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.

Porter’s 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.

Porter’s 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.

Porter’s 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 Worker’s 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 Worker’s Wages)

1. Introduce More Products

2.Buy Capacity Earlier

3.Spend More on Marketing

Thank YouHarrison Anastasio & Anthony Fecondo

Ferris Co.