• Demonstrate effectiveness of multidiscipline teams working together.
• Use strategic thinking to an advantage.
• Test your business acumen.
• Understand overall interaction and impact of various parts of a business on one another.
• Grow an awareness of competition.
• Take away practical know-how to improve the effectiveness of your business.
• Risk Free
• View Alternative Strategies
• Enjoyable
• Compresses Time
(1 Round=1Year)
• “Siloing” <> Integration
Customers (OEMs) need sensors for their products
Initially one segment, now breaking into five
Very different customer demands developing between the segments
Diversification in the use and utility of the sensors
Low
Tech
Performance
Traditional
Size
High
Tech
In our industry we track the changing customer demand on a perceptual map
Over 8 years the customers will demand much faster and smaller sensors
Market Segments will continue to diverge
“I want these sensors to be cheap”
“I want them to have been around for a while – no Beta Testing!”
“They have to be moderately reliable.”
“The technology doesn’t have to be cutting edge.”
You’re not giving me what I want
“These sensors have to be small, like micro, and fast”
And I’m not getting what I want!
“I need them to be right out of
R&D, I’m talking ZERO years on the market”
“I’ll pay more to get what I want.”
“I like a pretty high reliability.”
SENSOR INDUSTRY ANALYST PROJECT
ONGOING GROWTH
Sees the next 8 years as consistent growth. All market segments increase at a nice “clip,” according to market analyst.
“I see the entire market growing at around 14% or 15% per year. The High
Tech market alone will be growing at a whopping 16%.”
I hope those companies out there are ready for that kind of expansion!”
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ANDREWS
BALDWIN
CHESTER
DIGBY
6 Companies
$100 Million in Sales
5 Product Lines
Closed Marketplace
ERIE
FERRIS
SHAKE UP IN SENSOR INDUSTRY
Company Fires Management Team
After poor results, lackluster sales and angry customer reports, the Chairman of the Board of Directors has announced the immediate termination of the Management Team.
“This is a black day for our company,” said Chairman
(Chainsaw Ted ) Clark, “We need to hire a dynamic leadership group who will be able to take this company into the future!”
“Due to this immediate need I have hired the Dream Team to start on January 1 st . I expect to see great things from this
Executive Team!
Functional Areas
R&D Production
Finance
Marketing
Research & Development
• Establish the specification of the products to meet customer demand
• Build the quality and reliability
(MTBF) into the products
• Ensure the perceived age of the product meets customer demands
“Our products are not well positioned in the marketplace.”
• Create new products to meet the changing marketplace
Marketing
“Our products are not priced optimally.
And many of our customers don’t even know our product exists.”
• Set the price of our products in the marketplace
• Build customer awareness through promotion
• Establish a sales force and distribution channels
• Set the sales forecast for our products
• Set Credit Policies AR/AP
Production
“We are paying too much for labor costs.
Very soon we will run out of capacity to meet demand.”
• Purchase machinery to automate our facilities
• Buy or sell capacity of product lines
• Schedule production for each line
• Manage the majority of the company’s fixed assets
• Establish your workforce complement
Finance
• Acquire capital to fund capital expansions
– Issue Stock
– Short Term Debt
– Issue Long Term Bonds
• Issue dividend to our shareholders
• Balance our debt portfolio
• Manage our proformas
“We have poor cash flow and substandard financial ratios.
We have no financial policy statement.”
A great management tool driven by forecasts and projections. Allows
“What if” Scenarios by the company.
Scoring the Game
• Select a minimum of two criteria to be measured by:
– ROE
– ROS
– ROA
– CUM PROFIT
– STOCK PRICE
– MARKET
CAPITALIZATION
– ASSET TURNOVER
– MARKET SHARE
• Weight each selection.
• Do set up an organization (team) structure & agenda
• Don’t be rigid in that structure
• Do pick a strategy that is fun
• Don’t try to pre-determine the other 5 strategies –
You won’t!
• Do rotate the keyboard
• Don’t forget to save often!
• Do use all the data in the reports
• Don’t become a victim of “Analysis – Paralysis”
• Do initiate your strategy in the first round
• Don’t over-commit and shut off all possibility of mid course correction