C A M S R U S International Final Submission


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C A M S R U S International Final Submission

  1. 1. CAM’S R US InternationalTaiwan, R.O.C<br />Breath-taking Professional Photography at the World’s Finger-tips<br />
  2. 2. Strategic Vision <br />“Our customers are people who enjoy life in many different ways, from spending time at home with their families ,to traveling the globe in search of adventure. We are committed to providing them with state-of-the-art digital cameras of superior quality and value at reasonable prices so that they can capture these moments to remember and share them for the rest of their lives.”<br />
  3. 3. Financial Strategy<br /> Achieve dominant position in all markets<br /> Achieve and maintain credit rating of A+<br /> Pay quarterly dividends to stockholders<br /> Fund capital investments via organic growth and retained earnings<br /> Avoid the use of long-term debt<br /> Repurchase stock when permissible to maximize EPS<br /> Generate annual growth in sales, profit, earnings per share and market share<br />
  4. 4. Financial Strategy<br /> Our initial strategy was to use yearly earnings to eliminate debt, return 50% off earnings per share as dividend and buy back as much stock as possible. However, as competition stiffened in year 10, we were forced to reissue shares to fortify our position and returned to our original strategy in year 11.<br />
  5. 5. KeyFinancial Decision<br />We redeployed capital in Year-10 to improve camera quality and build market share<br />Year 10 results showed a significant decrease in earnings per share and return on equity<br />The result was image rating improvement from 87 to 100 and sales revenue increased by 33.5% from $370,916 to $495,144.<br />
  6. 6. Financial Objectives<br />Achieve and maintain A+ credit rating<br />Achieve and maintain Image Rating of 100<br />Increase market share to minimum of 35% for both Entry-Level and Multi-Featured cameras in all markets <br />Repurchase Stock Annually To Build EPS<br />Eliminate Long-term Debt by Year 9<br />
  7. 7. Production Strategy<br />Build market leadership in production operation through relatively low cost and high quality<br />Provide industry leading compensation and benefits package to attract and retain the best employees <br />Rely on internal staff with minimal use of outsourcing<br />Use fully trained temporary employees to boost production during peak periods<br />Complete plant expansion proactively to anticipate increasing production requirements<br />Maintain low rate of warranty repairs<br />
  8. 8. Production Objectives<br />Increase business relationships with retailers annually to increase revenue<br />Maintain generous compensation package for employees<br />Use temporary employees to handle peak production period<br />Avoid use of layoffs and outsourcing<br />
  9. 9. Production Targets<br />Maximize production by the use of overtime<br />Maintain 2.5 or greater P/Q rating on entry level camera<br />Maintain 3.0 or greater P/Q rating on multi-featured camera<br />Progressively eliminating the need for outsourcing<br />Expansion of plant-year 7 and 11 to increase production<br />Progressive decreases in production costs:ie warranty, parts and labor<br />
  10. 10. Performance OverviewAnnual Trend Analysis (Years 6-13)<br />Total revenues<br />Earnings per share<br />Return on equity<br />Credit rating<br />Year end stock price<br />Image rating<br />
  11. 11. Total Revenues(Year 6-13) <br />
  12. 12. Earnings Per Share(Year 6-13)<br />
  13. 13. Return on Equity(Year 6-13)<br />
  14. 14. Stock Price(Year 6-13)<br />
  15. 15. Image Rating(Year 6-13)<br />
  16. 16. Multi-featured Cameras<br /> Again, Company B & C were our competitors here with Company B pushing us the hardest. <br /> We were able to compete and capture market share with a higher price and better camera, value based strategy. <br /> Key factors were how much higher the price was and the number of models available. <br />
  17. 17. Entry-Level CameraCompetition <br /> Company C started out as a major <br /> competitor in the entry level market.<br /> However, as Company C's strategy progressed, Company B took over as a competitor by holding price, quality and models. <br /> Our adjustment to their strategy by reducing price and increasing models proved to push both competitors aside.<br />
  18. 18. Multi-Featured CameraCompetition <br /> The astute buyer provided us an opportunity to create a superior camera to our competition right out of the gate while only having a couple models.<br /> Our ability to charge a premium price set us up for a great start. Over time, our lack of models and pricing structure had to be addressed to reduce price and double the number of models available. Company B competitively “stole” our market share based on price before these changes, however once implemented, we again recaptured market share at a fast rate.<br />
  19. 19. Beating the Competition- Year 11<br />
  20. 20. Performance Targets(Projected)<br />Year 12<br />Total revenues $575M<br />Earnings per share $8.50<br />Return on equity 44%<br />Credit rating A+<br />Year end stock price $110<br />Image rating 100<br />Year 13<br />Total revenues $750M<br />Earnings per share $9.50<br />Return on equity 48%<br />Credit rating A+<br />Year end stock price $130<br />Image rating 100<br />
  21. 21. Strategic Plan for Competition<br /><ul><li>Embrace a best-cost, best value strategy
  22. 22. Recapture North American market share
  23. 23. Expand market share acquisition in Latin America, Europe-Africa </li></ul> and Asia<br /><ul><li>Expand model selections and options
  24. 24. Excel in revenue generation
  25. 25. Excel in shareholder equity
  26. 26. Produce more cameras at a lower cost
  27. 27. Buy out offer for Company D</li></li></ul><li>Snapshots for Tots<br /> Every year corporate executives and managers in cooperation with the production teams take time to help children in need.<br /> Snapshots for Tots raised $1.7 million dollars last year for children around the world.<br /> We thank the entire CAMS R US family for their support of this vital program.<br />
  28. 28. Social Responsibility<br />CAM’S R US is committed to being a good neighbor by decreasing our carbon foot print..<br />Our green initiatives include:<br />Decrease plant emissions by 20% by 2010.<br />We provide $1 million in funding in our global tree planting initiative.<br />We have decreased the size camera packaging.<br />We recycling old camera components.<br />
  29. 29. Lessons Learned<br /> Regular price increases have a compounding effect on market share loss over time. <br /> Opportunity exists in maintaining price, reducing cost through efficiency and slow increasing camera quality.<br /> When camera quality improvement is not an option, adding models has the desired effect on market share.<br />
  30. 30. Lessons Learned<br />Strategic planning precedes superior performances in the market.<br />Compete on quality, cost saving and technological advances to improve sales and earnings.<br />Compare intelligence reports to determine strategic plan effectiveness.<br />Update product, financial, labor and marketing objectives quarterly or annually.<br />
  31. 31. Future Actions<br /> Continue incremental camera quality improvement while investing in advertising where exchange rate benefits the bottom line.<br /> Invest in plant improvements as necessary to reduce outsourcing costs.<br /> Maintain competitive price on entry level cameras and value priced cameras in the multi-function market <br /> Offer to purchase Company D to acquire Latin American market share.<br />
  32. 32. Question?<br />Thank you George!<br />George Aasen<br />Crystal Bratvold<br />Kevin Culver<br />Calvin Bryant Jr.<br />