Globus ppt

Globus ppt

• 1.
  Digital Kean Cameras Azuka Omesiete Richa Arora Florent Mialhe 04/03/12 1
• 2.
  Net Revenues Digital Kean Cameras (millions of dollars) Y6: 191M Y7: 168M Y8: 179M Y9: 167M Y10: 172M Y11: 203M Y12:167M Y13: 189M Y14: 274M 04/03/12 2
• 3.
  Earnings Per Share Digital Kean Cameras (EPS $) Y6: 2,40 $ Y7: 2,26 $ Y8: 3,27 $ Y9: 2,95 $ Y10: 3,15 $ Y11: 5,04 $ Y12: 3,94 $ Y13: 2,68 $ Y14: 5,64 $ 04/03/12 3
• 4.
  Return On Equity Digital Kean Cameras (ROE %) Y6: 21% Y7: 18,4% Y8: 23,8% Y9: 20,5% Y10: 26,8% Y11: 41,4% Y12: 30,6% Y13: 22,7% Y14: 37,5% 04/03/12 4
• 5.
  Stock Price Digital Kean Cameras (Dollars per share) Y6: 35,75 $ Y7: 33,34 $ Y8: 48,81 $ Y9: 48,68 $ Y10: 52,76 $ Y11: 77,24 $ Y12: 62,13 $ Y13: 49;06 $ Y14: 71,84 $ 04/03/12 5
• 6.
  Credit Rating Digital Kean Cameras Y6: A- Y7: A- Y8: A Y9: A+ Y10: A- Y11: A- Y12: A- Y13: B Y14: A- 04/03/12 6
• 7.
  Image Rating Digital Kean Cameras Y6: 63 Y7: 54 Y8: 53 Y9: 45 Y10: 47 Y11: 45 Y12: 32 Y13: 42 Y14: 47 04/03/12 7
• 8.
  Our Strategic Vision •Building a loyal customer base by providing quality entry- level cameras at a lower price than competitors. • Providing consumers with excellent quality multi-featured cameras, that satisfy their requirements. • Maximizing shareholders value. • Investing in long-term employee benefits, innovative technology, productivity increase and R&D. 04/03/12 8
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  Performance Targets 04/03/12 9
• 10.
  Entry Level Strategy •The company employed a « global low cost leadership » strategy from Year 6 until Year 12 meaning that: – Offering a low cost strategy advantage for a company means you can develop, manufacture, and distribute products more efficiently than competitors. – Having lower costs than competitors, lower prices, lower quality. – A continuous search for cost reduction without sacrificing acceptable quality and essential features. 04/03/12 10
• 11.
  Multi Featured Strategy •The company employed a « Global Best Cost Strategy » from Year 6 until Year 12 meaning : – Focus towards customers who are value- conscious and are willing to pay money in exchange of a good that has upscale features. 04/03/12 11
• 12.
  Production • Our company’sproduction line made use of expansions, Overtime and outsourcing. • Expanded 3 times during decision period • Hired temporary PATs for 3rd quarter production and laid off in 4th quarter. • Maximized overtime and outsourced the rest. • PATs were compensated less than competitors to keep costs down. 04/03/12 12
• 13.
  Assembly • Our mainfocus on assembly was not to get sold out so we could capture as much market share as possible. • Took advantage of 10% extra margin. • Production also depend on the following factors – Exchange rate profit or loss per region – Operating profit per unit 04/03/12 13
• 14.
  Financial Strategy. • Our financial strategy was formulated to eventually re-purchase most of our company’s stocks from our stockholders, that way, increasing the value of our company. • Our stock purchase was mostly financed through debt but we repaid a huge debt after our 4th quarter sales to maintain a strong credit rating. • We issued dividends every year to reward our shareholders after a successful business year. The dividend were usually dependent on our performance that year, so there were increases and decreases. • Given our current financial situation, there would have been a dividends paid the upcoming year, however they would have been the same or lower than the previous year. 04/03/12 14
• 15.
  Entry – LevelCamera • Company E and B Competitors After these 2 companies had implemented a successful strategy to corner the market share for the entry level camera, we decided to formulate a strategy similar to their which was a high quality-low price product. 04/03/12 15
• 16.
  Multi-feature Camera Competitors • Company E and B These companies managed to implement the same strategy for their entry – level and multi – feature cameras. Because of that successful strategy, they performed way beyond expectation and acquired majority of the market share and advantage. 04/03/12 16
• 17.
  Take Over strategy •We formulated a strategy to respond to the one being used by our leading competitors. Since they had the same strategy for their entry level and Multi-feature, we just needed to create one to counter their strategy. We responded by changing the price of our products to match the ratio to the P/Q rating as those other companies had done. i.e., whatever their price was based on the P/ Q rating of their camera, we adjusted our price based on our P/Q rating just so we could provide the lowest price even our P/Q rating was less than theirs. 04/03/12 17
• 18.
  Take Over Strategy(Contd.) • Our strategy seemed to be successful, however, we only implemented it in the final decision rounds, so even though we had a large boost in performance that year, it wasn’t enough to be placed in the top 3 companies. But if the same strategy was implemented in the following year, there would’ve been an even more significant boost in performance. 04/03/12 18
• 19.
  Future Actions • Willpay attention towards the quality (not lowering it extremely) and keeping the brand reputation. • Come up with more innovative and technological methods, by means of investing in R&D. • Address the high labor cost issues. 04/03/12 19
• 20.
  Lessons Learned • Alwayskeep an eye on your rivals actions. (never relax in the game of business) • Investing in marketing innovation, and technical support always pays off. 04/03/12 20
• 21.
  Lessons… • Better employeecompensation lowers the warranty claims and production cost. • Image Rating plays a great role in shaping your position in the market. • Following ethical business standards is more important than just making profits. 04/03/12 21
• 22.
  Lessons… •Do not overproduce. •Create a strategy and follow, make necessary adjustments according to competition. •Makes decisions by strategy not by projection numbers. •Use Competitive Intelligence Report to locate specific issues and tackle. 04/03/12 22
• 23.
  Questions ? 04/03/12 23