market simulation analysis

CAPSTONE PROJECT REPORT

TEAM NAME U5T6

(UNIVERSE 5)

Saluja Neerav Rakesh U113041Siddharth Padhee U113113

Submitted to: Prof. Anshuman Tripathy

Date of Submission: 10/08/2014

Team Name U5T6 Objectives AvhievedName of Students Neerav Saluja Siddharth

Sourav PadheeStudent Id. No. U113041 U113113

Vision To be the most trusted cellular phone manufacturers in the world .Our focus is to provide user friendly and robust handsets with widely accepted designs for our customers for uninterrupted connectivity with their loved ones and also to focus to build shareholder value by making our company a truly sustainable organisation.

We were able to achieve our mission as we were sustainable and invested in ethical & sustainable suppliers. We invested heavily in R&D as per demand and introduced new features on a regular basis for a rich customer experience. One of our major achievements was providing affordable prices with constant drive to innovate.

Mission (for 10 years) Year(1-3): The Company will focus on gaining market share through sound market research which will help us to strengthen our hold in the market and also to anticipate the future trend in the mobile technology.

Year (4-6): Invest in R and D for new technologies, outsource the manufacturing the old technology handsets for cost optimization and seed in the new technology phones in U S and Europe Markets. Provide effective service to existing customers and receive feedback for continual improvement. Parallel establish factories in Asia.

Year (7-10): Deploy Products in markets of Asia. Maximise profits through proper segmentation of market for respective technologies and maximising the returns for the shareholders

We were able to enter and establish ourselves as leaders in the new market. We were successfully able to capture a substantial market share globally.

Our focus for these 3 years was to bring new technologies to market at a cheaper price. We introduced Technology 4 in the European market and also were able to diversify our production with 15 & 10 plants in USA & Asia respectively. With this we can now manufacture 13750 units per year.

As part of our strategy, we were able to capture a substantial market in USA & Europe with us being among the top 3 sellers in both the markets. Earnings per share stood at 5.47, which showed our commitment to the

shareholders.

Objectives We are committed to delivering the following the objectives in a span of 10 years:

To consolidate our growth of Technology 1 in the existing markets of US, Europe & Asia.

Invest more (upto 17%) in the initial years into R&D and then plan to outsource in the later span of 10 years.

Customize & employ marketing strategies according to the viability in different markets of Asia, Europe & US.

To add new features and focus on enhancement to capture a consolidated growth in the US market.

To expand into other technologies based on the demand for networks in 2 of the 3 feasible markets.

To build up the new technology introduced and try reducing the price in Asian markets to bank upon the same.

Check for the current R&D budgets and if feasible outsource the same to get technology licences as the technology progresses.

Maximize shareholder returns by looking at any dividends that can

We have consolidated well with final share and ranking among top 3 in US and Europe

Invested as planned

Our marketing strategies were cost oriented and dependednt on growing demands of the technology in the past trends

New features were incorporated only when the investment could guarantee some return

Expansion was conducted as per plan.It was only due to which we were among top 3 market holders in Europe and Asia

All the measures were carried out by conducting transfer of funds, logistic cost optimization and decreasing plant capacity

be offered. Try to achieve the

target of achieving a rise in market share by more than 20% from Year 1.

To be one of the market leaders in Asia and/or Europe along with sustainable growth in the US market.

April 1, 2014

Dear Fellow Shareholders,

U5T6 had a very strong year during 2013, achieving a number of new financial milestones. Our consolidated revenues, net income, and earnings per share reached new all-time highs, as did the cumulative dollar value of the backlogs in our major businesses. Consolidated revenues increased $1.2 billion, profit came to roundabout $0.3 billion, and earnings per share became $10.1 per share. These are tremendous accomplishments, and I am very proud of our people, whose capabilities and hard work enabled us to realign our manufacturing capacity to meet strong demand for our products that support the mobile industry

Market Report

Only Two technologies were a part of the game, Tech 1 and Tech 2.Where Tech 1 was dominant and Tech 2 was slowly budding . We are pleased to inform that we are among top 3 market share holders (globally) in technology 1 area , thanks to our diligent workforce and sales team

In U.S Market , we are facing a stiff competition in technology 1 , owing to the fact that we have not set up any external plants which we planning for future years ahead. Also as a result owing to high set up cost, the cost per unit is growing high which is prohibiting us for reducing our selling prices.

In Asian Market , we are facing a healthy competition in technology 1 , in spite of having high unit cost , we are just 100 units away from dominating market share holders which we believe we shall soon catch up.

In Europe Market, we plan to launch Tech 2 next year. Market is being shifted towards tech 2 and it will be interesting to see, how well we perform next year .

