For Kim Woods management 600 business planning seminar
Team Baldwin
1
Company Organization
For the first two rounds Team Baldwin was organized with Nicole focusing on Production with the help of Matthew, Brou focusing on R&D with the help of Matthew and myself focusing on Finance, HR and TQM.
2
Initial Strategy
Markets We Prioritized
High End
Traditional
Low End
Effectiveness of Strategy
Team Rating: 9/10
Advanced R&D
Excellent Design
Above average pricing
Just-in-time production
Collaboration between Marketing, R&D and Production departments
Use of Finance as a check and balance
Our team gave our strategy a 9/10 for the first two rounds. We attribute the effectiveness of our strategy to our advanced research and development, the excellent design of our products, our above average pricing and our just in time production. We also feel that the strong collaboration between the marketing, R&D, and production departments as well as the use of the Finance department as a check and balance to all of our decision making also contributed to the success of our company and the effectiveness of our strategy for the first two years of our business.
3
Strategy Evolution Impact of Competition R&D
Research and Development is the first step as it comes to positioning our products. The decisions are used by other departments for decision making that will affect the company as a whole. Concerning the HighEnd Market Segment with our Product Bid, Performance and Size is 43% important in customer buying criteria. Therefore, the R&D team decided to work on making the performance and size better by decreasing the size and increasing the performance.
Based on our statistics, regarding our Traditional product (Baker), Age and price are respectively the higher buying criteria for customers (47% and 23% respectively), therefore our team decided to lower the price on “Baker” while improving the age.
The statistics for our LowEnd product ”Bead” show that pricing with a high percentage of 53% is the higher buying criteria. Therefore we lowered the selling Price while trying to improve the performance and shrinking the size.
Our strategy was able to give our products , a good performance rating compared to the competition.
4
Results R&D
Based on our strategy, most of our products (marked in blue) have a good position on the perceptual map
The Research & Development (R&D) Department design new products and changes condition for existing products.
Changing the size and/or performance repositions a product on the Perceptual Map. Improving performance and decreasing size moves the product towards the lower right on the map.
All projects from the R&D department begin on January 1. In case a product does not have a project already underway, we can launch a new project for that product and vice-versa. However we did not launch a new one on our end.
5
Results Marketing Pricing and Forecast
December 2021
Dec 2019
With our Marketing Strategy firmly set, we at Baldwin are proud to offer premium products for our customers. The exciting news that our Market capitalization after only two years has reach $165M with a stock price that is trending upward, signals growth in our business. That is exciting for us and our investors. We look to continue our growth of Market share as we deliver excellent products. …..Starting just 2 years ago with sales of just over $101M and an EBIT of just under $12M our profits have almost tripled.
Today, our Sales Revenues across 5 product lines has grown to almost $180M with over $33M cumulative profits. And an overall 38% contribution margin. This is due to great leadership and direction within the Baldwin executive team and execution on strategy…….With our Market potential unknown in these first two years, strong forecasting and diligent focus on the FOUR P’s Product, Pricing, Place and Promotion will require constant vigilance as other competitors grow their bottom line as well.
6
Strategy Evolution Impact of Competition Marketing Promotion and Sales
High End
Traditional
Low End
Examining Market share in two of the 3 market segments, Traditional and Low End, Baldwin Corp and Chester Corporation are really competitive with both holding 29% of the segment market share. Baldwin needs to create greater customer accessibility. Bringing on additional Sales persons and improving Market channels will be key to taking on greater market share!. Close coordination with out production department will be imperative to ensure we can meet the anticipated customer demand, while working with the R&D simultaneously to ensure we meet the customer technological expectations.
At Baldwin, significant improvements in segment forecasting will need to improve so that we capture market share. Fortunately our competitors are having challenges with the market demands as well as 3 of the 4 competing companies have stocked out this past year.
7
Strategy Evolution Impact of Competition Marketing Promotion and Sales
Size
Performance
As we look into Baldwin's other two market segments: (Size & Performance), we can clearly see, customer awareness is suffering at 50 and 52% WHILE Chester Corporation in the same segment is at 81 and 75% respectively. We must make efforts to grow market share as well by raising customer awareness of out technically advanced products.
