Andrews had another strong fiscal year in 2022, delivering $261 million in revenue and $20.31 in earnings per share. The company achieved these results through its focus on product differentiation and leadership positions in high-end and performance product segments. Andrews intends to continue investing in innovation to release new high-end products annually and maintain its competitive edge. The CEO expressed confidence in the company's leading products, technologies, processes, and commitment to customers.
The DIGBY Corporation Board of Directors met on December 6, 2018 to review the company's vision, strategy, financial performance, and future outlook. DIGBY's vision is to provide customized products that perfectly match customer demands in the sensor industry. The company employs a broad differentiation strategy, operating as both a cost leader and quality leader across its product segments. DIGBY leads the market in several product segments and saw increased revenue, profits, and stock price in 2018. The Board believes the executive team should continue leading the company due to its strong growth, understanding of economic conditions, and time-tested success in managing diversified operations.
This annual report from Andrews Inc. discusses the company's strategy, execution challenges, and performance over the past few years. The company originally planned to focus on high-margin segments but faced slower than expected market shifts and customer preference changes that slowed the transition of its products between segments. As a result, key metrics like return on equity and contribution margins underperformed. However, the report is optimistic that recent strategic changes like product improvements and exiting low-margin businesses will return the company to profitability and high performance in the coming years.
This document describes a simulation run by Capsim to teach business strategy. Students manage multiple business units across eight rounds/years. The objective is for interdisciplinary teams to coordinate strategies for research, marketing, production, finance, and quality to increase market share, profitability, and stock value. The simulation breaks up a corporation into five competing companies across a closed marketplace. Teams apply strategic planning, analyze opportunities/threats, and manage resources to demonstrate leadership in this risk-free learning environment. Effective communication and listening across units creates a collaborative team that achieves strong performance.
This document discusses the Baldwin Company and its industry. It provides information on Baldwin's products, market share, sales growth, profit, and contribution margin. It also discusses challenges Baldwin faced, such as inefficient spending and being late to adopt total quality management practices. The document suggests ways for Baldwin to utilize cash, such as developing new products, increasing capacity, and paying off long-term debt. It reflects on what Baldwin did right and lessons that can be applied to business careers, emphasizing skills like organization, communication, and adapting strategy.
Capsim Strategic Management Simulation: First Place. We simulated developing silicon wafers for 6 rounds representing 6 years. We chose broad differentiation as a a strategy. Even though I was CEO for round 5 & 6, I drove the strategy starting round 1
Company Andrews held its quarterly meeting on April 30th, 2014. The document discusses Company Andrews as a low risk, strong buy investment option. It notes the company's low risk factors provide confidence, its strong financials lead to profitability, and its strengths position it for future promise. Key strengths include a competitive strategy, strong mission statement, favorable SWOT analysis and Porter's Five Forces analysis, and strong financial metrics like profit margin, return on equity, and high cash on hand. The company has experienced sales growth, high contribution margin, and production capacity to meet future needs. It plans continued competitive pricing, quality investments, and improved forecasting to capture more market share.
Baldwin is a startup sensor company based in Washington D.C. that specializes in affordable, reliable sensors for manufacturers. The executive management team presents their vision for Baldwin to provide moderate-cost sensor solutions. However, Baldwin performed poorly in an 8-year business simulation, finishing last but most resilient. The document discusses Baldwin's failure and several options for revitalizing the company, including liquidation, merger, bankruptcy, or selling assets. It also covers theories of disruptive innovation and risk management strategies that could help Baldwin succeed.
The document outlines Chester Company's strategy to pursue an integrated approach of cost leadership and differentiation. It focused on investing conservatively during the recession through total quality management to reduce costs and increase demand. As the recession ended, Chester increased R&D investment in all products, poured money into sales budgets, and raised capacity while maintaining effects of TQM to lower costs and increase demand. A SWOT analysis identified strengths in promotional budgets, R&D, and cash position, while weaknesses included stocking out and forecasting ability. Opportunities included exploiting poorly run competitors and limiting recession effects, while threats included economic downturn and new competitors.
The DIGBY Corporation Board of Directors met on December 6, 2018 to review the company's vision, strategy, financial performance, and future outlook. DIGBY's vision is to provide customized products that perfectly match customer demands in the sensor industry. The company employs a broad differentiation strategy, operating as both a cost leader and quality leader across its product segments. DIGBY leads the market in several product segments and saw increased revenue, profits, and stock price in 2018. The Board believes the executive team should continue leading the company due to its strong growth, understanding of economic conditions, and time-tested success in managing diversified operations.
This annual report from Andrews Inc. discusses the company's strategy, execution challenges, and performance over the past few years. The company originally planned to focus on high-margin segments but faced slower than expected market shifts and customer preference changes that slowed the transition of its products between segments. As a result, key metrics like return on equity and contribution margins underperformed. However, the report is optimistic that recent strategic changes like product improvements and exiting low-margin businesses will return the company to profitability and high performance in the coming years.
This document describes a simulation run by Capsim to teach business strategy. Students manage multiple business units across eight rounds/years. The objective is for interdisciplinary teams to coordinate strategies for research, marketing, production, finance, and quality to increase market share, profitability, and stock value. The simulation breaks up a corporation into five competing companies across a closed marketplace. Teams apply strategic planning, analyze opportunities/threats, and manage resources to demonstrate leadership in this risk-free learning environment. Effective communication and listening across units creates a collaborative team that achieves strong performance.
This document discusses the Baldwin Company and its industry. It provides information on Baldwin's products, market share, sales growth, profit, and contribution margin. It also discusses challenges Baldwin faced, such as inefficient spending and being late to adopt total quality management practices. The document suggests ways for Baldwin to utilize cash, such as developing new products, increasing capacity, and paying off long-term debt. It reflects on what Baldwin did right and lessons that can be applied to business careers, emphasizing skills like organization, communication, and adapting strategy.
Capsim Strategic Management Simulation: First Place. We simulated developing silicon wafers for 6 rounds representing 6 years. We chose broad differentiation as a a strategy. Even though I was CEO for round 5 & 6, I drove the strategy starting round 1
Company Andrews held its quarterly meeting on April 30th, 2014. The document discusses Company Andrews as a low risk, strong buy investment option. It notes the company's low risk factors provide confidence, its strong financials lead to profitability, and its strengths position it for future promise. Key strengths include a competitive strategy, strong mission statement, favorable SWOT analysis and Porter's Five Forces analysis, and strong financial metrics like profit margin, return on equity, and high cash on hand. The company has experienced sales growth, high contribution margin, and production capacity to meet future needs. It plans continued competitive pricing, quality investments, and improved forecasting to capture more market share.
Baldwin is a startup sensor company based in Washington D.C. that specializes in affordable, reliable sensors for manufacturers. The executive management team presents their vision for Baldwin to provide moderate-cost sensor solutions. However, Baldwin performed poorly in an 8-year business simulation, finishing last but most resilient. The document discusses Baldwin's failure and several options for revitalizing the company, including liquidation, merger, bankruptcy, or selling assets. It also covers theories of disruptive innovation and risk management strategies that could help Baldwin succeed.
The document outlines Chester Company's strategy to pursue an integrated approach of cost leadership and differentiation. It focused on investing conservatively during the recession through total quality management to reduce costs and increase demand. As the recession ended, Chester increased R&D investment in all products, poured money into sales budgets, and raised capacity while maintaining effects of TQM to lower costs and increase demand. A SWOT analysis identified strengths in promotional budgets, R&D, and cash position, while weaknesses included stocking out and forecasting ability. Opportunities included exploiting poorly run competitors and limiting recession effects, while threats included economic downturn and new competitors.
1) The team presented strategies, mission, vision, research and development, marketing, production, finance, and lessons learned for innovative company Chester Inc. over multiple rounds of the business simulation.
2) Chester aimed to differentiate its premium products, build customer relationships globally, and commit to quality and excellence.
3) Though Chester struggled initially with forecasting and TQM, it improved its techniques, maintained profitability and positive cash flow, and earned 630 out of 1000 points in the simulation, placing second in its segment.
Final Presentation from Chester Group Rev 0Steven Quenzel
Chester Sensors achieved strong financial results over 8 rounds of simulation, with cumulative profits exceeding competitors by over 50% and the highest stock price. The company differentiated through reliable, cutting-edge sensors produced at affordable prices using automation. Looking ahead, Chester will introduce the highly automated Cyclops line to compete in ultra-high tech sectors while phasing out older product lines. Overall, Chester's focus on product lifecycle, R&D, and cost control supported consistent market leadership.
The Ferris Company utilized a unique strategy to win the simulation, focusing on satisfying customers and maximizing contribution margins. Their strategy maintained a presence in all market segments by distinguishing products with excellent design and keeping research and development, production, and material costs low. This allowed them to compete on price while increasing automation. In later rounds, they introduced new high-end products, bought more capacity, invested in quality management, and managed finances appropriately, learning that profitability was more important than market share.
