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Glo-Bus Strategic Business - Example

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Summary
The company has increased production capacities and met demand in areas of price, design, quality. Glo-Bus has also created a greater product portfolio through retail operations worldwide.
Glo-bus, headquartered in the United…
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Extract of sample "Glo-Bus Strategic Business"

Table of Contents Executive Summary 2 Company Company Market Vision and Mission…………………………………………………………………………………….3 Company Vision Statement Company Mission Statement Strategic Objectives 4 Strategies…………………………………………………………………….. Action Plan……………………………………………………………………………… 8 Financial Analysis……………………………………………………………………..9 SWOT Analysis 10 References ………………………………………………………………………........14 Financial Appendix 15 Pro Forma Income Statements (Next 3 years) Pro Forma Cash Flow Statements (Next 3 years) Pro Forma Balance Sheet (Next 3 years) Executive Summary Globalization is a major reality for Glo-Bus. The company has increased production capacities and met demand in areas of price, design, quality. Glo-Bus has also created a greater product portfolio through retail operations worldwide. Company Name Glo-Bus, Inc. Company Description Glo-bus, headquartered in the United States, has been selling cameras for 5 years. The company’s product is completed in a production plant in Taiwan. The company maintains regional sales offices in Milan, Italy; Singapore; Sao Paulo, Brazil; and Toronto, Canada. The offices facilitate company sales and promotion efforts in each geographic region and help support merchandising efforts of area retailers. Market Description The digital camera industry consists of 4 to 12 companies, depending on class size and the number of co-managers assigned to each company. All companies begin the GLO-BUS exercise in fundamentally the same competitive market position—equal sales volume, global market share, revenues, profits, costs, product quality and performance, brand recognition. The industry is on an equal footing from a global perspective, but there is one essential difference in the competitive positions of rival companies: the percentage of cameras being sold in Europe-Africa, Asia-Pacific, Latin America, and North America. Vision: To be the first choice in quality digital cameras world wide Mission: To develop innovative digital cameras and offer services that exceeds our customers’ expectations by helping them to achieve their goals and objectives. To develop digital cameras that produce the BEST picture quality; and delivers ‘after sale’ services considered the “envy of the competition”. To generate the highest revenues to provide higher investor returns. Our quality digital cameras and quick services pave the path to new prospective markets, where no other competitor has the courage to venture. (Mooij, 2009). Strategic Objectives The following Chaos Digital Camera strategic objectives are geared towards complying with the Board of Directors’ performance objectives (Cavusgil, 2009): Achieve the company’s mission, vision, and strategic objectives Innovate Chaos Digital Camera image Increase digital camera supply Its increase Chaos sales of its digital camera Increase camera quality Increase entry level camera sales Increase revenue; shareholder value Increase global Chaos Digital Camera demand Increase net profit Retain the high quality digital camera product Increase investments Strategies 1. To achieve the company’s mission, vision, and strategic objective, the company sells cameras that produce perfect quality pictures, to ensure competitive appeal, perfect after sales attributes, and 70 or higher company image rating. 2. To achieve its enhance Chaos Digital Camera image objective, the company offers after sales digital camera repair services where repairs are done through the company’s fast lane window. All cameras are repaired within one hour from delivery of the digital cameras to the Chaos Digital Camera Company’s strategically located branches in North America, Europe, Africa, Asia- Pacific, Latin America, and other global market segments. 3. To achieve its increase digital camera supply objective, Chaos Digital Camera plan to double the Taiwan production output capacity to cater to a 100 percent increase in projected global customer demand. 4. To achieve its increase sales of its digital camera objective, Chaos Digital Camera implements a contest on one television station on each global target market segment. The contest mechanics include having a raffle draw. The company implements three promotions in one year. Each digital camera buyer is entitled to one raffle coupon. During the raffle draw, two winners will win a European made car. 5. To achieve its increase quality digital camera objective, the company allocates funds to advertising, research, and development quality cameras that are above average. Research will focus on enhancing the current digital camera’s quality, in terms of LCD display screen, image resolution module, and lens quality/optical zoom to ensure 70+ image rating. 6. To achieve its increase sales objective, the company offers its entry level camera models at prices that mimic the competitors’ market prices. On the other hand, the company’s multi-featured digital cameras are priced at reasonable prices. With reasonable pricing that include the combined production cost, markup, and the competitor’s prices, Chaos Digital Camera will be competitive in the global digital camera market segment. 7. To achieve its increase revenues objective, the company offers 15 percent to 20 percent discounts to current and prospective customers during low sales or nonpeak seasons. The discounts are intended to spur interest in the company’s digital cameras. With the increased interest, digital camera sales will automatically increase. Chaos Digital Camera will deliver 10 percent more than the projected demand for the digital camera products to retail outlets to ensure there are no occurrences of empty retail outlet shelves. 8. To achieve its increase global Chaos Digital Camera demand objective, Chaos will scout for more retailers. More retailers mean more sales, profits, and investor returns. 9. To achieve its increase Chaos Digital Camera demand objective, the company will setup its own digital camera stores in major cities and communities. The company’s stores will focus on sales and repair of the company’s digital cameras. After sales service includes two year warranty benefits to ensure 70+ image rating, competitive appeal and after sales attributes. 10. To achieve its increase net profit objective, the company will also reduce avoidable production costs to allowable levels. Cost reduction includes reduction production wastage, spoilage, and breakage during the digital camera assembly process. 