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Robert Britt | Sarah Murphy | Nhora Piedrahita | Khali Quartey
Founding Partners
Wheat & Oats
Annual Report 2014
Developed December 1, 2014

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Shareholders Reference Guide
Who is EE Wheat & Oats?
EE Wheat & Oats is a local grain mill that’s been
servicing the great citizens of Munich for over 100 years.
In 2014, with the vision of four young entrepreneurs,the
mill has been expanded to produce the highest quality
muesli available on the grocery store shelves today. EE
sources superior wheat and oats for a delicious foundation
for each variety of flavor. Then, we purchase only the
freshest,locally harvested strawberries,blueberries, grapes, and nuts from farming cooperatives in the
Greater Munich Area. All fruits are dried on site to provide the optimal flavor our customers relish.
Our Mission
To produce highest quality muesli using our premium recipes in an environmentally responsible manner
and provide our customers with nutritional benefits of whole grains, fruits, and nuts.
Management Goals
 Achieve a 15% market share in the muesli industry by offering high end products to attract
consumers who are eager for more than a run-of-the-mill box of cereal.
 Grow net profit margin by 50% each quarter by striving for an economy of scale while promoting
a zero-defects company culture.
 Improve and maintain total shareholder returns above 20% by controlling investments in raw
materials and boosting sales across our target markets in DC 12 and DC 14.
Original EE Grain Mill, Circa 1902

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Business Strategy
Before entering the competitive muesli market, EE top management devised an actionable strategy
summarized with the following key points:
 Develop unique products that cater to local grocers and small specialty stores.
 Set competitive prices that maintain at least a 30% profit margin per product.
 Increase machine production capacity by 42.9% (30,000 boxes per day).
 Decrease machine setup time 33.3% (8 hours).
Product Mix
Key Performance Indicators Rational for KPI
Net Profit Margin > 50%  Monitor converting revenues into profits
 Analyze sales and improve customer
experience
Market Share > 11%  Compare EE to companies in same industry
 Gauge success of product mix
Return on Sales > 15%  Track profit gained for each dollar of sales
 Monitor company growth over time
PremiumSelect

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ProductPerformance
Our three premium products (raisin, strawberry,and nut) were chosen in order to capitalize on the
relatively low forecasted prices of raw materials. With this we were able to improve our product margins
and cater to consumer preferences. In the chart of cumulative sales above, our raisin was consistently
high; blueberry and original also gained notable sales throughout the quarters. To our surprise, strawberry
and nut did not fare as well as intended.
Strategy Changes
Quarter one was a highly successfulin terms of gaining market share. Upon evaluating our market share
from Quarter one to Quarter two,EE Wheat & Oats decided to decrease prices to maintain our targeted
sales volumes of 500,000 boxes total. In quarters three to four, EE marketing directors began an
aggressive marketing campaign to regain lost market share which successfully increased sales.

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Improved Sales from Q3 to Q4:
Northern Region Southern Region Western Region
186% 63% 163%
Q1: Our initial regression that we ran ended up being an optimal solution for our firm, therefore we had
the best sales here.
Q2: Utilizing same strategy as in the first quarter, the results were less fruitful due to a competing firm
liquidating all of their inventory so we decided to run another regression to adjust to the changing market.
Q3: We then began reducing prices which caused us to make less profit and still made minimal sales.
Q4: Since we had plentiful inventories of raw materials, EE partners focused on producing our final
products to maximize sales for fiscal year one.

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Evaluation of Business Strategy
 Unique Products – our choice to focus on small specialty stores and local grocers led to high sales
in those targeted regions and boosted sales.
 Competitive Prices – during quarters one and two, profit margins were elevated because we were
able to draw customers to our premium products. Cost reductions in subsequent quarters were a
result of market competition and the need to drive sales.
 Capacity Utilization – our decision to increase capacity of the machine was excessive. If we had
the opportunity in the future, we would decrease machine production capacity which would
improve our capacity utilization and decreased initial investments.
 Decreasing Machine Setup Time- this choice was successful,it helped improve our company’s
market reactivity.
Predictions for Future Performance
After more than 100 years of successfulbusiness in the grain milling industry, EE Wheat & Oats is
striving for a bounty of success with our Muesli brand. Our future goals entail:
 Optimize muesli recipes to suit shifting customer preferences – enhance nut and strawberry
recipes by increasing concentration of the ingredient by 20%
 Improve forecasting of raw materials - maximize capacity utilization closer to 75% by reducing
batch sizes to match closer to customer demand patterns.
 Expand marketing campaign in northern and southern – boost sales performance in our target
markets of DC 12 & 14 which will also improve cash flows by upwards of 50%