The document outlines the vision, mission, market strategies, functional strategies, group processes, and lessons learned for a company called Baldwin over 10 simulation rounds. The company's vision is to be the leading cost sensor company through customer, shareholder, and employee satisfaction. Their mission is to provide high quality, reliable sensors at low prices across all market segments while allowing employees to thrive. The document analyzes Baldwin's strategies and processes for research and development, marketing, production, finance, and human resources over the 10 rounds.
The document is an annual report for Digby Sensors covering years 2013-2022. It discusses the company's original strategy of being a cost leader focused on product life cycle. Digby launched one product initially and revised it to target the high-tech market in years 1-2. The company invested heavily in marketing and sales for this product but forecast sales conservatively, limiting accessibility and sales. Digby aimed to lower costs and prices through increased automation to gain market share over time.
The document summarizes the Capstone simulation results of Minhee Huh, Molly McGowan, and King Tan. Their original strategy was cost leadership and differentiation but they shifted to focus on cost leadership and differentiation. They achieved peak market share in round 4 but then lost shares. Their 3-year plan focuses on developing new products, entering new segments, and making investments. They achieved high sales, profits, and stock price over the 8 rounds.
Team Digby presented their business plan for Capsim. Their mission is to provide reliable, affordable products. Their strategy is to make a profit while satisfying customers with competitive pricing and minimal inventory. Joanne Meraz discussed pricing products and forecasting market share increases for each. Shelby Morrow emphasized focusing R&D on meeting market needs. Chi Pang Cheung explained using TQM to lower costs and increase profits. Bing Li discussed allocating promotion and sales budgets. Jennifer Ucelo outlined the team's debt and dividend strategies. They were satisfied with their HR and financial outcomes. In the end, the team achieved success.
Team Baldwin participated in a business simulation to learn about innovation management. They produced sensors across different customer segments. Over 8 rounds of decisions, the team invested in research and development, production, marketing, and quality management. While performance improved, high debt levels emerged. The simulation provided valuable experience in integrating business functions for innovation success.
This is the presentation from the capstone simulation competition conducted at Kelley School of Business towards the completion of our MBA. The simulation involved decision on various business functions including Marketing, Operations, Finance and Investor relations. We worked in a team of 5-6 students to run a company making decisions on these functions as a team.
1. Digby realized its true production potential and planned capacity accordingly to reduce unused assets and depreciation.
2. Underestimating market demand for its products led Digby to lose potential sales and profits to competitors.
3. Analyzing product segments revealed some products had low margins, so Digby cut underperforming segments to focus on more profitable ones.
The board meeting agenda covered Digby's past performance, strategy, competitive advantages, competitor analysis, and management review. Over the past eight years, Digby achieved market leadership in the high-end segment through TQM focus on R&D cycle time, second product development, and exiting lower segments. Competitor analysis showed Baldwin and Erie posed threats that Digby responded to quickly. Management recommendations were to invest more in early TQM, sales/promotion, and product development to improve future performance.
The document outlines the goals and strategies of a corporation to become the leading provider in the electronic sensor industry. The corporation aims to produce high-quality, small-sized products and dominate the market. The strategies include emphasizing equal efforts on all products, establishing early market share through marketing investments, generating accurate sales forecasts, and competitively investing in marketing budgets. The corporation also focuses on accessibility, total quality management, and allocating large sums to marketing and sales budgets.
Ferris focused on offering excellent design, value, and accessibility to customers. In Round 8, Ferris achieved a ROS of 20%, ROA of 19.6%, ROE of 1.7%, stock price of $191.72, and market share of 22% through conservative pricing, optimizing automation and plant utilization, and transitioning its underperforming Fist product to the traditional segment. Ferris withstood competitor moves through rounds 1-8 by gaining market share, improving forecasting, and increasing production capacities for top-selling products like Feat and Fume to meet high customer demand.
Ferris analyzed its production capacity, material costs, labor costs, and performance over 8 rounds of the CAPSIM simulation. Key points:
1) Ferris focused on optimizing production capacity to meet forecasted demand in each segment. Capacity for the low-end product Feat gradually increased from 1400 to 2400 units.
2) Material and labor costs were analyzed. Automation was increased for products to reduce variable costs.
3) Ferris transitioned its high-end product Fist to the traditional segment in round 7 due to weak performance.
4) Overall, Ferris sought to diversify its risk and gain market share through a broad differentiation strategy focused on production efficiency.
The document provides an agenda and summaries from a meeting of DIGBYCO. It discusses the sensor industry overview, DIGBY's strategy and goals, a competitive analysis of their competitors, areas where DIGBY could improve, and what they did right. Key points include maintaining a presence in every market, distinguishing products with design and awareness, increasing market share against top competitors Erie and Chester, utilizing high capacity and financial leverage, and recommendations to improve research and development, marketing, production, and finance.
Chesters focuses on being a cost leader that offers quick changes to reliable products. Decisions are made as a team where everyone can provide input, and duties are not divided out completely as everyone is considered equals. Chesters began in the low tech market but expanded to high tech in round 4, maintaining a presence in both markets. While Andrews and Digby led in sales and profits from rounds 5-7, Digby was more competitive overall. Baldwin recovered from an emergency loan to beat all companies but Digby in round 6. The takeaways are to take advantage of loans to manipulate the market and use ratios to track incremental improvements.
1) The document outlines Andrews Co.'s strategy to establish market leadership in the sensor industry through quality, low-cost products.
2) The company's value proposition is to strive for market leadership in the low segment by serving customers and continuously innovating top products.
3) The initial strategy of placing all products in the middle and allowing drift was flawed, resulting in losses. The strategy shifted to focusing on key segments and products, leading to improved profits and market share gains.
This document provides an overview of Chester Inc, a sensor company that simulates different business strategies and product offerings across multiple practice rounds. It discusses Chester's business strategy of targeting high-end, niche segments with technologically superior products. It also summarizes their product line, financial performance, successful and unsuccessful decisions made, and lessons learned around strategic coordination between business units, awareness of competitors and stakeholders, and considering different perspectives.
The document analyzes two advertising plans for Suave shampoo - a $7.8 million plan focusing on daytime and primetime TV proposed by Ellen Vallera, and a $10.2 million plan focusing entirely on primetime TV proposed by Tom Kuykendall. The shampoo market is highly competitive and brands face threats from new entrants. Suave needs an advertising strategy to maintain its market position and retail shelf space. The document performs a SWOT analysis of the plans and recommends accepting Vallera's plan with higher allocation to primetime TV, while targeting light users through new products.
Erie Sensors had a strong fiscal year in 2022, with record high sales, net income growth of 36%, stock price growth of 22.3%, and adjusted free cash flow of $29.6 million. The company divested its Size and Performance segments to focus resources on its Traditional, High, and Low End sensor segments, allowing it to achieve a 14% increase in sales and 23% market share. Erie Sensors aims to continue growing its market share and increasing shareholder value in 2023.
Baldwin Inc. has experienced steady growth and success over its first eight years of operations. Annual sales and profits have increased substantially, with the company capturing a significant market share in both the low-tech and high-tech sensor markets. In the most recent year, Baldwin introduced new lower-cost products and took a more conservative approach to forecasting after overestimating sales in the previous year. The company continues to invest heavily in R&D, marketing, and workforce development to drive innovation and maintain its competitive edge.
1) The team presented strategies, mission, vision, research and development, marketing, production, finance, and lessons learned for innovative company Chester Inc. over multiple rounds of the business simulation.
2) Chester aimed to differentiate its premium products, build customer relationships globally, and commit to quality and excellence.
3) Though Chester struggled initially with forecasting and TQM, it improved its techniques, maintained profitability and positive cash flow, and earned 630 out of 1000 points in the simulation, placing second in its segment.
Final Presentation from Chester Group Rev 0Steven Quenzel
Chester Sensors achieved strong financial results over 8 rounds of simulation, with cumulative profits exceeding competitors by over 50% and the highest stock price. The company differentiated through reliable, cutting-edge sensors produced at affordable prices using automation. Looking ahead, Chester will introduce the highly automated Cyclops line to compete in ultra-high tech sectors while phasing out older product lines. Overall, Chester's focus on product lifecycle, R&D, and cost control supported consistent market leadership.
The Ferris Company utilized a unique strategy to win the simulation, focusing on satisfying customers and maximizing contribution margins. Their strategy maintained a presence in all market segments by distinguishing products with excellent design and keeping research and development, production, and material costs low. This allowed them to compete on price while increasing automation. In later rounds, they introduced new high-end products, bought more capacity, invested in quality management, and managed finances appropriately, learning that profitability was more important than market share.
The document outlines the vision, mission, market strategies, functional strategies, group processes, and lessons learned for a company called Baldwin over 10 simulation rounds. The company's vision is to be the leading cost sensor company through customer, shareholder, and employee satisfaction. Their mission is to provide high quality, reliable sensors at low prices across all market segments while allowing employees to thrive. The document analyzes Baldwin's strategies and processes for research and development, marketing, production, finance, and human resources over the 10 rounds.
The document is an annual report for Digby Sensors covering years 2013-2022. It discusses the company's original strategy of being a cost leader focused on product life cycle. Digby launched one product initially and revised it to target the high-tech market in years 1-2. The company invested heavily in marketing and sales for this product but forecast sales conservatively, limiting accessibility and sales. Digby aimed to lower costs and prices through increased automation to gain market share over time.
