3. The world we live in:
2.5 quintillion
Every day the human race
created 2.5 quintillion bytes of
data, so much data is now
produced daily that close to
90% of all the dataavailable
today was created in the last 2
years.
15x
Over the last 8 quartersour
share holderbase, the people
whose lives we’ve touched,
has increased by over 1500%,
that’s15 times higher thanit
was only 2years ago. No other
industry is seeing growthlike
this.
30%
To keep up with this growing
demand, productionmust
increase by at least 30% every
quarter. At this rate, in three
years we’ll have to create a
factory with our current
outputevery few months.
Fill your cup up to the brim with all the amazing work
Ay. Chip is introducing to the market to improve the
lives and value of our customers and shareholders.
Here at Ay Chip. we not only want to help our customerssimplify their lives now in the present with our
top of the line of computers, but we want to be there for them for years to come. Come take a look at
what we’ve done and the valuethat we continue strive for. As the market continues to exponentially
grow the number of people thatwe can reach will do the same.
4. A Clear Strategy:
Continue Investment and Reinvestment
Sales
Our firm strives to efficiently and
effectively target the workhorse,
costcutter, and traveler, innovator
and mercedes markets. This is a
significant adjustment from our
previous quarters, as we previously
targeted only three markets. Our
channel approach is to continue
enhance our influence in
international and regional markets
with our brick and mortar offices. In
addition, we are maintaining our
web sales office in Paris with the use
of web productivity and web traffic
features.
R&D
We have invested heavily in research
and development, and as a result
improved the quality and value of
our products for our customers. As a
secondary focus, we look towards
cost leadership in order to provide
our features at a valuable price. We
need to be able to provide the most
options in termsof features and
technologies our consumers could
use in their products, while
maintaining the competitive pricing
that we do now. That said, we are
looking at product differentiation.
We continue to dedicate our time,
efforts, and energies to providing
better quality, best suited materials
to our clients.
Production
We’ve continued to reinvest into our
single factory, more than doubling
its daily output over the last few
quarters. We are now operating at
450 units per day capacity, but that
wouldn’t be possible if we didn’t
have a driven work force. Our
human resources performance has
raised all productivity far above our
expectations; all of our dedicated
factory workers are giving us 100%
productivity.
Percentage of sales now
coming from new markets
5. Financial Hilights:
Quarter 5 Quarter 6 Quarter 7 Quarter 8
Current Assets
Cash 939,538 3,011,314 1,862,604 18,285,04
5
+ Finished Goods
Inventory
378,570 899,265 5,269,630 9,181,781
Long Term Assets
+ Sinking Fund 160,400 320,800 481,200 641,600
+ Net Fixed Assets 4,610,282 6,641,361 9,929,957 10,061,25
6
= Total 6,088,790 10,872,74
0
17,543,39
1
38,169,68
2
Debt
Conventional Bank Loan 0 0 0 0
+ Long-Term Loan 3,208,000 3,208,000 3,208,000 3,208,000
Equity
+ Common Stock 8,850,000 8,850,000 8,850,000 8,850,000
+ Retained Earnings -
5,969,210
-
1,185,260
5,485,391 26,111,68
2
= Total 6,088,790 10,872,74
0
17,543,39
1
38,169,68
2
Technology:
Our firm has heavily invested
in to new R&D to help improve
the productsthat we putour
to our shareholders, and
thanksvery proactive alliance
formation we turnedan initial
3.2 million dollarsof R&D into
essentially 14millionin R&D
“Planning is essential even if your plan disintegrates with new info.”
Nic Grasty, VP of Finance
$5.80
$24.6
0
$49.9
0
$89.2
0
Q5 Q6 Q7 Q8
Revenue
In Millions
3.5
0.6
7.35
1.1
Q5 Q6 Q7 Q8
R&D Spending
In Millons
6. Marketing and Sales
“I learned from this simulation that no matter how much you plan, use reverse psychology, and strategize for what
your competition will do, they will surprise you, for better or for worse. I learned how important advertising is in the big picture
of the market place (which is awesome because advertising is my major), but also that advertising does nothing if you have an
inadequate product. I learned that there is a goldilocks medium that needs to be found in terms of happiness and unhappiness
of the customers. To target that market more and more specifically would lead to an even more specific goldilocks medium for
that direct market; it’s a never ending cycle of evaluating, creating, tweaking, anticipating, waiting in curiosity, and reevaluating.
There is no single, correct way to beat the market, just like in the real world, and that is where I feel that the artistry of creativity
comes into play. Uniqueness is key. Set your standards high. Be knowledgeable in your field, your company, and beyond.
Constantly be searching for those goldilocks mediums in all areas. Be confident, but not too much. Never stop strategizing and
composing. All will happen according to those people in that time.Embrace it.”
