Team Business Plan Presentation


Published on

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Hello. I want to thank you for taking time to listen to our business plan. The management team and I have put together a presentation that highlights our company over the last 4 quarters. Let’s get started.
  • Present the agenda for today’s meeting. ( Read the slide as listed)
  • ( Read this slide as listed)
  • Let me introduce our management team. ( Read the slide as listed but from starting at the bottom first)
  • In the first quarter, we determined the concepts that would be the basis of our decision making throughout the year. ( Read the slide as listed) The next few slides will outline our marketing plan over the last four quarters.
  • Apex MC chose to focus on the Mercedes and Traveler markets. The Mercedes market is our primary focus and the Traveler market is our secondary market. The Mercedes segment is looking for a high performance computer to use in engineering and manufacturing applications. These customers are willing to pay for a high performance quality product. The Traveler segment wants a portable computer with practical office applications to use on the road. These customers are executives and sales professionals who are price sensitive. Both markets have the highest demand in North America and Asia.
  • The primary use for the Mercedes segment is engineering and data processing. We created the Czar Brand based on the priority of the customer needs. The Mercedes market needs a high performance computer with engineering applications and network/internet connection. This segment is willing to pay up to $4000. The primary use for the Traveler segment is production process control and plant management. We created the Passport Brand based on the priority of customer needs. The Traveler market needs a portable computer with office applications and network/internet connection. This segment is willing to pay up to $3200. The Passport did not meet the needs of the Traveler market in Q2. In Q3 we modified the brand and introduced the Passport Pro. Once again, we did not meet the customer needs in Q3. Market research and analysis drove the final modification to the Passport brand. We introduced the Passport 2010 in Q4 with great success.
  • Purchased market research to produce more reliable results. Placed ads in News and Business Magazines.
  • The Czar brand was strong in the Mercedes market; although, we made some adjustments to the price. The price judgment was on target, but we further enticed the customers in Q4 with the introduction of a rebate. The Czar is our primary sales focus and also gives the highest per unit profit for the company. The current pricing and rebate offer will continue through Q5 and Q6. Apex MC controlled the majority of the Mercedes market in Q3 before experiencing a slight decrease in Q4. We expect to regain control of the Mercedes market in Q5 and continue to increase the percentage throughout the remainder of the year.
  • The Traveler market was challenging for Apex MC. We made modifications to the product in three quarters before grasping the market with the Passport 2010. The price sensitive Traveler market was accepting of our brand pricing; however, we underestimated the success of a rebate offer. By decreasing the per unit profit on the Passport brand, we were able to introduce the Passport 2010 in Q4. The affordability and rebate offer of the Passport 2010 enticed customers with great success. At this time, Apex MC is the only company targeting the Traveler market. The Passport 2010 has met the needs of the market and we will continue with the current pricing for Q5 and Q6. Quarterly evaluation and adjustment to the promotional mix will ensure advertising, sales force support, and rebates are balanced. We will also closely monitor the market needs and customer expectations. Brand modifications and price adjustments will be made to excel competitively in the Mercedes and Traveler markets.
  • The purpose of this section is to outline the fundamental manufacturing procedures, communicate the company’s efficient growth in production, and to show commitment to the quality of our product.
  • This process is very efficient for computer production because it specializes in the area being addressed. This will add to quality control effectiveness.
  • The disadvantages of batch production will not be imminent problems unless there a major changes in demand that effect design and/or performance. These are situations where we have not performed due diligence in upgrading products or there are modifications that cannot be made until the next batch is in production.
  • We exceeded expectations, mainly due to an enormous influx of money into the advertising campaign. Through careful analysis, we can refine our projections more accurately in the future.
  • The charts show the potential for exponential growth over 16 quarters. Compare Q3 to Q4 quantity demanded vs. operating capacity. This will more than justify our 100% growth by Q16.
  • Establishing the company as a high-quality producer starts with quality control processes. Company credibility is built on the product.
  • APEX shows strong revenue growth, especially in Q4. Gross profit increased approximately 150% from Q3 to Q4. Both operating profit and net income showed strong growth from Q2 to Q4.
