Transcript Funky Junk INC - GLO-BUS

Funky Junk INC
Years 6-15 Review
Willomina Wonka
Xavier Xenon
Yitzhak Yankovic
Zero Zevon
Financial Performance






Annual revenues grew at a CAGR of 2.8%
per year
Annual EPS grew at a CAGR of 10.7% per
year
Annual ROE grew at a CAGR of 4.9% per
year
Annual credit rating reached A+ in year 9
and continued through year 15
Stock price grew at a CAGR of 9.8% per
year
Image rating peaked at year 8 with a 74
Strategic Vision

Establish the company as a leading
low cost provider of digital cameras
while providing high quality
products and maximizing
stockholders' return. We also strive
to employ the best workers in the
industry through training and highly
competitive compensation.
Future Targets
Year 16
 EPS – $4.12
 ROE – 24%
 CR - A+
 IR - 65
 Stock $ - $67
Year 17
 EPS - $4.50
 ROE – 27%
 CR – A+
 IR - 70
 Stock $ - $72
Competitive Strategy E-L
To be a overall low cost provider of
entry-level digital cameras in the
four geographic regions in which we
operate.
 Strategy had to evolve during years
9-10 because of high operating and
marketing costs
 Strategy back on track by year 15
with a price 4% below industry
average

Competitive Strategy M-F
To be a overall low cost provider of
multi-feature digital cameras in the
four geographic regions in which we
operate.
 Strategy had to evolve during years
9-10 because of high operating and
marketing costs
 Strategy focused by year 15 with
price 13% below industry average

Production Strategy
Our production strategy included
utilizing overtime capabilities to
avoid costly outsourcing
 Expanding in-house assembly to 71
available workstations by year 15
 Maximum bonus for perfect
attendance and an average of $1500
in training per PAT
 Compensation package around
$35,000 per year

Finance Strategy




Our finance strategy centered around
paying off L/T debt within the first 4 years
to free up capital and achieve an A+ CR
Repurchasing maximum amount of stock
with extra capital
Steadily increasing dividends to reward
shareholders, ending with the highest
dividends paid in the industry
Continue paying near maximum
dividends in the future years to increase
SE in the company
Strongest Competitors
Entry-Level
 Closest
competitors were
companies B & D
because of same
P/Q ratings (2) and
competitive prices
among the
companies
Multi-Feature
 Closest
competitors were
companies D & H
because of similar
P/Q ratings (3 – 3
½) and price
battling between
the companies
Out – Competing Rivals

Entry –Level and Multi-Feature
Continue to lower production costs
which will enable us to decrease prices
 Invest more in marketing and R&D to
capture market share away from our
closest rivals

Lessons Learned
You must observe and take action to
decrease costs associated with
marketing and production
 Study your rivals and the industry
when deciding what offensive
tactics to pursue
 Stick to your competitive strategy,
allowing for evolvement over time
 Do not lower ethical standards in
order to just make money