The document summarizes the Capstone simulation results of Minhee Huh, Molly McGowan, and King Tan. Their original strategy was cost leadership and differentiation but they shifted to focus on cost leadership and differentiation. They achieved peak market share in round 4 but then lost shares. Their 3-year plan focuses on developing new products, entering new segments, and making investments. They achieved high sales, profits, and stock price over the 8 rounds.
Team Digby presented their business plan for Capsim. Their mission is to provide reliable, affordable products. Their strategy is to make a profit while satisfying customers with competitive pricing and minimal inventory. Joanne Meraz discussed pricing products and forecasting market share increases for each. Shelby Morrow emphasized focusing R&D on meeting market needs. Chi Pang Cheung explained using TQM to lower costs and increase profits. Bing Li discussed allocating promotion and sales budgets. Jennifer Ucelo outlined the team's debt and dividend strategies. They were satisfied with their HR and financial outcomes. In the end, the team achieved success.
Team Baldwin participated in a business simulation to learn about innovation management. They produced sensors across different customer segments. Over 8 rounds of decisions, the team invested in research and development, production, marketing, and quality management. While performance improved, high debt levels emerged. The simulation provided valuable experience in integrating business functions for innovation success.
This is the presentation from the capstone simulation competition conducted at Kelley School of Business towards the completion of our MBA. The simulation involved decision on various business functions including Marketing, Operations, Finance and Investor relations. We worked in a team of 5-6 students to run a company making decisions on these functions as a team.
1. Digby realized its true production potential and planned capacity accordingly to reduce unused assets and depreciation.
2. Underestimating market demand for its products led Digby to lose potential sales and profits to competitors.
3. Analyzing product segments revealed some products had low margins, so Digby cut underperforming segments to focus on more profitable ones.
The board meeting agenda covered Digby's past performance, strategy, competitive advantages, competitor analysis, and management review. Over the past eight years, Digby achieved market leadership in the high-end segment through TQM focus on R&D cycle time, second product development, and exiting lower segments. Competitor analysis showed Baldwin and Erie posed threats that Digby responded to quickly. Management recommendations were to invest more in early TQM, sales/promotion, and product development to improve future performance.
The document outlines the goals and strategies of a corporation to become the leading provider in the electronic sensor industry. The corporation aims to produce high-quality, small-sized products and dominate the market. The strategies include emphasizing equal efforts on all products, establishing early market share through marketing investments, generating accurate sales forecasts, and competitively investing in marketing budgets. The corporation also focuses on accessibility, total quality management, and allocating large sums to marketing and sales budgets.
Ferris focused on offering excellent design, value, and accessibility to customers. In Round 8, Ferris achieved a ROS of 20%, ROA of 19.6%, ROE of 1.7%, stock price of $191.72, and market share of 22% through conservative pricing, optimizing automation and plant utilization, and transitioning its underperforming Fist product to the traditional segment. Ferris withstood competitor moves through rounds 1-8 by gaining market share, improving forecasting, and increasing production capacities for top-selling products like Feat and Fume to meet high customer demand.
Ferris analyzed its production capacity, material costs, labor costs, and performance over 8 rounds of the CAPSIM simulation. Key points:
1) Ferris focused on optimizing production capacity to meet forecasted demand in each segment. Capacity for the low-end product Feat gradually increased from 1400 to 2400 units.
2) Material and labor costs were analyzed. Automation was increased for products to reduce variable costs.
3) Ferris transitioned its high-end product Fist to the traditional segment in round 7 due to weak performance.
4) Overall, Ferris sought to diversify its risk and gain market share through a broad differentiation strategy focused on production efficiency.
The document provides an agenda and summaries from a meeting of DIGBYCO. It discusses the sensor industry overview, DIGBY's strategy and goals, a competitive analysis of their competitors, areas where DIGBY could improve, and what they did right. Key points include maintaining a presence in every market, distinguishing products with design and awareness, increasing market share against top competitors Erie and Chester, utilizing high capacity and financial leverage, and recommendations to improve research and development, marketing, production, and finance.
Chesters focuses on being a cost leader that offers quick changes to reliable products. Decisions are made as a team where everyone can provide input, and duties are not divided out completely as everyone is considered equals. Chesters began in the low tech market but expanded to high tech in round 4, maintaining a presence in both markets. While Andrews and Digby led in sales and profits from rounds 5-7, Digby was more competitive overall. Baldwin recovered from an emergency loan to beat all companies but Digby in round 6. The takeaways are to take advantage of loans to manipulate the market and use ratios to track incremental improvements.
1) The document outlines Andrews Co.'s strategy to establish market leadership in the sensor industry through quality, low-cost products.
2) The company's value proposition is to strive for market leadership in the low segment by serving customers and continuously innovating top products.
3) The initial strategy of placing all products in the middle and allowing drift was flawed, resulting in losses. The strategy shifted to focusing on key segments and products, leading to improved profits and market share gains.
This document provides an overview of Chester Inc, a sensor company that simulates different business strategies and product offerings across multiple practice rounds. It discusses Chester's business strategy of targeting high-end, niche segments with technologically superior products. It also summarizes their product line, financial performance, successful and unsuccessful decisions made, and lessons learned around strategic coordination between business units, awareness of competitors and stakeholders, and considering different perspectives.
The document analyzes two advertising plans for Suave shampoo - a $7.8 million plan focusing on daytime and primetime TV proposed by Ellen Vallera, and a $10.2 million plan focusing entirely on primetime TV proposed by Tom Kuykendall. The shampoo market is highly competitive and brands face threats from new entrants. Suave needs an advertising strategy to maintain its market position and retail shelf space. The document performs a SWOT analysis of the plans and recommends accepting Vallera's plan with higher allocation to primetime TV, while targeting light users through new products.
Erie Sensors had a strong fiscal year in 2022, with record high sales, net income growth of 36%, stock price growth of 22.3%, and adjusted free cash flow of $29.6 million. The company divested its Size and Performance segments to focus resources on its Traditional, High, and Low End sensor segments, allowing it to achieve a 14% increase in sales and 23% market share. Erie Sensors aims to continue growing its market share and increasing shareholder value in 2023.
Baldwin Inc. has experienced steady growth and success over its first eight years of operations. Annual sales and profits have increased substantially, with the company capturing a significant market share in both the low-tech and high-tech sensor markets. In the most recent year, Baldwin introduced new lower-cost products and took a more conservative approach to forecasting after overestimating sales in the previous year. The company continues to invest heavily in R&D, marketing, and workforce development to drive innovation and maintain its competitive edge.
Indigo Paints reported double-digit revenue and profitability growth for FY2022 despite challenges like high inflation and supply chain disruptions from the pandemic. Revenue grew 25.25% to Rs. 905.97 crore while EBITDA and PAT grew 11% and 18.63% respectively. While input costs rose sharply, gross margins were maintained at 43.32% due to contributions from differentiated products and cost measures. Going forward, the company aims to expand its presence in tier 1 and 2 cities while sustaining focus on smaller towns, and drive growth through enhanced dealer engagement and innovation.
The document provides an overview of a company's mission, vision, strategy, and goals over the next 5 years. The company's mission is to provide quality products using innovative technology and employee input. The vision is to meet customer expectations while improving processes. The strategy has been to regularly update products to keep them fresh. Goals for the next 5 years include expanding production capacity, selecting performance measures, and driving the company's financial structure.
The document provides an acknowledgement and thanks to those who helped complete a paper. It expresses gratitude to God and thanks the supervisor, Mr. Tanveer Alam, for his guidance and support during the project. The document then outlines the company RINK's plans to introduce a new digital lamp called the "Global Dream Lamp" and provides details on the company's history, goals, vision, products, marketing strategy, and financial projections over several years.
A study of marketing plan of dilato pen drivesProjects Kart
This document provides a marketing plan for Dilato pen drives aimed at introducing a range of innovative new pen drive products in India. It includes a situational analysis of the growing Indian external data storage market, objectives to capture 10% market share and achieve brand awareness, and an action plan to target students, professionals, and businesses with affordable and feature-rich pen drive options. Evaluation mechanisms are proposed to monitor sales and ensure the marketing strategies effectively achieve the objectives.
AnotherOne is a startup company seeking to revolutionize the bike industry. Their mission is to prioritize customers and offer a pleasant experience. Their goals are to increase market share, brand awareness, and shareholder value. They will offer competitive pricing and a variety of products. Competition is high in the bike industry, so AnotherOne must differentiate its brand and understand customer needs. Their strategy is to maintain financial health, invest in marketing, understand customers, and expand their product line while keeping costs low.
The document provides a strategic plan for a new division producing an affordable smartphone. It includes an external environmental analysis noting trends in technology, regulations, economics, and consumer behavior. An internal analysis examines the division's strengths in cost leadership and differentiation, and weaknesses in experience and resources. A SWOTT analysis identifies opportunities in emerging markets and threats from competitors. The objectives are to increase market share, customer satisfaction, and employee retention through innovative, high-quality, low-cost smartphones.
