BMP Syndicate 1

8/12/2019 BMP Syndicate 1

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BMP – SIMUATE

TEAM GREENPRN Name

12020541095 Chaitanya Pande

12020541097 Deepanker Ray

12020541106 Manish Chandra Renu

12020541129 Shailash Jain

12020541132 Sonal Meshram

12020541151 Paramveer Singh Khosa

12020541153 Sakshi Bateja



AGENDA

• Company – Vision & Mission

• Company Growth - Round wise

• Strategic Analysis - Round 10

• Production

• Production Report

• HR

•

Marketing• Financial Analysis

• Ratios & Key Financial Indicators



VISION -To be the Most admired

brand in the World providing innovative,state of the art, user friendly products of

lasting value to our customers, to make

their today better than yesterday

MISSION - To deliver the optimum

mix of the highest quality and

advanced technological features to

customers



COMPANY GROWTH

• Round 8: Increase Market Share

• Round 9: Achieve Leadership

• Round 10:Maintain market leadership



StrategicAnalysis –

Round 10

USA market shares

Green Red Blue Orange Grey Ochre Pink Navy Yellow Olive Brown Black Total 13.03 10.31 11.74 9.10 7.56 8.46 6.90 8.49 12.33 4.18 4.05 3.85

Tech 1 0.00 0.00 0.00 0.00 0.00 0.00 3.33 3.83 0.00 0.00 1.45 2.60

Tech 2 0.00 0.00 0.00 1.96 2.63 2.61 3.57 4.65 4.66 2.34 0.00 1.25

Tech 3 4.68 5.19 4.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Tech 4 8.35 5.12 7.15 7.13 4.93 5.85 0.00 0.00 7.67 1.85 2.60 0.00

5



6

Asia market shares

Green Red Blue Orange Grey Ochre Pink Navy Yellow Olive Brown Black

Total 5.04 12.65 7.86 5.50 13.94 8.00 11.45 12.73 8.30 4.24 5.13 5.16

Tech 1 0.00 0.00 3.50 2.19 0.00 6.47 5.25 3.33 3.49 1.39 2.47 2.38

Tech 2 0.32 0.00 0.00 0.00 7.64 1.53 0.00 0.00 0.00 0.00 0.00 0.00

Tech 3 4.72 8.06 0.00 3.31 0.00 0.00 6.21 9.40 4.81 2.85 0.00 2.78

Tech 4 0.00 4.59 4.36 0.00 6.30 0.00 0.00 0.00 0.00 0.00 2.66 0.00

Europe market shares

Green Red Blue Orange Grey Ochre Pink Navy

Yellow Olive Brown Black

Total 11.01 11.77 8.85 3.02 9.88 8.91 12.96 5.79 3.91 6.48 5.87 11.57

Tech 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.00 0.00 0.00 0.00 4.19

Tech 2 0.00 0.00 0.00 3.02 5.00 4.03 6.35 0.00 0.00 0.00 0.00 0.00

Tech 3 4.02 4.88 3.36 0.00 0.00 0.00 6.61 0.00 0.00 3.52 2.83 0.00

Tech 4 6.99 6.89 5.48 0.00 4.88 4.88 0.00 2.79 3.91 2.96 3.04 7.38



Production

•

Total no. of plants available – 14• Tech 4 :

Self Production in USA

Moving from round 8 to 9 besides selling all the production we also

reduced the inventory from 1138(k) to 670(k) units

In final round because of excessive production the inventory piled up to

1918(k) units

• Tech 3 :

Contract as well as self production

Tried to minimize the inventory as moving from round 8 to 9, Sold theentire tech 3 of 1650(k) units

Reduced production of tech 3 in USA to 320(k) units because inventory in

the previous rounds had piled up to 910(k) units already

• Tech 2 & Tech 1: Successful reduction in the inventory of tech 1 & 2 to

zero



Production ReportRound 8 Round 9 Round 10

Own production (k units) (k units) (k units)

USA(Tech 3) 1650 1650 330

Asia (Tech 3) 1100 1100 1100

USA (Tech 4) 4950 4950 6270

Contract Manufacturing

USA (Tech 3) 2262 2262 2817

Asia (Tech 3) 1917 2165 2445

Inventory

USA (Tech 1) 408 0 0

Asia (Tech 2) 361 239 0

USA (Tech 3) 0 910 1189

USA (Tech 4) 1138 670 1918



HR

• We have reduced the training budget to zero in round 10 along

with laying off 525 employees including HR turnover of 1%

•

This enabled us to reduced of total cost of employees from 97,000(k) $ to 9,000 (k) $

• Total cost per employee has been reduced to zero because we

have laid off all the employees



MARKETING

Market Technology

No. of

Features Unit Cost Selling Price

Promotion

(USD)

USA Tech 3 8 118.6 USD 195 USD 30000

Tech 4 10 153.2 USD 230 USD 40000

Asia Tech 3 8 1157.2 RMB 1800 RMB 40000

Tech 2 7 1951.9 RMB 3000 RMB 20000

Europe Tech 3 8 138.1 EUR 230 EUR 30000

Tech 4 10 177.8 EUR 280 EUR 40000

Competitive Pricing used throughout

Amongst lowest prices as compared to others

Very little or no inventory.



11

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

8 9 10

P r o f i t ( k

U S D )

Round

Profit

Total

0

5

10

15

20

25

8 9 10

E P S V a l u e

( U S D )

Round

EPS

Total

0

2

4

6

8

10

12

8 9 10

G l o b a l M a r k e t S h a

r e ( % )

Round

Global Market Share

Total

0

5

10

15

20

25

30

8 9 10

R O S ( % )

Round

ROS

Total



FINANCIAL ANALYSIS

• Fourth largest profit maker overall $ 849 140 k

• No short term & Long term debt

• Outstanding Equity Shares 5,263,005k

• Amongst 5 companies with “nil” Long term as well as Short term

debt

• Strong financial(Profit realized in all the rounds)

• Strong hold in all the Markets with excellent overall Market

Capitalization

• Market Leader in USA 12



RATIOS & Key Financial Indicators

Ratios & Indicators Value for Round 6 Value for Round 11

Market

capitalization6533821 k USD 13397178 k USD

P/E 14.77 15.78

ROCE 18.07% 23.59%

Cumulative total

shareholder return(p.a.)

-3.298% 5.327%

EPS 10.29 k USD 19.75 k USD



Future Targets set after Round 6 Round 6 Round 10

Increase Market Capitalization 6533821 k USD 13397178 k USD

People Strategy

More investments in employees

to reduce attrition rateHR turnover = 8% HR turnover = 1%

Increase investor’s value Share price = 151.9 USD Share price = 311.56 USD

Production Strategy

Increase no of plants in Asia No of plants = 2 No of plants = 2

Marketing Strategy

Increase market share in Europe 5.76% 11.01%

To be amongst top three players

in terms of market share8.86% 8.28%

Use availability of all

technologiesPresence of all technologies Absence of Tech 1

BMP Syndicate 1

Documents

Transcript of BMP Syndicate 1