  • Cash: Q3 = $3,220,280, Q4 = $4,188,629; Retained Earnings: Q3 = $419,157, Q4 = $2,367,752 Chart indicates strong cash balance grow attributed to expenditure controls and slow, steady growth in the first 3 quarters. Retained Earnings suggests APEX is positioned for increased capital investment and expansion.
  • Revenue: Q3=$4,490175, Q4 = $10,408,710; Cash: Q3 = $3,220,280, Q4 = $4,188,629; NCF from operations: Q3 = $916,139, Q4= $2,068,349 Chart indicates strong revenue grow attributed to increased demand from increased investments in Advertising and Sales.
  • Profitability is a relative measure of the success of a firm. We choose to present the three most widely used measures of profitability. NPM: Q3 = 18.79%; ROA Q3 = 19.09%; ROE Q3 = 21.09%.
  • The above numbers were estimated using a trend analysis. Revenues are anticipated to increase from $10,408,710 in Q4 to $51,044,004 at the end of year 3. Net Income increases from $1,948,594 to $11,576,750. Total Assets increase from $6,367,752 to $25,895,535.
  • I want to give kudos to everyone for all of their hard work. As you can see, we are above average in almost all categories.
  • We will continue to aggressively develop these four areas.
  • Team Business Plan Presentation

    1. 1. A pex MC
    2. 2. Agenda <ul><li>Mission Statement </li></ul><ul><li>Management Team Introduction </li></ul><ul><li>Initial Concepts </li></ul><ul><li>Overall Marketing Outlook, including Market Research & Advertising </li></ul><ul><li>Manufacturing/Production </li></ul><ul><li>Financial Summary & Planning </li></ul><ul><li>Competition </li></ul><ul><li>Industry Results </li></ul><ul><li>Our Future </li></ul>
    3. 3. Mission Statement Apex MC’s mission is to be the global leader in unique and innovative computing products that serve our loyal clients and build on the foundation of reliability, service, and technology for today’s world and beyond.
    4. 4. The APEX Team Tangelia Banks - President James Maher - VP Sales Management Lemar Ravenell - VP Manufacturing Robin Harvey - VP Marketing Bonnie Blackwell - VP Marketing Research
    5. 5. Business Concept Market Size Geographic Market Distinctive Competencies Competitive Posture Focus on smaller, high margin segments Focus on geographic markets which are in the middle of the cost/size continuum <ul><li>Build a market position and defend it </li></ul><ul><li>Take the lead and keep it </li></ul><ul><li>Attack the competition on their home ground </li></ul><ul><li>Continue to be one step ahead of the competition </li></ul><ul><li>Be the market share leader </li></ul><ul><li>Be the high service provider in the market </li></ul><ul><li>Provide the most reliable product in the market </li></ul>
    6. 6. Target Markets <ul><li>Mercedes – Primary </li></ul><ul><ul><li>Engineering and manufacturing </li></ul></ul><ul><ul><li>High performance computer </li></ul></ul><ul><ul><li>Willing to pay for high performance </li></ul></ul><ul><ul><li>Highest demand in North America & Asia </li></ul></ul><ul><li>Traveler – Secondary </li></ul><ul><ul><li>Executives and sales people </li></ul></ul><ul><ul><li>Practical computer for travel </li></ul></ul><ul><ul><li>Price sensitive </li></ul></ul><ul><ul><li>Highest demand in North America & Asia </li></ul></ul>
    7. 7. Brand Management <ul><li>Mercedes – Czar </li></ul><ul><ul><li>High performance computing power </li></ul></ul><ul><ul><li>Engineering applications </li></ul></ul><ul><ul><li>Network/Internet connection </li></ul></ul><ul><ul><li>Willing to pay $4,000 </li></ul></ul><ul><li>Traveler – Passport 2010 </li></ul><ul><ul><li>Computer portability </li></ul></ul><ul><ul><li>Network/Internet connection </li></ul></ul><ul><ul><li>Office applications </li></ul></ul><ul><ul><li>Willing to pay $3,200 </li></ul></ul>
