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Mission Statement

Our mission is to provide acceptable quality sensors to our wide range of customers in an environmentally manner. (now)

Andrew’s vision

(future) Our vision is to become one of the top environmentally friendly products in the high technology segment.

General Strategy

Our original strategy was to be the generic brand which we sell around the ideal criteria since we were trying to reduce our material costs because we’re environmentally conscious. We want to attract high net worth investors through issuing and retiring stock.

Competition Round 1

We try to meet customer’s buying criteria using courier report from its performance, size, and reliability at the same time keeping the cost of producing at a minimum while still promoting our products and at the reasonable selling price. At this time we did not know for sure how to market our products, how many units should we produce, neither how or/and how much to finance our products and the production lines which it is why we decided to sell our capacities to increase funding.

We start with R&D department in finding what our clients want and need for each product. For the marketing department to see at which price that would be best for sale and sale quantities. Production would need to use the forecast number to produce enough units for the market demand with consideration of how many workers would be needed. We also want to invest in the automation for next year for the tradition, low-end and high-end machinery. Besides, we thought it would be better if we retired some of our stock that would raise our stock price higher which it was, but then it also hurt our cash flow. Instead of issuing stock for the first time operating to raise capital, we pay the dividend to diversion to attract investors to invest in our company. Meanwhile allowing clients to have little more time to pay us back as long as 40 days for receivable account and account payable as quickly as seven days to push all buying and producing as fast as possible and encourage employees by paying them sooner.

Competition Round 2

Learning from the first year, after we developed our products, again trying to satisfy customer demands, we developed products, marketing, and produced them accordingly. This time we issued stocks and long-term bonds, but it was still not enough to cover our production lines and investment in machinery. That is also one of the reasons why we lowered our sales promotion budget and promo budget which made clients unhappy. Meanwhile, we maximized plant capacity, and we produced more and bought more capacity. We also have a vast amount of remaining units from Able, Acre, Aft, and Agape that driven the inventory cost to very high that we did not have enough fund to pay for inventory. Also Arce/Low-end’ Age Ideal did not meet customer’ buying criteria that the product is too young while the demand wanted it to be at seven years of age, but we did not know and understand how to keep the product get older. Free cash flow position led us to shorten the number of days from account receivable and pay a little later as 15 days. Furthermore, we invested in training our employees up to 80 hours each year and spent as much as 15 dollars per recruit and arming for 100 percent complement.

Most important information that our competitors had developed more products and we were not aware of it that we lost that market shares.

Competition Round 3

We also did not hit the right requirement regarding our R&D customer buying criteria. We tried to be around the ideal numbers. By using the ideal numbers, it resulted in our high leftover inventory numbers. For this round, we were adamant about not touching Acre’s R&D specs so we can let the product age. The revision date was too late if we used the ideal numbers, which is why our latest revision date was September 2021. Regarding marketing, we failed to allocate money for both sales and promotion budget compared to other teams who were in the high 1000s or low 2000s. By neglecting the budget, it resulted in a decrease in our market shares. For marketing, we should have priced way lower compared to competitors since we did not have the ideal R&D requirements. We tried something different in this round for the forecast numbers, we took the growth rate divided by six companies, and that was our market share. In the production department, we did not produce anything for Acre since we had a high inventory from round 2. We were very conservative with our production schedule numbers. We tried to match the production schedule numbers with marketing because we were scared of having higher inventory holding costs that led us to become bankrupt in round 2. The only product that we produced more was Adam because it was our best selling product. We also increased automation from 5.7 for Acre and increased our capacity for Adam since it is our best product. Due to low production schedule numbers, Adam was the only product that overutilized the plant. We took out a long-term debt of $5 million to accommodate production investments. We also issued stock to gather more funds. For HR we did not do anything, we kept it the same numbers from round 2. Compared to round 2, we did not have much need for training since we did not add in that many recruits.

Competition Round 4

We went bankrupt due to issuing too much stock. Talk about the issues that led us to become bankrupt. We had a high inventory holding costs, which led us to overestimate the production schedule numbers. For each of the products, we did not take in consideration of our market share. One of the team members changed the production schedule numbers last minute, resulting in us having more than half of unit inventory left over for Able. With our limited budget, we still need to invest in TQM which we have to decides how much to invest in and for what purpose that suggested us to participate in CPI systems preventing future material costs, vendor relations and just in time inventory control system, QIT, concurrent engineering to reduce R&D cycle time. Originally, we had 1800 for Promo Budget for Able product. This was later changed to 1200 for some reason. Our unit sales forecast for Tradition went from 1400 to 1475 because we try different way of forecasting. This year we use industry unit demand time growth rate of next year and take ⅙ of it and multiply our market share of 13 percent plus units sold which is why forecast for Tradition from 1400 to 1475. In this round, we reduced promo budget from 1800 in Round 3, to 1200. We did this because we had high customer awareness of 92 percent, and we were willing to lose a bit of awareness to 89 percent. We increased sales budget from 2000 to 2500 because we wanted to increase customer accessibility. This helped because we went from 62 percent to 69 percent which is great. For Acre, our original unit sales forecast was 1100 and later increased to 1200 because again we use industry unit demand time growth rate of next year and take ⅙ of it and multiply our market share of 7 percent but we want to produce a little more to maximize employee potential which is why we increase over a hundred more units.

