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Presentationslides.pptxTeam Chester Shareholder Presentation
By: Chantal Varco, Cory Kelly, Amy Nolan, Bridget Lucas, Fan Wang and Jonathon Mazur
Team Structure
CEO
Cory Kelly
R&D
Bridget Lucas
Finance
Jonathon Mazur
Marketing
Amy Nolan
Finance
Chantal Varco
Production
Fan Wang
Mission Statement
Our company is focused on providing affordable and reliable products for the industry. Our goal is to fulfill the everyday needs of our customers. We are aware that our customers have various preferences and we are passionate about selling different sensors that are fit the customer's needs.
Business Level Strategy
We have created our own hybrid strategy that we have named the Integrated Cost Leader/Differentiation Strategy. We aim to provide products in the majority of the segments so customers can expect to have reliable products that are affordable. We will drop our involvement in the high-end market, to put forth a greater effort in the other segments and save on material costs. Products will keep up with trends and a focus will be generated in the performance segment.
Industry Analysis
The Power of Suppliers
Suppliers industry dominated by a small number of suppliers
✓
Suppliers sell unique products
Suppliers are not threatened by substitutions
Suppliers threaten forward integration
✕
Firms are not important customers to suppliers
✓
✕
✓
✓
The Power of Buyers
Number of buyers is small
Products sold to buyers are undifferentiated and standard
Buyers are not earning significant economic profits
Buyers threaten backwards (vertical) integration
✕
✓
✓
✕
Large number of competing firms that are the same size
✓
Slow industry growth
Lack of product differentiation
High exit barriers
Large production capacity
✓
✓
Intensity of Rivalry
✓
✓
✓
✕
Threat of New Entrants
Barriers to entry
Government Regulation
Government only allows 5 firms
Threat of Substitution
Demand is always increasing
✓
Unmet Demand is Never Lost
✓
Industry Analysis
| Five Forces Overall Analysis | |
| Intensity of Rivalry Rating: | -3 |
| Power of Suppliers Rating: | -3 |
| Power of Buyers Rating: | 0 |
| Threat of New Entrants Rating: | 5 |
| Threat of Substitutes Rating: | 5 |
| Sum of Ratings: | 4 |
| Scores between +10 to +25 → Generally Attractive and High Profit Potential Scores between -6 to +9 → Generally Moderately Attractive and Moderate Profit Potential Scores less than -6 → Generally Unattractive and Low Profit Potential |
Resources
| Tangible Resources: Assets that can be seen and quantified | |
| Financial | Cash, sales budget, promotion budget, ability to issue and buy back stock, current and long term debt, retire debt early, A/P and A/R policies, emergency loan, issue dividends |
| Physical | Raw materials, labor, plant capacity (4 plants), inventory, manufacturing ability |
| Technological | Product specifications, ability to automate, ability to use research and design new products |
| Organizational | Capstone Courier, December Customer Survey, forecasting equations, pro-forma statements, sales and promotion budget equations, customer expectation predictions |
| Intangible Resources: Assets rooted in the firm’s history and that have accumulated over time | |
| Human | Practice around experience and strategy, marketing knowledge, finance knowledge, internship knowledge |
| Innovation & Creativity | Ideas on how to fix emergency loan, ideas on how to compete each round against strong competition in each segment, ideas on how to stay financially stable and pay off debt |
| Reputation | Customer awareness, customer accessibility, December customer survey, market share in each segment |
Capabilities
Financial stability
Forecasting equations
Automation Ability
Consumer expectation predictions
Paid of emergency loan
Retired Debt early
Sales & Promotion budget equations
Positive ending cash for almost every round
Capabilities
Product and Inventory Management
Forecasting equations
Pro-forma statements
Plant capacity
Customer awareness
Customer accessibility
Automation
VRIO Analysis
| Capability | Valuable? | Rare? | Costly to Imitate? | Non-substitutable? | Competitive Implications | Performance Implications |
| [Insert Capability Name] | ||||||
| [Insert Capability Name] |
Porters Value Chain
| Administration/Firm Infrastructure –Annual reports, understanding customers’ preferences, company awareness of producing quality and fairly priced products |
| Human Resource Management –Teamwork, cross-function communication, marketing/finance/operations knowledge |
| Technology Development -Automation, R&D spending, adapting to industry |
| Resource Procurement –Issue stock, emergency loan, cash flow, retire debt, monitor A/R and A/P |
| Inbound Logistics -Inventory forecasting -Raw material | Operations -Automation -Plant improvements -Labor -New production | Outbound Logistics -Inventory management -Production | Marketing and Sales -Competitive prices -Promotions -Sales Budgets -Customer awareness -Market share | Service -No dividends -Use Courier for industry report |
Margin
(Value)
Advantages
Paid off bonds early so we weren’t hit with interest
Majority of starting products received 100% customer awareness by rounds 2 and 3
In the beginning, invested automation in low-end segment
Disadvantages
Emergency loan in the first round of $12,948,979 (Became more conservative w/ cash and too much cash at the end)
Poor execution of strategy for new product (no target market segment)
Waited to middle to update low-end product
Lessons Learned
Keep future of company in mind when making strategic decisions now
1
Market research is important to product development and overall business strategy
2
Don’t share tasks across departments unless necessary for the company’s success
3
How many factors go into even the simplest decisions in an organization
4
Positive or Negative performance is not due to one specific aspect of business
5
Final Results
| Metric | Rank | Points | Weight | Score |
| Stock Price | 5 | 2 | 40% | .8 |
| Average Market Share | 6 | 1 | 40% | .4 |
| Cumulative Profits | 6 | 1 | 20% | .2 |
| Total | 1.4 | |||
| Stimulation Performance Grade: | 54% |
Thank you for listening!
Do you have any questions?