    8. 8. Marketing Research Summary Q1 Q2 Q3 Q4 <ul><li>Analyzed Customer Needs </li></ul><ul><li>Created Price Points </li></ul><ul><li>Evaluated Market Size </li></ul><ul><li>Purchased Market Research </li></ul><ul><li>Placed ads in several media outlets </li></ul><ul><li>Purchased additional research </li></ul><ul><li>Increased ads </li></ul><ul><li>Reviewed Brand Judgment </li></ul><ul><li>Updated Passport Pro to Passport 2010 </li></ul><ul><li>Purchased additional research </li></ul><ul><li>Reviewed Brand Judgment </li></ul><ul><li>Passport 2010 top brand in Traveler Market Segment </li></ul>
    9. 9. Advertising Media <ul><li>Major Media Focus </li></ul><ul><ul><li>Mercedes Market </li></ul></ul><ul><ul><ul><li>General News Magazines </li></ul></ul></ul><ul><ul><ul><li>Science & Technology Magazines </li></ul></ul></ul><ul><ul><ul><li>Business Newspapers </li></ul></ul></ul><ul><ul><ul><li>Computer Magazines </li></ul></ul></ul><ul><ul><li>Traveler Market </li></ul></ul><ul><ul><ul><li>New Venture Magazines </li></ul></ul></ul><ul><ul><ul><li>Leading Trade Journals </li></ul></ul></ul><ul><ul><ul><li>Sports Magazines </li></ul></ul></ul><ul><ul><ul><li>Business Newspapers </li></ul></ul></ul><ul><ul><ul><li>General Business Magazines </li></ul></ul></ul>
    10. 10. Advertising Summary (1 of 2) <ul><li>Utilized differentiated marketing strategy </li></ul><ul><li>Strong ad judgment for both markets by consumers </li></ul><ul><li>Conservative advertising in Q2 & Q3 with minimal ad placement </li></ul><ul><ul><li>Maintained budget of $100,000 </li></ul></ul><ul><li>Market position established by Q4 in both markets </li></ul><ul><ul><li>Increased ad placements </li></ul></ul>
    11. 11. Advertising Summary (2 of 2) <ul><li>Ad placement increased in Q4 from under 10 to 95 inserts </li></ul><ul><ul><li>Raised budget to $800,000 </li></ul></ul><ul><li>Inundate markets in Q5 with inserts </li></ul><ul><li>Evaluate advertising in Q6 </li></ul><ul><ul><li>Reduce budget by 25% and continue at this rate for the remainder of the year </li></ul></ul><ul><li>Continue to research media preferences of target markets and modify accordingly </li></ul>
    12. 12. Marketing Summary <ul><li>Mercedes – Czar </li></ul><ul><ul><li>Set competitive price at $3,800 in Q2, modified in Q4 to $3,950 with $150 rebate </li></ul></ul><ul><ul><li>Continue with current pricing for Q5 & Q6 </li></ul></ul><ul><ul><li>Evaluated and adjusted promotional mix each quarter </li></ul></ul><ul><ul><li>Monitor market needs to modify brand and price expectations </li></ul></ul>
    13. 13. Marketing Summary <ul><li>Traveler – Passport 2010 </li></ul><ul><ul><li>Brand required modification in Q2 & Q3 to satisfy customer needs </li></ul></ul><ul><ul><li>Set initial price at $3,200, modified in Q4 to be competitive at $3,150 with $150 rebate </li></ul></ul><ul><ul><li>Continue with current pricing for Q5 & Q6 </li></ul></ul><ul><ul><li>Evaluated and adjusted promotional mix each quarter </li></ul></ul><ul><ul><li>Monitor market needs to modify brand and price expectations </li></ul></ul>
    14. 14. Manufacturing <ul><li>Stage of Development </li></ul><ul><ul><li>Production method </li></ul></ul><ul><ul><li>Advantages and Disadvantages </li></ul></ul><ul><li>Production Assessment </li></ul><ul><ul><li>First year capacity utilization </li></ul></ul><ul><ul><li>Four year production projections </li></ul></ul><ul><li>Quality Management </li></ul><ul><ul><li>Quality control standards </li></ul></ul><ul><ul><li>Establishing efficient quality control </li></ul></ul>
