e-EPIC Business Plan, January 2012


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Kaplan University MBA, Capstone

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  • At e-EPIC, we aim to be a hero to our customers by providing excellent electronic products and incomparable customer service. The values that drive our business are consumer focused, innovative, honest and socially aware. We are driven by continuous improvement and strive to provide value to our customer and profitability to all stakeholders.
  • About Use-Epic is a highly successful micro-computer company founded on providing excellent products with incomparable customer service. The values that drive our business are consumer focused, innovative, honest and socially aware. We have been in business now for a year and a half and look to be in business for the next fifty years. Setting goals based on collective valuesAs a team, we are inspired and humble. We align our values with our work environment internally and externally to ensure that the company’s values transcend beyond organizational boundaries. Guided by these values we solemnly reach out to the world around us, hoping to improve it in some small way and be viewed as heroic within the industry. e-Epic's Executive Team sets goals, acts on those goals, assesses the outcome of our actions and makes critical decisions about what worked and did not work. Based on the outcome of the assessment, we formulate the next set of actions and adjust our strategies to leverage our strengths and/or minimize our weaknesses. Meeting customer needs in an ever-changing markete-EPIC has a solid understanding of our customers and strives to produce top of the line computers that meet their varying needs. Continuous improvement and a desire to provide value to our customers and profitability to all stakeholders drive our decisions. We are committed to market research to ensure we are staying current and addressing market changes.Hiring highly ethical and productive employeese-EPIC strives to hire highly ethical employees who share our values and support company initiatives. e-EPIC is committed to providing the necessary resources and training to ensure productivity, job satisfaction and a higher return on investment into quality employees. To increase commitment, our company strives to promote from within. We are aware of and concerned with our environment, both internally and externally. Health and safety are paramount for our employees and partners everywhere. e-EPIC strives to hire highly ethical employees who share our values and support company initiatives.
  • John Wheeler earned a BS in Business Administration with an emphasis in Finance, as well as a his MBA from Kaplan University. He held a leadership position within the Nuclear Power industry for 10 years, following 9 years of service in the U.S. Navy. John utilizes his leadership skills to focus effectively on the task at hand, encourage accuracy and quality in a team atmosphere and help the team work through complex issues. Patricia Stroman-Blanks earned a BS in Management with an emphasis on Human Resource Management, as well as her MBA from Kaplan University. She has been working in the customer service field for more than twenty five years. Patricia utilizes her strengths in personnel relations to diffuse tense situations and ensure the company adheres to high ethical standards.Catherine Tedrick earned a BA in Business Administration with emphasis in Communications & Marketing, as well as her MBA from Kaplan University. She has an extensive work history that spans over twenty years in communications, marketing and public relations.  Catherine utilizes her strengths in writing, editing and graphic design to produce effective marketing, public relations and promotional campaigns. Julie Villanueva earned a BA in Political Science, as well as her MBA from Kaplan University. For the past five years she has overseen branch operations as an Assistant Branch Manager for Capital One Bank. Julie utilizes her skills and experience to coach her staff for operational success and career development. Lisa Whaley earned her BA at Concordia University and her MBA from Kaplan University. She was Vice-President of Artists & Repertoire (A&R) at A.M.I. before making a career change, where she has spent the past ten years working in every aspect of Supply Chain Management. Lisa utilizes her experience and extensive knowledge of Supply Chain Management to keep the company’s production in check.
  • Our original presentation to the venture capitalists summed up our stance in the marketplace. When presented, we had 46% of the market. Things change quickly in electronics and our current market share is 31%, witha 6% lead over our biggest competitor for the workhorse model at 25% of the market. Our strategic goals have not changed, but we have had to gear up quickly in the R&D portion of our business. One cannot rest in the electronics industry and expect to survive. In retrospect, we should have began funding Research and Development in the first quarters of year one. We are now confident that our future is extremely bright with the addition of many new enhancements. We will diligently work in the area of “add-on” features, as this continues to be a lucrative market.Prior to providing funding, the venture capitalist expressed the need for more financial details as we project out into the future of the business. We expanded our financial projections in this presentation to meet this need.
