Team Powerpoint Presentation for Threshold Business Competitor

COMPANY 3 (BLUE INDUSTRY)Managerial, Marketing and Financial Decisions of

Bilal Cheema, Andre Waldron, Christina Chiaffitella, Matt Albala

CORPORATE VISION

MISSION STATEMENT

Our company sets forth to take a significant portion of market share within the plastic industry. Our customers will be highly satisfied with our cost effective strategy, our prices are moderate while still guaranteeing a sustainable product life. Incremental sales will prove quality along with efficiency.

STRATEGIES

Emphasize high quality and low prices Pursue a cost effective strategy

Cut overhead costs Purchased raw materials in bulk at a 15%

discount Limited our spending

STATEMENT OF GOALS

Become a leader in our industry Capture 35% market share Provide customer satisfaction with

quality products at an affordable price Establish an ethical work environment

for our employees . Focus on triple bottom line

QUARTER BY QUARTER ANALYSIS

QUARTER 1 DECISIONS

P1 P2Price [$] 62 46TV [#] 2 1Newspaper Ads [#]

4 6

Magazine Ads [#]

6 8

Forecast Sales [#]

5,500 6,200

Actual Demand [#]

6,147 7,688

x Price

TV Ads

Newspaper Ads

Magazine Ads

x Quality

Units Sold

Marketing Decisions Market Research Decisions

Product 1 Product 2Buy Raw Materials [#] 7,000 6,500Invest in Product Quality [$] 3.50 5.25Units to Produce [#] 5,500 5,500 Hire Workers [#] 6 Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 0Sell Plant Capacity [#] 0 Human Resource Development [$]

7,000

Short-Term Loan: Request [$]

350,000 ST Investment: Deposit [$]

10,000

Mortgage: Request [$] 0 Withdrawal [$] 0Extra Payment [$] 0

Product Decisions

Finance Decisions

QUARTER 1 PERFORMANCE REPORT

PTS PTS PTS FORECAST

PTS OVERALL

Comp Sales AWRD Income AWRD ROA AWRD ERRORS AWRD PTS RANK

1 593,282 18 12,907 15 1.52 6 1,295 3 42 5

2 11,385 0 -67,736 -50 -7.20 -20 11,285 0 -69 8

3 594,000

18 20,473 24 2.29 10 2,135 2 53 4

4 546,975 16 4,635 5 0.58 2 823 5 29 6

5 635,817 19 27,061 32 3.12 13 423 10 * 74 2

6 670,918 20 * 19,653 23 2.26 10 2,270 2 54 3

7 548,921 16 -42,897 -50 -5.14 -20 3,592 1 -52 7

8 609,040 18 42,789 50 * 4.76 20 * 1,276 3 91 1

GAME TO DATE 1 PERFORMANCE REPORT

PTS PTS PTS FORECAST

PTS OVERALL

Comp Sales AWRD Income AWRD ROA AWRD ERRORS AWRD

PTS RANK

1 593,282

18 12,907 15 1.52 6 1,295 3 42 5

2 11,385 0 -67,736

-50 -7.20 -20 11,285 0 -69 8

3 594,000

18 20,473

24 2.29 10 2,135 2 53 4

4 546,975

16 4,635 5 0.58 2 823 5 29 6

5 635,817

19 27,061 32 3.12 13 423 10 * 74 2

6 670,918

20 * 19,653 23 2.26 10 2,270 2 54 3

7 548,921

16 -42,897

-50 -5.14 -20 3,592 1 -52 7

8 609,040

18 42,789 50 * 4.76 20 * 1,276 3 91 1

QUARTER 2 DECISIONS


3 5

Magazine Ads [#]

4 5

Forecast Sales [#]

5,800 6,700

Actual Demand [#]

5,924 5,981

x Price

TV Ads

Newspaper Ads

Magazine Ads

x Quality

Units Sold


Product 1 Product 2Buy Raw Materials [#] 15,000 15,000Invest in Product Quality [$] 4.50 5.10Units to Produce [#] 6,000 6,900 Hire Workers [#] 10 Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 1,000Sell Plant Capacity [#] 0 Human Resource Development [$]