    15. 15. Manufacturing Batch 1: Form and finish desktop/portable designs Our method of production is batch production . Batch production will allow modifications to be made to products that are otherwise the same. Batch 2: Assemble base components Batch 3: Install optional hardware upgrades Batch 4: Assemble keyboard for the appropriate design Batch 5: Load all fundamental software Batch 6: Test computing power Batch 7: Check networking and internet capabilities Batch 8: Ready to package and ship first batch Quality control is applied at every stage PRODUCTION METHOD
    16. 16. Manufacturing <ul><li>Batch Production </li></ul><ul><li>Advantages: </li></ul><ul><ul><li>Employees will develop more individual task expertise </li></ul></ul><ul><ul><li>Better quality products due to employee familiarity </li></ul></ul><ul><ul><li>Batch can adapt to customer needs </li></ul></ul><ul><li>Disadvantages: </li></ul><ul><ul><li>Difficult to modify a batch in production </li></ul></ul><ul><ul><li>Switching batch mid-production = loss in output </li></ul></ul><ul><ul><li>Increase in “work in progress” stock </li></ul></ul>
    17. 17. Manufacturing By the 4 th Quarter Apex MC optimized its production capacity Production Growth Apex MC prides itself on adapting to the market and basing decisions on real numbers. This chart represents growth and adapting decisions to market outlook.
    18. 18. Manufacturing Current Year In the 16 th quarter we project the quantity demanded to more than double. The result would be an operating capacity just over 12,000 units. This would equate to 83% operating capacity utilization. 4 Years (16 th Qtr) Projection
    19. 19. Manufacturing <ul><li>Quality Control: The following procedures will be applied to each batch: </li></ul><ul><li>Quality assurance: </li></ul><ul><ul><li>P.D.C.A or Shewhart Cycle </li></ul></ul><ul><li>Stress Test </li></ul><ul><li>Statistical Process Control </li></ul>Quality Assurance Stress Test Statistical Process Control Quality Control
    20. 20. APEX MC – Financial Summary <ul><li>APEX MC’s profitability outlook is very attractive </li></ul><ul><li>Currently achieving excellent results in sales, assets, and equity </li></ul><ul><li>Very well managed and highly profitable </li></ul><ul><li>Positioned for further reinvestment </li></ul>
    21. 21. Financial Plan – Income
    22. 22. Financial Plan – Balance Sheet
    23. 23. Financial Plan – Cash Flow
    24. 24. APEX MC – Ratio Analysis <ul><li>4 th Quarter Analysis – Profitability Review </li></ul><ul><li>Net Profit Margin = $1,948,594 ÷ $10,408,710 = 18.72% </li></ul><ul><li>Return on Assets (ROA) = $1,948,594 ÷ $6,367,752 = 30.60% </li></ul><ul><li>Return on Equity (ROE) = $1,948,594 ÷ $4,000,000 = 48.71% </li></ul><ul><li>All ratios indicate that APEX MC is doing an outstanding job managing its profits </li></ul>
    25. 25. Financial Plan - Projections $25,895,535 $19,337,668 $12,779,800 Total Assets $11,576,750 $8,323,664 $5,070,577 Net Income $51,044,004 $37,189,754 $23,335,504 Revenues Year 4 Year 3 Year 2
    26. 26. Industry Results (Q4) Above average in almost all categories! 1.00 1.00 1.00 0.99 Financial Risk 0.82 0.64 0.82 0.35 Manufacturing Productivity 1.12 1.07 1.15 0.86 Asset Management 0.70 0.69 0.70 0.68 Human Resource Management 1.59 1.44 1.73 0.82 Wealth 1.60 1.47 1.72 1.23 Investment in Future 0.73 0.69 0.74 0.55 Marketing Effectiveness 0.49 0.49 0.55 0.39 Market Performance 36.31 28.90 42.40 1.50 Financial Performance 21.54 13.91 23.03 0.13 Total Overall Apex MC Average Maximum Minimum   Cumulative industry results for last four quarters ending in Q4
    27. 27. Our Future Apex MC is looking to the summit! Create New Brands Increase Marketing Pursue Further Investments Continue To Optimize Production