11. To achieve its retain the high quality digital camera product objective, the company will continue to buy its camera parts from reputable or quality digital camera parts suppliers, increasing the digital camera’s attributes and competitive appeal. The company will focus on increasing its World Digital Camera Federation P/Q digital camera rating to a 5 star status. 12. To achieve its increase investments objective, the company will raise capital thru additional investor funding and long term bank loans (paying all loan installments on time to ensure B+ or better credit rating). The additional funding will focus on setting up more marketing and repair service centers around the world, increasing sales. n the added services of the communications industry. The plan will integrate profit generating strategies to finance the innovation. Of special focus will be phone insurance, additional minutes, and roadside service. Action Plan Action Person Responsible Purpose Hire consultants to train both in the production and the sales of the new products and services. Executive Management To facilitate upcoming operational changes Managers and employees will be asked to attend classes and to evaluate each other. Hired Consultants Develop training that conveys to support multiple audiences within the organization Collaboration will occur in the evaluation phase. Employees will be asked how to improve methods of delivery. To facilitate change each will be asked to rotate through the classes for the classes. Executive Management Achieve maximum collaborative effort. Financials No matter how successful a company is today things can change on a dime. Undoubtedly, the future will bring new opportunities and new catastrophes that will threaten the stability of any business. Primary Financial Objective: Maximize Shareholder Value. Measured primarily by the price of company stock. Projected Year End Performance (GLO-Bus, 2012) Sales $199,838 Net Profit $21,007 Earnings Per Share 1.93 RoE 16.8% Credit A- Image 84 Ending Cash Balance $19,850 Factors which exert varying degrees of influence on the value drivers influencing price movements over the long term: Operating decisions/performance measures: marketing expenditures automation investments manufacturing costs labor costs The company must maintain a minimum of 7.5 million shares outstanding. • While you have the authority to initiate stock repurchases, the Board of Directors has reserved the right to limit the number of shares repurchased in any given year—such limits vary from year to year and are shown on this screen just to the right of shares repurchased entry field SWOT Analysis (GLO-Bus, 2012) Strengths Multi-Store Chains Product Differentiation Online Retailers Tech support Budget Advertising Budget Weaknesses Competitors offering products in High End Segment Market Size R&D revision process is slow Opportunities Efficient Production Product Focus Investment and Growth Additional products in segment Competitor awareness and availability in all segments Threats Carrying too much inventory Too many products to manage Competition targeting all segments Rivals making annual moves to improve Tactical Initiatives SWOT Evaluation, (Smith, 2012) “Focus mainly on weaknesses and threats. The positive aspects of SWOT are next to useless, telling us little that we don’t (already) know about the company, only to distract from the underlying problems” (Smith, 2012). Customer Value Proposition ► How it will go about satisfying customer needs and requirements at a price customers will consider to be a good value. The greater the value delivered to customers and the lower the price, the more attractive the value proposition is to customers. _ Its Profit Proposition (or “Profit Formula”) ► How it will go about creating and delivering customer value in a cost-efficient manner at a price that produces enough revenues to cover costs and enable attractive profits. The lower a company’s costs are in relation to the revenues generated, the more appealing is its profit proposition or “profit formula.” Evaluation Chi Square: Goodness of Fit 3 tests of a winning strategy Goodness of Fit Performance Competitive advantage The Chi Square tests whether a frequency distribution fits an expected distribution. (Larson & Farber) Tip: As the degrees increase, the shape of the chi-square d distribution approaches normality. Summary Glo-Bus must maintain an ongoing add-on plan for innovation of products, strategies, and services. “Companies that focus on Business Model Innovation outperform their industry peers in operating margin and total shareholder return” (Sniukas, 2012). In order to keep the pace with exponential technology growth and spontaneous changes in demand, Glo-Bus must innovate. The innovator is an optimistic pessimist. To create positive change it is necessary to focus on harmful functions with an effective problem solving process. Only this can provide the inspiration for positive solutions. (Smith, 2012) The primary strategy is to increase value, which can be obtained through continuously strengthening existing components. The SWOT analysis confirms our direction. In order to achieve this progressive, effective accurate information must be mined for value. Managers will be required to increase their overall knowledge of existing and potential products. From here, input or structuring of the data through statistical analysis can point out the right direction and measure performance. The organization will appoint a panel of managers and employees to review the evaluations and present their findings. Upon completion of the training, a bonus program will award high sales within a specified period. REFERENCES: Capon, N. (2007). Managing Marketing in the 21st Century. New York: Wessex Press. Cavusgil, T. (2009). Export Marketing Strategy: Tactics and Skills that Work. New York: Business Expert Press. Globus. (2012). Competitive Intelligence Report. GLO-BUS Software, Inc. Globus. (2012). Decision Summary Report. GLO-BUS Software, Inc. GLO-BUS. (2012). STRATEGY: Core Concepts and Analytical Approaches. Chapter 1 Mooij, M. (2009). Global Marketing and Advertising: Understanding Cultural Paradoxes. New York: Sage Press. Smith, H. (2006). Process Innovation: Beyond SWOT and towards change. Retrieved October 19, 2012 from www.bpttrends.com. Sniukas, M. (2012). How to make Business Model Innovation Happen. Innovation Management. Retrieved October 11, 2012 from http://www.innovationmanagement.se/2012/07/02/how-to-make-business-model-innovation-happen/ APPENDEX A (GLO-Bus, 2012) Financial Statements APPENDIX B Cost Report (Glo-Bus, 2012) APPENDIX C Quarterly Snapshot North America Read More
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