MGMT600_Week7AnalysisPresentationTemplate_Oct172021_final_updated.pptx
MGMT601 BUSINESS PLANNING SEMINAR
WEEK 7 ANALYSIS PRESENTATION
TEAM 3: CHESTER COMPANY
ROBERT REIGADA
DAVIAN SHEPHERD
MOHAMMED ALDABBAS
MORRICE COMPTON
MARDOCHEE MICHEL-ROBINSON
DATE: OCTOBER 17th, 2021
PROFESSOR: ELLIOT MASOCHA
SUMMARY OF ROUND 7
Davian
Our company earned 1 star for our performance in Emergency Loan, but did not earn any stars in inventory, Profit, Contribution Margin and stock price.
Profit – took a loss in profit in the amount of $570,748
Contribution margin – We finished the round/year with a 30.0% CM
Emergency Loan – Did not have to request an emergency loan from Big ‘Al’
Inventory - We did not satisfy our year-end inventory by meeting 95% demand
Stock Price – Our company stock price fell by -$13.18
SUMMARY OF ROUND 8
Rob
Our company earned 4 stars in each category for our performance in Profit, Contribution Margin, Emergency Loan, and stock price, but did not earn any stars in inventory.
Profit – Generated $11,748,809 in profit
Contribution margin – We finished the round/year with 31.5% CM
Emergency Loan – Did not have to request an emergency loan
Inventory - We did not satisfy our year-end inventory by meeting 95% demand
Stock Price – Our company stock price rose by $10.69
WHAT IS GOING WELL
Michel
Team Communication and collaboration
Continuously learning how to understand and Analyze the Capstone courier to better monitor our improvements and shortfalls in order to remain in competition
Although we took a profit loss in round 7, we recovered well in round 8
Paid down some long-term financial debt that will help with future profits
Made more improvements to our plant regarding capacity and automation
WHAT IS GOING POORLY
Rob -
In round 7 and we took a loss in profits, failed to make improvements in our inventory position, stock price and CM
We may have allocated too much capital into plant improvements
Placed too much focus on trying to save R & D costs during round 7
Only generated 1 star for not having to use an emergency loan
$11,500,000 less in profit during round 7 than we did in round 8
Team Chester Industry Analysis
| Industry Results | Team Chester Industry Ratio Analysis | ||||||||||
| Ratio | Andrews | Baldwin | Digby | Erie | Ferris | Ratio | Industry Average | Chester | Variance | Fav/UnFav | |
| ROS | 7.80% | 16.00% | 0.00% | 0.00% | 0.00% | ROS | 4.76% | 7.30% | 2.54% | Fav | |
| Asset Turnover | 0.66 | 1.41 | 0 | 0 | 0 | Asset Turnover | 41.40% | 0.77 | 35.60% | Fav | |
| ROA | 5.10% | 22.60% | -23.60% | -23.60% | -23.60% | ROA | -8.62% | 5.60% | 14.22% | Fav | |
| Leverage (Assets/Equity) | 1.1 | 1.1 | 30 | 30 | 30 | Leverage (Assets/Equity) | 1844.00% | 1 | -1744.00% | Fav | |
| ROE | 5.60% | 25.70% | -709.10% | -709.10% | -709.10% | ROE | -419.20% | 5.90% | 425.10% | Fav | |
| Emergency Loan | $0 | $0 | $204,984,420 | $204,984,420 | $204,984,420 | Emergency Loan | $ 122,990,652.00 | $0 | $ (122,990,652.00) | Fav | |
| Sales | $120,297,056 | $583,179,692 | $0 | $0 | $0 | Sales | $ 140,695,349.60 | $161,245,550 | $ 20,550,200.40 | Fav | |
| EBIT | $15,799,948 | $148,771,752 | ($39,968,173) | ($39,968,173) | ($39,968,173) | EBIT | $ 8,933,436.20 | $18,443,970 | $ 9,510,533.80 | Fav | |
| Profits | $9,325,647 | $93,474,831 | ($51,624,783) | ($51,624,783) | ($51,624,783) | Profits | $ (10,414,774.20) | $11,748,809 | $ 22,163,583.20 | Fav | |
| Cumulative Profit | $91,843,240 | $320,510,371 | ($36,473,056) | ($36,473,056) | ($36,473,056) | Cumulative Profit | $ 60,586,888.60 | $99,441,456 | $ 38,854,567.40 | Fav | |
| SG&A / Sales | 11.30% | 4.80% | 0.00% | 0.00% | 0.00% | SG&A / Sales | 3.22% | 9.90% | 6.68% | Fav | |
| Contrib. Margin % | 31.00% | 34.40% | 0.00% | 0.00% | 0.00% | Contrib. Margin % | 13.08% | 31.50% | 18.42% | Fav |
IMPLEMENTED CORRECTIONS FOR FUTURE EFFICIENCY
Michel
We once again made adjustments to the R & D performance and size of our products to ensure that we keep production costs low while simultaneously maintaining alignment with customer expectations
Decreased some prices of our products so that so that we were able to successfully remain in the segment expectations and meet the contribution margin
Regarding HR, we did not allocate any training funds which would have incurred more expenses
Decreased some of our marketing expenses in order to save for our final cash position
Sold some of our production capacity to help with our ending cash position
Our Company versus Competitors
36936.0
47160.0
Goodwill 2
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