MicroSun Systems, Inc. Annual Report, July 2010

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  • Team D final presentation of simulation project.
  • MicroSun Systems, Inc. believes in building what the customer wants not what we feel they need. This concept has allowed us to be one of the fastest growing companies this year. Our top quality sales team is able to present the systems to the consumers with pride and knowledge. Our after-sales support team is able to support any issues our customers may encounter and support the sales staff in the field. Our models give the customers several options to build off the base model. We take pride in our systems and our team of employees. Every one of our team players gives their best to help build our customer’s dreams. Business Strategies:Market size - focus on smaller, high margin segmentsGeographic market - focus on geographic markets which minimize distribution costsCompetitive posture - be a fast follower, imitate smart competitive movesDistinctive competencies - provide the most reliable product on the market
  • In Q2, MicroSun Systems was #1 in market share with more than double the points of the nearest ranked competitor, Creative Computers and a total market share of 45%.We invested $154K in advertising against all 3 products. Our marketing effectiveness score was on the low side, however, at only .60 or 60%. We increased our media spend in Q3, spending almost double of our 1st quarter budget at $295,209. We remained the leader in this quarter in terms of market share at 38%. Our marketing effectiveness score increased to 75%. Finally, in the 4th quarter we saw the biggest leap in our marketing efforts spending over $365K in media and 84% in marketing effectiveness. Throughout the year, MicroSun Systems has maintained the highest market share in our competitive set. As we move into our second year, we will apply our learning and focus on just 2 products in order to invest more heavily in media and continue to build awareness and increase market share.
  • In quarter 4, MicroSun Systems, Inc gross profit increased by $7.1M from the 3rd quarter and over $9M since quarter 2. This massive increase gives us great insight into the quality of our products and quality of our sales team. Continued market research will give us the information required to continue building quality systems and improve in any areas our consumers feel we lack. With increased demand we may need to open another office in Toyko. Continued market search will allow us to make this decision further down the road. Bottom line….We have a strong sales team and after-market support team. Sales meetings will be held to include consumer suggestions for improvements.
  • At the beginning of the year, manufacturing needs were keeping up with demand. However, in Quarter 2 demand was out producing output and adjustments had to be made. It was discovered that their was an error in the fixed operating capacity that was not able to be completely fixed until the fourth quarter. In Quarter 2 we lost 463 sales due to stock outs and in Quarter 3 we lost 908 sales due to stock outs. Based on projected sales, we raised productivity capacity to 13,000 which proved to be 35% more than was necessary which left us with an overstock of 195 units and unused operating capacity of 4,583. This caused $1,722,933 in overhead costs and labor. Careful evaluation and review of sales, marketing and projected demand will be the primary focuses in the coming year to get production at the right level to meet demand without having an overage of product and costs associated with it.
  • MicroSun Systems, Inc. has grown tremendously over the last four quarters financially. The fourth quarter showed the greatest financial gain. With the opening of new offices in new markets, constant R&D, and keeping an eye on competition and trends, the company will continue to grow financially. Based on current financial growth, it is projected that within the next four quarters, both product sales and shares will at least double. These qualities will help MicroSun Systems, Inc. maintain its standing as a leader in this industry.
  • MicroSun Systems, Inc is motivated to provided top compensation packages to our loyal employees. In quarter four we remained the leaders in salary, vacation time, and medical care. We are currently lagging only in pension provided. In return for competitive compensation packages MicroSun Systems, Inc. retains highly trained and motivated employees with a low turn over rate. In quarter 5 MicroSun Systems, Inc. will increase pensions from 6% to 7%. The remainder of the compensation package will stay the same. During quarter 6 and 7 financial reports will be reviewed and salary and/or vacation time will be revisited. By increasing the sales force we hope to decrease the unit demand per sale employee from 607 to nearly 350. Decreasing the workload will increase employee moral and longevity within the company.
  • Financial Performance measures how well the executive team has been able to create profits for its shareholders. A positive number is always desired and the larger the better.Market Performanceis a measure of how well the managers are able to create demand in their primary and secondary segments. If there are 3 firms, a good score would be greater than 0.5. If there are 8 teams, a good score would be greater than 0.35.Marketing Effectiveness is a measure of how well the managers have been able to satisfy the needs of the customers as measured by the quality of their brands and ads.A good score would be greater than 0.8*Investment in Future reflects the willingness of the executive team to spend current revenues on future business opportunities. A good score would be greater than 3.0. Wealth is a measure of how well the executive team has been able to add wealth to the initial investments of the stockholders. A value greater than one indicates the firm is adding wealth to the stockholders. *Human Resource Management is a measure of how well the executive team is able to recruit the best employees, satisfy their needs and motivate them to excel. A good score would be greater than 0.85. *Asset Management is a measure of the executive team’s ability to use the firm’s assets to create sales revenue. A very good score would be 3.0*Manufacturing productivity measures of productivity focuses on how much of the operating capacity is actually used in production versus that portion lost to excess capacity. A very good score would be 0.80.Financial Risk measures the executive team's ability to manage debt as a financial resource. A good score would be greater than 0.80.
  • MicroSun Systems, Inc. had a very successful year especially in marketing and sales. The three primary areas of improvement that will be the focus of the coming year are future planning and asset management, aligning productivity with sales, and retaining high quality employees.This will be done by:Asset management and investment in company future – Research more ways to use the company’s assets to create sales revenue. Explore how to spend current revenues on future business opportunities.Sales growth - Continued market research on whether to open an office in Tokyo. Sales meetings will be held to include consumer suggestions for improvements. Increase sales team by 1 in each office.Production improvements - Careful evaluation and review of sales, marketing and projected demand to get production at the right level to meet demand without having an overage of product and costs associated with it.Employee benefits - increase pensions from 6% to 7%. During quarter 6 and 7 financial reports will be reviewed and salary and/or vacation time will be revisited. By increasing the sales force we hope to decrease the unit demand per sale employee from 607 to nearly 350. Other areas of focus:Marketing - As we move into our second year, we will apply our learning and focus on just two products in order to invest more heavily in media and continue to build awareness and increase market share.
  • MicroSun Systems, Inc. Annual Report, July 2010

