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.

1. Company Andrews
C61400
Quarterly Meeting
April 30th, 2014
Executives:
Randi Camhi, Greg Haller,
Liz Rotiroti, Brittany Manski, Asiana Gilchrist

3. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
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4. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
- Strategy
- Mission Statement
- SWOT
- Porter’s Five Forces
4

5. Broad Differentiator Strategy
• Maintain a presence in all segments of the sensor market
• Competitive advantage gained by distinguishing products
with excellent design, high awareness, and easy accessibility
• R&D capability to keep designs fresh and exciting
• Improved size and performance
• Prices are above average
www.capsim.com
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6. Our Mission
“Premium products for the industry.
Our brands withstand the test of time”
www.capsim.com
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7. Porter’s Five Forces
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Competitive
Rivalry
within the
Industry
Bargaining
power of
Customers
Threat of
New
Entrants
Threat of
Substitute
Products
Bargaining
power of
Suppliers

8. SWOT Analysis
Strengths (Internal factors) Weaknesses (Internal factors)
- High contribution margin
- Low age of product
- High performance of product
- High product accessibility
-Among current market leaders
-Strong financial position
-High cost to produce
- R&D funds (expensive to modify
product)
- Cost of constant marketing funds
Opportunities (External factors) Threats (External factors)
-High industry growth rate
-Market is available for capture
-Customers are willing to pay for quality
-Potential market share of competitors
-Competitors price cutting unexpectedly
www.capsim.com
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9. www.capsim.com
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10. Weaknesses (Internal factors)
-High cost to produce
- R&D funds (expensive to modify
product)
- Cost of constant marketing funds
www.capsim.com
10

11. www.capsim.com
11

12. www.capsim.com
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13. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
13

14. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
-Profit Margin
-Return on Equity
-Cash on Hand
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15. Profit Margin
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5.30%
8.60%
11.40% 11.60%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
1 2 3 4 5 6 7 8
Year
Profit Margin
Andrews
Digby
Erie

16. Return on Equity
16
11.8%
23.4%
28.8%
18.3%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
1 2 3 4 5 6 7 8
Year
Return on Equity
Andrews
Digby
Erie

17. Easy and Accessible Financing
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Andrews Baldwin Chester Digby Erie
Amount of Cash on Hand, Round 8
$
Companies in Industry
$96,626
Bond Rating: AAA CC DDD A AA
www.capsim.com
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18. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
18

19. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
– Sales Growth
– Contribution Margin
– Production Capacity
– Future Plans
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20. Annual Sales
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0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
1 2 3 4 5 6 7 8 9 10 11 12 13
Dollars*($)
Year* Dollar value in thousands
15%
average
growth
www.capsim.com

21. Contribution Margin
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 2 3 4 5 6 7 8 9
Andrews Industry Average
Year
CM%
TQM Cost Reductions:
Direct Labor: 13.94 %
Direct Materials: 11.35%
31%
www.capsim.com
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22. Value for YOU
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Many users of financial statements, including
investors, want to know what is the value of the
firm?
Value for shareholders is the income from operating
and financing activities
Andrews Baldwin Digby
Operating $79,651 $51,523 $70,552
Financing 0 (48,495) 0
Value $79,651 $3,028 $70,552
www.highered.mcgraw-hill.com

23. Year 8 Production Capacity
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0 5000 10000 15000 20000 25000
Erie
Digby
Andrews
Units (Thousands)
Capacity Analysis (w/2nd Shift)
Production
Capacity

24. Future Plans
• Competitive Pricing
– Capture additional market share
• TQM Investments
– Administration Expenses
• Improve Forecast Accuracy
– Reduce inventory
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25. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
25

26. Questions?
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