Midway Company Performance Summary - Due tomorrow 06/18/2020
pratpsopoygo
SamplePresentation.pptxHuegel Corp LLC
Company Performance Review
2020-2022
Good morning, my name is Wendy Huegel welcome to our Huegel Corp LLC. Huegel Corp LLC is known for the exceptional sensors they produce. This 3 year review will give you a better understanding of both our low and high technology segments, give an production analysis, explain about the market segmentation, along with the overall financial performance. Huegel Corp LLC being in its early stages of business leave it open for new up to date product development. After this short presentation I can help you answer any outstanding questions you might still have on the future of the company and future growth and production plans.
Reference:
Million-Weaver, S. (2019, April 5). Pin-sized sensor [Photograph]. Retrieved from https://phys.org/news/2019-04-pin-sized-sensor-chemical-id-smartphone-sized.html
1
Low-Tech Segment
Broad Differentiation Strategy
Customer Buying Criteria
Price
Age
Reliability
Ideal Position
Huegel Corp LLC embodies a broad differentiation strategy. This strategy is good for competitive industries such as our sensors sales. Customers want their products to be up dated to fulfill their needs. They also want to make sure they are getting the products they desire. We need to be sure we are pricing them to compete in the industry so make a profit.
The customer buying criteria for the low tech segment for price is between $15.00-$35.00 which was 41% importance when the customers were surveyed. The next item of importance with 29% is the age of the product which customers feel should be 3 years for each sensor. Reliability is surveyed at 21% of consumer importance they do not want to purchase junk and you get what you pay for. Customers feel our sensors in the low-tech segment should be with the MTBF range from 14000-20000. The ideal position for our sensors is to have them at 6.3 for performance and 13.7 for size.
Year one Able’s release was the performance level was set at 6.1 and the size was 13. at a price of $35.00 per unit. Our sales for year one were 1325 units. Year two sales were 1023 but the size and speed and price were all the same as year one. We introduced a new product in year two Addie however we did not have any sales in this segment in year two. In year three Able was set at 6.1 size 13.8 and the price was dropped to $30.70 sales were 880 units. Our new product was 7.9 pfmn and the size was 11.5 price was $35.80 sales were 286. We had a stock out for both products in year three which means we missed out on potential sales.
2
Customer Buying Criteria
Sales Price 41% Age 29% Reliability 21% Ideal Position 9% 0.41 0.28999999999999998 0.21 0.09
High-Tech Segment
Customer Buying Criteria
Price
Age
Ideal Position
Reliability
The customer buying criteria for the high-tech segment was priced is between $25.00-$45.00 which is surveyed at 25% importance. The age of the product is rated at the second highest of importance at 29% and ideal expectation is 0 years. Reliability is surveyed at 13 percent of consumer importance with the MTBF range from 17000-23000. The ideal position is to have the sensor at 9.5 for performance and 10.5 for size.
Year one Able’s release was the performance level was set at 6.1 and the size was 13. at a price of $35.00 per unit and 457 units were sold to this segment. In year two, the performance of the product was set at 6.1 and the size was at 13.0 with the price of $35.00 and 292 units sold. The performance of our new product Addie in year 3 was rated at 7.9 and size was 11.5 at $35.80 and 407 units were sold. Able for year three was set at 6.1 size 13.8 price of $30.70 and we sold 132 units. We had a stock out for both high tech products also. So we also missed out on sales for this segment also in year three.
3
Customer Buying Criteria
Sales Price 25% Age 29% Reliability 13% Ideal Position 33% 0.25 0.28999999999999998 0.13 0.33
Production Analysis
When producing our sensors our capacity grew from 800 to 1200 between year one and year two and stayed there for year three. We were set to automate up to 3.5 for year two. In year three it was forecasted to move to 3.8 in year four. Production for our sensors went from 1,622, 1,831, to 1,705 units respectively. Plant utilization from 2020-2021 was 192%, 175% respectively. In 2022 when we began to produce Addie plant utilization was 57% for Able and 198% for Addie.
We have plans to produce more so that we do have stock out and miss sales all along with making sure we do not have inventory. With the launch of the new product in year three it reduced the production while keeping capacity the same as the year before. We need to produce more product by hiring and training additional employees, along with utilizing the plant at a higher capacity to increase our profit.
4
Production and Capacity (2020-2022)
Capacity 2020 2021 2022 800 1200 1200 Production 2020 2021 2022 1500 1500 1150
Market Segmentation
Huegel Corp LLC has sold sensors in both segments. Able was showing in both low and high tech. When Addie was introduced in 2022 into the high tech segment. The market share for low tech 16, 17, and 17 percent respectively. For high tech 18, 9, and 15 percent respectively. In year two we were creating and building Addie so that would explain the decrease between that year and year three when we were actually producing it.
The price for Able went from 35, 35, to 30.7 decreasing the price assisted us to sell out in 2022 for low tech. Able sold some products in high tech market for the same pricing of the low tech. Addie’s price for year three was 35.8. For the remainder of the years we will need to create new products and keep our products competitive in their markets.
We had a promotional budget of 1700 for years one and two and 4000 for year three. Our sales budget was 1750 for first two years and 4000 for year three. By investing in promotion and sales that also could be the reason we had a stock out and not enough product in year three. Also increasing the time limit on accounts receivable to 35 days could be contributing to sales even though our prices are slightly higher then the average of our competitors.
5
Market Share
Low-Tech 2020 2021 2022 0.157 0.16800000000000001 0.17399999999999999 High-Tech 2020 2021 2022 0.17599999999999999 9.4E-2 0.14499999999999999 LT Leading Competitor 2020 2021 2022 0.186 0.20100000000000001 0.23100000000000001 HT Leading Competitor 2020 2021 2022 0.192 0.23 0.27
Units Sold/Price
Price 2020 2021 2022 35 35 35.799999999999997 Units Sold Able High Tech 2020 2021 2022 457 292 132 Units Sold Able Low Tech 2020 2021 2022 868 1023 880 Units Sold Addie High Tech2 2020 2021 2022 407 Units Sold Addie Low Tech3 2020 2021 2022 86
Financial Performance
Sales numbers decreased just slightly in year two from $46,384 to $45,997. They rose again in year three 2022 $55,891. Expenses stayed pretty parallel through the three years from $40,508, $41,734, to $41,730. With beginning the new product in year three the amount of expenses not increasing by a high amount is a good thing. We did not buy back any stock, did not pay dividends, nor did we retire any bonds. The company did have to take an emergency loan for years one and two $1,669,282 and 45,997,265. We did not have to take out any emergency loan in year three. Cash percentage for years one and two were 0% which would explain why we needed the emergency loans. In year three it was 2.9%. We did have to issue stock and take out loan term loans to help with funding as we started our productions.
6
Sales vs. Expenses
Sales 2020 2021 2022 46384 45997 55891 Expenses 2020 2021 2022 40508 41734 41730
