funky junk inc years 6-15 review willomina wonka xavier xenon yitzhak yankovic zero zevon years 6-15...
TRANSCRIPT
Funky Junk INCYears 6-15 Review
Willomina WonkaXavier XenonYitzhak YankovicZero Zevon
Financial PerformanceFinancial 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
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 VisionStrategic 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.
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 TargetsFuture Targets
Year 16 EPS – $4.12 ROE – 24% CR - A+ IR - 65 Stock $ - $67
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
Year 17 EPS - $4.50 ROE – 27% CR – A+ IR - 70 Stock $ - $72
Competitive Strategy E-LCompetitive 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
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-FCompetitive 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
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 StrategyProduction 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
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 StrategyFinance 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
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 CompetitorsStrongest Competitors
Entry-Level Closest
competitors were companies B & D because of same P/Q ratings (2) and competitive prices among the companies
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
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 RivalsOut – 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
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 LearnedLessons 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
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
