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Aimee Flores, Mark Leuterio, Anatoly Shcherbatko

Capstone Simulation 5-Year Plan

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Conclusion of Business Operations Project - Including R&D, Marketing, and Finance

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Page 1: Capstone Simulation 5-Year Plan

Aimee Flores, Mark Leuterio, Anatoly Shcherbatko

Page 2: Capstone Simulation 5-Year Plan

To become a corporation of excellence and become the leading provider in product performance and price in the electronic sensor industry.

Page 3: Capstone Simulation 5-Year Plan

To concentrate our efforts into manufacturing products that are of highest quality in performance and size. We aim to position our products as dominant players in all market segments.

Page 4: Capstone Simulation 5-Year Plan
Page 5: Capstone Simulation 5-Year Plan

To achieve the highest stock price in our industry.

To maintain consistently positive results during each round, and at least 5% Returns on Assets, Equity, and Sales.

To keep at least a “B” S&P Bond Rating.

Keep variable costs below 65% to maintain a 35% contribution margin while leveraging our fixed costs to keep our prices consistently low.

Page 6: Capstone Simulation 5-Year Plan

Emphasizing efforts on all products equally

Establishing market share early by investing funds into Marketing

Generating an accurate sales forecast

Competitively investing in marketing budgets to stimulate higher sales

Declaring dividends to increase appeal of equity

Page 7: Capstone Simulation 5-Year Plan

Put strong focus on accessibility

Aggressively invested in TQM (Cost Leader Strategy) Allocating large sum of Marketing funds to Sales

Budget

Focus on increasing margins and slightly cut back marketing budget. Lower costs allow us to compete dominantly on a price level.

Lowering variable costs from heavy investment in TQM by increasing plant efficiencies.

Page 8: Capstone Simulation 5-Year Plan

Although our backgrounds are quite different, we managed to come together quite well.

Our skills were varied but we all contributed in management of financials, calculations of forecasts, and management of research and development as well as handling TQM.

Being in the same group as the practice rounds worked to our advantage in that we recognized our strengths and weaknesses.

Page 9: Capstone Simulation 5-Year Plan
Page 10: Capstone Simulation 5-Year Plan

By lowering our accessibility budget, we largely stifled sales progress.

By lowering our forecasts and increasing accessibility to remedy lost sales.

Page 11: Capstone Simulation 5-Year Plan

Limited accessibility led to less units being sold

Throughout the rounds we maintained a minimum cash buffer which kept us from withdrawing emergency loans in the event of a significant loss.

Page 12: Capstone Simulation 5-Year Plan
Page 13: Capstone Simulation 5-Year Plan
Page 14: Capstone Simulation 5-Year Plan

Lacking accessibility hurt our sales and put us in a relatively difficult position.

To be competitively ranked in our market, it was essential that we pursued the creation of a new product.

Issue stock early instead of dividends Since the Investment and TQM, we were left with

no other choice but to switch from Differentiation to a Cost Leader strategy.

By being determined and keeping our goals in mind, we made significant improvements from our dramatic decline in performance.

We were content with our immense gains in sales and improvements during the fourth round.