The document provides an overview of Ginni Systems Limited, an Indian company that provides retail supply chain software solutions. It discusses the company's vision, profile, products, services, success stories and key verticals including apparel and lifestyle. The apparel and lifestyle section specifically notes the unique challenges of that industry including short product lifecycles, seasonal trends, large number of SKUs, and long supply chains. It positions Ginni Systems' software as providing an end-to-end solution to manage these complexities from manufacturing to point of sale.
Andrews Sensors Inc. provided a shareholder report summarizing their performance from 2010-2019. The report included sections on company profile, management philosophy, strategy, marketing, operations, financial highlights, and future plans. Key highlights included consistently above-average returns for shareholders, a focus on teamwork and collaboration in decision making, diversification across multiple product categories, and maintaining strong profitability, liquidity, and equity ratios.
This document brings together a set
of latest data points and publicly
available information relevant for
Business Services Industry. We are
very excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
This document provides details about Ashok Leyland Limited (ALL), an automotive company in India. It discusses ALL's pricing strategies, branding strategies, production capacities and utilization levels. It notes that ALL uses strategies like cost-plus pricing, market-oriented pricing, and penetration pricing. It also discusses ALL's brand communication efforts and joint ventures with companies like Nissan. The document provides production data for ALL and competitors from 2007-2012, showing that ALL's production has increased from 84,006 vehicles in 2007-08 to an estimated 103,267 in 2011-12.
BU530 W 2019 10thWEEK Final Paper with Company 1 & Co and Company .docxcurwenmichaela
BU530 W 2019 10thWEEK Final Paper with Company 1 & Co and Company 2 10
BU530 Company Case Studies for Final Research Paper
By
Your Name
BU530 Winter 2019
Globalization of Business
Southern States University
Dr. Kim, Rachel ( DBA & MBA)
March , 2019
Company 1 Brief Intro:
Founded in xxxx, xx
Company 2 Brief intro:
Company 2 is a US-based xxxx, its headquarter is located xxx
1. GLOBALIZATION OF COMPANY 1 & 2
· Company 1’ globalization of Markets reflects:
Currently, company 1xxx
· Company2’ globalization of Markets:
1.2 Drivers towards Globalization.
· Company 1’s Drivers towards globalization.
· Company 2’s Drivers towards globalization.
1.3 Describe the global business environment and its main elements such as culture
· Company 1:
· Company 2:
2. COMPANY ANALYSIS
2.1. Company Mission and Goals
· Company 1:
· Company 2:
2.2Core Competency and Value Creation
· Company 1:
· Company 2:
2.3Three Levels of Corporate Strategy
Company 1 (example answers)
· Corporate Level Strategy is Growth Strategy: according to WSJ, xxx
· Business Level Strategy is Differentiation Strategy: according to NY times, xxx.
· Department-Level Strategy is Functional Strategy.
Company 2
· Corporate Level is Strategy Growthstrategy.
· Business Level Strategy is Differentiation strategy.
· Department-Level Strategy is Functional strategy.
3. COMPETITOR ANALYSIS.
3. Competitor’s analysis
3.1. Number of competitors in each market (domestic and international)
· Company 1:
· Company 2:
3.2. Market share of each competitor
· Company 1:
· Company 2:
3.3. Whether each competitor’s product appeals to a small market segment or has mass appeal.
Company 1:
· Company 1:
· Company 2:
3.3. Whether each competitor focuses on high quality or low price.
· Company 1:
· Company 2:
3.5. Whether competitors tightly control channels of distribution.
· Company 1:
· Company 2:
List of References:
BU530 2019 4th week with Samsung Company 2
BU530 Samsung Company Case Studies
By
Raushan Ibrayeva
BU530 Winter 2019
Globalization of Business
Southern States University
Dr. Kim, Rachel ( DBA & MBA)
February, 2019
SAMSUNG
Samsung is the largest company in Korea. Samsung Electronics was founded in 2011 and is a large subsidiary. The Korean company receives about $ 150 billion a year and has 144 consolidated branches, including 28 recently merged at the end of 2014.
The company plans to develop innovative technologies and efficient processes that will open up new markets, make people's lives better, and Samsung will become the leader in the digital market. The company aimed at markets such as India, in order to reduce the cost of the product, reducing high technology.
The company was not going to standardize this product worldwide, at that moment there could.
1) Erie led the sensor industry in operating efficiency and productivity from 2016 to 2021 through strategic investments in automation, training programs, and process improvements. Their focus on cost leadership in low-tech segments led to high profit margins.
2) By 2021, Erie had the second highest profits in the industry at over $34 million, with earnings per share of $14.59. Their investments positioned them well for future growth.
3) Erie's original strategic plan was to gain market share in the low-end and traditional segments through low costs. However, they adapted over time, adding a new traditional product, improving existing products, and expanding into the performance segment due to opportunities they observed.
This document brings together a set
of latest data points and publicly
available information relevant for
Technology Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
This document summarizes the marketing strategies of Dawlance and LG refrigerators in Pakistan. It discusses Dawlance and LG's product offerings, pricing approaches, promotion tactics, and distribution networks. Dawlance aims to provide reliable refrigerators at reasonable prices to middle and upper-middle class Pakistanis. It spends on print, TV, outdoor, and sales promotion. LG targets upper class and offers high-end features. It relies more on trade incentives and has a smaller dealer network in major cities. Both companies strive to make their products widely available and maintain uniform prices nationwide.
This document is a winter project report submitted by Vipul Rudani analyzing Techno Electronics Company. It includes certificates, declarations, acknowledgements, and an executive summary. The report provides an overview of the company's background and establishment in 2006. It analyzes the company using Porter's Five Forces model. It also includes sections on the company profile, production department, manufacturing process, quality objectives and policy. The production department focuses on electronics products and water purification systems.
This document discusses several questions regarding the tax implications of a C corporation converting to an S corporation status. Specifically:
1. The C corporation meets the eligibility requirements to elect S corporation status as it has both preferred and common stock with voting and nonvoting rights and fewer than 100 shareholders, one of which is a Swedish individual and another is a partnership.
2. All shareholders must consent to the S corporation election.
3. The election would not be valid if the C corporation did not meet all S corporation requirements in the election year.
4. The S corporation cannot keep its June 30 fiscal year without documenting a valid business purpose for the non-standard year end.
5. Upon converting to
This document brings together a set
of latest data points and publicly
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Automotive Industry. We are very
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From Whims to Wins: How a Customer-Centric Portfolio Transforms Product StrategyAggregage
https://www.productmanagementtoday.com/frs/24841543/the-best-product-strategy-is-a-customer-facing-portfolio-strategy/email
You know that sinking feeling. You’ve come up with a winning product strategy, everyone’s on board and energized, and you’re halfway down the path to execution only to have it submarined by something someone convinced your leadership was more strategic!
It’s a scenario that’s all too familiar, and it exemplifies one of the biggest struggles with individual product strategies. It’s too easy for something else that portends to be more strategic to leapfrog your plan, and there are never any consequences if the person who made the change was wrong. The ripple effect of the stop and restart can be completely demoralizing to your team, especially when it happens routinely.
In this webinar, you’ll learn what a customer-facing portfolio strategy looks like, why it has a stronger foundation, and how it protects your product priorities from changing on a whim!
Takeaways:
• Why your product strategies might become a house of cards before you even realize it
• The key components of a portfolio strategy for a strong foundation
• The value of synchronizing the portfolio and product strategies to customer outcomes first
• The (relative) simplicity of executing the portfolio strategy through to fruition vs. product strategies
From Whims to Wins: How a Customer-Centric Portfolio Transforms Product Strategy
Andrews Annual Report
1.
2. Dear Andrews Investor,
The fiscal year 2022 was another banner year for Andrews. Benefiting
from our high customer awareness and accessibility, as well as low
labor costs from earlier investments in automation, we delivered
revenue of $261 million and earnings per share of $20.31. Resulting
cash from operations was $55.9 million of which we returned $31.8
million to our stockholders to the form of dividends. These results
were achieved through an acute focus on our product differentiation
strategy. Andrews enters 2023 with leadership positions in two
important product segments--high-end and performance products. As
detailed above, these segments generated significant financial results
in 2022, indicated by high level of profits, strong cash generation, and
a healthy balance sheet.
Our innovation focus is all about speeding up the R&D process to
come out with revised products in the performance, size, and high end
segments yearly. We intend to invest more money into TQM in order
to reduce costs, speed up R&D, while maintaining a high degree of
automation. As a shareholder, you can look to Andrews to continue to
roll out revised high end products every year. This pace sets us apart
from our competitors and keeps us on the leading edge of consumer
demand criteria.
We believe we have great opportunities ahead of us. Andrews has
leading products and technologies for growing markets, strong
automated processes, and a commitment to customer needs. We
have sharpened our product focus and are accelerating the pace of
our innovation to expand our company and offerings giving Andrews
great confidence about our future.
