3. Vision
To be the global leader of the Innovative
Digital Camera Industry
Mission
Provide Quality Entry Level & Multi Featured
Cameras by motivating our employees to
deliver at their highest potential while also
having a strong sense of CSR.
28. Entry-level
High model, Low quality, Higher price
To get higher profit margin
But lower market share
High price = above industry average
We refused to take part in price wars
29. Multi-Featured
High model, lower quality, lower price
Lower quality = higher profit margin
Lower price = bigger market share
First-mover advantage
Capitalize on the market share
34. What went wrong?
Myopic Vision – only Focussed on MF.
Poor planning - lost market share in EL.
Did not develop strategy to keep low Cost/unit
for EL.
- Forced us to keep a higher price
Our image rating was below our main
competitors
35. Competition is heating up
Price War had begun in EL.
Big Drop in Quality, Huge Drop in Price
Competitors dropped both quality and
price
37. Changing market condition
Failed to adopt to the dynamic Market trend
( Apple vs Samsung)
Unable to maintain 20% Market share in MF
Market share in entry dropped
Clash of opinions in boardroom
38. The biggest enemy lies within
Lower profit margin
Higher volume
Higher market share
High profit margin
Lower volume
Lower market
share
HAMMERED!!!!
39. Poor Decision Making
Sales & profit drop by 47%
Image rating went crashing (33%)
Stock price go down (36%)
Team dynamics gone sour
Competitors laugh their ways to the banks
46. Final Result
#3 in Competition.
Overall Score of 98.
Overall Game to date Score of 99
47. Decision making process
Chose Collaborative Effort to craft strategy
Assigned Functional Area Strategists
Jointly chose among strategic alternatives
by evaluating Pro/Cons
Every Team Members buy-in was required
48. What we could have done
better?
Failed to create Conflict Management
System
For Year 10 - Conflict in Board Room
Resorted to Democracy.
Conflicting & Inconsistent strategic
elements impaired firms performance
50. Entry-level
F & D- our biggest competitor
How they did it?
Low P/Q rating = Low production cost =
Low price
51. Multi-Featured
F & B - our biggest competitors
Good P/Q rating at lower price
How did we beat them?
Best- cost leadership
52.
53. Always stick to the plan
•
Make Decision by Strategy
•
Do not rely on Gut Feeling or Projection
Numbers
•
Have a Proactive and reactive Strategy
54. Leader today, irrelevant
tomorrow
•
Never Relax in the game of Business
•
Use Competitive Intelligence Reports to
keep an eye on Competitors Strength &
Weakness
•
We were market leaders for first 4 rounds.
We should have evaluated how our
competitors were catching up to us.
55. Different region, different strategy
•
Focus Decision Making on Geographical
Regions
•
We had same prices and same
marketing prices for each region. Forex
was the only reason for price change
56. To be the best, you need the best
•
Invest in compensations, benefits and PAT
training
•
Improve productivity due to high incentive for
reduced warranty claims ($2.5/ unit).
•
Reduce absenteeism by giving highest quarterly
bonus for attendance ($250/PAT member)
•
To attract and retain the best employees.
57. Don’t depend on single source of income
-Warren Buffet
•
We were too dependent on multi-level
segment
•
Things may not go according to plan
•
We couldn’t rely on entry-level
58. Don’t let finance control your
business, use business to
control your finance
• Finance was controlling our strategy
• We adjusted our decisions according to the financial
projection
• We abandon long-term goals for short-term gains
59. What you can learn from
us?
COMPANY/STATIS NET SALES
TICS
REVENUE
NET
INCOME
DIVIDEND
DECLARED
RETAINED EARNINGS
A
1,328,439
64,353
8,647
55,706
B
1,695,374
144,153
17,488
126,665
C
1,283,218
104,241
36,755
67,486
D
1,446,558
123,083
56,600
66,483
E
990,544
57,744
23,886
33,858
F
2,033,440
163,175
76,276
86,899
G
1,414,503
73,185
23,320
49,865
H
1,423,306
159,509
11,343
148,166
60. Taking the learning beyond simulation
•
Do not get comfortable with your current
position, always strive for more.
•
Respect opinions from every member of the
team.
•
Never take hasty decisions based on
intuition.
Good enough = every year during third quarter we have to take loan to make up for the high production cost So unless we are in position where we can operate without taking any loan we will not give dividend
Good enough = every year during third quarter we have to take loan to make up for the high production cost So unless we are in position where we can operate without taking any loan we will not give dividend