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H Company
Strategic Business Plan (SBP) Fall 2022
Leading the Future of Action Cameras and Drones
Student Names here
Student #’s
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Executive Summary
H Company is an innovative technology company that supports different markets,
including security, agriculture, and filmmaking. It specializes in innovative camera
systems and drones. In a competitive marketplace, our dedication to quality and
innovation makes us stand out. After initially concentrating on specialized, high-end
products, we've expanded to provide more reasonably priced solutions without
sacrificing quality. This approach has proven important in attracting various customer
groups. Our flat organizational style facilitates quick decision-making and
interdepartmental collaboration, which improves our ability to quickly adjust to changes
in the market. Our strategic strategy, led by CEO Noel Genoway and CFO Gurinder
Singh Basraon, combines a flexible, customer-centric business model with a strong
investment in research and development. In terms of finances, we want to grow our
income to $720,500 by Year 16 and raise our UAV drone market share in North
America from 8.8% to 20% all the while keeping our product quality rating at the highest
level. By making strategic investments and enhancing operational profit margins, we
intend to optimize production costs. H Company is positioned for sustained growth and
market leadership due to our focus on innovation, quality, and customer happiness.
With our strong financial management and strategic objectives, we are well-positioned
to lead the industry and generate significant profits for investors.
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Table of Contents
Executive Summary ............................................................................................................ 2
Introduction .......................................................................................................................... 4
Organizational Structure .................................................................................................. 4
Executive Management Team ........................................................................................ 5
Charting Our Direction ........................................................................................................ 5
Vision Statement (Chapter 2) .......................................................................................... 6
Mission Statement (Chapter 2) ....................................................................................... 6
Our Values (Chapter 2) ................................................................................................... 7
Strategic and Financial Goals ......................................................................................... 7
Background on Strategic Business Units........................................................................ 8
SWOT Analysis .............................................................................................................. 11
Stakeholders .................................................................................................................. 12
Environmental Analysis ..................................................................................................... 13
The Macro Environment ................................................................................................ 13
Strategic Group Map ..................................................................................................... 15
Strengthening a Company’s Competitive Position ........................................................... 17
Introduction .................................................................................................................... 17
Offensive Strategy ......................................................................................................... 17
Defensive Strategy ........................................................................................................ 17
Key Financial Ratios.......................................................................................................... 22
Introduction .................................................................................................................... 22
Stock Price ..................................................................................................................... 23
Net profit ......................................................................................................................... 23
Return on assets ............................................................................................................ 23
P/Q rating ....................................................................................................................... 24
Current ratio ................................................................................................................... 24
Return on sales .............................................................................................................. 24
Return on equity ............................................................................................................ 24
Earnings per share ........................................................................................................ 25
Future Company Implications ........................................................................................... 25
Conclusion ......................................................................................................................... 26
WORK CITED .................................................................................................................... 27
APPENDIXES .................................................................................................................... 28
Appendix A: Ratio Analysis – Include Financial Statements (Years 1-4).................. 28
Appendix B: Graphs .................................................................................................... 31
Appendix C: Team Agreement.................................................................................... 33
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Introduction
H Company is an innovative technological business that specializes in advanced
camera systems and drones. It caters to diverse industries, such as security,
agricultural, and filmmaking. Our main approach is to differentiate ourselves from
competitors by prioritizing innovation and exceptional quality to gain a unique position in
the market. At first, our strategy focused on unique and specialized products, but it later
expanded to include more reasonably priced options without sacrificing quality to reach
out to different customers. The pitfalls of our generic strategy include the risk of rapid
technical obsolescence and the major expenses linked to continuous improvement. Also,
ensuring high-quality standards for different variety of products is an important
challenge. The key factors of success for our strategy include our continuous
commitment to research and development, strong brand reputation, and flexibility in
quickly adjusting to market fluctuations. By using feedback from customers and actively
keeping up with industry changes, we continually provide outstanding and relevant
products.
Organizational Structure
H Company's flat organizational structure supports quick decision-making and
adaptability. In the highly competitive and quickly changing technology sector, this
strategy reduces the number of hierarchical layers and encourages direct contact and
teamwork among employees. H Company uses a collaborative approach in their
strategic decision-making hierarchy. Cross-functional teams, with members from
departments like marketing, R&D, finance, and operations, make key decisions.
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Different viewpoints are considered because of its structure which leads to well-rounded
and successful strategies. The CEO and senior management make up the executive
team, which also gives general direction and ultimate approval on key strategic
initiatives. However, middle management and frontline staff members' opinions are
respected and considered when making decisions. This inclusive approach ensures
alignment with the organization's objectives and develops innovation and employee
engagement.
Executive Management Team
Noel Genoway