Paul Crane
Chief Executive Officer
3. ANDREWS CORPORATION
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
INDEX
PART I
Item 1 Business - Overview and Strategy 1
PART II
Item 2 Stock Performance 4
Item 3 Selected Financial Data 5
Item 4 Management Discussion and Analysis 6
Item 5 Financial Statements and Supplementary Data 14
Item 6 Outlook on Company Future 21
PART III
Item 7 Lessons Learned 22
Item 8 Executive Management Team 23
4. Table of Contents
1
PART I
ITEM 1. BUSINESS
Company Overview
Andrews operates in the electronic sensor manufacturing industry, making sensors for sale and distribution to
other manufacturers. We are in the business-to-business sensor market versus the direct-to-consumer market.
Our sensors are incorporated into products our customers sell to the final consumer. Electronic sensors are found
in everything around us. They are used in cell phones to interpret touch or sound, in radar guns to determine the
speed of cars, and around doors to determine when to open for someone walking through.
Company Strategy
Our goal is to be the leading edge company in the sensor industry via diversification through sharing activities.
What this means for the company going forward, is that we will aim to increase our competitive advantage by
raising differentiation and creating synergy across our business units. In an effort to accomplish this, our business
units will share activities such as marketing, sales force, and manufacturing automation innovation. Through the
use of a shared activities strategy, the firm is better positioned to offer multiple products in differing segments. By
doing so, Andrews creates a diverse offering of products that when packaged together, give the company a
competitive edge over our industry competitors offering products in only one or two market segments.
Business Strategy
Ever since our company began in 2015, our company has built and maintained a strong differentiation strategy.
We gear our products toward a broad target market, with an emphasis on uniqueness as a source for competitive
advantage. Our products are aimed to deliver high customer satisfaction in a constantly evolving market and we
intend to be at the forefront of innovation and thus we price our products to reflect that. It is not our goal to provide
the most affordable product, but rather to provide superior quality products in each market segment. In line with a
strong differentiation strategy, we have held an aggressive stance in sales and marketing, which has allowed
Andrews to become the market share leader in the sensor industry. Operationally we keep our costs minimal
through high levels of automation. By coupling the differentiation strategy and an aggressive sales and marketing
approach, we have made leaps and bounds over the past 8 years in product innovation, sales, market share, and
automation.
Mission
To create and develop electronic products that are on the leading edge of technology. This mission is achieved by
pushing the boundaries of innovation and promoting an undying focus on customer's current and future needs.
5. Table of Contents
2
Products
The table below lists our current products:
High End
Aubie and Awsum are marketed to the high-end segment of
the industry. These two product offerings allowed the
company to gain an overall segment market share of 37%,
more than any other company in the industry. Unlike the
traditional and low-end segments, the high-end customers
are primarily concerned with their product size, performance,
and age, while least concerned with price. Although one of
our primary goals was to gain market share, we were also
significantly concerned with our customers’ desires. We
listened to their requirements, made adjustments to our
products to align with these requirements, and made these
products easily accessible through our sales force. As a
result, the Aubie and Awsum products are situated at the top
of this market segment in terms of market share and rank as
the top two in the segment.
Traditional
Able and Adam are two products currently offered in the
Traditional market segment. Customers in the traditional
market segment are concerned with the age and price of our
product versus reliability. For the past year we maintained a
23% market share. Adam has been the market share leader
of the two positioned in this segment at 14% (ranked 3
rd
industry wide) and Able has taken 9% of the market share.
Although positioned similarly, Adam had a slight competitive
advantage over Able in this past year due to its recent
revision in performance, size, and age. These attributes
allowed for Adam to maintain a higher market share over
Able, and remain in the top 3 industry-wide for the traditional
segment.
Segment Product Performance Size MTBF
Traditional Able 9.7 10.3 15000
Traditional Adam 10.7 9.3 15000
Low End Acre 4.8 15.2 12500
High End Aubie 16.1 3.9 24500
High End Awsum 15.9 4.1 24500
Performance Aft 17.4 10.4 27000
Performance Alpha 17.4 10.4 27000
Size Agape 9.5 2.7 19000
6. Table of Contents
3
Low End
Our low-end market product is represented by Acre. Acre dominated the low-end market segment this year with an
outstanding market-share of 18%, leading the segment. Our low-end market segment customers are primarily
concerned with price and age. In an effort to appeal to this market, Acre is offered at the lowest industry price in
the low-end segment ($17.00). With a 100% customer awareness and 90% customer accessibility rating attained
through our sales and marketing strategy, Acre maintained a strong presence in the low-end segment in 2022.
Performance
Aft and Alpha are positioned for the performance segment, and combined currently hold 32% of the total market
share for this segment and were the top two selling products within the segment. The performance customers are
interested in products that are reliable and have an ideal performance and size. To meet customer demands, we
created two nearly identical products with the customer’s size and performance requirements directly on spot at
17.4 and size of 10.4 with the highest desired reliability rating at 27000 MTBF.
Size
The size segment is represented with our Agape product. Size segment customers are interested in a product with
ideal size, as well as performance and age, while least concerned with price. Agape held an 18% market share
along with the #2 and #3 segment-leaders, and this was likely due to a stock-out of this product. Had we
increased production slightly, we may have seen this product jump to the number 1 spot in the size segment.
Percentage of Revenue by Major Operating Segment
Competition
We continue to position ourselves as a leader in the sensor industry, having achieved high market share
throughout the industry, most notably in the high end and performance segments. We introduced multiple products
in industry segments, but we must continue to expand with new products in other segments to continue to thrive.
As our competitors expand into new markets we lose market share, which has been demonstrated over the past
two years in the low and size industry segments. By maintaining two products in our high, performance, and
traditional segments, we have maintained over a 20% market share in each. We plan on investing and introducing
new products in the low and size segments to regain market share to drive future growth.
7. Table of Contents
4
PART II
ITEM 2. STOCK PERFORMANCE GRAPH
Comparison of Five-Year Cumulative Return for Andrews Corp and the S&P 500 Index
* Return assumes dividends are reinvested at value of stock price on Dec 31 each year
+ S&P 500 Index data shown is for hypothetical purposes of this report and is not historically accurate
As of December 31
st
, 2022 Andrews’ stock price closed at $181.03, an increase of $29.36, or 19.4%, over the
$151.67 closing price on December 31
st
, 2021.
$50
$100
$150
$200
$250
$300
$350
$400
2017 2018 2019 2020 2021 2022
S&P 500 Andrews
2017 2018 2019 2020 2021 2022
Andrews*
100$ 147$ 199$ 244$ 288$ 358$
S&P 500 Index+
100$ 113$ 102$ 104$ 124$ 145$
Historical Stock Price
$58.74
$85.17
$112.57
$133.16
$151.67
$181.03
Fiscal year ended December 31, 2017
Fiscal year ended December 31, 2018
Fiscal year ended December 31, 2019
Fiscal year ended December 31, 2020
Fiscal year ended December 31, 2021
Fiscal year ended December 31, 2022
8. Table of Contents
5
ITEM 3. FINANCIAL HIGHLIGHTS
Selected financial data is provided for each period is provided below:
Selected financial data from the consolidated balance sheet for each period is provided below:
(Dollars in Thousands Except Per Share Amounts) 2022 2021 2020 2019 2018
Revenue 260,919$ 250,747$ 260,489$ 268,178$ 252,027$
Gross margin 120,174 118,870 119,268 114,230 107,688
Margin 46.1% 47.4% 45.8% 42.6% 42.7%
Research and development 5,831 5,636 6,309 4,756 7,339
Sales and marketing 25,800 26,800 29,800 29,800 26,000
General and administrative 1,682 2,382 2,693 2,530 3,082
Depreciation 16,333 18,693 18,507 17,293 16,240
Operating income 70,527 65,359 61,959 59,851 55,027
Net income available to shareholders 43,106$ 35,200$ 30,488$ 27,956$ 21,758$
Earnings per common share 20.31$ 16.59$ 13.65$ 12.51$ 9.74$
Shares Outstanding 2,122 2,122 2,234 2,234 2,234
Dividends per common share 15.00$ 10.00$ 8.00$ 5.00$ 2.00$
Net cash provided by operating activities 55,920$ 52,840$ 48,435$ 41,216$ 36,834$
Additions to property, plant and equipment 21,820$ 2,800$ 18,200$ 4,800$ 42,600$
Retirement of long term debt 27,000$ 17,316$ 20,850$ -$ -$
Repurchase of common stock -$ 14,874$ -$ -$ 6,906$
Payments of dividends to stockholders 31,835$ 21,223$ 17,872$ 11,170$ 4,468$
(Dollars in Thous ands ) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Cash 35,620$ 16,714$ 39,699$ 33,575$ 37,229$
Property, plant and equipment, net 109,113 140,493 156,387 156,693 169,187
Total A ssets 168,659 185,062 223,295 218,211 229,205
Long-Term Debt 26,067 54,000 71,000 91,850 91,850
Stockholders' Equity 131,440$ 120,169$ 119,909$ 108,452$ 91,666$
9. Table of Contents
6
Selected financial ratios are provided for each period below:
We continue to be very attractive despite the slow in world economies three years ago. Return on equity extends
beyond 30%, exceeding the industry average of 18.2% in 2022. Gross margin has remained steady, achieving
46.1% in 2022, which is above the industry average of 40.5%. We have also maintained high liquidity levels and
higher levels of asset and debt ratios due to the large amount of cash from operations and paying down debt over
the past three years. We believe Andrews will continue to offer great value to the shareholders as we invest in the
future, as evident with the growth in our net profit margin and return on equity over the past several years.