8
Results: Market Share
As I close out this Marketing presentation, we at Baldwin are holding the #2 position in market share, 4 % points behind Chester. The outlook of potential market share is currently only at 23% and Baldwin will forge ahead making improvements in production capabilities and investing in our people and processes,
9
Strategy Evolution Impact of Competition Production
No INPUT provided by Team member….
**Add in pictures and comments that support topic
10
Results Production
No INPUT provided by Team member….
*Add in pictures and comments that support topic
11
Results HR
December 2020
December 2021
During the second round (year) of operation our company invested in HR. We put money into recruiting and training hours. This resulted in a decrease in turnover from year one to year two. It also increases productivity. You cannot see it this soon but it has been noted in years three and four.
12
Strategy Evolution Impact of Competition Finance
2019
2020
2021
Here are the financial statistics from when we started in 2019 to the end of our second year 2021. As you can see our ROS, Sales, and Profits increased over the years and was competitive in the marketplace. For ROS we started at 4.1% and ended year two at 11.3%. Our sales started around 101 Billion and increased to around 179 Billion in year two. Our profits went from starting around 4 billion and ending around 20 billion.
We also had at least a 1.8 ratio for leverage, and 35 or more days of working capital for both years. We managed to keep our A/R and A/P at 30 and no more than 40% in long term debt. We also did not incur any issues which required us to need an emergency loan and our cash position at the end of both years was positive.
13
Results Finance
2021
2020
As you can see in the presentation we saw a consistent increase in our stock price from year one to year two. Our price was consistently higher than our competitors in the marketplace. At the closing of year one we had at stock price of $48.26 and a positive change of $14.00. At the close of year two we had a stock price of $74.70 and we saw a positive change of $26.45.
Our balanced scorecard percentiles were also competitive. In the first round we had the highest at 98% and in the second we fell short of Chester by 3% at 76%
14
Results TQM
We invested in TQM in the second round and in doing so we received a large advantage because by investing in TQM we received benefits such as lower cost of materials and labor, higher contribution margins, increase in profit gains , faster R&D upgrades with respect to R&D revision dates and increased demand for products.
As you can see in our annual reports from round one and round two the benefits from TQM show a decrease in labor and cost materials from year one at around 115K to year two at 110K, an overall increase in contribution margin from year one at 29.6% to year two at 38.4% and an increase in profit gains from year one at around 9K to year two at around 20K.
15
Segment Results At the End of Round 2
Top Products
Baker – Traditional
Bold – Performance
At the end of of our second year of business our products that were at the top of their segment were Baker – Traditional and Bold – Performance. We had a market share of 29% for Baker and 20% for Bold. For the other segments we were in second place with Bead – Low End at 18%, Bid - high end at 20% and Buddy – Size at 19%.
16
Baker
29%
Bead
18%
Bid
20%
Bold
20%
Buddy
19%
Baker Bead Bid Bold Buddy 29 18 20 20 19
Team Effectiveness
How Our Team Worked Together
How Our Team Will Improve Performance
Hello, Our team has managed to be successful in the 1st two years of Baldwin, by meeting regularly, and cross pollinating primary responsibilities. This allows coverage and informed decision making when a member is not able to be in attendance. I Matthew have taken primary marketing responsibilities, Brou is responsible for R&D, ensuring that the products support the marketing strategy. Nicole primality is responsible for Production and Plant Improvements. Amelia is a key member of the team balancing the Finance department, scorecard metrics and HR responsibilities.
The Baldwin team must to delve more into the advanced business principles in the Team member guide, and understand the individual impact to other parts of the business to provide pushback when needed.
17
Communication
Attendance
Being Prepared
Future Approach
Baldwin’s approach over the next 5 years is dependent on Plant improvements, investment in Total Quality management Initiatives and of course investment in recruiting and training of our employees.. Providing training and recruiting will benefit by decreasing turnover rates and improving our productivity.
In closing, I would like to thank my colleagues for their focus and continued success to the Baldwin initiatives. And thank you, for taking the time to pay attention to our presentation. Have a nice rest of the day.
18
Plant Improvement
Total Quality Management
Invest in our PEOPLE
Product Volume
Decreased Employee Turnover
Improved Productivity