FINANCIALS

We had sales revenue of 1.2 billion USD with a profit of 0.3 billion USD. You must have seen a long term loan amount of 531 million USD, but the organization was free of any short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production

In spite of having no plants in Asia, and also having 90 pc of capacity utilization, we have a stable inventory level. The amount is just in anticipation of sudden demand surge for tech 1 and if situation demands, we can always stop the production of tech 1 and start capacity utilization for tech 2 .The inventory of tech 1 will be enough to met the demand, if any, in future years

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure , training cost we had just 4 recruitments without any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead.

Closing Remarks

We have evolved and grown our company from a small manufacturer of butane tanks into a diversified industrial company with $1.6billion in assets. Today, our future is bright. Our financial health is strong. I am very excited about the outlook for our company during this year and into the future. The ability of our businesses to create value by leveraging their combined expertise, competencies, and manufacturing capacity to produce products with strong demand continues to differentiate us. The large backlogs in our major businesses give us solid production visibility through and, for some product lines. Our financial health has never been better. Overall, our momentum is very positive.

April 1, 2015


U5T6 had a very strong year during 2014, achieving a number of new financial milestones. Our consolidated revenues, net income, and earnings per share reached new all-time highs, as did the cumulative dollar value of the backlogs in our major businesses. Consolidated revenues increased to $0.6 billion, profit came to roundabout $0.9 million, and earnings per share became $3.3 per share. The decrease in the above financial attributes is due to the decreased growth due to market conditions

Market Report

Only three technologies were a part of the game, Tech 1,Tech 2 and tech 4.Where Tech 1,Tech 2 was dominant and Tech 4 was slowly budding .

In U.S Market , we are facing a stiff competition in technology 1 , owing to the fact that we have not set up any external plants which we planning for future years ahead. Also as a result owing to high set up cost, the cost per unit is growing high which is prohibiting us for reducing our selling prices.

In Asian Market , we are facing a healthy competition in technology 1 , in spite of having high unit cost , we are just some units away from dominating market share holders which we believe we shall soon catch up.


FINANCIALS

We had sales revenue of 0.6 billion USD with a profit of 0.9 billion USD. You must have seen a long term loan amount has decreased to 509 million USD, but the organization was caught up with short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production


HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure , training cost we had just 4 recruitments without any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead.

Closing Remarks

We have evolved and grown our company from a small manufacturer of butane tanks into a diversified industrial company with $1.8 billion in assets. Today, our future is bright. Our financial health is strong. I am very excited about the outlook for our company during this year and into the future. The ability of our businesses to create value by leveraging their combined expertise, competencies, and manufacturing capacity to produce products with strong demand continues to differentiate us. The large backlogs in our major businesses give us solid production visibility through and, for some product lines. Our financial health has never been better. Overall, our momentum is very positive.

April 1, 2016


U5T6 had a very dissapointing year during 2015,. Consolidated revenues increased to $1.4 billion, loss came to roundabout $0.1 billion, and earnings per share became $3.3 per share. The decrease in the above financial attributes is due to the decreased growth due to market conditions, and investments in future for new plants and setip

Market Report

Only three technologies were a part of the game, Tech 1,Tech 2 and tech 4.Where Tech 1,Tech 2 was dominant and Tech 4 was slowly budding .

In U.S Market , we are facing a stiff competition in technology 1 , owing to the fact that we have not set up any external plants which we planning for future years ahead. Also as a result owing to high set up cost, the cost per unit is growing high which is prohibiting us for reducing our selling prices.However we are catching up in tech 2 and tech 4

In Asian Market , we are facing a healthy competition in technology 1 , in spite of having high unit cost , we are just some units away from dominating market share holders which we believe we shall soon catch up with tech 4


FINANCIALS

We had sales revenue of 1.4 billion USD with a loss of 0.1 billion USD. You must have seen a long term loan amount has stayed the same to, but the organization was caught up with short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production


HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure , training cost we had less recruitments without any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead.

Closing Remarks


April 1, 2017


U5T6 had a very disappointing year during 2016. Consolidated revenues increased to $1.2 billion, but hit by a loss of $0.5 billion, and earnings per share became $ -13.89per share. The decrease in the above financial attributes is due to the decreased growth due to market conditions

Market Report

All 4 technologies were a part of the game. However our market share rose upto 6.10 p.c.

In U.S market and Asian market our market share rose to 5-6 p.c however in Europe it exceeded more than 7 percent

FINANCIALS

We had sales revenue of 1.2 billion USD with a loss of 0.9 billion USD. You must have seen a long term loan amount has decreased to 509 million USD, but the organization is free from any short term debts

Production

Looking at the production trends and losses we were making past 2 years, we had decided to shut down all the production and consequently we had very less inventory level. This will give us a very comfortable start next year, without worrying about inventory level.

