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Digby Digby Matthew Royce David Trementozzi Clifford Jensen Noah Cannon Casey Craft Behind Every Company is a Strategic Behind Every Company is a Strategic and Knowledgeable Team” and Knowledgeable Team”

Business Policies SEU

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Page 1: Business Policies SEU

DigbyDigby

Matthew RoyceDavid Trementozzi

Clifford JensenNoah Cannon

Casey Craft

““Behind Every Company is a Behind Every Company is a Strategic and Knowledgeable Strategic and Knowledgeable

Team”Team”

Page 2: Business Policies SEU

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Mission Statement:

Team Digby creates products that satisfy customers in every area including: accessibility, awareness, price, performance, size, age at revision and mean time before failure better than any of our competitors.

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Vision

To be the number one sensor company chosen by To be the number one sensor company chosen by consumers world-wideconsumers world-wide

Page 4: Business Policies SEU

Research and Research and DevelopmentDevelopment

Matthew RoyceMatthew Royce

Page 5: Business Policies SEU

Research and DevelopmentResearch and Development

• Main PurposeMain Purpose– Customer Criteria Customer Criteria

• Age at revisionAge at revision• PositionPosition• PricePrice• MTBFMTBF

• DifficultiesDifficulties– Main Focuses that needed adjustmentsMain Focuses that needed adjustments

• Performance and sizePerformance and size• Perceptual MapPerceptual Map

• Recovery PlanRecovery Plan

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• WeaknessesWeaknesses– Beginning RoundsBeginning Rounds

• Too much emphasis on performance and sizeToo much emphasis on performance and size• Did not meet ideal positioningDid not meet ideal positioning• High end product (Dixie) drifted into traditional High end product (Dixie) drifted into traditional

productproduct

• StrengthsStrengths– Strategic PlanningStrategic Planning

• Position products in a way that would benefit Position products in a way that would benefit customer criteriacustomer criteria in in later rounds later rounds

• Maintained consistency on the sweet spot for the Maintained consistency on the sweet spot for the perceptual perceptual mapmap from rounds 4-8 from rounds 4-8

• Invented new high end product-Dundle (in round 2)Invented new high end product-Dundle (in round 2)– Benefited future salesBenefited future sales

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MarketingMarketing• Main focusMain focus

– Customer awareness and accessibility Customer awareness and accessibility

• Early round setbacksEarly round setbacks– Misconception of Marketing expendituresMisconception of Marketing expenditures

• Key configurationsKey configurations– Perfect pricePerfect price– Consistent sales promotion Consistent sales promotion – Consistent sales budget Consistent sales budget

• GoalGoal– Manage an average customer awareness of 80% by Manage an average customer awareness of 80% by

round 8round 8

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Awareness

• Round 1:– Traditional: Daze 84– Low End: Dell 83– High End: Dixie 53– Performance: Dot 53– Size: Dune 53

• Total Average Awareness Total Average Awareness 64.8% 64.8%

%

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Awareness

• Round 8– Traditional: Daze 96– High End: Dundle 93– Size: Dune 93

• Total Average AwarenessTotal Average Awareness

%

(Goal was surpassed by 14%)

94%94%

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Accessibility• Goal:

– Increase Maximum potential of accessibility for every product

• Example: Dune

42%

100%100%

Expectation Expectation metmet

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ProductionProduction

Noah Noah CannonCannon

Page 16: Business Policies SEU

• WeaknessesWeaknesses– Most complex department to manageMost complex department to manage– Earlier RoundsEarlier Rounds

• Sold off necessary capacitySold off necessary capacity– Hopes to increase yearly earningsHopes to increase yearly earnings

• We were deficient to increase our automationWe were deficient to increase our automation• Stocked out of capacityStocked out of capacity

– Example round 5Example round 5 DazeDaze Trad.Trad. 1129 left1129 left

DellDell Low.Low. stock outstock outDixieDixie High. High. stock outstock out

DotDot Perf.Perf. stock outstock out

Dune Dune Size.Size. stock outstock outDundleDundle High.High. stock outstock out

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• StrengthsStrengths – Sold off performance and low end productsSold off performance and low end products

• Allowed purchase of more capacityAllowed purchase of more capacity• Increased our market shareIncreased our market share• Allowed an increased in the automation ratingAllowed an increased in the automation rating

