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.

1. Team Digby:
Capsim Performance
BUSINESS PLAN PRESENTATION
MGMT 483: BUSINESS POLICY AND STRATEGY
APRIL 24, 2013
PRESENTERS: JENNIFER UCELO, SHELBY MORROW, BING LI, CHI PANG
CHEUNG AND JOANNE O. MERAZ

2. Agenda
1. Team Digby’s: Mission, Vision and Strategy
2. Joanne O. Meraz:
1. Marketing: Pricing & Forecast
3. Shelby Morrow:
1. Research and Development (R&D)
4. Chi Pang Cheung:
1. Total Quality Management (TQM)
5. Bing Li:
1. Marketing: Budgets
6. Jennifer Ucelo:
1. Finance and Human Resources (HR)
7. Joanne O. Meraz:
1. Company Ratios
8. References and Conclusion

3. Mission
OUR MISSION IN MARKETING: PRICING & FORECAST
IS TO PROVIDE A RELIABLE AND AFFORDABLE
PRODUCT TO THE END-USER.

4. Vision
AS A CUTTING-EDGE INNOVATOR OF HIGH-QUALITY
PRODUCTS, WE DESIRE TO PRODUCE SUSTAINABLE
AND PROFICIENT PRODUCTS INTO SOCIETY.

5. Strategy:
OUR STRATEGY IS TO MAKE A PROFIT WITH EQUAL
IMPORTANCE TO SATISFY ALL LEVELS OF END-USERS,
PROVIDING COMPETITIVE PRICING AND MANAGING THE
MOST MINIMAL INVENTORY IN OUR WAREHOUSE.

6. Marketing:
Pricing and Forecasts
PRESENTER: JOANNE O. MERAZ

7. Pricing
Product Sell Price
Contribution
Margin %
Buying
Criteria
Importance
Daze $27.75 50%
*$16.00 -
26.00
2/4
Dell $19.50 64%
$11.00 -
21.00
1
Dixie $38.00 48%
*$26.00 -
36.00
4
Dachi $37.50 53%
$26.00 -
36.00
4
Dynami $37.00 56%
$26.00 -
36.00
4

8. Forecast
Product Market Share Strategy
Daze 12.5%
45% Increase
each round
Dell 20.9%
30% Increase
each round
Dixie 9.1%
30% Increase
each round
Dachi 6.0%
25% Increase
each round
Dynami 1.1%
20% Increase
each round

9. R&D
PRESENTER: SHELBY MORROW

10. Importance of R&D
• Backbone of the
company
– Consistently improve
existing products
– Invent competitive
new products
• Establish ideal
positions for products
– Keep positioning
ahead of competition;
Be Leaders.

11. Team Strategy:
1. FOCUS ON ‘DIFFERENTIATOR WITH PRODUCT
LIFESTYLE FOCUS’ SEGMENT
1. Meet market needs with age, reliability and MTBF
2. CONSTANTLY UPDATE THE LOCATION AND PLACEMENT
FOR PRODUCTS
1. Fulfill needs and expectations of consumers
3. INVENT AND PROPERLY PLACE NEW PRODUCTS
1. Adjust and adapt existing products

12. 1. OVERALL, TEAM ACHIEVED SUCCESS.
2. FOCUS ON COMPETITOR’S DECISIONS RATHER
THAN THE INDUSTRY FORECASTS
3. TAKE MORE RISKS; SET HIGHER STANDARDS
What we would do differently…

13. TQM
PRESENTER: CHI PANG CHEUNG

14. What is TQM?
• TQM: Total Quality
Management
• Management skill to
lead company to
approach a long term
goal.
• Manage the quality
from all aspects
• We hope to Lower
Cost & Increase
Profit

15. What can change by TQM?

16. What is the outcome?
• Resources
distributions
(Examples)
• Quality Initiative
Training - Reduces
labour costs
• Concurrent
Engineering -
Reduces R&D cycle
time

17. Team Strategy

18. 0
2
4
6
8
10
12
Round 3 Round 4 Round 5 Round 6 Round 7 Round 8
Costs
Costs
Team Vision

19. What our company would do
differently in TQM?
NONE
1. OVERALL GREAT JOB
2. WE WILL LEARN FROM THE EXPERIENCE AND
MAKE CHANGE IN FUTURE

20. Marketing: Budgets
PRESENTER: BING LI

21. Marketing: Promotion & Budgets
Steve Jobs: The Lost Interview
“John came from Pepsico. And they at
most would change their product once
every 10 years. A new product was like a
new size bottle. So if you were a product
person, you couldn’t change the course of
that company very much. So who
influenced the success of pepsico? The
sales and marketing people. Therefore
they were the ones that got promoted and
ran the company. The success of pepsico
relies on the sales and the marketing
people, it makes no difference for the
company to make a great product versus
a bad product. The product people in
such companies get driven out of the
decision-making forums. The success of
pepsico is the success of the marketing
department of Pepsico. That may work on
companies like Pepsico, may work on
some monopolistic technology companies
like IBM and Xerox. But it may not work
on Apple. ”

