Capsim Audit paper ( Fixing a draft one section + completing SWOT part (A))

I. Introduction

It takes a shift in mindset to transform a profitable business into a phenomenal company. Here at Chester Inc., we believe that moving our focus from our product to our process is how to create award-winning sensors. Our team at Chester Inc. is dedicated to manufacturing sensors for other manufacturers to use in their products to sell. We design our sensors’ performance, size, and lifespan in our facilities on the East coast of the United States of America with 722 employees. Our annual sales at Chester Inc. for the past three years have been $79,782 in year one, $81,869 in year two, and $67,744 in year three, respectively.

II. Current Situation

A. Current Performance

The first three years have been a struggle to gain traction, but we saw a significant improvement in year four. We had a 7.4% market share in total. It broke down as 5.1% in the traditional market, 6.5% in the low-end market, 8.3% in the high-end market, 18.3% in the performance market, and 5.5% in the size market. We had a net profit of $ -28,357,000, which indicates excellent room for improvement. We also saw disappointing numbers from our investment return, which was a lowly -11.37%; we hope this gives us great room for improvement.

B. Strategic Posture

The current mission of Chester Corporation is to push the limits of the high-end sensor market. We don’t just want to be on the cutting edge; we want to establish what cutting edge is. Our goal is to lead the way in the high-end, size, and performance markets. We were previously focused on the low-end and traditional segments, but we struggled due to intense competition. We are now in a period of stabilization as we try to recover financially. The company will then pivot into the higher-end markets where fewer firms compete.

What is your mission statement? Was it the first line under Strategic posture? Read in chapter 1 what makes a good mission statement. What sets your organization apart from your competitors? What markets do you serve? Also address other stakeholders in your mission statement.

Chester has a corporate objective to achieve thirty percent market share in each of our three target markets by when?. Our business objectives are to optimize resources, turn a profit, and develop human resources. Our functional goals are to launch new products in both the size and high-end markets and to reach eighty-five percent customer awareness for further development in the performance market, “Cyber.” We are now focusing on a differentiation strategy that is in line with our internal competencies. It is also beneficial externally because fewer firms compete with a differentiation strategy.

Policies: Our corporate policy is to emphasize research and development and create value through our innovation. Innovation is very consistent with our system and objectives. At the moment, Chester is only operating in the domestic market.

III. Corporate Governance

A. Board of Directors

The Chairman and head of Chester, Inc Company is William. H Donaldson since the year 2003, February. His main roles are to heel the company from previous leadership scandals and to regain the investor's confidence in the company again. His other responsibilities include corporate governance, establishing ethics, establishing reforms to internal management.

Mr.Donaldson has over 45 years of experience working at the highest levels in both the business and government positions. He has founded several companies including Donaldson investment firm. He is a graduate of both Yale and Harvard University with an MBA.

Apart from the chairman, Sensor Company has a board of directors consisting of three committee and the members are appointed by the CEO. The committee member serves a term of 5 years ending at the June 5th of each year. If they are not replaced immediately, they serve an extension of 18 months. The chairman and top executive of the board are also appointed by the CEO. Apart from the chairman below are some of the board of committee members:

· Sean Flores:

Sean was appointed by the current CEO of the Chester, Inc Mr. Joel Haysan in the year 2018 January. Before joining Chester, Sean was a production manager Walt Disney. His main job was to ensure that manufacturing processes run reliably and efficiently. He also worked as a Senior Financial analyst at Consultative Search Group. In 2013, he came to work for “Chestor” Sensors and has been working with the Chester team to provide in making investment decisions and an effective, efficient production process.

· Seleen Cruz:

Serena was also appointed by the current CEO in the year 2018 September 11. Serena was a former competitive analyst at PWC. She was responsible for helping her company make effective decisions about future actions. She worked her way up the ladder to VP marketing. With nearly 10 years of experience in marketing sector, she became the Marketing director. She earned a bachelor’s degree in Business Administration from University of Boston and got her MBA From Yale.

· Robina Hufman

Robina studied Mechanical Engineering at Stanford University. She was a former senior engineer at Boeing. With her 10 years of experience, she became experienced engineer who traveled around the country to work closely with a small integrated product team to design, develop, test and deliver integrated products. She has an experience in leading software development projects for over 15 years.

You might want to add in the bios what committees each of these members serve on or create a table that outlines the different committees and who sits on each.

Also address how nominations and elections are handled for new board members.

Add a paragraph which analyzes your board against the what you learned in chapter 2. Is it too big/small? Is it well-balanced? Is there expertise missing that should be on the board (legal, finance etc). Then state what the plans are to address any weaknesses of the board in the upcoming years (adding/replacing new board members etc).

A. Top Management

With over 15 years of experience in the financial analysis field, Sean Flores is Chester Inc.’s segment function manager responsible for its economic analysis and production. Seleen Cruz is a former senior competitive intelligence analyst who is now Chester Inc.’s competitive intelligent officer accountable for predicting one or more competitors’ behavior. Seleen is also the functional manager for Chester Inc.’s marketing department, where she leads the team to evaluate sales forecasts, determine product price points, and decides what the promotional budget. Robina Hufman is a world-renowned engineer who specializes in sensors. Robina has traveled around the world consulting firms in their research and development departments for over ten years. Here at Chester Inc., we are lucky enough to have Robina as our product and research and development manager. Robina is responsible for leading teams in tracking our product’s progress and designing our next-generation sensors. Although our top management team at Chester Inc. is extremely talented, we oftentimes find it difficult to cooperate with each other. Chester Inc.’s top management team is working through personality challenges and communication issues, however, the team remains passionate about the company’s success.