孙宁帆EXEutivereport.doc

1、Andrews Annual Performance 2012-2015 Prepared by: Neng Fan, Sun Submitted to: Professor: Dwight Long Management 4322: 009 Date: May 7th, 2012 Andrew is a successful and profitable company manufacturing for censor product. The business begins with four products: Aft, Agape, Abby and Alan. The primary

2、 segment for Aft is Nano, for Agape is Elite, for Abby is Thrift and for Alan is Core. The market share for every product is in more than one segmentations. All these products are targeted to serve both the low-tech and the high-tech customers.Neng Fan Sun is the CEO for this company. Our goals are

3、to keep high net profit, high customer accessibility and high customer awareness. We pursue high market shares and high stock price. We do the SWOT analysis for each round and make the decision to achieve our goals. We always carefully calculate the market forecast, customer accessibility and custom

4、er awareness. We use product board differentiation strategy which means to maintain the presence for all the segmentations. Round Analysis (All numbers in millions (000) except stock prices) Round 1 as of Dec 31, 2012 For the R&D, in order to save money, we position directly where the market wants f

5、or product Aft, Agape, and Alan. The primary market for Agape is Thrift where customer loves to ideal spot very much, so we place it in the center of the conceptual map. We still invest money in MTBF. For the marketing, we maximum the price for each price for each product. The sale forecast is harde

6、st. We calculate them according to the growth rate for each segmentation and then we add all the segmentation up. We invest $1200 for promo budget and $1500 for sales budget for each product, which will helps us keep customer awareness and accessibility. For the production, the sale forecast transfe

7、r here automatically. I buy some capacity for each product. For the human resource, we spend $5000 and train for 80 hours. We use TQM this round. We spend $2000 onCPI, VendorJIT, QIT, Channels, CCE, BenchMark, etc, which helps us reduce material cost, administration cost and labor cost and increase

8、our demands. Our closing stock price is 63.89. Round 2 as of Dec 31, 2013 In this round, we change a little the performance and size for all four products since we have already moved it to the correct position in round 1. We do not make any changes for MTBF in this round. For the marketing, we inves

9、t $1200 for promo budget and increase investment to $2000 for sales budget for each product. In order to reduce our inventory, I decrease $1 for Aft and Alan and $3 for Abby. When I do the forecast, I use the same strategy for Aft, Alan and Agape. However, for Abby I input the data 1637 which is the

10、 quantity of inventory so that I am able to sale our product. For the human resource, we still spend $5000 but train only 40 hours for each employee. We keep spending TQM this round. We spend $1500 on CPI, VendorJIT, QIT, Channels, CCE, BenchMark, etc. Our closing stock price rises a little to $66.0

11、8. Our ROS increases dramatically as well as percent of contribution margin. Round 3 as of Dec 31, 2014 Everything went well this year in terms of profits and ROE, ROA, and ROS. Good news about this round is that Andrews got the highest contribution margin comparing to others competitors. In this ro

12、und, we still change a lot for the performance and the size for all four products. In the same way, we invest $1200 for promo budget and $2000 for sales budget for each product and $5000 on recruiting and 40 training hours. The bad news is that we have a lot of inventory on hand. The inventory of Ab

13、by and Alan is as many as 453 and 582. We stop using TQM since there are not a lot of benefits. Our closing stock price increase dramatically to $107.90 and get AAA S&P level. Round 4 as of Dec 31, 2015 In this round, we change the performance and size for all the four products. For the marketing, I

14、 decrease the price $0.5, $1 and $1.5 for Aft, Abby and Alan, respectively so that we can sale our products by the end of the last round. I sold 500 capacities since we do not have so many products. For the finance, we retire our long term debt $26853 and we get our positive cash position $26853. Co

15、nclusion At the end, Andrew company closing stock price is 141.62. On the other hand, we end up with the profit of $45,262,229 and the percentage is 41.7%. We are in the second position by the end of fiscal year 2014. Our stock price decrease in the first round but we manage to bring it back. Succes

16、sful Investing on TQM helps us to reduce a cost and demand goes up. In addition to this TQM enables us a 40.01% reduction in R&D cycle time, 60.02% reduction in administrative costs, 14.19% demand increase, 13.74% labor cost reduction, and 11.51% material cost reduction. Our S & P in the final year

17、was AAA, which is the best competer among the group . We keep well with the customer awareness and accessibility. However, we still have the inventory on hand for Aft, Agape and Abby. Especially for Abby, we have as many as 521 unit inventory. Buying capacity in round 1 does not help so much and we

18、have more capacity on hand than we should be by the end of the round 4. Besides, the quantity of the customer survey for our product is very limited. There is no denying that Andrews has become a company worth investing. We believe we will continue our growth and development and strive to become a leader in our market. I learned a lot as the years progressed and able to deal with the capacity and inventory. There is no doubt I had a great four years with Andrews.