Chief Executive Officer (CEO)

Chief Information Officer (CIO)

Chief Communications Officer (CCO)
Gurinder Singh Basraon

Chief Financial Officer (CFO)

Chief Securities Officer (CSO)
Charting Our Direction
Our organization, H Company, began with a challenging and inclusive approach to
develop our strategy. First, we carried out a full market analysis, identifying important
trends in the sector and competitor strategies. Internal evaluations to determine our
SWOT (strengths, weaknesses, opportunities, and threats) came next. Noel Genoway,
as CEO, began strategic brainstorming sessions to ensure alignment with our basic
goal and values. As CFO and CSO, Gurinder Singh Basraon ensured sustainability and
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risk management by providing financial and security insights. Finally, we combined
feedback from each other to create an integrated and flexible strategy plan that will
direct our expansion.
Vision Statement
Our goal is to lead the innovation in the drone and AC camera industries and set the bar
for quality in terms of security, technology, and customer satisfaction. Our mission is to
develop innovative, eco-friendly goods that improve people's lives and encourage
creativity, all the while maintaining our commitment to ethical conduct and involvement
in global society. Our technologies will enable innovation and connectivity in the future.
This will help people and companies everywhere to realize their full potential. We work
to positively impact society and the environment through continuous innovation,
effective collaborations, and a quality-focused approach.
Mission Statement
We at H Company are leaders in the action-camera and UAV drone sectors, committed
to providing top-notch photo and video solutions for different business and adventureoriented uses. We are experts at putting together small, high-tech cameras and
intelligent drones that record incredible events and deliver valuable information to
different industries. Our goal is to improve people's experiences with and recording of
their surroundings by continually improving and ensuring the best possible performance
and dependability in our devices.
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Our Values

Excellence: We aim for excellence in every aspect of our company, including
customer service and product design. Our objective is to go beyond industry
norms and produce outstanding results that differentiate us from other
companies.

Customer Centricity: Our commitment is on understanding and fulfilling the
demands of our customers. Our products improve customers' experiences and
satisfaction because we value their comments and provide outstanding service.

Responsibility: We accept accountability for what we do and the effects they
have on the environment and our stakeholders. Our dedication to moral
behaviour and ecological responsibility motivates us to conduct our business
responsibly and with honesty.

Innovation: We have an innovative culture and are always looking for new ways
to improve our products. Our primary focus is on innovative developments which
provide our customers advanced solutions.

Quality: We are dedicated to providing excellent products that adhere to strict
specifications. Our commitment to exceptional craftsmanship and reliability
ensures that our drones and cameras operate at their optimum efficiency under
all circumstances.
Strategic and Financial Goals

Increase the UAV drone market share in North America from 8.8% to 20% by the
end of Year 16 by streamlining product features and focusing on undiscovered
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consumer markets.

By the end of Year 16, increase total income to $720,500 from $678,194 by using
improved marketing techniques and growing the market share.

By the end of Year 16, maintain the current action-capture camera and UAV
drone performance/quality rating of 10.0 stars by means of continuous product
development and enhancements to production procedures.

By Year 16, reduce the production costs per unit of UAV drones to $1,800 and
action-capture cameras to $450 by implementing savings measures and
improving operational efficiency.