Kelsey Oliver, VP of Marketing
“Sales went on quite the wild ride. We started with slow sales as a result of failed product launches and product life
cycle. We happened to place our only sales office in the same city as many of our competitors and our ill-designed product failed
to perform. Success came with the growth of lots of sales offices as we placed our locations all over the world. Ay Chip became
the next big thing with the proliferation of our outlets coupled with our amazing new products. Applying this to reality, we
have to understand the importance of large markets, and specification. In order to really attack large markets, and achieve a
strong hold in them, we must consider the ability to target individual consumers. Although many consumers will consider
purchasing a good, the service that makes them feel special and valued is what will bring in the big money. Customers want to
see their needs met, and to know a company pays strong attention to their needs and their identity as a customer. Sales force
plays a very important role, and our attention it proved to be very fruitful. I think the fact that we had such a large sales force
helped, and in the real world would equate to creating an atmosphere where customers feel that this is where they should buy –
just like WalMart goes with the “stack em high, see them fly” approach, loading sales offices with sales people allows customers
to receive the service they so much desire in order to purchase the product we so much want them to buy. Sales had many
applications to the real world and we can see that from building sales offices, location of sales offices, and all the way to staffing
the sales offices with the right set up of compensations and services.”
Sean Gajjar, COO & VP of Sales
0.78 0.84 0.89 0.94
Q5 Q6 Q7 Q8
Marketing Effectiveness
1 1.9
8.8
16.1
Q5 Q6 Q7 Q8
Sales Growth
In Thousands
7. Production and ShareholderValue
“Manufacturing allowed me to make critical firm decisions relative to trade-offs in product quality and production, as
well as overall firm strategy. Gaining experience in making demand projections and setting production points was the greatest
learning curve in becoming more accurate and effective in forecasting based on market potential, predicted competitor
decisions, and current market performance. Due to factory fixed capacity being a weak link in the firm’s goal of expansion and
sustainability, I had to balance team decisions of high sales and worker productivity, adding sales offices, product line additions,
and other product promotion decisions with the limits of production planning and inventory management. The goal was always
to limit the costs of excess inventory, stock outs, and ill will. In addition, with product quality being one of the firm’s main goals,
I learned the impact of quality manufacturing processing on ultimate customer satisfaction, retentionrate, and brand image.”
Joell Chen,VP of Manufacturing
“Our duty is to give back to the
people that believe in this firm!”
AshleighBearden, VP of HR
50
200
300
450
Q5 Q6 Q7 Q8
Capacity Growth
Q5 Market Share
Q6 Market Share
Q7 Market Share
Q8 Market Share
8. A strong Focus:
We want to give ourcustomers quality products,and we’ve learned that we have to tailorour productsto
our specific segments. We alsowant to price our productsat a fair value.
We’re here to get big quick. We’ve changedfrom trying to targetmedium niche marketsto targetinglarge
markets where there is more profit to be had,which will allow usto expand to othermore difficult
markets in the future. This new strategycame as a response to earlier quarters,a scenario thatwe don’t
want to and will notrepeat.
We are a forward lookingfirm and we always have been. The focus of current profits has caused many
executive teams to stressthe present while sacrificing the future; we took thatideology and threw it out
the window. Thatin conjunction with the contingency plan we putin to effect allowed us to convertand
act on all the investments thatwe made and turnit into huge amountsof revenue. In the pastwe said that
the future was where we are going to sine, we are now in that future andwe show no signsof slowing
down. We invested heavily into sales offices from the beginning.
Industry Trends
We here to provide products to everyone and everyone is ready to buy our products. Most markets are
now pullingthemselves out of the previous recession that has lastedfor nearly a decade, andtheir people
are hungryfor some top quality products.
9. “As our industrycontinues to exponentially
expand we will do the same and adapt to any
challengethrown at us. Business is an
evolutionaryprocess; as time goes on the
organizationsinvolved strugglefor resourcesand
are forced to alter their habits to survive. Not
everyone will make it, not every idea will get
carried out, but the ones thatdo will be better
suited to continue into the future.”
Expanding Opportunities
Our geographicplan isto continue to spread
across the globe since these actionsinthe pasthave
provenfruitful forus. Withofficesineachregion,we
remaina competitivepresence all aroundthe world.
We will focusonmeetingthe demandourproductive
salespeople are generatingthroughinvestmentsinour
factory,and we will continue toimprove uponour
alreadytoprated productlines.
R. David Minatra,CEO
R. David Minatra
Chief Executive Officer
Sean Gajjar
Chief Operating Officer
Joell Chen
Executive VP of Manufacturing
Nicolas Grasty
Chief Financial Officer
Kelsey Oliver
Executive VP of Marketing
Ashleigh Bearden
Executive VP of Human
Resources
