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Andrews Industry C55872 Jesse Pierce Sujan Shrestha Gwendolyn Simmons
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  • 1. Jesse PierceSujan ShresthaGwendolyn Simmons

2. By using the Capstone Courier and the Industry Reportwe were able to position our products We developed two new products 1st product introduced at the beginning of the simulation 2nd product development began in round 4 due to researchestimation error in Round 3 We wish to continue making new innovative products inthe future to replace outdated segments 3. The under allocation of funds led to decreased sales andincreased inventory. Competitors marketing strategy also led to decrease in salesdue to aggressively high sales budget and marketing expenses Allocation of funds were important in determining promo andsales budgets between segments Emphasis was placed on new products to enhance theircustomer awareness and accessibility Prices had to decrease in order to remain competitive in the laterrounds We strive to take advantage of all the market segments using abroad cost leader strategy 4. Through the ability to add sales positions and choosemedia outlets, we were able to centralize our marketingand sales budgets Allowed to concentrate on target markets that werehighly competitive Broaden scope of customers through different salespositions and promo outlets 5. There is a fine line between overproduction andunderproduction Overproduction led to excessive inventory and carryover costs Underproduction led to lower competitiveness and loss ofrevenue Producing the optimal quantity of each segment to not stock outor carry excessive inventory after each round Determine which segments to automate and which tosimply increase or decrease capacity For enhancement, increase capacity and production fornew products and take advantage of the second shift 6. Decrease employee turnover through the humanresources budget and recruiting Increase employee productivity through increasedtraining hours In the future, we would like to increase employee wagesand provide production incentives to employees 7. One advantage is the reduced R&D development timesfor each segment Other advantages include decreased material and laborcosts Green incentives were included for production andaided in sales Continuation of TQM is very beneficial but investmentsneed to follow an S-curve 8. R&D issues led to increased borrowing in both debt andequity starting in Round 4 Borrowing at a lower interest rate was key In the future, we would decrease long-term borrowingand manage our finance decisions in a more timelyfashion. Dividends are useful when you have the excess earningsand we would establish a corporate dividend policy 9. We are great innovators Our new products emerged ahead of their targetmarket segments and were quite competitive We are seasoned We have overcome diversity and intensecompetition