AlphaSonic

Presented by:

Phurba SherpaPatricia WilkesShay Gutman Eva Toh

Alpha SonicCompany Long-Term Direction

Vision We help the customers of Alpha Sonic live happier lives by providing them affordability, quality and guarantee.

MissionTo become the number one producer in Camera Industry by selling high-quality products.

ObjectivesAchieving lower costs than other rivals.

Initial Position

Initial Position

Net Revenue

Earning Per Share

Return On Equity

Stock Price

Credit Rating

Image Rating

Performance Targets

EPS year 16: $6.06

ROE year 16: 23.5

Credit Rating year 16: A

Image Rating year 16: 85

Stock Price year 16: $98

EPS year 17: $6.15

ROE year 17: 24.5

Credit Rating year 17: A+

Image Rating year 17: 90

Stock Price year 17: $110

Strategy Formulation

Entry Level Strategy

Offered moderate qualityentry level cameras.

As progressed, lowered thequality of our entry level.

Our entry level camerascame with a warranty.

Invested in R&D andtechnical support.

Multi Level Strategy

Focused more on quality.Provided warranty andtechnical support.

Multi-feature cameracustomers are alsoconcerned with price,which encouraged us tolower the quality.

Strategy FormulationProduction Strategy

Compensating our employees fairly to increase their commitment to the company and increase production rates.

Invested in training programs for our employees and each year able to increase production rates.

Given the increased production rates, we were able to accomplish all entry level and multi feature cameras in the house.

To maintain a good creditrating.

Didn’t borrow much money.

Net sales revenue wereamong the highest of all thecompanies.

Spent the most onadvertising, and ourproduction costs.

Financial Strategy

SWOT Analysis

Strength

Retail coverageWarranty periodLow price

Weakness

Entry level PQ rating

Opportunity

ExpansionBroader product line

Threat

Competitors

What didn’t work well?Actions to takeReducing or ending operations in Latin America, as this is the region where our company receives the least amount of profits.

Investigate alternatives regarding production of entry level and multi feature cameras to decrease warranty claims and costs.

Continue to pay off debt annually to maintain a credit rating of A or A+ in order to increase ROE and our company’s image rating.

Lessons Learned

Compensation of employees

Amount invested in training programs is apositive indicator of production rates andimage rating

Lowering production costs allows forsavings to be passed on to customers bymeans of lower costs or increasing promotions

Questions

Thank You