Profitability Ratios 2022 2021 2020
Gross Margin 46.1% 47.4% 45.8%
Net Profit Margin 16.5% 14.0% 11.7%
Return on Assets 25.6% 19.0% 13.7%
ROE 32.8% 29.3% 25.4%
Asset and Debt Ratios 2022 2021 2020
Debt - Equity 0.28 0.54 0.86
Equity Ratio 0.78 0.65 0.54
Liquidity Ratios 2022 2021 2020
Current Ratio 5.34 4.09 2.10
Quick Ratio 5.12 3.43 1.93
Market Value Ratios 2022 2021 2020
Price - Earnings 8.91 9.14 9.76
Market to Book 14.88 12.47 10.11
10. Table of Contents
7
ITEM 4. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Overview
Revenue for 2022 grew 4.1% from 2021, largely due to unit sales increasing by 5.9% to 9.8 million units. Revenue
from our Acre product in the low end segment fell 10% due to competitive pricing strategies, but was offset by
growth in our products in the high end and performance segments by 18.0% and 14.2% respectively.
In response to the current business environment and to better utilize resources, management approved several
restructuring actions including reducing capacity in several products.
The cash generation from our business remained strong with cash from operations of $55.9 million. Due to excess
cash, we repaid $27.0 million in debt and our board of directors declared a $15.00 dividend to shareholders.
Looking ahead to 2023 we expect revenues to grow 10% and gross margin to remain flat. We will continue to
invest in TQM strategies that will reduce labor & material costs to improve margins in the long-term.
Dollars in Thousands Ex cept Per Share A mounts 2022 2021 Change
Revenue 260,919$ 250,747$ 10,172$
Gross margin 120,174 118,870 1,304
Gross margin percentage 46.1% 47.4% (1.3%)
O perating income 70,527 65,359 5,168
Net income available to shareholders 43,106$ 35,200$ 7,906$
Earnings per common share 20.31$ 16.59$ 3.73$
11. Table of Contents
8
Results of Operations
Certain consolidated statements of income data as a percentage of revenue for each period were as follows:
Our overall revenue for 2022 increased by $10.2 million, or 4.1%, compared to 2021. Unit sales increased by 5.9%
to 9.8 million units sold. Revenue from our Acre product in the low end segment fell 10% due to competitive pricing
strategies, but was offset by growth in our products in the high end and performance segments by 18.5% and
16.9% respectively.
Our overall gross margin dollars for 2022 increased by $1.3 million, or 1.1%, compared to 2021. The increase was
due to the increase in revenue from more units being sold. To a lesser extent, investments in TQM have
contributed to reduced labor and material costs.
Our overall gross margin percentage decreased to 46.1% in 2022 from 47.4% in 2021. The decrease was primarily
due to the gross margin percentage decrease in our Acre product, where we lowered our price 11% to remain
competitive in the low-end segment.
Dollars in Thousands Except Per Share Amounts Dollars
% of
Revenue Dollars
% of
Revenue Dollars
% of
Revenue
Revenue 260,919$ 100.0% 250,747$ 100.0% 260,489$ 100.0%
Cost of sales 140,745 53.9% 131,877 52.6% 141,221 54.2%
Gross margin 120,174 46.1% 118,870 47.4% 119,268 45.8%
Research and development 5,831 2.2% 5,636 2.2% 6,309 2.4%
Sales and Marketing 25,800 9.9% 26,800 10.7% 29,800 11.4%
General and administrative 1,682 0.6% 2,382 0.9% 2,693 1.0%
Depreciation 16,333 6.3% 18,693 7.5% 18,507 7.1%
Operating expenses 49,647 19.0% 53,511 21.3% 57,309 22.0%
Operating income 70,527 27.0% 65,359 26.1% 61,959 23.8%
Interest and other, net 2,719 1.0% 9,988 4.0% 14,049 5.4%
Income before taxes 67,809 26.0% 55,372 22.1% 47,910 18.4%
Provision for taxes 23,733 9.1% 19,380 7.7% 16,768 6.4%
Net income before profit sharing 44,076 16.9% 35,992 14.4% 31,142 12.0%
Profit sharing 970 0.4% 792 0.3% 654 0.3%
Net income available to shareholders 43,106$ 16.5% 35,200$ 14.0% 30,488$ 11.7%
Earnings per common share 20.31$ 16.59$ 13.65$
2022 2021 2020
12. Table of Contents
9
Performance Segment
The revenue and operating income for each product of the Performance segment for each period were as follows:
Aft
Alpha
The performance segment, which included both the Aft and Alpha products, consistently produced the lowest
margin of all segments due to higher material costs. Revenue and operating income were both below average
compared to all other segments. For the segment, revenue in 2022 grew $6.0 million or 14.2% compared to 2021.
Both Aft and Alpha had similar growth rates, with Alpha growing to $23.7 million in 2022 compared to $20.5 million
in 2021 and Alpha growing to $24.4 million in 2022 compared to $21.5 million in 2021. Operating income continues
to be a low performer compared to our other business segments and this can be attributed to higher material costs,
as well as similar sales and marketing spend as other segments, despite fewer unit sales. Both of our products
lead the segment in market share, but this is a small market.
Low Segment
The revenue and operating income for the Low segment for each period were as follows:
Acre
The low segment, which included the Acre product, was the second highest revenue producer in 2022 for the firm.
Acre continues to have the highest margins of all of the products we offer due to the high degree of automation.
Revenue was $47.5 million in 2022, which decreased by $5.4 million compared to 2021 due to lowering our price
to $17 in 2022, compared to $19 in 2021. We lowered our price in 2022 due to the product being not as well
positioned as our competitors’. The product is set for revision in Q2 2023.
(In Thousands) 2022 2021 2020
Revenue 23,660$ 20,496$ 21,913$
Gross margin 8,308$ 7,392$ 6,949$
Gross margin percentage 35.1% 36.1% 31.7%
Operating income 3,304$ 2,094$ 1,300$
(In Thousands) 2022 2021 2020
Revenue 24,631$ 21,542$ 21,278$
Gross margin 8,759$ 7,723$ 6,591$
Gross margin percentage 35.6% 35.9% 31.0%
Operating income 3,656$ 2,332$ 421$
(In Thousands) 2022 2021 2020
Revenue 47,523$ 52,929$ 66,573$
Gross margin 30,601$ 34,850$ 42,853$
Gross margin percentage 64.4% 65.8% 64.4%
Operating income 21,102$ 24,733$ 32,551$
13. Table of Contents
10
Traditional Segment
The revenue and operating income for each product of the Traditional segment for each period were as follows:
Able
Adam
The traditional segment, which included both the Able and Adam products, continue to be our second leading
segment for revenue. Even though Adam produced higher revenue at $40.9 million in 2022, Able has higher
margins at 53.7% due to the higher degree of automation. We plan on investing in higher automation levels for
Adam in 2023 to increase our operating income. Able had a decrease in revenue by $7.7 million compared to
2021, which is attributed to the longer R&D periods to revise the product. Able will be revised in Q1 2023 and we
expect it to produce sales similar to that of Adam in 2022 and be the industry-segment leader for the year and is
where we expect much of our expected revenue growth for 2023 to occur.
Size Segment
The revenue and operating income for the Size segment for each period were as follows:
Agape
The size segment, which included our Agape product, contributed the least to overall revenue, earning $26.7
million in 2022, a decrease of 1.9% compared to 2021. Despite the decrease in revenue, operating income
increased by $1.1 million compared to 2021 due to less sales and depreciation expense.
(In Thousands) 2022 2021 2020
Revenue 24,833$ 32,555$ 35,014$
Gross margin 13,324 16,435 17,502
Gross margin percentage 53.7% 50.5% 50.0%
Operating income 6,064$ 8,997$ 9,194$
(In Thousands) 2022 2021 2020
Revenue 40,962$ 34,459$ 25,441$
Gross margin 16,497$ 14,421$ 9,493$
Gross margin percentage 40.3% 41.8% 37.3%
Operating income 11,065$ 8,154$ 2,837$
(In Thousands) 2022 2021 2020
Revenue 26,723$ 27,238$ 31,989$
Gross margin 11,759 11,851 13,812
Gross margin percentage 44.0% 43.5% 43.2%
Operating income 5,643$ 4,535$ 6,386$
14. Table of Contents
11
High Segment
The revenue and operating income for each product of the High segment for each period were as follows:
Awsum
Aubie
The high segment, which included both the Awsum and Aubie products, continue to be industry-segment leaders,
having generated $35.4 million and $37.4 million of revenue respectively. Margin was below average for the firm
due to the higher material costs, but is competitive for the segment. The high end segment had revenues increase
by $11 .1 million, or 18% compared to 2021. This increase was due equally to both products in the segment.
