Simulation Presentation
Team Erie
• Sonny Doan
• Christian Garza
• Hailee Petty
• Daniel Webb
Mission Statement
• Our mission is to provide our customers with quality
products that provide innovations unseen in the market
place.
Vision Statement
• To provide customers with innovative products that
exceed consumer and investor expectations. Our
company will achieve this by making investments to Total
Quality Management and by providing our investors with
annual dividends.
Initial Strategy
• Broad cost leader strategy
• Focus on both low and high tech market segments.
• Lowers the cost of goods sold through investments to
TQM.
• Offer products at a lower price than competitors.
Emergent Strategy
• Niche cost leader strategy
• Focus on low tech market segment.
• Lower cost of goods sold through investments to
TQM.
• Offer products at a lower price than competitors.
Industry Analysis
• A – Broad Cost Leader
• B – Niche Cost Leader
• C - Differentiator
• D - Differentiator
• E – Broad Cost Leader
• F – Differentiator
Strategic Decisions
• Rd 1, 2: Niche differentiation
• Rd 3: Begin TQM Initiatives
Strategic Decisions
• Rd 4-6: Increase Automation
• Decrease Labor Cost, Variable Cost
• Increase Contribution Margin
• 50% - 60%
Strategic Decisions
• Rd 6: Begin Production of another Low Tech
•
Gain market share
• Rd 7-9: Price Analysis, Adjustment
•
•
Price differentiation
Segmentation
Lessons
• DO’s
•
•
Reduce Variables Costs
Assess Market Competitors
• Don'ts
•
•
Neglect Customer Satisfaction
Simplify Forecasting
Evaluation
• The game was definitely a learning experience
• A little too hard
• Time consuming
• Liked that we worked in groups
Questions?
• Questions about Team Erie?
• Suggestions for Team Erie?