  • In year two, e-EPIC continued to improve our products, expand into other global markets, and increase our marketing presence.e-EPIC strives to always be visible to consumers. In order to do this, we have improved our marketing strategy and expanded advertising placement for greater market presence and increased sales. We also increased research & development to stay competitive and meet customer needs during year two. To meet global expansion goal and increase sales, e-EPIC opened a sales office in Tokyo. In addition, to handle additional product requests from the global market, we increased our sales and service force.e-EPIC’s objectives are as follows:Shareholder value – Our shareholders are valuable owners of the company. We continue to aim for high profits and net equity.Profits – We focused on providing service and products that will create high profits for our shareholders and position e-EPIC as a long-term profit leader. Cash – We want to manage our cash with limited risk. We are mindful of our employees, shareholders and customers.
  • e-Epic has continued to grow through the 5th quarter and now has topped $10 million in revenue up from $8.274 million in the 4th quarter. In an attempt to invest for the future the 5th quarter also brought the largest amount spent towards research and development at $2.9 million. Unfortunately, although revenue was up, so were expenses and e-Epic was forced into another emergency loan of $3.25 million. Based on the cumulative balanced scorecard e-Epic finds itself among the top of the industry and only trails one competitor. Overall e-Epic holds 28% of the market share which is down from 51% that was controlled after the 3rd quarter. This only shows how competitive the top three performers have gotten over the last 2 quarters.While e-Epic ended the 5th quarter with $10.334 million the industry ranged from a low of $1.458 million to as much as $16.917 million with an average of $9.968 million. Gross profit margin saw similar results as e-Epic ended at $5.028 million with the lowest being $889,690, highest being $7.296 million and an average of $4.679 million. E-Epic has the best net income at -$764,092, also the highest, with the lowest at -$1.733 million and an average of -$1.048 million.
  • e-Epic maintains a high level of quality computers. We work diligently to ensure that we are profitable while keeping our customers needs a top priority.  We aim to please our customer’s by providing them the highest quality computer at an affordable price. The electronics market is very competitive so our strategy is to beat out our competitors by listening to our customers, providing them with quality equipment, and providing superior customer service at all levels.e-Epic is a company that looks towards the future and immediately handles any situation that may cause them to possibly fail. e-Epic strives to be the best computer company in the market. e-Epic aims to provide the best electronic products and superior customer service, while being profitable and keeping cost down which is our main objective.The process for assigning initial roles and responsibilities were based on two factors: Our insight profiles and our expertise in the field.  We all share strengths in leadership and communication. In addition, each executive team member brought their professional area of expertise. All of our strengths combined with our knowledge, skills and abilities makes e-Epic one of the best computer companies in the market today. The company benefits from having the most intelligent and hard working employees, who have the same vision as the company.
  • While we experienced some success, we discovered that the market fluctuates almost on a daily basis. What worked one quarter will not necessarily work again. Strategy has to be flexible in order to keep pace with the market.Advertising is a tricky business. Clearly, we are in need of professional help in this area. We will be utilizing some of the funding we are requesting to hire an expert in the field of advertising.The highly competitive field of electronics makes research and development a high priority. In years 2 through 5, the funding we are requesting will mainly be used for R&D. This will ensure our ability to remain competitive and help us secure a much more visible presence in the marketplace.
  • Constant communication between team meetings ensures that all team members are aware of current business issues and upcoming decisions. In addition, we found the need to increase our weekly meetings from two to three (and in some cases four) to meet deadlines. Another strategy we employed was doing more individual research and preparation prior to team meetings. Utilizing these strategies improved team communication, made more efficient use of our team meetings, and made us a tighter, more cohesive team overall.
