1. CAPSIM SIMULATION WINNERS!BY: MINHEE HUH, MOLLY MCGOWAN, AND KING TAN

2. SHAREHOLDER MEETING

3. CHANGING STRATEGIES TO MAKE BETTER PRODUCTS Original Strategy: Cost Leadership Differentiation Strategy New Strategy Focus Cost Leadership Strategy Differentiation Strategy

4. SALES AND PROFITABILITY THROUGHOUT THE YEARS300,000250,000200,000150,000 Sales (Millions)100,000 Profitability (Millions) 50,000 0 Year Year Year Year Year Year Year Year-50,000 1 2 3 4 5 6 7 8

5. MARKET SHARE AND LOSS OF SHARES Goal: Obtain largest market share in all competing segments Peak at Round 4 Cut off Size Segment Capacity loss shares

6. PRODUCT PERFORMANCE

7. 3 YEAR PLAN Strategy Expectations Obtain more market New product, same share - traditional and segments. low end. High customer survey Invest in new product ratings. development Growth in performance We have the monetary segment. funds to do so now. Keep employees Invest in production. happy!

8. 3 YEAR PLAN Products Create new product Control production in Bid Market Segments Enter our new product into the performance segment. Investments Plant, Property, and Equipment Employee R&D Finance Keep investors happy.

9. BOARD REVIEW

10. 7S MODEL: STRUCTURE AND STRATEGY Structure The Flat Organization no hierarchy The Decentralize System Strategy Our Value The Balanced Scorecard

11. STRENGTHS AND WEAKNESSES Strengths Weaknesses The Team Member Research and Guide Development Practice Rounds New Product Communication Capacity Independent work Automation The Competitions

12. WHAT WEVE LEARNED Research and Development New Product Competitions

13. WHY WE SHOULD RETAIN OUR JOBS We are winner!! 300000 250000 Sales 200000 Profitability 150000 Net Income Series1 100000 Stock Price and Mar Series2 ket Capital 50000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

14. TO FUTURE CAPSIM TEAMS: Read the Team Member Guide Practice Rounds Competitions Be Responsible

15. APPENDIXFINANCIAL INFORMATION

16. SALES300000250000200000150000 Series1100000 Series250000 0 Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8

17. NET INCOME Net Income30,00025,00020,00015,000 Net Income10,000 5,000 0-5,000 Series Series Series Series Series Series Series Series 1 2 3 4 5 6 7 8

18. STOCK PRICE AND MARKET CAP300250200150 Market Cap (Millions)100 Stock Price 50 0 Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8

19. BALANCED SCORECARD: FINANCIALS252015 Stock Price Profits10 Leverage Subtotal50 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

20. BALANCED SCORECARD: OPERATIONS25 Contribution Margin20 Plant Utilization15 Days of Working Capital10 Stock Out Costs5 Inventory Carrying Costs0 Subtotal Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8

21. BALANCED SCORECARD: CUSTOMER25 Customer Buying20 Criteria Customer Awareness15 Customer Accessibility10 Product Count5 SG&A Expense0 Subtotal Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8

22. BALANCED SCORECARD: EMPLOYEE30 Employee Turnover25 Rate Employee20 Productivity15 TQM Material Reduction10 TQM Material Reduction25 TQM Admin Cost Reduction0 TQM Demand Year Year Year Year Year Year Year Year Increase 1 2 3 4 5 6 7 8

23. BALANCED SCORECARD: TOTAL Total Points908070605040 Total Points3020100 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

24. REVENUE ANALYSIS: % REVENUE BY PRODUCT40.00%35.00%30.00%25.00% Baker Bead20.00% Bid15.00% Bold10.00% Buddy 5.00% 0.00% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

25. REVENUE ANALYSIS % REVENUE BY SEGMENT60.00%50.00%40.00% Traditional30.00% Low End High End20.00% Performance10.00% Size 0.00% Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8

26. CONTRIBUTION MARGIN ANALYSIS PERCENTAGE BY PRODUCT45%40%35%30%25%20%15%10%5%0% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Baker Bead Bid Bold Buddy

27. CONTRIBUTION MARGIN ANALYSIS PERCENTAGE BY SEGMENT60%50%40% Traditional30% Low High20% Performance10% Size0% Year Year Year Year Year Year Year Year Year 0 1 2 3 4 5 6 7 8

28. MARKET SHARE ANALYSIS: OVERALL12%10%8% Baker6% Bead Bid4% Bold2% Buddy0% Year Year Year Year Year Year Year Year Year 0 1 2 3 4 5 6 7 8

29. MARKET SHARE ANALYSIS: SEGMENT45.00%40.00%35.00%30.00% Traditional25.00% Low20.00% High15.00% Performance10.00% Size 5.00% 0.00% Year Year Year Year Year Year Year Year Year 0 1 2 3 4 5 6 7 8

30. EMERGENCY LOANS Year 1: $4,879,285 Year 2: $0 Year 3: $0 Year 4: $0 Year 5: $0 Year 6: $0 Year 7: $0 Year 8: $0

31. FIXED COST ANALYSIS PROMOTIONS Promotions18,00016,00014,00012,00010,000 8,000 6,000 Promotions 4,000 2,000 0 Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8

32. FIXED COST ANALYSIS: ACCESSIBILITY SPENDING Accessibility Spending20,00018,00016,00014,00012,00010,000 8,000 Accessibility 6,000 Spending 4,000 2,000 0 Year Year Year Year Year Year Year Year 1 2 3 4 5 6 7 8

33. FIXED COST ANALYSIS: R&D R&D4,0003,5003,0002,5002,000 R&D1,5001,000 500 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

34. PLANT AND EQUIPMENT CAPACITY200018001600140012001000 800 600 400 200 0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Baker Bead Bid Bold Buddy

35. PLANT AND EQUIPMENT INVESTMENTS: AUTOMATION Baker Bead16 1814 1612 14 1210 10 8 Size 8 Size 6 6 4 4 2 2 0 0 0 5 10 15 0 5 10

36. PLANT AND EQUIPMENT INVESTMENTS: AUTOMATION Bid Bold14 1812 16 1410 128 106 Size 8 Size 64 42 20 0 0 10 20 0 10 20

37. PLANT AND EQUIPMENT: AUTOMATION Buddy14121086 Size420 0 5 10 15 20