Increase the operational profit margin of UAV drones from the current 29.2% to
35% by Year 16 through improved sales strategies, lower overhead, and
production optimization.
Background on Strategic Business Units
Introduction: Company overall
The company we run is in the high-tech consumer electronics industry, with a focus on
innovative UAV drones and action-capture cameras. Our unit strategy has changed
over time from being reactive to proactive, with a focus on foreseeing market trends and
leading the way in innovation. This change has helped us maintain our lead in a sector
that is changing quickly. Our dedication to technological innovation and quality is the
foundation of our long-term competitive advantage. Our commitment to R&D and use of
innovative production techniques allows us to continuously produce high-performance
goods that exceed customer standards. We can stay competitive and hold a strong
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position in the market because of our commitment to innovation and excellence.
SBU # Cameras (4 market segments)
The Cameras Strategic Business Unit (SBU) specializes in the development,
manufacturing, and distribution of premium action-capture cameras that are specifically
designed to meet different target markets. We provide three distinct models in four
regions: North America, Europe-Africa, Asia-Pacific, and Latin America. Every model
maintains a constant average wholesale price of $670, with major spending in retailer
support and marketing efforts to improve product attractiveness and brand exposure.
Despite our efforts, the Cameras Strategic Business Unit (SBU) showed major regional
performance fluctuations.
We have made the decision to divest our investments from the Latin American market
because of major financial losses and a decrease in market share. The operational
profit margin of the region saw a major negative value of -24.5%, primarily because of
increased production expenses, mediocre sales performance, and inadequate market
demand. This strategic decision helps us to redistribute resources to more profitable
areas and improve overall financial stability.
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SBU # UVA Drones (4 market segments)
The UAV Drones division of our company operates in four primary market segments:
North America, Europe-Africa, Asia-Pacific, and Latin America. In North America, we
achieved major successes with a revenue of $129,130,000 and a strong operating profit
margin of 37.4%. The segment's performance is impacted by the strong demand and
profitable direct internet sales. The Europe-Africa region has experienced a major drop
in profitability, reflected by an operating profit margin of 29.2%. This decline can be
related mainly to increased expenses relating to production and distribution. In the AsiaPacific region, although there is a major market presence, the profit margin is smaller at
25.9% due to rising expenses. The operational profit margin of Latin America is the
lowest among all regions, standing at a mere 1.1%. This is mostly due to the impact of
high costs and reduced sales.
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Due to the consistently low profitability and high operational costs, we made the
decision to withdraw from the Latin American market segment, as the potential for
growth in this region was outweighed. This strategic move enables us to redistribute
resources to more lucrative areas and enhance our position in markets with higher
margins.
SWOT Analysis
Strengths
 Increased EPS from $1.07 to $2.94:
strong financial performance
 High ROE of 31.8%: Strong use of
equity for profits
 Strong current rati of 2.95:
Company has excellent liquidity
 Operating profit margin of 17.9%:
Effective management of costs
 Financial stability with strong and
good management of cash
 High PQ ratings for AC Cameras
and UAV Drones
Weaknesses
 Shortfall in UAV Drone Production
Capacity
 Reduced Demand for AC Camera
in Latin America of 69.3 as
compared to other regions
 No Dividends Paid
 High Debt Levels: debt-to-equity
ratio of 70:30
 Higher marketing and administrative
expenses
 Inefficient use of fixed assets
Opportunities
Threats
 Intense Industry Competition
 Rising global demand for both AC
Cameras and UAV Drones
 Economic downturns
 Continued investment in new
 Rapid technological advancements
technologies: capture new customer
 Regulatory Changes
segments
 Disruptions in the supply chain
 Increasing presence in
 Fluctuations in currency exchange
underpenetrated regions
rates
 Leveraging improved marketing
strategies
 Collaborations with tech firms can
drive product innovation
 Implementing cost-saving measures
and technological upgrades
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Stakeholders
Stakeholder
Responsibility and Accountability
Stockholders / Investors
Ensuring a strong return on investment and maintaining open
and honest financial documentation. Delivering performance
updates on a regular basis, handling funds sensibly, and
ensuring that financial rules are followed.
Customers
Supplying superior goods and services that satisfy the
requirements and expectations of customers. Answering
questions from consumers, ensuring the safety and
satisfaction of the products, and providing reliable customer