  • e-Epic understands the urgency of providing the best computers along with superior customers service at a reasonable cost. No matter what market we do business in, we have to keep in mind that we have competitors who may try and appeal to our customers with their products.Competitors entered our sales market which helped e-Epic realize that we had to work harder to ensure we maintain our customer base as well as recruit new potential customers.Our initial strategy was to start slow and reserved, but we had to change to attempt to stay in front and/or catch-up. Our competitors are trailing close behind, so we have to adjust and find other alternatives while still focusing on servicing our customers.
  • Changes to our business strategy must be constant in order to remain competitive. Our competitors will take from our ideas and products to increase competitive advantage. Our marketing strategy will constantly change to serve our customers needs. We are visible in our marketplace. The designs of our products reflect high quality while remaining the low cost leader. We included the use of Research and Development to meet customer demand.  
  • Sales strategy changed to increase sales offices to maximize production -- our sales and service staff grew to increase profits. We added options to improve our website and productivity.  e-EPIC remains competitive with financial performance. Our new sales offices will increase our demand and profitability.  
  • Looking at the current organizational structure, which utilizes a functional style of management as our primary style has been fairly effective for us. As the team moves forward, this style may continue to work for us, but we may want to move towards a management style that allows everyone to provide input into where the organization is going. This type of management style is called participative management.
  • Future expansion of e-Epic can only happen based on the number of products sold and how many we can produce. During the 5th quarter e-Epic commenced building offices in the last two markets, Tokyo and Toronto. The future of e-Epic is looking bright and we have the pieces in place to overtake our competitors and be the best, of the best.
  • e-EPIC Business Plan, January 2012

    2. 2. About e-EPIC• Mission Statement: ‒ At e-EPIC, we aim to be a hero to our customers by providing excellent electronic products and incomparable customer service.• We achieve this through: ‒ Setting goals based on collective values ‒ Meeting customer needs in an ever- changing market ‒ Hiring highly ethical and productive employees
    3. 3. The TeamJohn WheelerPresident & Chief Financial OfficerPatricia Stroman-BlanksVice President, Human ResourcesCatherine TedrickVice President, MarketingJulie VillanuevaVice President, SalesLisa WhaleyVice President, Manufacturing
    4. 4. Key Features of Business Plan • Market Share • Strategy • Plans for Future
    5. 5. Business Strategy & Performance • Improve marketing and expand advertising placement. • Increase Research and Development • Open sales office in Tokyo and expand offices in Toronto • Expand sales and service force.
    6. 6. Financial & Market Performance • Revenue • Gross Profit Margin • Net Income • Earnings Per Share
    7. 7. Current Situation and the Market • Develop quality computers that meet customer needs. • Address current issues and effectively forecast future needs • Executive Roles and Responsibilities based on: – Strong leadership and communication skills. – Professional expertise – Shared visions
    8. 8. Lessons Learned • Market fluctuates • Need advertising specialist • R&D must take priority for us to remain competitive
    9. 9. Improving Team Effectiveness • Changes the team made were increased: – Communication – Team member meetings – Individual research and preparation for team meetings • Impact of those changes – Tighter team – Improved communication – More efficient use of meeting time
    10. 10. e-EPIC Current Situation • Changes in market conditions impacting growth plans – Volatile market – Competition – Strategy
    11. 11. Competing in the Future • Business Strategy: – Analyze competition – Analyze marketplace – SWOT analysis • Marketing Strategy: – Remain visible – Smart use of brand design (keep the need of customer in mind) – Price aggressively – Increase R&D
    12. 12. Competing in the Future (continued) • Sales Strategy: – Increase production – Increase our sales and service staff – Increase web traffic • Financial Strategy: – Maximize liquidity – Increase profits – Leverage debt to take advantages of opportunity
    13. 13. Evolving Management/Leadership • Management Style • Flexibility • Unwavering Commitment
    14. 14. Tokyo, Toronto and Beyond… • Sales Offices • Research and Development • Looking Toward the Future