Upload
jkwong5
View
4.757
Download
3
Embed Size (px)
DESCRIPTION
Citation preview
CHESTER,
Cameron Fuller, Christina Kurow, Carmen Leung, Jennifer Noinaj, Miranda Rodriguez, Adam Swiatek, Jonathan Wong
INCSensor Company
BA420 | April 26, 2010
Overview
Strategy
Products
Finances Trials Take-
aways
Agenda
1. Simulation Overview
2. Business Strategy
3. Product Information
4. Financial Performance
6. Conclusions
5. Trials and Tribulations
Overview
Strategy
Products
Finances Trials Take-
aways 3
Introduction Sensor company: Research & Development,
Marketing, Production and Finance Segmented markets: Low End, Traditional,
High End, Performance and Size 3 practice rounds
Business functions intertwine with one another closely
Aggressive strategy Consumer demand & competition: proactive vs
reactive
Overview
Overview
Strategy
Products
Finances Trials Take-
aways 4
Business StrategyOur Positioning Technology leader Tech savvy consumers: innovative & first-movers
Targeted Segmentation High technology niche differentiator
High End Size Performance
Premium pricing Technologically superior products
Minimizing size, maximizing performanceStrateg
y
Overview
Strategy
Products
Finances Trials Take-
aways 5
Product Perceptual Map
Traditional
Size High End
Low EndPerformance
Products
Overview
Strategy
Products
Finances Trials Take-
aways 6
Products Cake (traditional)
Less emphasis Cedar (low)
No big changes Cid (traditional)
Phased out high end
Coat (performance) Max perf criteria
Cure (size) Max size criteria
Cat (high) Newly introduced
Market Share of Products
Trad Low High Pfmn Size
Average % of Market 26.6% 30.9% 15.1% 14.5% 12.8%
Chester’s % 15.9% 19.4% 31.5% 27.0% 21.0%
Products
Overview
Strategy
Products
Finances Trials Take-
aways 7
Performance Snapshot
Andr
ews
Bald
win
Chest
er
Digby Er
ie
Ferris($20,000,000)
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
Cumulative Profit
An-drews14%
Baldwin13%
Chester
23%Digby
9%
Erie24%
Ferris18%
Market Share
Finances
Overview
Strategy
Products
Finances Trials Take-
aways 8
Stock Price
ChesterROS 9.1%
Turnover 1.78 ROA 16.3%
Leverage 1.2ROE 20.0%
Emergency Loan $14,978,503 Sales $336,184,072 EBIT $50,863,557
Profits $30,737,559 Cumulative Profit $92,386,025
SG&A % Sales 5.5%Contrib. Margin % 26.2%
2010 2011 2012 2013 2014 2015 2016 2017 2018
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
Closing Stock Price
Andrews
Baldwin
Chester
Digby
Erie
Ferris
Finances
Overview
Strategy
Products
Finances Trials Take-
aways 9
Financial Impact
Rd 1 Rd 2 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 Rd 8$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Product Costs
Inventory CarryR and DPromoSales Budget
Thousands
Overview
Strategy
Products
Finances Trials Take-
aways 10
Successful Decisions R&D decisions within the customer’s ideal
criteria range Constant comparisons to competitors Added Cat into high end Portfolio diversification Investment in automation
Trials
Overview
Strategy
Products
Finances Trials Take-
aways 11
Unsuccessful Decisions Skimping out on advertising Wrong sales team adjustments Emergency loans Inconsistent investment in capacity Forecasting was poor – leftover inventory Product going outside perceptual map Trial & error
Trials
Overview
Strategy
Products
Finances Trials Take-
aways 12
Lessons Learned Communication within the team for
decisions Coordination between the various business
units working together as a team Awareness of both the competitors and the
stakeholders Different perspectives on multiple
disciplines Strategic thinking
Take-aways
13
CHESTER,
INC
Sensor Company
Questions?