service.
Employees
Completing tasks on the work effectively, supporting
organizational objectives, and following with company
standards. Sustaining productivity and morale, ensuring the
workplace is safe, and participating in professional
development.
Suppliers
Delivering high-quality goods or services on time and
according to schedule, as stated. Work together to
ensure standards and specifications for the product are met.
Creditors
Pay back debts and interest on time. Keep up a favourable
credit position. For the purpose of evaluating credit, provide
precise financial data.
Competitors
Adhere to ethical standards and industry norms. Remain
competitive by innovating and improving. Respect competition
limits and intellectual property.
Government
Respect all legal requirements, especially those related to
taxes. Provide financial performance reports that follow
industry guidelines. Make a business-related contribution to
economic development.
Local Community
Take part in activities for corporate social responsibility.
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Create job opportunities and encourage local growth. Discuss
the effects of corporate activity on the environment and
society.
Environmental Analysis
The Macro Environment
Strategically Relevant Factors Outside Your Companies Boundaries
Political
Tariffs and trade laws have an impact on foreign sales and expenses,
which have an impact on plans for expanding a global market
(Moritsch). The political stability of important markets, such as North
America and Europe, impacts investment choices and corporate
operations.
Economic
Demand for items and consumer purchasing power are impacted by
economic conditions (NielsenIQ). Profitability is impacted by
exchange rates, particularly for overseas sales. Cost management
and pricing strategies are impacted by rising costs for goods and
services.
Socio Cultural
Product development and marketing strategies are shaped by design
and technological trends and preferences. Demand for different
camera and drone types is impacted by factors such as age, income,
and changes in lifestyle. Market acceptability is influenced by
attitudes toward the adoption of new technologies and environmental
sustainability.
Technological
The need for ongoing innovation in product creation is driven by the
speed at which technology is developing. Research & development
spending is required for maintaining competitive advantage and
satisfying changing customer demands. Robotics and automation
developments impact the cost and efficiency of production.
Environmental
Growing environmental laws and sustainability programs have an
impact on materials and industrial methods. The availability of raw
materials and supply chains can be impacted by weather patterns
and climate change. Sustainable methods are required due to the
growing customer demand for eco-friendly items.
Legal
Respecting industry rules and guidelines is important for staying out
of trouble with the law and getting access to markets. To keep a
competitive edge, intellectual property rights must be protected.
Maintaining legal requirements related to consumer rights and
product safety is important for maintaining confidence and avoiding
legal conflicts.
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The Five forces Model of Competition
Five Forces
Five Forces
Specific Factors
Strength of
Pressure
Impact on
Industry
Profitability
Rivalry Among
Existing
Organizations
High competition from
established brands.
Slowing industry growth
can increase
competition. Low
differentiation among
products increases
competitive pressures.
High exit barriers can
lead to more intense
competition.
Strong
High competition
reduces margins
and increases
marketing and
innovation costs.
Firms in other
industries
offering
substitute
product
Alternatives such as
smartphones with highquality cameras.
Improvements in
substitute products can
attract consumers away
from specialized
cameras and drones.
Moderate
Substitutes
provide
consumers with
alternative options,
impacting sales
and prices.
Power of Buyers
Increased access to
information empowers
buyers. Large buyers or
buyer groups can
negotiate better terms.
High sensitivity to price
changes can drive
down prices.
Moderate
Buyers' bargaining
power can reduce
prices and
margins.
Power of
Suppliers
Limited number of
suppliers for key
components. High
switching costs can
increase supplier
power. Few alternative
suppliers can lead to
higher costs.
Moderate
Higher supplier
power can
increase input
costs, impacting
overall profitability.
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Potential New
Entrants
High capital
requirements and
technological expertise
create barriers.
Established firms
benefit from economies
of scale. Strong brand
loyalty reduces the
threat from new
entrants.
Weak
High barriers to
entry limit the
threat from new
competitors,
maintaining
profitability for
famous
companies.
Strategic Group Map
AC CAMERA SEGMENT —
NORTH AMERICA
Asia-Pacific
EUROPE-AFRICA
Latin America
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UAV DRONE SEGMENT —
NORTH AMERICA
Asia-Pacific
EUROPE-AFRICA
Latin America
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Strengthening a Company’s Competitive Position
Introduction