Awsum and Aubie consistently performed well and generated similar results.
Operating Expenses
Research and Development. R&D spending increased by $0.2 million, or 3.5%, in 2022 compared to 2021. The
increase can be attributed to the investment in our Acre product as it has been 4 years since its last revision. We
continue to invest in all of our other products to be revised on an annual basis to meet customer demands.
Sales and Marketing. Sales and marketing spending decreased by $1.0 million, or 3.7%, in 2022 compared to
2021. The decrease can be attributed to a reduction in sales within our Acre and Agape products as the two
products had reached significant customer accessibility and it was not beneficial to continue spending at levels in
previous years.
General and Administrative. G&A spending decreased by $0.7 million, or 29.4%, in 2022 compared to 2021. The
decrease can be attributed to cost savings from investments in TQM.
(In Thousands) 2022 2021 2020
Revenue 35,412$ 30,741$ 27,173$
Gross margin 15,439$ 13,457$ 11,089$
Gross margin percentage 43.6% 43.8% 40.8%
Operating income 10,015$ 7,671$ 4,645$
(In Thousands) 2022 2021 2020
Revenue 37,174$ 30,787$ 31,108$
Gross margin 15,486$ 12,741$ 10,980$
Gross margin percentage 41.7% 41.4% 35.3%
Operating income 9,678$ 6,841$ 4,625$
Dollars in Thousands Dollars
% of
Revenue Dollars
% of
Revenue Dollars
% of
Revenue
Research and development 5,831 1.2% 5,636 2.2% 6,309 2.4%
Sales and marketing 25,800 9.8% 26,800 10.7% 29,800 11.4%
General and administrative 1,682 0.6% 2,382 0.9% 2,693 1.0%
2022 2021 2020
15. Table of Contents
12
Gains (Losses) on Equity Investments and Interest and Other
In response to business conditions where competitors have introduced new products in various business
segments, management approved the reduction in capacity across multiple products. Capacity was reduced for all
products except Adam and Aubie. Gain on the sale of capacity was $6.8 million.
In 2022 we invested $6.5 million in TQM, an increase of $4.3 million compared to 2021. The 188% increase in
TQM was due in large part to the effort of reducing R&D cycle time as we continue to aim for a fully automated
production process. Our goal of being fully automated across all existing products is planned for 2025.
Due to excess cash reserves, management approved to repurchase $27.9 million of long-term debt at a price of
$27 million. The buyback did earn a gain of $0.933 million as most of the bonds purchased were priced at a
discount.
Interest paid in 2022 was $3.5 million, a decrease of $6.5 million compared to 2021. The decrease was due to the
repurchase of $27.9 million of long-term bonds.
Provision for Taxes
Our provision for taxes in 2022 was $23.7 million, an increase of $4.3 million compared to 2021. The increase can
be attributed to increased net income. Our tax rate remained at 35.0%.
Liquidity and Capital Resources
As a result of repurchasing long-term debt, our debt as a percentage of stockholders’ equity has fallen to 19.8% as
of December 31, 2022, compared to 44.9% as of December 31, 2021.
Three Years Ended December 31, 2022 (In Thousands) 2022 2021 2020
Gain /(Loss) and other (800)$ 3,049$ 5,189$
Interest 3,519$ 6,939$ 8,860$
(in T housands) 2022 2021 2020
Income before taxes 67,809$ 55,372$ 47,910$
Provision for taxes 23,733$ 19,380$ 16,768$
Effective tax rate 35.0% 35.0% 35.0%
(in T housands) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents 35,620$ 16,714$ 40,938$
Short-term and long-term debt 26,067$ 54,000$ 91,850$
Debt as a percentage of stockholders' equity 19.8% 44.9% 75.9%
16. Table of Contents
13
Cash Flows
Operating Activities
Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and
liabilities.
For 2022 compared to 2021, the $3.1 million increase in cash provided by operating activities was largely due to
changes in working capital by $5.6 million offset by a reduction in depreciation of $2.4 million.
Changes in assets and liabilities as of December 31
st
2022, compared to December 31
st
2021, can be attributed in
large part to a reduction in inventories by $4.8 million. The reductions in inventories are a result of better-than-
expected sales.
Investing Activities
Investing cash flows consist primarily of capital expenditures and the sale of investments.
The increase in cash used for investing activities in 2022 compared to 2021 was primarily due to selling capacity
across multiple products. Capacities for these products were sold for $25.2 million. The sale of these capacities
was offset by investing $3.4 million in new capacity for the Aubie product in our high end segment.
Financing Activities
Financing cash flows consist primarily of issuance and repurchases of common stock, payment of dividends to
stockholders, and issuance and repayment of long-term debt.
The increase in cash used for financing activities in 2022 compared to 2021 was primarily due to repurchasing
$14.9 million in common stock in 2021.
During the year ended December 31
st
2022, we made repayments of long-term debt totaling $27.0 million. We
have paid a cash dividend in each of the past 5 years. The board of directors declared a cash dividend of $15.00
per common share for 2022, and increase from $10.00 in 2021. Total dividends paid for the year in 2022 were
$31.8 million and increase from $21.2 million in 2021.
Due to a large amount of cash provided by operating activities in each of the past three years, we have made it an
effort to repay long-term debt earlier than our contractual obligations totaling $44.9 million.
Contractual Obligations
The following table summarizes our significant contractual obligations as of December 31
st
, 2022:
(in T housands) 2022 2021 2020
Net cash provided by operating activities 55,920$ 52,840$ 48,435$
Net cash used for investing activities 21,820 (2,800) (18,200)
Net cash used for financing activities (58,835) (74,263) (22,872)
Net increase (decrease) in cash and cash equivalents 18,905$ (24,223)$ 7,363$
Series Number Face Value Maturity Date Coupon Rate
13.5S2028 26,067$ 1/1/2028 13.5%
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14
ITEM 5. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Consolidated Statements of Income 15
Consolidated Balance Sheets 16
Consolidated Statements of Cash Flows 17
Consolidated Statements of Stockholders' Equity 18
Notes to Consolidated Financial Statements 19
18. Table of Contents
15
ANDREWS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Three Years Ended December 31, 2022
(In Thousands, Except Per Share Amounts) 2022 2021 2020
Revenue 260,919$ 250,747$ 260,489$
Cost of sales 140,745 131,877 141,221
Gross margin 120,174 118,870 119,268
Margin 46.1% 47.4% 45.8%
Research and development 5,831 5,636 6,309
Sales and marketing 25,800 26,800 29,800
General and administrative 1,682 2,382 2,693
Depreciation 16,333 18,693 18,507
Operating expenses 49,647 53,511 57,309
Operating income 70,527 65,359 61,959
Gain / (loss) and other (800) 3,049 5,189
Interest 3,519 6,939 8,860
Income before taxes 67,809 55,372 47,910
Provision for taxes 23,733 19,380 16,768
Net income before profit sharing 44,076 35,992 31,142
Profit sharing 970 792 654
Net income available to shareholders 43,106$ 35,200$ 30,488$
Earnings per common share 20.31$ 16.59$ 13.65$
Common shares outstanding 2,122 2,122 2,234
See accompanying notes
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16
ANDREWS CORPORATION
CONSOLIDATED BALANCE SHEET
Three Years Ended December 31, 2022
(In Thousands) 2022 2021 2020
ASSETS
Current assets:
Cash and cash equivalents 35,620$ 16,714$ 40,938$
Accounts receivable, net 21,445 20,609 21,410
Inventories 2,481 7,245 5,718
Total Current Assets 59,546 44,568 68,066
Property, plant and equipment, net 109,113 140,493 156,387
Total Assets 168,659$ 185,062$ 224,452$
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable 11,152$ 10,893$ 11,536$
Current debt maturing in 12 months - - 5,000
Current portion of long-term debt - - 15,850
Total current liabilities 11,152 10,893 32,386
Long term debt less current portion 26,067 54,000 71,000
Total Liabilities 37,219 64,893 103,386
Stockholders' equity:
Common stock, 2,122 shares outstanding 25,821 25,821 29,438
Retained earnings 105,619 94,348 91,629
Total stockholders' equity 131,440 120,169 121,067
Total Liabilities and Equity 168,659$ 185,062$ 224,452$
See accompanying notes
20. Table of Contents
17
ANDREWS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Years Ended December 31, 2022
(In Thousands) 2022 2021 2020
Cash flows provided by (used for) operating activities:
Net Income 43,106$ 35,200$ 30,488$
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 16,333 18,693 18,507
(Gains) losses on sales of assets / writeoffs (7,705) 316 -
Changes in assets and liabilities:
Accounts receivable (836) 801 632
Inventories 4,764 (1,527) 183
Accounts payable 259 (643) (1,374)
Total adjustments 12,815 17,640 17,947
Net cash provided by operating activities 55,920 52,840 48,435
Cash flows provided by (used for) investing activities:
Additions to property, plant and equipment (3,400) (2,800) (18,200)
Cash from proceeds for disposal of assets 25,220 - -
Net cash used for investing activities 21,820 (2,800) (18,200)
Cash flows provided by (used for) financing activities:
Increase (decrease) in short-term debt, net - - 15,850
Repayment of debt (27,000) (38,166) (20,850)
Repurchase of common stock - (14,874) -
Payment of dividends to stockholders (31,835) (21,223) (17,872)
Net cash used for financing activities (58,835) (74,263) (22,872)
Net increase (decrease) in cash and cash equivalents 18,905 (24,223) 7,363
Cash and cash equivalents at beginning of year 16,714 40,938 33,575
Cash and cash equivalents at end of year 35,620$ 16,714$ 40,938$
See accompanying notes
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18
ANDREWS CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three Years Ended December 31, 2013
(In Thousands, Except Per Share Amounts)
Number of
shares Amount
Retained
Earnings
Balance as of December 31, 2019 2,234 29,438$ 79,014$
Components of comprehensive income, net of tax:
Net income - - 30,488
Cash dividends declared ($8.00 per common share) - - (17,872)
Balance as of December 31, 2020 2,234 29,438 91,629
Components of comprehensive income, net of tax:
Net income 35,200
Repurchase of common stock (112) (3,617) (11,257)
Cash dividends declared ($10.00 per common share) - - (21,223)
Balance as of December 31, 2021 2,122 25,821 94,348
Components of comprehensive income, net of tax:
Net income - - 43,106
Cash dividends declared ($15.00 per common share) - - (31,835)
Balance as of December 31, 2022 2,122 25,821$ 105,619$
See accompanying notes
22. Table of Contents
19
ANDREWS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Basis of Presentation
Our fiscal calendar is based on the calendar year of January 1 to December 31.
