Simulation International Presentation
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Transcript of Simulation International Presentation
STOCKHOLDER MEETING #1
-Think different, print different-
Jeroen Boon, Kerstin Liebl, Rafi Hovsepyan, Joost Verbakel, Elvira Walter, Manuela Werwein, Linda de Witte
CONTENT OF THE MEETING
1. What was planned? 2. How did things arise? 3. Where do we stand after this period? 4. How are we to continue?
(incl. advertising concept) 5. What have we learned? 6. What was our group work like?
1. PLANNING AND STRATEGIC DECISIONS
OBJECTIVES FOR THE PAST 6 PERIODS:
1. Increase market share2. Provide products of good quality
for average price3. Decrease liabilities
(50% of original amount)
4. Optimize production (full efficiency >95% of production capacity)
5. Global market player (EU, USA, Japan and Russia)
STRATEGIC DECISIONS For period 1-2:
› Plan efficiently production› Enable sufficient distribution channels (sales
people)› Invest in quality and employees
For period 3-4:› Achieve strategic advantage in foreign markets
(build warehouses)› Select reliable suppliers to meet production demand
For period 5-6:› Invest in growing markets› Achieve economies of scale› Become a major player in the market
Split up in 4 topics:
2.1 - Sales revenue2.2 - Marketing mix2.3 - Profit for year2.4 - Liabilities
2. ARISING BUSINESS ALONG THE PERIOD
0,0
100,0
200,0
300,0
400,0
500,0
600,0
1 2 3 4 5 6
EU market 1
0,0
10,0
20,0
30,0
40,0
50,0
60,0
1 2 3 4 5 6
USA market 3
The Sales quantity per market
0,02,04,06,08,0
10,012,014,016,0
1 2 3 4 5 6
Rus market 52. ARISING BUSINESS ALONG THE PERIOD- 1. SALES REVENUE -
0,0
10,0
20,0
30,0
40,050,0
60,0
70,0
80,0
1 2 3 4 5 6
EC market 2
1 2 3 4 5 6
EU
USA
Rus
0,0
50,0
100,0
150,0EU
EC
USA
Jap
Rus
The pricing per market
2. ARISING BUSINESS ALONG THE PERIOD- 1. SALES REVENUE-
-10,0
0,0
10,0
20,0
30,0
40,0
50,0
60,0
1 2 3 4 5 6
EU
EC
USA
Jap
Rus
2. ARISING BUSINESS ALONG THE PERIOD- 1. SALES REVENUE-
95
100
105
110
115
120125
130
135
140
145
1 2 3 4 5 6
HighpriceLowpriceIprint
Average
• PriceThe marketingmix contains the 5 P’s:
- Price- Place- Promotion- Product- Personell
2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -
Place
Market priority’s:- The biggest market first (European market)
- Continious focus on low delivery times Foreign markets: Using warehouses, (to be able to have low delivery times.)
- Payment period extended (to 45 days)
2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -
PromotionGraph of change in sales personal
2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -
Period 1 Period 2 Period 3 Period 4 Period 5 Period 60
5
10
15
20
25
30
35
40
Sales personal
Europe USA
Japan Russia
Product
Quality management; Average investment per period:
Plant 1 Plant 2 Main Plant
0,17 million 0,17 million 0,31 million
Production costs
35,00
40,00
45,00
50,00
55,00
60,00
65,00
Production costs
Production costs
2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -
PersonellAmount of production personell
0
20
40
60
80
100
0 1 2 3 4 5 6
Main plant
Plant 1
Plant 2
Qualificationindex of workforce
0,8
1
1,2
1,4
1,6
0 1 2 3 4 5 6
Main plant
Plant 1
Plant 2
Total productivity of workforce
200000250000300000350000400000450000500000550000600000
0 1 2 3 4 5 6
Main plant
Plant 1
Plant 2
2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -
Sales results
-2
0
2
4
6
8
10
0 1 2 3 4 5 6
Rus
Jap
USA
EC
EU
Profit / loss
-6
-5
-4
-3
-2
-1
0
1
2
0 1 2 3 4 5 6
periods
Mil
ion
s
Net profit / loss this period
2. ARISING BUSINESS ALONG THE PERIOD- 3. PROFIT FOR YEAR -
Decided to focus on low liabilities
(In period 3 an investment had to be made in a production line)
2. ARISING BUSINESS ALONG THE PERIOD- 4. LIABILITIES -
0 1 2 3 4 5 6
0
10.000.000
20.000.000
30.000.000
40.000.000
Total amount of loan
Overdraft
Long loan
Short loan
Company 112%
Company 212%
Company 322%
Company 410%
Company 510%
Company 623%
Company 712%
Market Share (All markets)
1 2 3 4 5 60.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
Share Price
Company 1Company 2Company 3Company 4Company 5Company 6Company 7
Periods
EU
R /
share
- 1. Share Price
3. WHERE DO WE STAND AFTER THE PERIOD?- 1. MARKET SHARE-
Strengths: Highly efficient Low liabilities High utilization and qualification of production
staff (period 5 & 6 -100%) Short delivery times (except for period 6)
Weaknesses: High inventory due to unrealized sales Missed to increase production volume earlier;
now not able to compete with group 1 & 3• Relative low production volume => High cost
price
3. WHERE DO WE STAND AFTER THE PERIOD?- 2. SWOT-ANALYSES -
Opportunities: By decreasing prices, higher market share
possible Expansion in markets Japan and Russia Industrialization of emerging markets
=> more possibilities to reach new customers
Threats: Competitors may increase their market share Higher oil price More usage of internet opportunities => less
printing of paper => less demand Price focused countries/consumers
3. WHERE DO WE STAND AFTER THE PERIOD?- 2. SWOT-ANALYSES -
Keep lower pricing› Find a combination between a low cost
price and a pricing based on competitors and market average
Continue with the low-liablity management
Keep economies of scale› Remain efficient
Increase market share in EC and Russia Increase shareholder value
4. HOW ARE WE TO CONTINUE?PROSPECTS FOR THE NEXT FIVE PERIODS:
MARKETING CAMPAIGN
LOGO
MARKETING CAMPAIGN
SLOGAN
MAGAZINE ADVERTISEMENT
MARKETING CAMPAIGN
MARKETING CAMPAIGN
This game requires unique decisions
Efficiency depends on many fine-tuned
factors
Long-term thinking needed for success
Increase production volume earlier
Start aggressive price policy earlier
Risk aversion keeps you from winning
5. WHAT HAVE WE LEARNED FROM THIS PROJECT?
• Very interesting and fun (different characters + cultures)
• Tasks were split up in departments
• Every department was discussed as a group before
entering the information
Very time intense (focused on details)
Attitude was serious and hard-working (reality vs.
game)
High personal commitment to the common
goals
6. WHAT WAS OUR GROUP WORK LIKE?
STOCKHOLDER MEETING #1
Did any questions arrive?
Thank you for your time
and interest in our company