Apex corporation : geo sim case study

Thèmes abordés

Apex corporation, geo simulation,

Résumé du document

Geo sims is a business game simulation
Business plan analysis

-Analysis of the market
-Eurasia potential strategy
-swot analysis of the case
-analysis of previous results
-business development strategy

Strategy A
Strategy B
Strategy C

delegating responsabilties level :marketing, production, finance

Extraits

[...] The other three markets are not as lucrative as the first one; maybe even the cash flow is negative. However, the other three markets have relatively bigger margin for the increase of market share. We can regard the first market as the main financial source, and focus more on the other three markets, increasing marketing share. If we can achieve the first year's objective, the other three markets will be profitable in the coming three years. This strategy may be useful. [...]

[...] Since we cannot conduct our own market research, buying a thorough market research is essential. Knowing your customers and give them what they want. [...]

[...] Robotix is our only product To whom are we selling? Wholesalers and small retailers What should we archive? First maximize market share and then net revenue What do we have now? The current PL for the product is EuraTek 486 machines, which have already been used for 4 years, each has a nominal productivity 2000 hours per year and each has two workstations full-time workers and 5.33 workers To produce one Robotix with a LP = 100, it will two hour machine time 10 salespersons SWOT analysis For Eurasia domestic market Strength Weakness Government's protectionism Capable of manufacturing good product Sufficient techniques and lower labor cost Bad positioning Present price is too high Lack of focus on R&D Production cost is too high Salespersons are not motivated Opportunity Threat The economy will continue to boom in a decade During the past four years, the demand for Robotix kept increasing A transformation of retailing channels makes domestic and international investors interested No company monopolies retail industry Competition in this sector is not very intense High liquidity put the company a advantageous position when negotiates with banks and makes financial possible for the company to expand Estasian companies can offer a whole range of products and very completive price More and more Estasian companies are planning to penetrate into Eurasian market Estasian companies' market share was keeping growing during the past four years Flowing Chart Past four years performance analysis At the end of year4, the company counts market share in Eurasia, and 19% for the global market. [...]

[...] The companies probably will grasp a high percent of market share. In the coming years, although the increase of price will cause the loss of some customers, it still can generate relatively maximum net revenue. Sufficient cash is indispensable for rapid expansion. Development strategy: first market share, and then net revenue First year Key words: cash and market share Additional supplementation: “loss-lead” strategy For example, if there is four target markets, one market is profitable but already tending to saturation. [...]

[...] The company should working on the liquidity, collecting more cash, cutting cost and decreasing production. Delegating responsibility Every year, for every department, they have to decide: Marketing department Market research Coming up with strategies for different market Setting a mix of LP value for each market Deciding production quantity Customer credit How many salespersons in need Production department Counting actual production capacity Computing how many employees the company should hire for production Counting production cost, cost per unit Counting opening stock and closing stock How to pay suppliers Whether to subcontract to other suppliers Finance department Observing monetary policy and financial ratio Financial statements, especially cash flow statement How to finance projects Loans Short term Long term Overdrafts Number of money that is to be discounted Wage plan Members' contacts Appendix-key facts Focusing on domestic market first, after several years' high level performance, the company should seek the opportunity to penetrate into Estasia. [...]