Offensive Strategy
The offensive strategy of H Company seeks to increase profitability and market share
through strategic investments and new product development. Improving the competitive
edge and taking advantage of new opportunities were the objectives. Strong gains in
stock price, enhanced earnings per share (EPS), and bigger product quality ratings,
especially in the AC Camera and UAV Drone segments, are among the achievements.
These results show that the business was able to increase market presence and
financial performance by using its offensive strategy.
The plan was put into practice over a number of years, and by Year 15, major
improvements had been made. The enhanced financial measures, including greater
ROE and EPS, together with higher PQ ratings, reveal that the offensive tasks started to
pay off later in the observation period. The company's objectives of long-term growth
and market dominance correspond with this timetable.
Defensive Strategy
H Company used defensive strategies to protect its standing in the market and its
financial health. This involved keeping up a high current ratio to ensure liquidity and
lower financial risk. In addition, the company prioritized cost reduction and effective
asset usage to maintain profitability in the face of variable revenue. To maintain
operations and reduce the risks related to market instability and competitive pressures,
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defensive measures were needed.
To provide a balanced approach to growth and stability, the offensive and defensive
methods were put into practice together. With a strong current ratio and steady net profit
by Year 15, the company had improved its financial position and showed how effective
its defensive strategies had been in keeping a strong competitive edge.
Marketing
The marketing strategy of H Company focuses on using a broad strategy to increase
brand awareness and sales in global markets. The company maintains a consistent
wholesale pricing of $670 per unit for its AC cameras in North America, Europe-Africa,
Asia-Pacific, and Latin America, supported by major marketing and retailer support
spending. The advertising budget differs by location and is between $4,000 and $7,200.
It gets even better by major spending on online displays and sales promotions. A
consistent one-year warranty and a high consumer appeal rating of 10.0 work as
evidence of the product's dependability.
The company makes large investments in retailer support, allocating budgets ranging
from $3,000 to $4,500 to ensure sufficient help for each region. To increase demand,
sales promotions, including discounts, are seriously used in North America, EuropeAfrica, and Asia-Pacific, but not in Latin America. H Company's strategy balances
investment in marketing, retailer support, and product quality to retain a high market
share and profitability in the context of competitive pricing pressures.
AC Camera Marketing
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UAV Drone Marketing
The majority of H Company's marketing strategies are offensive. To enhance its market
presence and drive demand, the business plans to invest frequently in advertising,
retailer support, and website displays in addition to keeping a constant wholesale
pricing of $670 per unit across all regions. The major investments in marketing and
advertising, especially in North America, Europe-Africa, and Asia-Pacific, shows the
intent to rise above competitors and gain market dominance. The company's dedication
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to growing its presence and increasing brand recognition in a competitive market can be
seen by its strategic execution of sales promotions and strong retailer support.
Operations
The operations strategy of H Company is primarily offensive. The company shows a
proactive commitment to innovation and market leadership through its large investments
in product research and development (R&D) for both action-capture cameras and UAV
drones. For example, Year 15's manufacture of AC cameras involved a significant $24
million investment in research and development, for a total of $263 million in R&D.
Similarly, $18 million was invested in R&D on UAV drones. The P/Q grade of 10.0 for
both product lines indicate a dedication to superior performance traits and product
differentiation. This shows the importance of maintaining high product quality. This
offensive strategy is enhanced by the company's focus on increasing productivity
through robotics upgrades and training. The absence of additional workstations and the
effective use of the capacity that is already available indicate a thoughtful approach to
resource management. H Company's overall goals are to aggressively gain market
share and stay ahead of competition by focusing on innovative R&D. This
maintains strict quality standards, and maximizing capacity for manufacturing.
Human resources
H Company has a mainly defensive approach to human resources, choosing to retain
current operations and take care of immediate needs over determined expansion. Both
the AC Camera and the UAV Drone workforces receive basic salaries along with fringe
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benefits, attendance bonuses, and incentives for assembly quality. To improve