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure, training cost we had just 4 recruitments without any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead. Our Hr multiplier efficiency exceeded 1.

Closing Remarks

We have evolved and grown our company from a small with $2.6billion in assets. Today, our future is bright. Our financial health is strong. I am very excited about the outlook for our company during this year and into the future. The ability of our businesses to create value by leveraging their combined expertise, competencies, and manufacturing capacity to produce products with strong demand continues to differentiate us. The large backlogs in our major businesses give us solid production visibility through and, for some product lines. Our financial health has never been better. Overall, our momentum is very positive.

April 1, 2019


U5T6 had a very succesful year during 2018. Consolidated revenues increased to $1.1 billion, but a profit of $0.06 billion, and earnings per share became $ 1.6 per share. The decrease in the above financial attributes is due to the decreased growth due to market conditions

Market Report

All 4 technologies were a part of the game. However our market share rose upto 64 p.c.

In U.S market and Asian market our market share rose to 3-4p.c however in Europe it exceeded more than 4 percent

FINANCIALS

We had sales revenue of 1.1 billion USD with a profit of 0.06 billion USD. The long term debt is currently nil.

Production

Looking at the production trends and losses we were making past 2 years, we had decided to shut down all the production and consequently we had very less inventory level. This will give us a very comfortable start next year, without worrying about inventory level.

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure, training cost we had just 4 recruitments without any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead. Our Hr multiplier efficiency exceeded 1.We have the least monthly cost per employee

Closing Remarks

We have evolved and grown our company from a small with $2.6billion in assets. Today, our future is bright. Our financial health is strong. I am very excited about the outlook for our company during this year and into the future. The ability of our businesses to create value by leveraging their combined expertise, competencies, and manufacturing capacity to produce products with strong demand continues to differentiate us. The large backlogs in our major businesses give us solid production visibility through and, for some product lines. Our financial health has never been better. Overall, our momentum is very positive.

April 1, 2019


U5T6 had a very strong recovery during 2018, achieving a number of new financial milestones. Our consolidated revenues, net income, and earnings per share reached new all-time highs, as did the cumulative dollar value of the backlogs in our major businesses. Consolidated revenues reached $1.3 billion, while we made a decent profit of around $90k, and earnings per share became $2.37 per share. These are tremendous accomplishments, and I am very proud of our people, whose capabilities and hard work enabled us to realign our manufacturing capacity to meet strong demand for our products that support the mobile industry

Market Report

We’re now dealing in three technologies, Tech 1, Tech 2 & Tech 3, where all three technologies are slowly picking up after the last year’s disaster. We are pleased to inform that we are among top 5 market share holders (Europe), thanks to our diligent workforce and sales team.

In U.S Market, we are facing a stiff competition in technology 1, owing to the fact that we have just set up external plants which will help us in coming years. Also as a result owing to high set up cost, the cost per unit is growing high which is prohibiting us for reducing our selling prices.

In Asian Market, we are facing a healthy competition in technology 1, in spite of having high unit cost, we are just 100 units away from dominating market share holders which we believe we shall soon catch up.

We have now delved into Tech 2 & Tech 4 in Europe with Tech 4 being almost our core competency in that market. Market is being shifted towards tech 4 and it will be interesting to see, how well we perform next year.

FINANCIALS

We had sales revenue of 1.3 billion USD with a profit of $90 million USD. You must have seen a long term loan has been greatly reduced to $13.7M million USD, but the organization was free of any short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production

With new plants under construction in Asia and 100 pc capacity utilization, we have a stable inventory level. The amount is just in anticipation of sudden demand surge for tech 1 and if situation demands, we can always stop the production of tech 1 and start capacity utilization for tech 2 .The inventory of tech 1 will be enough to meet the demand, if any, in future years

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure, training cost we had 66 recruitments without any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead.

Closing Remarks


April 1, 2020


U5T6 had an investment driven year in 2019, with plans set up for expansion. Consolidated revenues reached $1.9 billion, while we had to bear a loss of around $0.2 B, and earnings per share went down to $-5.79 per share. These are turbulent times, and the company has taken enough measures to avoid this situation in coming future.

Market Report

We’re now dealing in three technologies, Tech 1, Tech 2 & Tech 4, where all three technologies are slowly picking up to progress. We are pleased to inform that we are among top 3 market share holders (USA) in technology 4 area, thanks to our diligent workforce and sales team.




