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  • Consulting ReportHarrison Anastasio & Anthony Fecondo

    Ferris Co.

  • Ferris Co.

    Executive Summary

    SituationFerris Co. will construct a map of general guidelines that will aid future BA 3101 students in how to construct a successful firm in the sensor industry.

    Deciding on an early strategy Rely on available resources Early Investments

    HypothesisThe use of the four analytical frameworks will help us better understand this situation.

  • Ferris Co.

    P.E.S.T Analysis of 2015-2023 of Capsimlandia

    Political

    Technological

    Economic

    Social

    Anti-monopoly

    Growing expectations Higher performance Smaller size Automated production

    Steady gazelle growth

  • Ferris Co.

    Porters Six Force Analysis of Sensor Industry

    Threat of Entry

    Industry Rivals: High

    Supplier Power: Low / Medium Substitutes

    ComplementsBuying Power: High

    None

    Traditional Andrews, Baldwin, Chester, Digby, Erie, Ferris

    Low End Andrews, Baldwin, Chester, Digby, Erie, Ferris

    High End Andrews, Baldwin, Chester, Digby, Erie, Ferris

    No buyer loyalty

    No switching costs

    None

    None

    Materials

    Labor

    Size Andrews, Baldwin, Chester, Digby, Erie, Ferris

    Performance Andrews, Baldwin, Chester, Digby, Erie, Ferris

  • Ferris Co.

    S.W.O.T. Analysis of a Prototypical Capsim Team

    Strengths

    Threats

    Weaknesses

    Opportunities

    In class time to meet Product in every segment Different fields of study

    Time conflicts Unfamiliar software Scheduling conflicts

    Balance Scorecard Practice Rounds 13% market growth

    Competition Labor negotiations No buyer loyalty

  • Ferris Co.

    Problem Statement

    Problem Statement Achieve a perfect Balance Scorecard

    Strategies

    Max out automation in Traditional and Low End

    Invest in TQM

    Take out long-term debt

    Satisfy customer wants

    Satisfy worker demands

  • Ferris Co.

    Force Field Analysis

    Propelling Restraining

    Situation: Perfect Balance Scorecard

    Understanding the Balance Scorecard results from the Capsim decisions

    Commit to company strategy

    Team communication

    Big Al Loans Competition within

    segments

  • Ferris Co.

    Tracking Methods

  • Ferris Co.

    Recommandations

    Low End / Traditional R&D - Pay close attention to age and price

    High End / Size / Performance R&D - Position your product further in front of the suggested spot if affordable

    Marketing - Forecast effectively to prevent stock outs and excess inventory. Also invest 2 million in promotions and sales for each segment.

    Production - Buy capacity and automation early

    TQM - Invest $2 million in rounds 3 and 4

    Finances - Always have 3.5% cash on hand and take out long-term debt

  • Experience ReportHarrison Anastasio & Anthony Fecondo

    Ferris Co.

  • Ferris Co.

    Executive Summary

    The Ferris Company won the simulation by utilizing a unique strategy tailored specifically to the rules of the

    simulation. Our company focused on satisfying customers and maximizing contribution margins.

  • Ferris Co.

    P.E.S.T Analysis of 2015-2023 of Capsimlandia

    Political

    Technological

    Economic

    Social

    Anti-monopoly

    Growing expectations Higher performance Smaller size Automated production

    Steady gazelle growth

  • Ferris Co.

    Porters Six Force Analysis of Sensor Industry (Round 0)

    Threat of Entry

    Industry Rivals: High

    Supplier Power: Low / Medium Substitutes

    ComplementsBuying Power: High

    None

    Traditional Andrews, Baldwin, Chester, Digby, Erie, Ferris

    Low End Andrews, Baldwin, Chester, Digby, Erie, Ferris

    High End Andrews, Baldwin, Chester, Digby, Erie, Ferris

    No buyer loyalty

    No switching costs

    None

    None

    Materials

    Labor

    Size Andrews, Baldwin, Chester, Digby, Erie, Ferris

    Performance Andrews, Baldwin, Chester, Digby, Erie, Ferris

  • Ferris Co.