efficiency and worker satisfaction, for example, the basic wage for AC Camera PAT
members is a bit more than the industry norm, and there are bonuses for attendance
and assembly quality.
H Company has taken care to handle current demand without overextending resources,
as seen by the installation of enough workstation spaces and workstations for both AC
Camera and UAV Drone assemblies, to save overtime expenditures. To maximize
productivity, the company upgraded its robotics system, reducing the number of workers
per PAT from 4 to 3. However, this had an impact on net annual costs because it raised
maintenance and financing expenses.
H Company's overall approach focuses on resource allocation efficiency, productivity
growth, and cost reduction. This strategy involves taking a defensive approach, giving
stability and operational effectiveness priority over rapid growth or market expansion.
Financial Decisions
The goal of H Company's financial strategy is to continue being profitable while keeping
its finances healthy. The company made $678.2 million in total sales and $60.98 million
in net profit in Year 15. In spite of this, no dividends were distributed; instead, the
company chose to spend its earnings to improve its capital structure.
High cash reserves of $497.25 million and a good current ratio of 2.95 are displayed on
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the balance sheet which shows high liquidity. The company's credit rating was raised to
A in Year 16 due to an improvement in the debt-to-equity ratio, which went from 70:30 in
Year 15 to 57:43 in the anticipated Year 16.
The strategic financial decisions involve judicious management of liabilities, especially
long-term loans, and large reductions in capital expenditures. H Company continues to
focus on debt reduction and investments. This shows a cautious and careful financial
position. Year 16 net profit is projected to rise to $75.36 million, and dividend pay outs
are not planned.
Special Decisions
H Company has an aggressive approach, investing funds on robotics upgrades to
increase production and save labour expenses. To gain market share, marketing
campaigns prioritize large expenditures, especially in North America and Europe.
Reinvestment and debt reduction are the company's top priorities in terms of finances,
as seen by its increased debt-to-equity ratio and solid liquidity. To ensure financial
stability, defensive strategies include keeping large reserves of cash and a cautious
dividend policy (Credit). Upgrades and marketing expenditures are timed so they
correspond with expected rises in market demand. This ensures preparedness without
going over budget. The absence of acquisitions allowed for a focus on internal
productivity and organic growth.
Key Financial Ratios
Introduction
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The financial strength of H Company is strong and shows significant progress in a
number of areas. The stock price has significantly increased, indicating potential for
growth and ideal market confidence. Consistent net profits are a sign of efficient
operations and good cost management. A high current ratio and an improved return on
assets point to increased liquidity and asset utilization (Team). The company's
outstanding financial performance and shareholder value are further illustrated by rising
earnings per share, a strong return on equity, and consistent high PQ ratings for product
quality. H Company exhibits strategic expansion and efficient financial management
overall.
Stock Price
The price of H Company's stock increased to $32.95 in Year 15 from $15.35 in Year 14.
Stronger earnings and better market performance have led to an improvement in
investor confidence and financial health, which is reflected in this gain. The important
increase shows the company's growth potential and favourable market perception.
Net profit
Despite fluctuations in revenue, H Company's net profit stayed stable at $60,979 in Year
15, indicating strong financial success. This consistency indicates efficient cost control
and operational effectiveness, both of which increase total profitability.
Return on assets
H Company had $745,015 in total assets and $60,979 in net profit at the end of Year 15.
Net profit divided by total assets is the formula for calculating ROA, and the result is
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about 8.2%. This shows how profitably the business uses its assets. With $832,141 in
total assets and $60,979 in net profit in 2014, the return on assets (ROA) is almost 7.3%.
This is a drop from the prior year, which indicates that asset use for profit generating
was less effective. 2016 is expected to bring in $695,393 in total assets and $75,364 in
net profit. The estimated return on assets (ROA) of approximately 10.8% indicates
better efficiency in using assets to produce bigger profits than in prior years.
P/Q rating
In Years 14 and 15, the PQ rating for AC Camera increased to a good 10. This shows
excellent product quality and customer satisfaction. This enhances the business's
competitive edge and attraction to consumers.
Current ratio
Based on current liabilities of $207,973,000 and current assets of $613,064,000 in 2015,