    1. 1. MicroSun Systems, Inc. 2010 ANNUAL REPORT July 4, 2010Cathie Tedrick Christina Valdeon Sarita Walker-Muse Jessica Williams Regan ZellerVice President Vice President Vice President Vice President Vice PresidentManufacturing Marketing Accounting and Finance Sales Human Resources
    2. 2. Who We Are . . . At MicroSun Systems, Inc., ourcustomers are our number one priority. By giving our customers the highest quality products and service, their dreams can become a reality.MicroSun Systems, Inc. is the fastest growingcompany in the micro-computer market today.Offer three highly competitive models thatmeet consumers’ needs and desires.Highly successful in sales and marketing withsales almost tripling since the Third Quarter.
    3. 3. MarketingThrough a highly successful marketingstrategy, MicroSun Systems, Inc. is now themarket leader in products demand. Marketing strategy focused on the top three product attributes in order to keep messaging simple and straightforward. Placed very targeted media buys based on our customers’ interests (i.e. Business and Technology publications). The company will focus marketing efforts on the top two selling products and increase media buy to continue to build awareness.
    4. 4. SalesAt year end MicroSun Systems, Inc. owned97% of the market share for the Travelerseries and 39% for the Workhorse series. The sales strategy for the coming year is to concentrate on these two strong market competitors. Sales staff and after-market staff will continue to receive quality training. Plans for opening an office in Tokyo are being researched and analyzed.
    5. 5. ManufacturingMicroSun Systems, Inc. strives to meetcustomer demand through well researchedmarket forecasting and adjustingproduction to meet the needs. Manufacturing strategy is to have low overstock at the end of each quarter. Careful evaluation and review of sales, marketing and projected demand is vital to balancing production needs and costs. Operating capacity utilization is currently at 65 percent, with the goal in the coming year to increase to 100 percent.
    6. 6. FinancesMicroSun Systems, Inc. maintained a properbalance of cost vs. profit ensuring that aftercarrying cost continued to make a profit. Made $396,000 in first quarter from product sales. With increase in sales each quarter, company yearend profit is $3,924,671. Forecasting helped ensure the company met product demand while turning a profit. Made $4,000,000 in shares sales which continue to increase each quarter.
    7. 7. Human ResourcesMicroSun Systems, Inc. strives to retainhighly quality, well trained employees, andtherefore experiences a low turnover rate. Remains leader in providing compensation packages that include highly competitive salary, health care coverage, and leave. Compensation package improvement will increase company pension contribution from six percent to seven percent. One new sales person will be added to each office to continue to keep up with customer demand.
    8. 8. StatisticsMicroSun Systems, Inc. managementperformance scores: Financial Performance = 190.14 Market Performance = 0.67 Marketing Effectiveness = 0.84 Investment in Future = 1.07* Wealth = 2.71 Human Resource Management = 0.78* Asset Management = 2.25* Manufacturing Productivity = 0.65* Financial Risk = 1.00*Indicates areas to focus on in next year to increase company effectiveness.
    9. 9. Moving ForwardMicroSun Systems, Inc. will stay competitivethrough expanded sales and production,improved assets management, andincreased employee benefits package. Projections for next four quarters show both product sales and shares will at least double. Sales staff will grow to meet the increase. Production capacity will continue to be adjusted to meet forecasted demand. Improved benefit package will continue to retain high quality employees.
    10. 10. MicroSun Systems, Inc.Where dreams become reality! Kaplan University GB500 Business Perspectives July 4, 2010

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