For this round, we did not produce many products due to our high inventory from round 2. Another reason why we took on that $5 million long term debt was to increase our capacity for Adam since it was our best selling product. We lowered it to lower costs and to have some money to invest in TQM. Since we bought capacity, we do not need to increase hours of training. We have a good amount of hours of training already.

We stopped paying dividends in this round since our company was doing so poorly.

Competition Round 5

We are trying to stick to the performance and size ideal numbers as close as possible for this round. Even if the revision date is super late in October and November 2023, we are testing to see if this would better our sales this round. All the other teams have the exact performance and size numbers. We are currently happy with our HR numbers, we only changed the training hours by going from 60 to 55. Due to selling capacity in Able, Acre and Adam, we only had 16 new employees this year due to pushing out our new product Arce2. We decided to sell capacity since we had so much leftover inventory, so we do not need all of this extra capacity. Selling capacity would also help us pay off our $20,083 debt that is due this year. For Acre, we invested in more automation, since low-end products should be made by robots for the most part. We only produced 75 units for Acre because we have 963 units leftover from the prior year. Same with all the other products, we produced very little amount of units to sell off inventory from last year. We do not want to be taxed for inventory holding costs. Since Arce2 is a new product, we chose 510 units for the production schedule. We hope that adding this new low end product will help us gain a bigger market share for low end products. For marketing forecast, we took the percentage of the total multiplied by the increased percentage, then we took 90 percent of that. Later on, Alexis decided to add in 50 for each product just as a buffer in the production schedule. We heavily invested in TQM especially the Concurrent Engineering option to make our revision dates earlier in the year. We invested a lot and now our earliest revision date is July 2023 compared to October 2023 like at the beginning. This round we decided not to issue or retire stock. Our stock is not worth a lot, so if we even tried to buy back our stock, it wouldn’t help our company. The reason why our stock prices are so low is because our assets and the depreciation. Along with not issuing or retiring stock, we will not pay dividends since we are in no position to pay them especially after going bankrupt in the last round. We will tav8fe8p.ke on long-term debt of $12,992 instead. Our main goal for this round is to pay off the $20,083 debt yet still be positive by the end of the year.

Competition Round 6

For R&D we do not want to spend that much money, we want to make sure we end the year on a positive note, literally. We are going to use all the R&D ideal numbers to match the customer’s buying criteria perfectly. We will leave Acre and Arce2 alone so it can age. All the revision dates are currently at the end of May which is okay with the team. For Marketing Forecast numbers, we took the Total Industry Unit Demand multiply the Next Year’s Segment Growth and multiplied it by our market share plus 2 percent for each product. We have also decided to lower the price for Acre from $18.75 to $18.25 since we have high customer awareness and accessibility. We also lowered the price for Adam to stay competitive. We’ve intentionally placed Arce2 cheaper than the original Acre since it’s still a new product. We’ve also placed all our promo budgets at 1500 and 2000 for sales budget.

Regarding Production Schedule, we used the exact numbers from our Marketing Forecast because we do not want to run out of inventory. We could not use the exact Marketing Forecast number for Arce2 since we do not have enough capacity, so we only put 600.

For Finance, the max we can and will issue is $8 million since this is the last round. We also have to pay back $20 million this year. We have decided to retire stock 157 thousand since we have increased our buying power. We are going to see an increase in our projected stock price at $16.48. Our ROS is 2.1 percent, it used to be -7.5 percent. Our asset turnover rate got better compared. Our ROE went from -15.7 percent and now it is at 5.2 percent. We have decided not to pay dividends since we are still recovering from the last bankruptcy.

In the TQM department, we want to keep our high engineering and increase our demand. We will increase in Channel Support which leads to increased demand. We will also focus 1500 on the UNEP Green project since it reduces material costs and raises demand since customers prefer environmentally friendly products. Everything became 1500 because of equal distribution. Different factors have helped increase our demand such as sustainability incentive that helps reduce material costs. Our balanced scorecard is currently 63/100 which is a significant increase from last week.

we’ve increased our buying power. We’re going to see an increase in our projected stock price at $16.48. Our ROS is 2.1 percent, it used to be -7.5 percent. Our asset turnover rate got better. Our ROE went from -15.7 percent and now it’s at 5.2 percent We’ve decided not to pay dividends since we’re still recovering from the last bankruptcy.

In the TQM department, we want to keep our high engineering and increase our demand. We will invest in Channel Support which leads to increased demand. We will also focus 1500 on the UNEP Green project since it reduces material costs and raises demand since customers prefer environmentally friendly products. Everything became 1500 because equal distribution. There are different factors that have helped increase our demand such as sustainability incentive that helps reduce material costs. Our balanced scorecard is currently 63/100 which is a significant increase from last week.

Conclusion

We waited too long to make decisions. We would wait until 10-15 minutes before the 11pm deadline to make the decisions

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