Post on 23-Feb-2016
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Funky Junk INCYears 6-15 Review
Willomina WonkaXavier XenonYitzhak YankovicZero Zevon
Financial Performance Annual revenues grew at a CAGR of 2.8%
per year Annual EPS grew at a CAGR of 10.7% per
year Annual ROE grew at a CAGR of 4.9% per
year Annual credit rating reached A+ in year 9
and continued through year 15 Stock price grew at a CAGR of 9.8% per
year Image rating peaked at year 8 with a 74
Strategic Vision
Establish the company as a leading low cost provider of digital cameras while providing high quality products and maximizing stockholders' return. We also strive to employ the best workers in the industry through training and highly competitive compensation.
Future Targets
Year 16 EPS – $4.12 ROE – 24% CR - A+ IR - 65 Stock $ - $67
Year 17 EPS - $4.50 ROE – 27% CR – A+ IR - 70 Stock $ - $72
Competitive Strategy E-L To be a overall low cost provider of
entry-level digital cameras in the four geographic regions in which we operate.
Strategy had to evolve during years 9-10 because of high operating and marketing costs
Strategy back on track by year 15 with a price 4% below industry average
Competitive Strategy M-F
To be a overall low cost provider of multi-feature digital cameras in the four geographic regions in which we operate.
Strategy had to evolve during years 9-10 because of high operating and marketing costs
Strategy focused by year 15 with price 13% below industry average
Production Strategy Our production strategy included
utilizing overtime capabilities to avoid costly outsourcing
Expanding in-house assembly to 71 available workstations by year 15
Maximum bonus for perfect attendance and an average of $1500 in training per PAT
Compensation package around $35,000 per year
Finance Strategy Our finance strategy centered around
paying off L/T debt within the first 4 years to free up capital and achieve an A+ CR
Repurchasing maximum amount of stock with extra capital
Steadily increasing dividends to reward shareholders, ending with the highest dividends paid in the industry
Continue paying near maximum dividends in the future years to increase SE in the company
Strongest CompetitorsEntry-Level
Closest competitors were companies B & D because of same P/Q ratings (2) and competitive prices among the companies
Multi-Feature Closest
competitors were companies D & H because of similar P/Q ratings (3 – 3 ½) and price battling between the companies
Out – Competing Rivals
Entry –Level and Multi-Feature Continue to lower production costs
which will enable us to decrease prices Invest more in marketing and R&D to
capture market share away from our closest rivals
Lessons Learned You must observe and take action to
decrease costs associated with marketing and production
Study your rivals and the industry when deciding what offensive tactics to pursue
Stick to your competitive strategy, allowing for evolvement over time
Do not lower ethical standards in order to just make money