10,000



20,000

Mortgage: Request [$] 100,000 Withdrawal [$] 0Extra Payment [$] 0

Product Decisions

Finance Decisions


PTS PTS PTS FORECAST PTS OVERALL

Comp Sales AWRD Income AWRD ROA AWRD ERRORS AWRD

PTS RANK

1 756,371 19 29,169 50 * 3.15 20 * 1,002 8 97 1

2 593,202 15 -324,930

-50 -41.16 -20 28,251 0 -55 8

3 684,110

17 23,449 40 1.98 13 843 10 * 80 4

4 578,975 14 19,929 34 2.83 18 1,091 8 74 5

5 618,263 15 25,744 44 2.95 19 1,204 7 85 3

6 813,282 20 * 20,468 35 2.24 14 2,139 4 73 6

7 456,925 11 20,140 35 2.16 14 4,155 2 61 7

8 676,160 17 27,918 48 3.13 20 1,455 6 90 2


PTS PTS PTSFORECAST

PTS OVERALL


11,349,653

18 42,076 30 2.34 12 2,297 7 67 3

2 604,587 8 -392,666 -50 -24.18 -20 39,536 0 -61 8

31,278,110

17 43,921 31 2.13 11 2,978 5 65 4

41,125,950

15 24,563 17 1.70 9 1,914 9 50 6

51,254,080

17 52,804 37 3.03 15 1,627 10 * 80 2

61,484,200

20 * 40,121 28 2.25 11 4,409 4 63 5

71,005,846

14 -22,757 -16 -1.49 -8 7,747 2 -8 7

81,285,200

17 70,707 50 * 3.94 20 * 2,731 6 93 1

QUARTER 3 DECISIONS


5 5

Magazine Ads [#]

3 4

Forecast Sales [#]

6,300 7,000

Actual Demand [#]

6,803 7,813

x Price

TV Ads

Newspaper Ads

Magazine Ads

x Quality

Units Sold


Product 1 Product 2Buy Raw Materials [#] 0 0Invest in Product Quality [$] 6.00 6.00Units to Produce [#] 6,500 7,300 Hire Workers [#] 5 Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 0Sell Plant Capacity [#] 0 Human Resource Development [$]

20,000



0

Mortgage: Request [$] 0 Withdrawal [$] 0Extra Payment [$] 0

Product Decisions

Finance Decisions




1 703,864 16 29,296 26 3.14 10 4,803 1 52 4

2 283,585 7 -171,281 -50 -19.21 -20 4,844 1 -63 8

3 867,833 20 * 57,432 50 * 4.77 15 1,316 3 88 2

4 564,500 13 26,748 23 3.94 12 2,189 2 50 5

5 712,112 16 34,658 30 3.82 12 936 4 63 3

6 734,336 17 54,184 47 6.39 20 * 947 4 88 1

7 547,266 13 10,054 9 1.08 3 402 10 * 35 7

8 566,425 13 21,934 19 2.74 9 3,111 1 42 6




1 2,053,514 19 71,371 35 2.61 14 7,100 4 72 5

2 888,172 8 -563,946 -50 -22.52 -20 44,380 1 -61 8

32,145,94

319

101,352

50 * 3.01 17 4,294 6 92 1

4 1,690,450 15 51,311 25 2.45 13 4,103 6 60 6

5 1,966,192 18 87,461 43 3.30 18 2,563 10 * 89 3

6 2,218,536 20 * 94,304 47 3.63 20 * 5,356 5 91 2

7 1,553,116 14 -12,702 -6 -0.63 -3 8,149 3 7 7

8 1,851,625 17 92,641 46 3.54 20 5,842 4 86 4

QUARTER 4 DECISIONS


5 5

Magazine Ads [#]

4 5

Forecast Sales [#]

7,000 7,500

Actual Demand [#]

8,729 9,565

x Price

TV Ads

Newspaper Ads

Magazine Ads

x Quality

Units Sold


Product 1 Product 2Buy Raw Materials [#] 15,000 15,000Invest in Product Quality [$] 6.50 6.25Units to Produce [#] 7,200 7,700 Hire Workers [#] 11 Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 3,000Sell Plant Capacity [#] 0 Human Resource Development [$]