22. Marketing: Promotion & Budgets
• Awareness – Promotion Budget
– Before the sale;
• Accessibility – Sales Budget
– After the sale;
• Relationship with Pricing &
Forecasting

23. Marketing: Promotion & Budgets
• Sales budgets are
less effective when
products are not
completely positioned
in the fine cut
circle, when prices
rise above segment
guidelines or when
MTBFs fall below
segment guideline.

24. Marketing: Promotion & Budgets
• Lessons Learned:
1. Focus: Resources are limited; Good to focus on
one or two products instead of spending little in
each product.
2. Keep an eye on your competitors than the booklet.

25. Finance
PRESENTER: JENNIFER UCELO

26. Finance
Used to raise money
needed to cover the
expense of
R&D, Marketing and
Production activities.

27. Team Strategy:
NOT ACQUIRE ANY CURRENT DEBT, AND TO ONLY
ACQUIRE LONG TERM DEBT.
WE WOULD PAY OUT HIGH DIVIDENDS PER
SHARE, SO THAT OUR STOCK PRICE WOULD BE
INCREASING CONSTANTLY.
WE WOULD NOT ISSUE STOCKS, BECAUSE WE
HAD ENOUGH LIQUIDITY IN OUR HANDS.

28. Vision:
ACQUIRE ALL THE LONG TERM DEBT AVAILABLE AT THE
BEGINNING, AND AS THE ROUNDS WENT ON TO PAY OFF
THAT DEBT, AND TO ACQUIRE SOME AS THE ROUNDS
WENT ON.
PAYING HIGH DIVIDEND PRICES, SO THAT THE EARNING
PER SHARE COULD INCREASE.
HAVE NO EMERGENCY LOANS WHATSOEVER, BECAUSE
THAT WOULD BE OF HIGH INTERESTS.

29. What Would We Do Differently?
WE ARE SATISFIED WITH THE OUTCOMES OF OUR
DECISIONS, THEREFORE WE WOULD DO EVERYTHING AS
WE DID.
THE ONLY THING WE WOULD CHANGE IS TO PAY OUT
DIVIDENDS SOONER, SO THAT THE EARNINGS PER SHARE
WOULD INCREASE SOONER.

30. Human Resources
PRESENTER: JENNIFER UCELO

31. Human Resources
• Human resources was
given an increase
attention, so that
employees were happy
and satisfied to work
with us. We gave an
overall 5.9% wage
increase, a good
paying salary, and
maximized the
recruiting budget and
hours to have the best
employees in the
market.

32. Strategy:
DIGBY’S STRATEGY IS TO HAVE A LOW TO NONE
TURNOVER RATE.
THIS IS TO BE ACCOMPLISHED BY HAVING A HIGH AMOUNT
OF RECRUITING BUDGET WITH HIGH RECRUITING HOURS.
GIVING EMPLOYEES GREAT BENEFITS, AND A WAGE
INCREASE WOULD BENEFIT EVERYONE

33. Vision:
OUR VISION IS TO HAVE LITTLE TO NO TURNOVER
RATE, AND THIS IS TO BE ACCOMPLISHED BY GIVING THE
GOOD BENEFITS, HIGH SALARIES AND BY INVESTING ON
OUR EMPLOYEES SO THAT ALL EXPECTATIONS ARE MET.

34. What Would We Change?
WE WOULD NOT CHANGE ANYTHING, BECAUSE OUR
STRATEGY WORKED EFFICIENTLY.
WE WILL CONTINUE WITH OUR JOB TO KEEP OUR
EMPLOYEES HAPPY AND TO HAVE THE BEST
ENVIRONMENT.

35. Company Ratios:
Success Measures
PRESENTER: JOANNE O. MERAZ

36. Ratios
Cumulative
Profits
Avg.
Market
Shares
Avg. ROS
Avg.
Asset
Turnover
Ending Stock
Price
Avg. ROA
$192,202,120 2,000,000 17.2% 64% $215.81 11%

37. References
• www.google.com/pictures
• www.google.com/pictures
• http://www.msimediaplayer.com/online_tutorial_flas
h/Capstone/OnlineCapFinance_silent.htm
• www.moneywalks.com
• www.teceiletisim.com
• hrfuturist.com
• suffolkhrconsultants.co.uk
• www.best-practice.com
• www.ces.sdsu.edu

38. Thank you!