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Busn499 teamandrewspresentation


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Busn499 teamandrewspresentation

  1. 1. Team AndrewsBusiness 499<br />Jacob Babcock<br />Justin Bruns<br />Brian Fielder<br />Jared Kohn<br />
  2. 2. Andrews<br />Mission Statement<br />We will strive to be the leader in the High End, Traditional, & Low End segments of the market<br />Overall Strategy<br />Focusing on our segments & implementing a cost leadership, product lifecycle focus<br />Success Measures<br />Return on Assets (ROA) – 40%<br />Return on Equity (ROE) – 40%<br />Return on Sales (ROS) – 20%<br />
  3. 3. R&D<br />Reduced MTBF to minimum standards in all segments<br />Reduces material costs<br />Marketing<br />Increased Sales & Promotion budget in Traditional, High End, & Low End<br />Decreased Sales & Promotion budget in Size & Performance<br />Production<br />18.8% left in inventory<br />Stocked out in Low End segment<br />Finance<br />Issued $18,994,000 bond<br />Had an $8,769,036 emergency loan<br />Year 1<br />
  4. 4. R&D<br />Introduced new product – Awsum<br />Marketing<br />Set Promotion & Sales budget for Size & Performance to $0 to prepare to phase out<br />Decreased Promotion & Sales budget for Traditional, High End, & Low End<br />Production<br />9.0% left over in inventory<br />Stocked out in Traditional segment<br />Maintained production levels in all segments except Size<br />Did not produce any products in the Size segment<br />Finance<br />Retired $6,950,00 in long-term debt<br />Paid back emergency loan from Year 1<br />Year 2<br />
  5. 5. Year 3<br />R&D<br />Reduced Adam’s MTBF to 14,000<br />Introduced Ace on April 23, 2014<br />Marketing<br />Began to phase out the size & performance segments (Aft & Agape)<br />Production<br />Sold 200 units of capacity for Acre and Awsum<br />Sold all but one unit of capacity for Aft and Agape<br />Bought 200 units of capacity for Ace<br />5.4% of production remained in inventory at end of year<br />Sold out of Able, Acre, Adam Aft, and Ace<br />Finance<br />Retired $40,000,000 in long term debt<br />
  6. 6. Year 4<br />R&D<br />Acre’s performance changed from 3.0 to 3.5 and size from 17.0 to 16.6<br />Adam’s performance changed from 7.6 to 7.5 and size from 12.4 to 12.5<br />Marketing<br />Increased promotion & sales budget for Adam, Acre, & Ace<br />Production<br />12.4% of production remained in inventory at end of year (down from year 3)<br />Sold out of Able, Adam<br />Finance<br />Issued $10,000,000 loan<br />
  7. 7. R&D<br />Introduced new High End product called Apple<br />Costs totaled $1,673,000<br />Marketing<br />Increased promotional budget & decreased sales budget in Low End<br />Increased promo budget for Ace (High End)<br />Production<br />Purchased 200 units of capacity for Awsum (Traditional)<br />Sold 400 units of capacity for Acre (Low End)<br />Finance<br />Sales increased to 118,948,000<br />Net profit increased to $10,786<br />Year 5<br />
  8. 8. R&D<br />Traditional product, Aooookintroduced (1/16/2017)<br />Costs of Adam (Low End)totaled $56,000<br />High End costs of $673,000<br />Marketing<br />Acre’s (Low End) sales budget decreased while promo budget increased<br />Adam’s (Low End) sales budget decreased<br />Awsum & Ace priced at $27.50<br />Production<br />Purchased 400 units of capacity for Able (Low End)<br />Sold 400 units of capacity for Adam for $9,880,000 (Low End)<br />Purchased 200 units of capacity for Apple (High End)<br />Finance<br />Retired 2,500 worth of stock<br />Net Profit increased to $11,970<br />Year 6<br />
  9. 9. R&D<br />3 products in the traditional segment this round<br />Introduced Aooook to our customers<br />Goal: Take market share away – only sold 325,000<br />Marketing<br />Maintained Marketing Investments<br />Production<br />15.8% left over in inventory<br />3 products stocked out<br />Finance<br />Issued $30 Million Bond<br />Retired 6,555,000 Shares of stock<br />Year 7<br />
  10. 10. R&D<br />Made High end product slightly better<br />Traditional Segment did well <br />Sold over 4 Million between 3 products<br />Marketing<br />Maintained Marketing Investments<br />Production<br />10.9% left over in inventory<br />1 product stocked out<br />Finance<br />Retired $87 Million in bonds<br />Retired 10,427,000 Shares of stock<br />Year 8<br />
  11. 11. SWOT Analysis<br />
  12. 12. Product strategy<br />3 Products in Traditional<br />3 Products in Low End<br />1 or 2 in High End<br />Positioning<br />“No one has a STAGGER like us”<br />Focus more on customer buying criteria<br />R&D<br /><br />
  13. 13. Maintain sales and promotion budgets at necessary levels<br />Awareness goal: 90%<br />Allocate more time and money to the products that perform better<br />Improve sales forecasting<br />Price products at competitive levels<br />Marketing<br />><br />
  14. 14. Increase capacity to adequate levels to enable us to produce forecasted amounts<br />Maintain automation at required levels to minimize costs<br />Maintain investment in Human Resources to increase productivity<br />Keep overtime levels to a consistent minimum<br />Production<br />
  15. 15. Increase leverage to satisfactory amounts<br />Take out necessary bond amounts<br />Continue to maximize ROS, ROA, ROE<br />Retire stock<br />Retire bonds early when able<br />Make sure we have adequate cash levels to avoid emergency loans<br />Finance<br />
  16. 16. Questions<br />