Wrap Up Report

Wrap Up Report. Presenter: Company 10 YSZ Shaohang Sun, Zhengyang Liu, Yanrong Qiu.

1. Business-Level Strategies. Broad differentiation strategy Historical Performance: Maintained our prices at $77 Reduced the quality of our products from $7 to $6 Discovered that our products had the highest quality and the pricing was lower than our competitors Maintain the lead in terms of the net sales for the first three quarters. We took the lead in sales and gradually fell to third place after the third quarter..

1. Business-Level Strategies(Contin.). The decline in performance in the last two quarters is attributable to the decline in worker productivity which led to a decline in the number of units available for sale. Our manufacturing costs increased which saw the company finish in 5th place despite having recorded stellar performance in the first 5 quarters. Q1 - Q3: We purchased the unit price and quality market research Q1- Q6: We had the highest quality during this time, which maintained at an average 6 per quarter.

1. Business-Level Strategies(Contin.). Cumulative net sales of $15,668,036. Ranked 1 This was the best in the industry with the second team being $ 67, 569 behind our team Net income ($288,358). Ranked 6 This is mainly attributable to poor operating decisions resulting in low worker productivity and increased admin costs due to lease of an additional plant capacity..

2. Tactical Improvement Marketing. Pricing strategy based on BLS Price and Quality - Achieved Advertising - Need Improvement Maintained the same amount of expenditure for the web marketing at $5000, while the winnin team (3) invested times more. Facebook, and Youtube at $10 and $ 6 respectively for regions 1 and 2 respectively across all the quarters. 2% commission We placed our ad message as quality across the three regions for the three quarters. Web marketing (at $5,000, compared to about $11,000 industry average) Also lowest number of salespersons Tactical improvement: invest in market research focusing on competitor promotion expenditure.

2. Tactical Improvement Operations. Production capacity - Struggled Subcontracting for the manufacturer of products in R1 and R3 Subcontracting cost - Manufacturing costs increased Stockouts especially in regions 2 and 3 (Subcontracting).

2. Tactical Improvement Operations(Contin.). Low production capacity - Workforce management Fewer workers than the number needed to meet the production needs Q3 - Q8: Productivity rate of less than 1000.

2. Tactical Improvement Finance. Q1, Q2, Q4 and Q7 - Applied for loans Improving the efficiency - Meet the subcontracting costs - Leasing of plant capacity Pay interest taking up a chunk of our profits In the end of Q8: Excess idle cash, $ 298,997 - Short term investment earning interest income In future to ensure we will avoid idle cash and taking unnecessary loans so as to reduce the amount of interest paid and sustain profitability..

3. Strategies Improvement. The key strategic factor: Improve the team’s performance is the work processes such as production efficiency Q3 - Q7:Lack of efficiency The average manufacturing COGs per unit increased from $ 57.08 in Q2 to $ 62.47 in Q8 The average product cost also increased from $ 63.62 to $69.85 This shows a decline in per unit profitability of $ 6, explaining the decline in performance towards the end of the competition.

3. Strategies Improvement(Contin.). Maintaining the average production costs and manufacturing costs in the $55 per unit range would have yielded a per-unit gross profit of about $22 Team 3: Maintained average manufacturing COGs per unit of $54 and an average production cost of $57 Average price: $80 , team 3 was able to make a gross profit of about $23 per unit The strategic factor that would see our performance improve is increasing efficiency in our operations.

4. Request. External consultant needed to a devise way to expand our production capacity at a minimum cost. Lost $ 1,917,005 in sales revenues due to a cumulative unmet demand of 24,829 units . Help eliminate the need to subcontract production which contributed to a higher per unit product cost. Efficiency in production to lower manufacturing costs hence increasing net profits ..

THE END.