/03/12 7
  8. 8. Our Strategic Vision• Building a loyal customer base by providing quality entry- level cameras at a lower price than competitors.• Providing consumers with excellent quality multi-featured cameras, that satisfy their requirements.• Maximizing shareholders value.• Investing in long-term employee benefits, innovative technology, productivity increase and R&D.04/03/12 8
  9. 9. Performance Targets04/03/12 9
  10. 10. Entry Level Strategy• The company employed a « global low cost leadership » strategy from Year 6 until Year 12 meaning that: – Offering a low cost strategy advantage for a company means you can develop, manufacture, and distribute products more efficiently than competitors. – Having lower costs than competitors, lower prices, lower quality. – A continuous search for cost reduction without sacrificing acceptable quality and essential features.04/03/12 10
  11. 11. Multi Featured Strategy• The company employed a « Global Best Cost Strategy » from Year 6 until Year 12 meaning : – Focus towards customers who are value- conscious and are willing to pay money in exchange of a good that has upscale features.04/03/12 11
  12. 12. Production• Our company’s production line made use of expansions, Overtime and outsourcing.• Expanded 3 times during decision period• Hired temporary PATs for 3rd quarter production and laid off in 4th quarter.• Maximized overtime and outsourced the rest.• PATs were compensated less than competitors to keep costs down.04/03/12 12
  13. 13. Assembly• Our main focus on assembly was not to get sold out so we could capture as much market share as possible.• Took advantage of 10% extra margin.• Production also depend on the following factors – Exchange rate profit or loss per region – Operating profit per unit04/03/12 13
  14. 14. Financial Strategy.• Our financial strategy was formulated to eventually re-purchase most of our company’s stocks from our stockholders, that way, increasing the value of our company.• Our stock purchase was mostly financed through debt but we repaid a huge debt after our 4th quarter sales to maintain a strong credit rating.• We issued dividends every year to reward our shareholders after a successful business year. The dividend were usually dependent on our performance that year, so there were increases and decreases.• Given our current financial situation, there would have been a dividends paid the upcoming year, however they would have been the same or lower than the previous year.04/03/12 14
  15. 15. Entry – Level Camera • Company E and B Competitors After these 2 companies had implemented a successful strategy to corner the market share for the entry level camera, we decided to formulate a strategy similar to their which was a high quality-low price product.04/03/12 15
  16. 16. Multi-feature Camera Competitors• Company E and B These companies managed to implement the same strategy for their entry – level and multi – feature cameras. Because of that successful strategy, they performed way beyond expectation and acquired majority of the market share and advantage.04/03/12 16
  17. 17. Take Over strategy• We formulated a strategy to respond to the one being used by our leading competitors. Since they had the same strategy for their entry level and Multi-feature, we just needed to create one to counter their strategy. We responded by changing the price of our products to match the ratio to the P/Q rating as those other companies had done. i.e., whatever their price was based on the P/ Q rating of their camera, we adjusted our price based on our P/Q rating just so we could provide the lowest price even our P/Q rating was less than theirs.04/03/12 17
  18. 18. Take Over Strategy (Contd.)• Our strategy seemed to be successful, however, we only implemented it in the final decision rounds, so even though we had a large boost in performance that year, it wasn’t enough to be placed in the top 3 companies. But if the same strategy was implemented in the following year, there would’ve been an even more significant boost in performance.04/03/12 18
  19. 19. Future Actions• Will pay attention towards the quality (not lowering it extremely) and keeping the brand reputation.• Come up with more innovative and technological methods, by means of investing in R&D.• Address the high labor cost issues.04/03/12 19
  20. 20. Lessons Learned• Always keep an eye on your rivals actions. (never relax in the game of business)• Investing in marketing innovation, and technical support always pays off.04/03/12 20
  21. 21. Lessons…• Better employee compensation lowers the warranty claims and production cost.• Image Rating plays a great role in shaping your position in the market.• Following ethical business standards is more important than just making profits.04/03/12 21
  22. 22. Lessons…•Do not over produce.•Create a strategy and follow, make necessaryadjustments according to competition.•Makes decisions by strategy not by projectionnumbers.•Use Competitive Intelligence Report to locate specificissues and tackle.04/03/12 22
  23. 23. Questions ?04/03/12 23