Note 2: Accounting Policies
The preparation of consolidated financial statements are in conformity with U.S. generally accepted accounting
principles.
Note 3: Property Plant and Equipment
We compute depreciation for financial reporting purposes using the straight-line method. Substantially all of our
depreciable property, plant and equipment assets are depreciated over the estimated useful life of 15 years.
Note 4: Borrowings
Our long-term debt at the end of each period was as follows:
In 2015 we began issuing bonds with 10 years to maturity. Over the past three years we have begun repurchasing
those bonds. In 2021 we repurchased $17 million and in 2022 we repurchased an additional $27.9 million, leaving
$26.1 million of long-term debt remaining.
(In Thousands) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Property, plant and equipment, gross 245,000$ 280,400$ 277,600$
Property, plant and equipment, accumulated depreciation (135,887) (139,907) (121,213)
Property, plant and equipment, net 109,113$ 140,493$ 156,387$
(In Thousands) Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
2015 Senior notes due 2025 at 11.3% -$ -$ 17,000$
2016 Senior notes due 2026 at 12.2% - 27,000 27,000
2018 Senior notes due 2028 at 13.5% 26,067 27,000 27,000
Total long-term debt 26,067$ 54,000$ 71,000$
23. Table of Contents
20
Note 5: Operating Segments
Our net revenue and operating income by operating segment is provided below:
Note 6: Gains (Losses) on Equity Investments, Net
In 2022 we repurchase $27.9 million of long-term debt at a price of $27 million. Below is the breakdown of the
bonds we repurchased:
As a result of selling capacity, we also incurred a gain from those sales. The gain on those sales was $6.8 million.
(In Thousands) 2022 2021 2020
Net revenue:
High End Segment 72,586$ 61,528$ 58,281$
Low End Segment 47,523 52,929 66,573
Traditional Segment 65,796 67,014 60,455
Performance Segment 48,291 42,038 43,191
Size Segment 26,723 27,238 31,989
Total net revenue 260,919$ 250,747$ 260,489$
Operating income (loss):
High End Segment 19,693$ 14,512$ 9,270$
Low End Segment 21,102 24,734 32,551
Traditional Segment 17,129 17,152 12,031
Performance Segment 6,960 4,426 1,721
Size Segment 5,643 4,535 6,386
Total operating income 70,527$ 65,359$ 61,959$
(in Thousands)
Series Number Face Value Purchase Price Gain / (Loss)
12.2S2026 27,000$ 26,055$ 945$
13.5S2028 933$ 945$ (12)$
27,933$ 27,000$ 933$
24. Table of Contents
21
ITEM 6. OUTLOOK
Over the past several years, Andrews is in a position where we can make any and all investments we would like
without financial restrictions and we are able to do this because we have substantial cash generated from
operations year over year. We generated this cash by investing early on in automation to reduce labor costs and
drive higher margins. For the future we will use the company’s cash from operations to expand and should not
need to generate cash from taking on additional debt or issuing new stock. This will in turn offset the future price
decreases that are expected in the market to keep margins as high as they are.
Andrews has a two-pronged approach to future innovation and growth. The first includes immediate investment in
a new product in both the low and size segments. This will expand Andrew’s market share in these two product
segments and increase revenues. The second includes a continuation of yearly revisions in the high end segments
(high-end, performance, and size). To stay on the cutting-edge of technology and anticipate consumer needs,
annual revisions are needed in the size, high-end, and performance segments. Because we are highly automated,
the R&D cycle was taking longer and longer for new revisions to come online. In order to shorten that cycle we will
invest in TQM strategies to shorten that R&D cycle time. By investing in TQM, we can also keep investing in
automation as we plan to become fully automated across all products by 2025. These investments will ensure
future high margins and offset the annual decrease in prices.
Due to our focus on innovation, as well as our product strategy above, we estimate revenue growth in 2023 of
10%, while gross margin is expected to remain flat. Overall earnings per share will continue to increase; however,
it will be less than previous years as we forecast a 3-4% increase to an estimated $21.00 per share. We look
forward to becoming the market leader in the size segment and maintaining that position in the high end and
performance segments next year. We are able to make such bold predictions due to strong cash investments, high
margins, and new products coming on board in 2023.
25. Table of Contents
22
PART III
ITEM 7. LESSONS LEARNED
Over the course of this simulation the Andrews team learned many valuable lessons which will be discussed in the
following paragraphs. One of the primary goals for our team in this simulation was to learn how business strategy
affects actual results, and how adjusting our strategy affected actual results, which we believe, was fully
accomplished in the Capstone Simulation.
In one of our first group meetings, we brainstormed what type of strategy approach to the simulation we should
take. After a lengthy discussion, we were all in agreement that the differentiation strategy seemed like the most
appealing for our team. Ultimately, we wanted to create a business and product that would allow us to become the
market share leader in the industry and appeal to every market segment at the same time. We discussed and
attempted different combinations in the simulation to attempt just that.
Our first go at the “test” rounds proved we needed to alter our attempts made towards our goals because we
ended up with an emergency loan, most importantly focusing on our forecasting techniques and monitoring our
competitors’ actions. After a few alterations to spending and automation, we developed a valuable combination of
automation, sales and marketing, and product innovation. We had to apply the foundation of a differentiation
strategy and put it into “play” within the game. In order to do this, we had to create unique products for each
segment, and take into account our customer requirements at the same time. What was important to the customer
was important in our decisions when making adjustments in research and development. Furthermore, we created
an aggressive and extensive sales and marketing strategy. To accomplish the goal of maximizing shareholder
wealth, we set out to dominate market share, by increasing our sales and marketing campaigns. Because we were
creating products in each segment that met and sometimes exceeded customer demands, with the extensive sales
and marketing campaign, it was a perfect combination.
Keeping products innovative and maintaining an aggressive marketing and sales strategy is, however, expensive.
As a result, we decided early on that we must cut costs for this strategy to work in the long run. To do this, our
team had to determine where cost savings could occur, and we ultimately decided automation was a key
determinant to that success. By automating our products early, we learned our manufacturing costs remained
significantly low in the long-run allowing our differentiation and aggressive sales and marketing strategy to grow.
While this required taking on a large amount of debt in the early rounds, it paid off as our combination of attaining a
large market share with high margins lead us to become a “cash cow.”
It was interesting to see how to implement a differentiation strategy, but more importantly I think it was important
for all members of the team to stick to our strategy despite low returns in the early rounds. Some members of our
team were getting anxious because of the heavy investment early on and being a highly leverage firm with
extremely low returns. Once round three came and our stock price began to climb and the returns increased
significantly, the team was much more at ease and happy to have not abandoned our strategy.
Lastly, one of the most valuable lessons that from this specific project was learning to work in a group of diverse
individuals across geographic regions and bring sometimes differing ideas together to ultimately accomplish
outstanding results we can all be proud of. We believe we have accomplished this goal above and beyond our
initial expectations. It is not always easy, but it is worth it in the end. We sincerely appreciate this opportunity to
work together, especially with geographic distance as a barrier as is a realistic preparation for the real-world.
26. Table of Contents
23
ITEM 8. EXECUTIVE OFFICERS
Executive Officers of the Registrant
The following sets forth certain information with regard to our executive officers as of February 17, 2023:
Paul Crane
Chief Executive Officer
Sarah Breon
President
Missy Miller
Executive VP, GM, Technology and Manufacturing Group
Scott Barker
Executive VP, Sales & Marketing
Dylan Davison
Executive VP, Chief Financial Officer