25,000



0


Product Decisions

Finance Decisions




1 756,650 16 40,622 30 4.23 12 3,062 3 60 6

2 655,108 14 -87,033 -50 -12.59 -20 8,683 1 -55 8

3 948,924 20 48,129 35 4.37 12 3,794 2 69 3

4 564,500 12 42,709 31 6.11 17 1,752 5 64 5

5 654,617 14 44,667 33 4.70 13 1,247 6 66 4

6 950,653 20 * 68,438 50 * 7.05 19 6,380 1 91 1

7 574,193 12 33,773 25 4.12 11 801 10 * 58 7

8 756,575 16 65,384 48 7.28 20 * 2,911 3 86 2




12,810,16

018 111,992 34 3.01 13 10,162 4 69 5

21,543,28

010 -650,979 -50 -20.04 -20 53,063 1 -60 8

33,094,86

420 149,480 46 3.35 15 8,088 5 85 3

42,254,95

014 94,019 29 3.36 15 5,855 7 65 6

52,620,80

717 132,127 41 3.65 16 3,810 10 * 83 4

63,169,19

320 * 162,742 50 * 4.49 20 * 11,736 3 93 1

72,127,31

313 21,072 6 0.55 2 8,950 4 27 7

82,608,19

516 158,024 49 4.48 20 8,753 4 89 2

QUARTER 5 DECISIONS


5 5

Magazine Ads [#]

5 6

Forecast Sales [#]

9,500 10,000

Actual Demand [#]

9,640 10,984

Price

TV Ads

Newspaper Ads

Magazine Ads

x Quality

x Units Sold


Product 1 Product 2Buy Raw Materials [#] 15,000 15,000Invest in Product Quality [$] 7.25 6.75Units to Produce [#] 10,000 10,500 Hire Workers [#] 27Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 5,000Sell Plant Capacity [#] 1,000 Human Resource Development [$]

30,000



50,000


Product Decisions

Finance Decisions




1 740,380 11 47,245 29 4.77 11 7,120 1 53 5

2 262,400 4 -135,823 -50 -23.52 -20 9,867 1 -65 8

31,291,72

020 * 51,906 32 3.45 8 1,124 6 67 4

4 622,000 10 59,012 37 8.60 20 * 716 10 * 76 2

5 691,188 11 -21,164 -13 -2.42 -6 3,368 2 -6 7

6 1,139,700 18 80,323 50 * 8.17 19 2,683 3 89 1

7 599,576 9 16,405 10 2.06 5 870 8 33 6

8 714,100 11 61,825 38 7.77 18 4,415 2 69 3



Comp SalesAWR

DIncome AWRD ROA AWRD ERRORS

AWRD

PTS RANK

1 3,550,540 16 159,23

633 3.36 13 17,282 4 66 5

2 1,805,680 8 -

786,802

-50 -20.74 -20 62,930 1 -61 8

34,386,58

020 *

201,386

41 3.37 13 9,212 7 81 3

4 2,876,950 13 153,03

131 4.41 17 6,571 10 * 71 4

5 3,311,998 15 110,96

223 2.43 9 7,178 9 56 6

6 4,308,890 20 243,06

450 * 5.22 20 * 14,419 5 94 1

7 2,726,886 12 37,477 8 0.86 3 9,820 7 30 7

8 3,322,300 15 219,84

945 5.13 20 13,168 5 85 2

QUARTER 6 DECISIONS


6 7

Magazine Ads [#]

7 8

Forecast Sales [#]

11,750 12,750

Actual Demand [#]

9,684 15,664

x Price

TV Ads

Newspaper Ads

Magazine Ads

Quality

x Units Sold


Product 1 Product 2Buy Raw Materials [#] 15,000 15,000Invest in Product Quality [$] 7.50 6.85Units to Produce [#] 12,000 13,000Hire Workers [#] 20Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 2,500Sell Plant Capacity [#] 1,000 Human Resource Development [$]

