wk 7 PP and Explan
CHESTER INC
4.16.2032
STOCKHOLDER MEETING
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AGENDA
INTRODUCTION
PERFORMANCE OVERVIEW
COMPETITIVE ANALYSIS
QUESTIONS
CLOSING
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INTRODUCTION
MISSION
To maintain our presence as an industry leader by adding new products and increasing customer reach.
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FOCUS FOR 2030-2031
To provide high-quality products for an affordable price, bringing solid value to all customers.
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PERFORMANCE OVERVIEW
RESEARCH & DEVELOPMENT
| 2030 | 2031 | |
| Cake | 40% | 47% |
| Cedar | 34% | - |
| Cid | 45% | 68% |
| Coat/Coats | 48% | 66% |
| Cure | 43% | 54% |
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Strong overall market share growth
Notable product market share gains
Increased customer awareness
Customer accessibility remains high
Customer survey scores improved
Average marketing ROI increased
Consistently high revenue per marketing dollar spent
MARKETING
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Thank you for the comprehensive R&D update, Elizabeth.
Hello, shareholders. Our marketing efforts have yielded positive results over the past two years. Chester's overall market share has grown from 40.5% in 2030 to 48.8% in 2031, an increase we are proud of. In addition, we saw notable market share gains for several products including Cake, Cid, Coat, and Cure between 2030 and 2031. We are pleased to report increased customer awareness, with Cake and Coat reaching 87% and 88% respectively in 2031, and customer accessibility remains high, with Coat at 100% in 2031. Our customer survey scores improved for Cake and Coat in 2031. We also saw an average marketing ROI increase of 0.9% from 2030 to 2031, excluding Cedar in 2031. Finally, we achieved a consistently high revenue per marketing dollar spent, mostly at $9 for both years. Thank you for your attention, and we look forward to continued success in the future.
Manoj will now continue the discussion with an update on operations and production.
Plant Utilization is 200% utilization, this will not be able to produce additional product, and therefore might miss sales opportunities.
Overall Equipment Effectiveness (OEE) is a measure of how efficiently your equipment is being used to produce goods.
Inventory Turnover Ratio is a measure of how quickly your inventory is being sold and replaced.
Production Lead Time is the time it takes to complete a production cycle, from the start of production to the finished product.
Cost of Goods Sold (COGS) is the cost of producing the goods that were sold. Gross Margin is the difference between the revenue generated from sales and the cost of goods sold.
OPERATIONS & PRODUCTION
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In the Operations and Production department, we need to focus on several key performance indicators to ensure that we are meeting our production targets efficiently. The Production Output or Units Produced over the years 2028-2029 has been a steady increase in production output, which is a positive trend period of 2028-2029.
The Plant Utilization rate is an important metric because it represents the percentage of time that our plant is being used to produce goods. If the plant is underutilized, we are paying for depreciation and interest on underused assets. On the other hand, if the plant is overused, we might miss sales opportunities.
The plant Utilization rate has been consistently above 90% over the past two years. This is a positive sign because it indicates that our plant is being used efficiently to meet the demand for our products. However,we should be careful not to overuse our plant, as this can lead to maintenance issues and lower product quality.
Therefore, it is important to maintain a balance between the plant utilization rate and the demand for our products.
Employee turnover rate continues to decrease
Productivity remained steady at 122.1%
Total Quality Management (TQM) initiative has continued to make an impact
Reduced Labor (14%) & Material (12%) Costs
Admin Costs 60%
R&D Cycle Times stayed at 40%
Demand increase stayed steady at 14.4%
HR & TQM
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Total Profit continues to increase for both years
Profit Margin decreased for the first time both years
Sales contributed to profit for the past two years by continued increases
NET PROFIT, NET PROFIT MARGIN, & SALES
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Chester was able to raise profit by:
By becoming a leader in sales
Increasing our pricing while still maintaining a competitive edge
Reducing debt
Continuing to maximize TQM efficiencies
Going forward we intend to grow profits by:
Increasing our plant utilization by some of the largest levels yet
Keeping pricing ahead of our competition but still profitable.
Making large investments in our marketing program.
Return on Sales
Return on Assets
Return on Equity
Asset Turnover Ratio
2030 19.9%
2030 16.8%
Contributing factors: Product and Capacity
2030 33.6%
2031 34.2%
Contribactors: Investments
2030 1.06
2031 1.10
Better utilize assets, increase efficiency
2030 18.7%
2031 15.3%
Decreased due to product reduction.
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COMPETITIVE ANALYSIS
MARKET SHARE
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Chester maintained overall leadership position
Competitors’ market share
Chester outperforms closest competitors
Actual market share in 2031 grew stronger
Higher potential market share in 2031 for all segments
Product offerings more aligned with consumer demand
Chester’s strong market position
Effectiveness of business strategy and product offerings
Monitoring market share of competition
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Thank you, Elizabeth, for the informative presentation on ROS, ROA, ROE, and Asset Turnover Ratio. Now, let's take a look at Chester's market share performance in 2030 and 2031. In 2030 and 2031, Chester maintained its overall leadership position with 30% total market share, followed by Andrews with 21%, Baldwin with 19%, Digby with 11%, and Erie and Ferris both with 9%. Chester continued to outperform its closest competitors, Andrews and Baldwin. In 2031, Chester's market share grew even stronger, holding a 48.8% overall share. Additionally, Chester had a higher potential market share in all segments than any other company, indicating that their product offerings may be more aligned with consumer demand. Chester's strong market position shows the effectiveness of its business strategy and product offerings, however, it's important to note that the market is always evolving, so Chester should continue to monitor its market share in the face of competition from other companies and potentially new entrants to the market. Next up, Manoj will be going over Stock Price.
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STOCK PRICE
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In 2029, the stock prices for the five companies will increase apart from the Erie’s
Chester will lead the market with stock price of 250 from 140
Andrews will follow at 190 from 136
Baldwin will raise from 90 to 140
Digby’s stock price will decrease from 30 to 10
Ferris will decrease from 50 to 1
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CLOSING
R&D
Overall growth
Marketing
Customer awareness and accessibility steadily improved
Highest market share among competitors
Production
Improve on production and capacity
Human Resource
Decreased employee turnover
Total Quality Management
Reduced Labor (14%) & Material (12%) Costs
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SUMMARY
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THANK YOU
Chester Inc.
+1 (589) 555-0199
team@chester.com
WWW.CHESTER.COM
Please know we very much appreciate your time and attendance. Thank you again and enjoy your day!
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