FINANCIALS

We had sales revenue of 1.9 billion USD with a loss of $0.2 billion USD. You must have seen a long term loan has been greatly reduced to $2.56 billion USD, but the organization was free of any short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production

With new plants ready in Asia and about 91 pc capacity utilization, we have a stable inventory level. The amount is just in anticipation of sudden demand surge for tech 1 and if situation demands, we can always stop the production of tech 1 and start capacity utilization for tech 2 .The inventory of tech 1 will be enough to meet the demand, if any, in future years

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure, training cost we had 60 recruitments without any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead.

Closing Remarks


April 1, 2021


U5T6 had a decent recovery year in 2020 as compared to last year, with plans set up for expansion. Consolidated revenues reached an all-time high of $3.3 billion, while we had to bear a loss of around $83.5 M, and earnings per share went up from last year to $-2.19 per share. These are turbulent times, and the company has taken enough measures to avoid this situation in coming future.

Market Report

We’re now dealing in three technologies, Tech 1, Tech 2 & Tech 4, where all three technologies are slowly picking up to progress. We are pleased to inform that we are among top 2 market share holders (USA & Europe), thanks to our diligent workforce and sales team.

In U.S Market, we are now giving a stiff competition, owing to the fact that we have just set up external plants which are helping us to achieve high production. Also as a result owing to high set up cost, the cost per unit is growing high which is prohibiting us for reducing our selling prices.



FINANCIALS

We had sales revenue of 3.3 billion USD with a loss of $83.5 million USD. You must have seen a long term loan has been greatly reduced to $0.1 billion USD, and the organization was free of any short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production

With new plants ready in Asia and 100 pc capacity utilization, we have a high inventory level. The amount is just in anticipation of sudden demand surge for tech 1 and if situation demands, we can always stop the production of tech 1 and start capacity utilization for tech 2 .The inventory of tech 1 will be enough to meet the demand, if any, in future years

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure, training cost we had 240 layoffs since it was affecting their productivity in the company. We’re hopeful they find a more deserving place to give justice to their hardwork.

Closing Remarks


April 1, 2022


U5T6 had a very strong recovery during 2021, achieving a number of new financial milestones. Our consolidated revenues, net income, and earnings per share reached new all-time highs, as did the cumulative dollar value of the backlogs in our major businesses. Consolidated revenues reached $4.3 billion, while we made a decent profit of around $6.46 B, and earnings per share surged to $16.92 per share. These are tremendous accomplishments, and I am very proud of our people, whose capabilities and hard work enabled us to realign our manufacturing capacity to meet strong demand for our products that support the mobile industry.

Market Report

We’re now dealing in three technologies, Tech 1, Tech 2 & Tech 3, where all three technologies are doing pretty well in individual markets. We are pleased to inform that we are among top 5 market share holders (Europe), thanks to our diligent workforce and sales team.




FINANCIALS

We had sales revenue of 4.3 billion USD with a profit of $6.46 B million USD. You must have seen a long term loan has been greatly reduced to $43 M million USD, but the organization was free of any short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production

With new plants under construction in Asia and 100 pc capacity utilization, we have a stable inventory level. The amount is just in anticipation of sudden demand surge for tech 1 and if situation demands, we can always stop the production of tech 1 and start capacity utilization for tech 2 .The inventory of tech 1 will be enough to meet the demand, if any, in future years

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure, training cost we had no recruitments nor any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead.

Closing Remarks


April 1, 2023


U5T6 had a very strong recovery during 2022, achieving a number of new financial milestones. Our consolidated revenues, net income, and earnings per share reached new all-time highs, as did the cumulative dollar value of the backlogs in our major businesses. Consolidated revenues reached $3.4 billion, while we made a decent profit of around $1.84 B, and earnings per share became $5.18 per share. These are tremendous accomplishments, and I am very proud of our people, whose capabilities and hard work enabled us to realign our manufacturing capacity to meet strong demand for our products that support the mobile industry

Market Report

We’re now dealing in three technologies, Tech 1, Tech 2 & Tech 3, where all three technologies are slowly picking up after the last year’s disaster. We are pleased to inform that we are among top 3 market share holders (USA & Europe), thanks to our diligent workforce and sales team.




FINANCIALS

We had sales revenue of 3.4 billion USD with a profit of $1.84 billion USD. You must have seen a long term loan has been paid off totally, but the organization was free of any short term debts, hence we have less liability of paying high interest rates as compared to the long term debt interest.

Production

With a total of 30 plants and 100 pc capacity utilization, we have a stable inventory level. The amount is just in anticipation of sudden demand surge for tech 1 and if situation demands, we can always stop the production of tech 1 and start capacity utilization for tech 2 .The inventory of tech 1 will be enough to meet the demand, if any, in future years

HR

Our organization is just incomplete without our people. However, as we follow the best practices, even with standard salary structure, training cost we had neither recruitments nor any layoffs that show that our employees are happy with us and will stay committed to us in tough times ahead.

Closing Remarks


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