    Porters Six Force Analysis of Sensor Industry (Round 9)

    Threat of Entry

    Industry Rivals: High

    Supplier Power: Low / Medium Substitutes

    ComplementsBuying Power: High

    None

    Traditional Andrews, Baldwin, Chester, Digby, Erie, Ferris

    Low End Andrews, Baldwin, Chester, Digby, Erie, Ferris

    High End Andrews, Baldwin, Chester, Digby, Erie, Ferris

    No buyer loyalty

    No switching costs

    None

    None

    Materials

    Labor

    Size Andrews, Chester, Digby, Erie, Ferris

    Performance Andrews, Chester, Digby, Erie, Ferris

  • Ferris Co.

    Company Strategy

    Broad Differentiator A Broad Differentiator strategy maintains a presence in every segment of the market. The company will gain a competitive advantage by distinguishing products with an excellent design, high awareness and easy accessibility. The company will develop an R&D competency that keeps designs fresh and exciting. Products keep pace with the market, offering improved size and performance.

    Broad Cost Leader A Broad Cost Leader strategy maintains a presence in all segments of the market. The company will gain a competitive advantage by keeping R&D, production and material costs to a minimum, enabling the company to compete on the basis of price, which will be below average. Automation levels will be increased to improve margins and to offset second shift/overtime costs.

    Mission Statement Our mission is to provide products that are tailored specifically to the needs of each segment while also offering the lowest price possible, for our consumers, in the Low End segment and the Tradition segment.

  • Ferris Co.

    K.P.I for our Company Strategy

  • Ferris Co.

    K.P.I for our Company Strategy

  • Ferris Co.

    K.P.I for our Company Strategy

  • Ferris Co.

    S.W.O.T. Analysis of a Prototypical Capsim Team (Round 0)

    Strengths

    Threats

    Weaknesses

    Opportunities

    Cash on hand Equal Market Share

    Low contribution margins Insufficient marketing budget

    13% market growth No customer loyalty

    Competition No customer loyalty No Big Al loans

  • Ferris Co.

    S.W.O.T. Analysis of a Prototypical Capsim Team (Round 9)

    Strengths

    Threats

    Weaknesses

    Opportunities

    High automation High contribution margins High profits Highest stock price

    Product count Employee turnover Capacity

    13% market growth No customer loyalty

    Competition No customer loyalty No Big Al loans

  • Ferris Co.

    Action Plan for Rounds 9 - 12

    Year 9 Year 10 Year 11 Year 12

    1. Introduce new products in High-End, Performance, and Size

    2.Buy More Capacity

    3. Issue Dividends

    1.Buy More Capacity

    2.Manage Finances Accordingly

    3. Invest in TQM

    1.Buy More Capacity

    2.Manage Finances Accordingly

    3. Invest in TQM

    1.Buy More Capacity

    2.Manage Finances Accordingly

  • Ferris Co.

    Force Field Analysis

    Propelling Restraining

    Situation: Company Strategy

    No Customer Loyalty No Switching Costs High Buyer Power

    High End, Size, and Performance: Expensive R&D

    Low End, Traditional: Lower prices results in lower contribution margins

  • Ferris Co.

    Key Challenges

    Ferris Co.Recovering from Low-ScoresProjecting Sales ForecastBuying enough Capacity & Automation

    Our IndustryCompetitively Pricing High-End, Performance, & SizeInflated Workers WagesHigh-Level of Competition

  • Ferris Co.

    Performance Overview

    What We Learned Where We Succeeded Where to Improve

    1.Profitability > Market Share

    2.Understanding of Various KPIs/Ratios

    3.Appreciation for Complexity of Business

    1.Accommodating Consumers

    2.High Automation for Low-end / Traditional

    3.Playing Our Strengths (Inflating Workers Wages)

    1. Introduce More Products

    2.Buy Capacity Earlier

    3.Spend More on Marketing

  • Thank YouHarrison Anastasio & Anthony Fecondo

    Ferris Co.