• GoalGoal– Increase automation rating to full potential by round 8Increase automation rating to full potential by round 8

Round 1Round 1 Automation%Automation% Round 8Round 8 Automation %Automation %DazeDaze 4.0 4.0

DellDell 5.0 5.0DixieDixie 3.0 3.0DotDot 3.0 3.0DuneDune 3.0 3.0DoneDone 3.0 3.0

DazeDaze 10.010.0DixieDixie 10.010.0DuneDune 10.010.0DundleDundle 6.06.0

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Round 1:Round 1:

Round 8:Round 8:

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FinanceFinanceDavid TrementozziDavid Trementozzi

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Financial CrisisFinancial Crisis

• Late decisions caused financial disasterLate decisions caused financial disaster– Emergency LoansEmergency Loans

• Created repetitive cycle of borrowing moneyCreated repetitive cycle of borrowing money• Acquired Short and Long term debt Acquired Short and Long term debt

– Negative E.P.S and ROENegative E.P.S and ROE

– Our Retaliation PlanOur Retaliation Plan • Sell Dot (performance)Sell Dot (performance)• Sell Dell (low end)Sell Dell (low end)

– Change StrategyChange Strategy• Complete control over fewer marketsComplete control over fewer markets

– Quality employmentQuality employment– Affordable/competitive pricesAffordable/competitive prices– Faultless customer criteriaFaultless customer criteria

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• SuccessSuccess– Round 7Round 7

• Gained absolute control over 3 of the 4 marketsGained absolute control over 3 of the 4 markets

– AchievementsAchievements• Within 2 years (rounds) we were able to achieve:Within 2 years (rounds) we were able to achieve:

Round 6Round 6

ROSROS -19.7% -19.7%

ROEROE -66.1% -66.1%

E.P.SE.P.S -8.54$ -8.54$

C.MC.M 30.8% 30.8%

Round 8Round 8

-7.9%

-15.4%

50.650.6%%

1.00$1.00$

*Reached goal of achieving a positive E.P.S*Reached goal of achieving a C.M of 42%

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Human ResourcesHuman Resources

Casey Craft

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Setbacks Setbacks

– Employee demand was Employee demand was not metnot met

• Met minimum wage Met minimum wage requirementrequirement

• However employee demand However employee demand was not met (causing Strike)was not met (causing Strike)

– Earlier roundsEarlier rounds• Spent too little on recruitingSpent too little on recruiting• Spent too little on trainingSpent too little on training• Did not put enough focus on Did not put enough focus on

employee excellenceemployee excellence

– ExampleExample::• Round 1Round 1

– Spent only $400Spent only $400

ResolutionResolution

– Increased employee Increased employee production index each production index each roundround

• Created employee Created employee satisfactionsatisfaction

• Higher quality workersHigher quality workers

– Later roundsLater rounds• Spent maximum amount Spent maximum amount

on recruitingon recruiting• Spent maximum amount Spent maximum amount

on trainingon training

– Example:Example:• Round 8Round 8

– Spent $5,000Spent $5,000

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Total Quality ManagementTotal Quality Management

Casey CraftCasey Craft

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Total Quality ManagementTotal Quality Management

• Goal:Goal:–Achieved maximum expenditure Achieved maximum expenditure

by Round 8by Round 8

•Material Cost 5.32%Material Cost 5.32%•Labor Cost 7.46%Labor Cost 7.46%•R&D Cycle 32.39%R&D Cycle 32.39%•Administrative Cost 46.40%Administrative Cost 46.40%•Demand Increase 6.62%Demand Increase 6.62%

Round 4:Round 4: Round 8:Round 8:

•Material Cost Material Cost 11.80%11.80%•Labor Cost Labor Cost 14.00%14.00%•R&D Cycle R&D Cycle 40.01%40.01%•Administrative Cost Administrative Cost 16.02%16.02%•Demand Increase Demand Increase 14.40%14.40%

*Highest TQM of all the *Highest TQM of all the MarketsMarkets

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ConclusionConclusion

Page 27: Business Policies SEU

All said…We Feel that All said…We Feel that Team Digby Deserves…Team Digby Deserves…

A Buckeye Sticker!A Buckeye Sticker!

Special Thanks to Special Thanks to Professor HahnProfessor Hahn