35,000



0

Mortgage: Request [$] 120,000 Withdrawal [$] 20,000Extra Payment [$] 0

Product Decisions

Finance Decisions

QUARTER 6 PERFORMANCE REPORT PTS PTS PTS FORECAST PTS OVERALL


1 923,572 13 59,273 38 5.70 13 7,036 2 66 5

2 594,000 8 -1,526 -1 -0.17 -0 1,808 7 15 7

31,399,2

5020 * 78,835 50 * 4.54 10 4,980 3 83 1

4 593,423 8 56,165 36 7.80 18 1,337 10 * 72 3

5 812,212 12 32,887 21 3.53 8 2,058 6 47 6

61,149,82

016 60,276 38 4.90 11 4,513 3 69 4

7 540,296 8 -18,385 -12 -2.11 -5 2,542 5 -3 8

8 736,600 11 72,528 46 8.85 20 * 3,895 3 80 2

GAME TO DATE 6 PERFORMANCE REPORT PTS PTS PTS

FORECAST

PTS OVERALL

Comp Sales AWRD Income AWRD ROA AWRDERROR

SAWRD PTS RANK

14,474,11

215

218,508

36 3.75 13 24,318 3 68 5

22,399,68

08

-788,32

8-50 -17.31 -20 64,738 1 -60 8

35,785,8

3020 *

280,221

46 3.57 12 14,192 6 84 3

43,470,37

312

209,195

34 4.98 17 7,908 10 * 74 4

54,124,21

214

143,848

24 2.62 9 9,236 9 56 6

65,458,71

019

303,339

50 * 5.17 18 18,932 4 91 1

73,267,18

611 19,091 3 0.36 1 12,362 6 22 7

84,058,90

014

292,377

48 5.75 20 * 17,063 5 87 2

QUARTER 7 DECISIONS


7 7

Magazine Ads [#]

8 8

Forecast Sales [#]

12,000 17,000

Actual Demand [#]

12,149 16,260

x Price

TV Ads

Newspaper Ads

Magazine Ads

x Quality

x Units Sold


Product 1 Product 2Buy Raw Materials [#] 15,000 20,000Invest in Product Quality [$] 7.75 7.00Units to Produce [#] 12,500 18,000Hire Workers [#] 25Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 4,000Sell Plant Capacity [#] 0 Human Resource Development [$]

40,000



0

Mortgage: Request [$] 190,000 Withdrawal [$] 20,000Extra Payment [$] 0

Product Decisions

Finance Decisions



11,208,11

014 61,105 32 5.66 13 13,393 0 60 5

2 977,500 11 -40,448 -21 -4.85 -11 483 10 * -11 8

31,704,1

7020 * 96,171 50 * 4.51 11 889 5 86 1

4 640,400 8 65,153 34 8.31 20 665 7 68 4

5 748,678 9 42,232 22 4.34 10 2,186 2 43 6

61,583,69

019 85,459 44 6.03 14 1,509 3 80 2

7 577,561 7 2,963 2 0.35 1 1,883 3 12 7

8 742,400 9 75,265 39 8.48 20 * 3,334 1 69 3


PTS PTS PTSFORECAST

PTS OVERALL


1 5,682,220 15 279,612 36 4.03 13 37,711 2 67 5

2 3,377,180 9 -828,776 -50 -15.53 -20 65,221 1 -60 8

37,490,00

020 *

376,391

48 3.70 12 15,081 6 86 2

4 4,110,770 11 274,348 35 5.45 18 8,573 10 * 74 4

5 4,872,888 13 186,079 24 2.86 9 11,422 8 54 6

6 7,042,410 19 388,797 50 * 5.29 17 20,441 4 90 1

7 3,844,751 10 22,054 3 0.36 1 14,245 6 20 7

8 4,801,300 13 367,641 47 6.14 20 * 20,397 4 84 3

QUARTER 8 DECISIONS


9 8

Magazine Ads [#]

9 9

Forecast Sales [#]

16,500 21,500

Actual Demand [#]

21,080 22,638

Price

TV Ads

Newspaper Ads

Magazine Ads

Quality

Units Sold


Product 1 Product 2Buy Raw Materials [#] 0 0Invest in Product Quality [$] 8.00 7.25Units to Produce [#] 15,000 21,000Hire Workers [#] 0Fire Workers [#] 0 Layoff Workers [#] 0 Buy Plant Capacity [#] 0Sell Plant Capacity [#] 0 Human Resource Development [$]

