glo-bus presentation focus llc
TRANSCRIPT
Co-managers: Adriana Cuskova, Damien Vargas, Esmir Deljanin,
Nuzhat Shorna, Olya Gerasimo
FOCUS LLCFocus your camera - Focus your life ©
1. Introduction
2. Mission Statement
3. Overall Strategy
4. Year 6-8 Performance
5. New Strategy
6. Year 9-12 Performance
7. Overall Performance
8. Achievements
9. Lessons Learned
AGENDA
Headquartered in U.S.A.Production facility in TaiwanDesign, assemble, and market: Entry-level and multi-featured camerasStrong regions: Europe-Africa (40% of unit sale)Asia-Pacific (30%)Weak regions : North-America (10%)Latin-America (20%)
INTRODUCTION
Task➔ Meet diversified and sophisticated customer needs➔ Introduce new and improved models, add performance features, restyle camera bodies
and housing, and upgrade internal camera softwareValues
➔ Fulfill expectations of our customers, investors, and society, emphasizing remarkable corporate governance and implementing activities that contribute to environment and social sustainability
➔ Improve the life of our American workers who are extremely knowledgeable and highly skilled
MISSION STATEMENT
Vision and Goals➔ Become the global leader in market for digital cameras➔ Distinguish our cameras from the products of our competitors➔ Bring the best user experience to our customers through improved products
and innovative designs
MISSION STATEMENT
OVERALL STRATEGY: YEARS 6-8
Why did we employ a cost-leadership strategy?
During the first few years we wanted to:
➔ Gain competitive advantage
➔ Achieve lower overall costs than competition
➔ Market to a broad consumer base
OVERALL STRATEGY: YEARS 6-8
Achievements:
4th place
Stock price $30.17
ROE $18.1
EPS $2.12
Credit Rating A-
Image Rating 62
Net Income $21,149K
Sales Revenue $200,135K
Competitive Efforts:
Set competitive prices EL: $169 (Industry Avg: $163) MF: $391 (Industry Avg: $392)
Hired 50 additional PATs for 3rd quarter and offered fair wages and benefits
Paid some debts and dividends
Introduced improved models, added performance features, restyled its camera bodies and housing ( ELC 4 models, MFC 2 models, more features, 2.5stars)
YEAR 6: EFFORTS & ACHIEVEMENTS
Competitive Efforts:
Gain competency-based advantage (Unique internal resources and capabilities- ownership of resources and frequent innovations)
Increase advertizing budget for weak regions, improve technical support, increase warranty periods for MFC, increase number and lengths of promotions, and offer special discounts in our weakest regions
Achievements:
2nd place
Stock price $32.64
ROE $16.9
EPS $1.99
Credit Rating A-
Image Rating 59
Net Income $19,493K
Sales Revenue $188,818K
YEAR 7: EFFORTS & ACHIEVEMENTS
Competitive Efforts:
Increase number of ELC- 4 models, MFC 2 models, each 2.5 stars, improved quality
All decision entries were made based on the Glo-Bus Projected Performance feature
YEAR 8: EFFORTS & ACHIEVEMENTS Achievements:
6th place
Stock price $24.67
ROE $24.6
EPS $0.63
Credit rating C
Image Rating 45
Net Income $5,958K
Sales Revenue $138,257K
What went wrong?● We attempted to incorporate our expectations based on whether or not competitive efforts will on
average weaken or intensify for the upcoming year. What did we anticipate from our competitors?
