This is a Powerpoint Presentation made by myself and a group of mine in which we demonstrated how we won first place in the Threshold Business Competitor Simulation Game in GBUS 180.
3. MISSiON STATEMENT Our company sets forth to take a significant portion of market share within the plastic industry. Our customers will be highly satisfied with our cost effective strategy, our prices are moderate while still guaranteeing a sustainable product life. Incremental sales will prove quality along with efficiency.
4. STRATEGIES Emphasize high quality and low prices Pursue a cost effective strategy Cut overhead costs Purchased raw materials in bulk at a 15% discount Limited our spending
5. Statement of goals Become a leader in our industry Capture 35% market share Provide customer satisfaction with quality products at an affordable price Establish an ethical work environment for our employees . Focus on triple bottom line
32. Successful Strategic Moves An Emphasis on Price and Quality. Primary Focus on Market Research Steady Increase in HR Development $5000 increase in HR Development from Quarters 3-7. Increased Labor Productivity Price-Cutting Strategy for Final Three Quarters Switch from Price Leader to Price Lagger. Dramatic Increase in Sales and Net Income
33. Successful Strategic Moves (Cont.) Gradually Increased Marketing Expenditures Significant Investment in Raw Materials Bought 15,000 + Units of Raw Materials = 15% Quantity Discount Paid off Mortgage Payment in Final Quarter Decreased Total Assets, Boosted Return on Assets.
34. OUR MISTAKES Cut Human Resource Development by $3000 in 1st quarter. Borrowed an unnecessary amount of money – 2nd quarter Took too long to borrow plant capacity Resulted in increased production costs.
35. MAJOR CHALLENGES Balancing act between devising a profitable strategy while limiting production costs Price and quality decisions. Plant Capacity Decisions
36. MODEL OF CONSISTENCY Never finished lower than 4th. Finished 1st the last three weeks of competition.
40. WHAT WOULD WE DO DIFFERENTLY? Increased HR Development from the start. Increased Plant Capacity gradually every quarter Would Cut Production Costs Invested more Cash in Short Term Investments More Interest Income, Decreased Interest Expense
41. What did We Learn? The fundamentals of a sound business strategy The importance of teamwork. The difficulty of balancing critical company elements. The importance of competitive intelligence. How to implement a sustained competitive advantage.
Notas do Editor
Lowered Product 1 Price by two dollars and p2’s price by 2 dollars.