0


0 ST Investment: Deposit [$]

0

Mortgage: Request [$] 0 Withdrawal [$] 40,000Extra Payment [$] 900,119

Product Decisions

Finance Decisions


Comp Sales AWRD Income AWRD ROA AWRD ERRORSAWR

DPTS RANK

1 1,034,310 9 85,563 20 7.34 15 4,068 2 46 5

2 841,835 7 -7,842 -2 -0.99 -2 1,304 5 9 8

3 2,330,900 20 * 209,942 50 * 9.57 20 5,718 1 91 1

4 673,965 6 79,941 19 9.20 19 2,689 3 46 4

5 791,804 7 72,013 17 7.25 15 2,348 3 42 6

6 1,643,040 14 133,337 32 9.73 20 * 3,202 2 68 2

7 649,845 6 26,604 6 3.34 7 702 10 * 29 7

8 754,000 6 94,678 23 9.55 20 4,941 1 50 3


PTS PTS PTSFORECAST

PTS OVERALL


1 6,716,530 14 365,174 31 4.44 14 41,779 3 61 5

2 4,219,015 9 -836,617 -50 -13.71 -20 66,525 2 -60 8

39,820,90

020 *

586,333

50 * 4.44 14 20,799 5 89 1

4 4,784,735 10 354,289 30 5.92 18 11,262 10 * 68 4

5 5,664,694 12 258,091 22 3.41 10 13,770 8 52 6

6 8,685,450 18 522,134 45 5.85 18 23,643 5 85 2

7 4,494,595 9 48,658 4 0.73 2 14,947 8 23 7

8 5,555,300 11 462,319 39 6.57 20 * 25,338 4 75 3

OUR PATH TO VICTORY

SUCCESSFUL STRATEGIC MOVES

An Emphasis on Price and Quality. Primary Focus on Market Research

Steady Increase in HR Development $5000 increase in HR Development from

Quarters 3-7. Increased Labor Productivity

Price-Cutting Strategy for Final Three Quarters Switch from Price Leader to Price Lagger. Dramatic Increase in Sales and Net Income

SUCCESSFUL STRATEGIC MOVES (CONT.)

Gradually Increased Marketing Expenditures Significant Investment in Raw Materials

Bought 15,000 + Units of Raw Materials = 15% Quantity Discount

Paid off Mortgage Payment in Final Quarter Decreased Total Assets, Boosted Return on

Assets.

OUR MISTAKES

Cut Human Resource Development by $3000 in 1st quarter.

Borrowed an unnecessary amount of money – 2nd quarter

Took too long to borrow plant capacity Resulted in increased production costs.

MAJOR CHALLENGES

Balancing act between devising a profitable strategy while limiting production costs

Price and quality decisions. Plant Capacity Decisions

MODEL OF CONSISTENCY

Never finished lower than 4th. Finished 1st the last three weeks of

competition.

1 2 3 4 5 6 7 80

1

2

3

4

5

6

7

8

Place

Operating Quarter

Pla

ce

NET INCOME & SALES

1 2 3 4 5 6 7 80

500000

1000000

1500000

2000000

2500000

Company 3 Sales

Quarter Sales

1 2 3 4 5 6 7 80

50000

100000

150000

200000

250000

Company 3 Net Income

Quarter Net Income

RESULTS OF PRICE-CUTTING STRATEGY

6466687072747,500

12,500

17,500

22,500

Product 1 Demand Increase from Q5-Q8

Price

De

ma

nd

5152535455565710,000

12,500

15,000

17,500

20,000

22,500

25,000

Product 2 Demand Increase from Q5-Q8

CONCLUSION

WHAT WOULD WE DO DIFFERENTLY?

Increased HR Development from the start. Increased Plant Capacity gradually every

quarter Would Cut Production Costs

Invested more Cash in Short Term Investments More Interest Income, Decreased Interest

Expense

WHAT DID WE LEARN?

The fundamentals of a sound business strategy

The importance of teamwork. The difficulty of balancing critical company

elements. The importance of competitive intelligence. How to implement a sustained competitive

advantage.