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Individual Reflections
Adam Britt
During the simulation I was able to apply many of the skills that I have learned throughout my time at
Bauer College. Before this semester my Excel skills would best be classified as beginner, but because of
the ERP simulation, I have had a chance to hone my Excel skills and now I am quite proficient. Running
multiple regression equations, creating tables, creating pivot tables, and sorting through massive amounts
of data has given me the Excel capabilities that I need in order to be an asset to any company. Working
with my team in the live simulation was also very beneficial. Having to make split decisions in real time
with three other people meant that we had to be well coordinated and communicate effectively. Every
person had a job to do, and if they did not do their research,run their regressions, or were late,then our
whole team was effected. Being able to manage time with three other people, who also had hectic
schedules, was the most difficult task that I had all semester. All in all I would say that the simulation
was a good experience, and very beneficial. The only thing I wanted to be different would be for the real
game to have continued, because as soon as I got the hang of it, we were done.
Sarah Murphy
Although I did learn much more about the capabilities of SAP during this semester,with this
simulation it was interesting to see how the different functionalities were interdependent in making the
“company” successful. In retrospect,I can see how this class is suited for more advanced students in order
to utilize skills developed throughout our college careers. The biggest downfall in making this simulation
more realistic is the lack of personal risk involved and financial incentives to perform well. However,
with the right mindset, one can truly learn from this microcosm of a realbusiness environment. Our team
worked tremendously well together and even during the stressfullearning curve in the beginning. If we
had more time to work on our strategy in further quarters,we could better understand the interaction of
the SAP functions and could have achieved first place again!

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Khali Quartey
Throughout my entire undergraduate experience I have obtained various skill sets that will allow me to be
a better supply chain manager. I learned about purchasing, contracts,customer service, transportation,
planning, production, the importance of networking and collaboration. While playing the simulation I
learned just how important team work is within the supply chain. I learned how important communication
is while playing the simulation. For example when we played quarter 3 our communication wasn’t as
effective as it usually was therefore our sales went down as well as our net income. Collaborating
between different departments and business partners is essential for the success of any supply chain and
fortunately for me I learned that through a game rather than losing millions on an incorrect purchase in
real life. I learned that keeping up-to-date technology and having the skill set to know how to utilize it
makes a supply chain manager’s job much easier. Overall information sharing, using an efficient logistics
process,having up-to-date technology, utilizing lean production, knowing and understanding your supply
chain, surrounding yourself with capable individuals while every member has an opportunity to express
their ideas is an optimal environment for innovation that any supply chain manager should be able to
thrive in.
Nhora Piedrahita
By participating in this exercise I learned not only how to make management decisions but also how to
apply some of the concepts that I learned in my finance, accounting and business modeling and decision
making classes. Making management decisions was a big part of my learning experience in this exercise
because we had to make choices on how to make our products, how to make them attractive, unique and
distinctive to the customers that way we could have an advantage on market share and get good profits. I
also learned how to apply some of the finance concepts, and I reinforced my knowledge on how to
analyze the information that we gather from each game in order to identify in which financial areas we
were improving or on the contrary on which areas we were performing poorly in order to make our
decisions for the subsequent games. In addition, I reinforced some of the concepts that I learned in the
business modeling and decision making class,since we had a lot of data during the game and after each

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quarter, I strengthened my knowledge and my analytical skills which not only helped us to gather
valuable and essential information that facilitated our decisions making but that will also help me to make
better analysis to obtain worthy decisions with my future projects.