3. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
3
4. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
- Strategy
- Mission Statement
- SWOT
- Porter’s Five Forces
4
5. Broad Differentiator Strategy
• Maintain a presence in all segments of the sensor market
• Competitive advantage gained by distinguishing products
with excellent design, high awareness, and easy accessibility
• R&D capability to keep designs fresh and exciting
• Improved size and performance
• Prices are above average
www.capsim.com
5
8. SWOT Analysis
Strengths (Internal factors) Weaknesses (Internal factors)
- High contribution margin
- Low age of product
- High performance of product
- High product accessibility
-Among current market leaders
-Strong financial position
-High cost to produce
- R&D funds (expensive to modify
product)
- Cost of constant marketing funds
Opportunities (External factors) Threats (External factors)
-High industry growth rate
-Market is available for capture
-Customers are willing to pay for quality
-Potential market share of competitors
-Competitors price cutting unexpectedly
www.capsim.com
8
13. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
13
14. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
-Profit Margin
-Return on Equity
-Cash on Hand
14
17. Easy and Accessible Financing
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Andrews Baldwin Chester Digby Erie
Amount of Cash on Hand, Round 8
$
Companies in Industry
$96,626
Bond Rating: AAA CC DDD A AA
www.capsim.com
17
18. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
18
19. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
– Sales Growth
– Contribution Margin
– Production Capacity
– Future Plans
19
22. Value for YOU
22
Many users of financial statements, including
investors, want to know what is the value of the
firm?
Value for shareholders is the income from operating
and financing activities
Andrews Baldwin Digby
Operating $79,651 $51,523 $70,552
Financing 0 (48,495) 0
Value $79,651 $3,028 $70,552
www.highered.mcgraw-hill.com
23. Year 8 Production Capacity
23
0 5000 10000 15000 20000 25000
Erie
Digby
Andrews
Units (Thousands)
Capacity Analysis (w/2nd Shift)
Production
Capacity
25. Company Andrews is a Low Risk,
Strong Buy for Investors
• Low risk factors provide confidence to
management, consumers, and shareholders
• Strong financials lead to secured profitability
• Company strengths provide for a promising
future
25