● Price - HIGHER by 5% to 10%● P/Q Rating- HIGHER by more than ½ star● All other marketing variables - Significantly MORE competitively aggressive
PROJECTED OUTCOME YEAR 8
PROJECTED VS. ACTUAL PERFORMANCE
Why? ➔ Economical, functional business structure ➔ More ability to control costs➔ Offer single design or several ➔ Gain cost advantage➔ Narrow segment
NEW STRATEGY: COST-FOCUS
YEAR 9: IMPLEMENTING NEW STRATEGY
Achievements6th place
Stock price: $17.67
ROE: $9.2
EPS: $0.54
Credit Rating: C-
Image Rating: 40
Net Income: $6,614K
Sales Revenue: $136,818K
Competitive Efforts
Narrowed Segment by differentiating cost by region, while keeping the same quality and same # of models:
Lowered prices for entry-level
Lowered prices for multi-feature
Lowered production costs in all 4 regions
Decreased core component costs for both entry-level and multi-feature cameras,
Increased advertising
Build a brand
Perception of unique product● Product features● Advertising● Tech support● Warranty period● Selling prices● Autonomy of workers
YEAR 10: DIFFERENTIATION STRATEGY
Competitive Efforts:
Issued stocks to increase cash
No dividends, # models 1 ELC and 2 MFC, debt
Advertising budget for weak regions
Technical Support
Warranty Periods for MFC (3 years)
Increase number and length of promos
Special discounts in weakest regions
Achievements:
6th place
Stock price $12.52
ROE $4.1
EPS $0.32
Credit Rating C+ (IMPROVED)
Image Rating 59 (IMPROVED)
Net Income $5,066K (INCOME)
Sales Revenue $212,978K (INCREASED)
YEAR 10: COMPETITIVE EFFORTS
Achievements Year 11 Year 12
Stock price $8.68 $13.24
ROE $1.3 $12.1
EPS $0.10 $1.13
Credit r B- A-
Image r 62 62
NI $1,749K $18,781K
S Rev $229,356K $273,617K
1 model ELC 2.5
1 model MFC 4
Warranty period 3 yrs for MFC, 2yrs for ELCcompetitive marketing, production, distribution
YEAR 11-12: EFFORTS & ACHIEVEMENTS
● Capture momentum● Regain investors’ trust through stronger performance● Become “Leap Frog of the Year” ● Off credit watch list● Keep building up that brand!
YEAR 11: CONTINUED DIFFERENTIATION STRATEGY
● Differentiation rocks!● Lower labor & warranty costs● We finally got good and the game is over!?
YEAR 12: CAN WE KEEP PLAYING?
OVERALL PERFORMANCE: NET REVENUE, EPS
OVERALL PERFORMANCE: ROE, STOCK PRICE
OVERALL PERFORMANCE: CREDIT, IMAGE
OVERALL SWOT ANALYSIS
S- Warranty period for ELC and MFC- MFC P/Q rating- Tech Support in Europe-Africa- Advertising budget in Asia-Pacific
W- Retailers- High Labor Costs- Low Operating Profits- Number of models
O- Higher P/Q rating- Increase Advertising Budget- Improve Tech Support- Increase market share
T- Pricing pressure from competitor- Exchange rates- iphones
North America ELC 5% vs 11.8% MFC 5% vs 10.9%
Latin AmericaELC 10% vs 10.8%MFC 10% vs 10.1%
Europe-Africa ELC 20% vs 11.1 % MFC 20% vs 17.5%
Asia-PacificELC 15% vs 15.9% MFC 15% vs 14%
MARKET SHARE: YEAR 5 vs. YEAR 12
● Strong and improved quality of our product
● Extensive global presence
● Commitment to innovations and consumers
● Our workers’ improved quality of life
● Our greatest asset is PAT members who are extremely knowledgeable, highly skilled, and American workers
OUR MAIN ACHIEVEMENTS
● Reject Globus Projected Performance feature● Don’t find yourself “stuck in the middle” - Take a risk and change strategy if it is
required or combine strategies● Keep labor costs according to industry average● Establish your company- pay debts- pay dividends-stay socially responsible● Trade-off● Set benefits different from competitors - Differentiate yourself● Stay optimistic, positive, and hard-working
LESSONS LEARNED
FOCUS LLCFocus your camera - Focus your life ©