1. 1. + Kathleen Scott Cramer Yvonne Brennan Dara Reasor Eric Clark MG420 Business Policy PowerPoint Presentation Innovative Chester Inc. Global Ethical On-Time
2. 2. + Strategy: Broad Differentiator Maintain a presence in both segments. Competitive advantage by distinguishing products. Keep designs fresh and exciting. High awareness and easy accessibility.
3. 3. + Mission Premium products for the industry. Our brands withstand the test of time. Our stakeholders are customers, stockholders, management, and employees.
4. 4. + Vision Global leaders in providing reliable, sustainable, American made products. Dedicated to building lasting relationships with our customers. Commitment to quality management and excellence.
5. 5. + Research and Development 1. Cake (Low) Less Emphasis 2. Cougar (Low) More changes to R&D and Marketing. 3. Cobra (High) Moderate emphasis Poorly developed high-end product Team Chester Low High Low High Low High MTBF 17000 21000 21000 21000 21000 23000 PFMN 6.4 7.5 7.0 8.5 8.1 11.0 SIZE 12.5 14.7 10.7 12.0 9.0 11.9 Cake Cougar Cobra Chesters Products
6. 6. + R&D: Perceptual Map Goal to have project engineering completed by Dec 31 of each year. Position new products each year for the first three years keeping continual products in R&D. Position Chesters multiple products all within the accurate segment areas on the perceptual map.
7. 7. + Marketing Our goal is to obtain largest market share in the competing segment. Chesters percent of the market share peaked in round 8, year 2022 with 23.14%. Aimed for 100% customer awareness in both low and high tech beginning at round 1. Price realistically, yet competitively to achieve higher contribution margins.
8. 8. + Production Planned capacity to reflect demand. Aimed to carry products instead of stocking out. Calculated unit demand forecast by segment market growth estimation per round.
9. 9. + Production: Human Resources Invested in training and recruiting. Low overtime and Turnover rates. Employee productivity index of 118.1% Zero Employee Strikes
10. 10. + Total Quality Management Slow start with TQM Invested heavily as the simulation progressed Reduction to Admin Costs TQM Summary Team Chester Material Cost Reduction 9.43% Labor Cost Reduction 9.72 Reduction R&D Cycle Time 40.01% Reduction Admin Costs 57.92% Demand Increase 13.91%
11. 11. + Finance Implemented long-term financial planning strategy to avoid emergency loans Consistently achieved above average ROS after initial R&D Maintained profitability by efficiently managing company assets (ROA) Maintained positive cash flow
12. 12. + Finance: Stock Price Chesters closing stock price was $67.03. Our highest valued stock was $67.03. Our lowest valued stock was $17.99.
13. 13. + Successful Decisions Decreased prices on low and high tech products. Improved our forecasting techniques. Maintained positive profit margins and cash flow. Excellent group communication and collaboration Learned from the practice rounds. Accurate use of the team member guide.
14. 14. + Unsuccessful Decisions Did not accurately forecast sales in the beginning stages Did not utilize Total Quality Management (TQM) initiatives effectively. Launched a total of 3 products: Cake, Cobra, Cougar Plant utilization not maximized to full potential
15. 15. + Lessons Learned How the decisions of one business unit affects the others Better awareness of how competition drives decision making Implemented strategic thinking Develop additional products in R&D
16. 16. + Conclusion Chester is pleased with its end result, earning 630 points out of 1000. The experience allowed Chester to develop valuable collaboration skills. Chesters final score relative to all other teams in our segment was 76.9, which puts us in second place overall.