Situation Analysis Challenge 1721.doc

Situation Analysis: Challenge Product Evaluation: For each product: Product DCS Price Age MTBF Perf. Size Awareness Accessibility Able 3 $33 6-7 15000 5.3 14.7 100% 53% Abyss 19 $45 3-4 22000 9.0 10.9 53% 51% Abuse 7 $45 1-2 23000 11.4 8.9 84% 51% Outline a product management strategy for each? What would it take to make each product a strong competitor in the market? Able The product able needs to be inside the ideal range. The accessibility percent should be greater; the sales budget should be set to $2000 until it reaches 100%. The age is too old therefore there needs to be some changes that need to be made and cut the age down. MTBF should be set to the ideal 20000. Abyss Adjust age to 0, increase MTBF to 23000, increase sales and promo budget to 2000. On the perceptual map, Abyss should be inside the ideal boundaries. The size should be decreased and the performance should be increased. Abuse Adjust age to 0, decrease the performance and increase the size to keep the age, increase sales and promo budget to 2000. The product Abuse should be inside the ideal spot. Abuse is too far ahead, it should take a steady step. Sales forecast: Given the changes you recommend above, how many could each product sell in the next year: Able 0 Abyss 0 Abuse 323 Production Evaluation: How ?good? is each factory? what needs to be done to improve each? Product Capacity Automation Plant utilization Next year?s Plant Utilization Units in inventory Unit cost Cash in warehouse Able 0 6 66% 1356 $13.41 Abyss 0 2 130% 302 $29.99 Abuse 0 4 69% 221 $30.38 What investments are required to improve each factory? Not much investment is needed. Financial Strength: What is your current capacity to raise money for operations and growth? 0 Operating funds: Do you have an emergency loan? How large is it? What caused the company to take the loan? (analyze the Statement of Cash Flows) yes, $23309101 ? low profit, too much products left in inventory, Investment Funds: Can you (currently) finance growth through retained earnings? no Bonds: What is your current total of outstanding bonds? What is your bond rating? How much money can you raise with bonds? DDD, $8000000, Stock: What is your current stock price? How many shares of stock do you have outstanding? How much money can you raise in the next year by issuing stock? -$.177 , 2394606, STRATEGY: What is your plan to turn this company around in 3 years? Come out with strong high tech product abuse. How many products will you have? In what market segment(s) will you compete? What is required to be successful in each segment? for the product? For the factory? Only one. High tech, revise it every year. MTBF 23000. ( product) Factory ? automation 4 ( no more than 4), no capacity, raise market share, reduce price. 2000 sales and promo budget until aw, ac becomes 100%.