the current ratio for H Company is 2.95. This high ratio suggests ideal liquidity and
sound financial standing for the company by showing its strong ability to meet shortterm liabilities with its short-term assets (Hayes).
Return on sales
The business's operating profit margin of 17.9% shows effective cost control. This ratio,
which is calculated by dividing operating profit by total revenues, shows how profitable
the company's core business is even in the face of different operating costs.
Return on equity
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Year 15's return on equity (ROE) is 31.8%, up from 14.7% the year before. This shows
that H company has significantly improved both firm performance and shareholder value
by using shareholders' equity to generate profits in an efficient manner.
Earnings per share
H Company's earnings per share (EPS) increased from $1.07 in Year 14 to $2.94 in
Year 15. This noted rise is because of enhanced profitability and strong financial
performance, which point to skilled leadership and a movement in the company's
earnings production in the right direction.
Future Company Implications
With its recent operational and financial success, the implications for H Company's
goods across many strategic business units (SBUs) look positive. Strong PQ ratings
and a good return on sales increase the growth potential of the AC Camera and UAV
Drone categories. The UAV Drone's revenue growth and the AC Camera's great
product quality rating of 10 both point to strong market positioning and satisfied
customers, which can result in higher market share and profitability. The company's
increased return on equity (ROE) and stock price, which show investor confidence and
efficient use of shareholder resources, indicate that sustained attention to these
successful SBUs can result in more capital. The expected rise in return on assets (ROA)
indicates that assets will be used more profitably, which should be beneficial for the
expanding AC Camera and UAV Drone segments. Also, H Company's sound financial
standing, shown by a favourable current ratio and continuous rise in earnings per share
(EPS), gives it the stability it needs to make investments in marketing and product
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development. To ensure long-term growth and competitive advantage, the company's
future strategy must focus on using these financial strengths to improve product
offerings, increase market penetration, and drive innovation all through its SBUs.
Conclusion
In conclusion, H Company has used strategic innovation and a strong dedication to
quality to succeed in a dynamic and competitive technology field. With the
implementation of an adaptable strategy for both product development and market
positioning, the company has successfully expanded its product provides and attracted
a diverse customer. The inclusive decision-making process and flat organizational
structure contributed to a collaborative atmosphere that has improved responsiveness
and adaptability. Despite challenges in some areas, H Company's focus on R&D and
wise investments has strengthened its market presence and profitability. The company's
commitment to long-term success is demonstrated by its focus on sustainable practices,
operational efficiency, and client satisfaction. H Company is still in a strong position to
lead the sector, drive innovation, and provide outstanding value to its stakeholders as it
continues to adjust to changes in the market and technological advances.
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WORK CITED
Credit, Home. “4 Most Common Types of Dividend Policies.” Home Credit,
www.homecredit.co.in/en/paise-ki-paathshala/detail/4-most-common-types-ofdividend-policies.
Hayes, Adam. “Understanding Liquidity Ratios: Types and Their Importance.”
Investopedia, 13 June 2024, www.investopedia.com/terms/l/liquidityratios.asp.
Moritsch, Stefano. “The Challenges of Cross-border International Trade.” KPMG, 13
Apr. 2022, kpmg.com/xx/en/home/insights/2022/04/the-challenges-of-crossborder-international-trade.html.
NielsenIQ. “7 Factors That Influence the Demand of Consumer Goods - NIQ.” NIQ, 31
July 2024, nielseniq.com/global/en/insights/analysis/2022/7-factors-thatinfluence-the-demand-of-consumer-goods.
Team, Cfi. “Liquidity Ratio.” Corporate Finance Institute, 4 Oct. 2023,
corporatefinanceinstitute.com/resources/accounting/liquidity-ratio.
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APPENDIXES
Appendix A: Ratio Analysis – Include Financial Statements (Years 1-4)
Year 12
29
Year 13
Year 14
30
Year 15
31
Appendix B: Graphs
32
33
Appendix C: Team Agreement
GROUP AGREEMENT
STRATEGIC M ANAGEMENT
Date August 06, 2024
Nature of our company
H Company
Team Rules / Terms or Agreement
1. Depending on each team member's area of expertise and the demands of the simulation
work, different roles and duties will be assigned.
2. Open and regular communication is required among team members.
3. The team will meet regulalry to discuss issues, evaluate results, and make any
necessary strategy changes.
4. It is expected of team members to value one another's contributions and viewpoints.
5. Every task and due dates must be completed on time.
Signatures
Noel Genoway ________________________
Gurinder Singh Basraon ________________