phoenix technologies - final presentation - team 1-1

8/2/2019 Phoenix Technologies - Final Presentation - Team 1-1

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PHOENIX TECHNOLOGIES

Final Analysis

Team 1 - E. Garcia , J. Guilas, K. Leal, J. Silva, Y. Suarez


2/12

Balanced Score Card Results

0

5

10

15

20

2.122

17.455

0.229 0.783 1.87 0.324 0.896 3.801 0.594 0.553

Phoenix Technologies

Total Performance

Orange 81.363 (1st)

Aries 4.995 (2nd )

Comtek Geek 2.132 (3rd)

Phoenix 2.122 (4th)

Kamac 1.345 (5th)

Bolt 0.00 (6th)


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Financial Performance -

OverviewQ1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10

Revenues 0 0 50,983 388,491 4,211,795 8,599,602 13,361,125 20,622,329 25,535,811 36,505,869

Gross Profit 0 0 18,794 88,380 1,751,107 4,310,619 6,785,496 8,921,689 10,247,693 12,808,928

Total

Expenses

88,000 110,000 714,166 1,038,301 6,459,583 4,587,711 7,337,782 8,034,573 11,296,140 9,490,611

Operating

Profit

-88,000 -110,000 -695,372 -949,921 -4,708,476 -277,092 -552,286 887,116 -1,048,447 3,318,317

EBITA -88,000 -110,000 -695,372 -949,921 -4,708,476 -277,092 -552,286 887,116 -1,048,447 2,249,917

Net

Income

-74,320 -110,000 -695,373 -949,921 -4,708,476 -408,493 -716,530 714,379 -1,206,004 2,073,443

Earnings

Per Share

-7 -6 -23 -24 -50 -4 -7 7 -11 18


4/12

Market Share

17.38% 7.54%

18.22%32.64%

8.11% 16.12%

Cost Cutter - 4th

Aries

Bolt

Comtek

Kamac

Orange

Phoenix

14.62%17.22%

10.61%

13.81%

22.36%

21.39%

Innovators 2nd

Aries

Bolt

Comtek

Kamac

Orange

Phoenix

14.05%

18.79%

9.63%

15.14%

23.50%

18.89%

Mercedes 2nd

Aries

Bolt

Comtek

Kamac

Orange

Phoenix


5/12

Market Share

15.75%

15.87%

13.06%

11.54%

23.23%

20.54%

Work Horse 2nd

Aries

Bolt

Comtek

Kamac

Orange

Phoenix

17.71%7.41%

6.33%15.87%30.19%

22.50%

Traveler 2nd

Aries

Bolt

Comtek

Kamac

Orange

Phoenix

15.98%

13.46%

10.92%

15.67%

23.32%

20.65%

Total Share 2nd

Aries

Bolt

Comtek

Kamac

Orange

Phoenix


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2-Year Business PlanWhat Was Supposed to

Happen

Our initial goal was to capture the Work Horse and CostCutter Segments

We initially set out to aggressively expand sales force inregions where there is reduced competition

Our initial marketing strategy was to lead the industry infrequency and effectiveness of ad campaign and media

placement

We set out to reduce stock outs by setting correct targetpoints


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2-Year Business PlanWhat Really Happened

Once we realized what the market demand was we decided tochange our focus and target the Traveler, Work Horse, Innovatorand Mercedes Segments

We ultimately redistributed and reduced our sales force in orderto reduce costs and increase individual productivity

We had to reevaluate our advertising and completely revampour marketing campaign

We became more aggressive in our spending, designed higherquality brands and introduced them to the market

We expanded production capabilities and increased ourmanufacturing


8/12

Greatest Success & Failures

Greatest SuccessWe redesigned higher quality brands which increased our sales

and ultimately placed us in the number 2 demand spot

Reassessed and redistributed our target markets which expandedour sales

We improved our productivity by expanding and opening salesoffices in Europe

Opening additional web channels in Europe and the US

Greatest Failures / ErrorsWe were too conservative in our initial spending

Should not have explored Greenfields by entering China

Underestimating our demand in Quarter 8 and producing toomany lost sales due to stock outs

We were too aggressive with our sales force hiring which had anegative impact on our human resource management


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Competitors

Most Admired

Fiscally responsible

Willing to Barter for technology

Most Despised

Made negotiations difficult

Were unwilling to negotiate

Sold expensive technology for cheap


10/12

Strategy for Future Success

(i) Getting AheadContinue on the path we began inQuarter 10 by focusing on customer needs andunderstanding the market data for each individual

region

(ii) Staying AheadContinue to open more webchannels and focus on our higher producingmarkets

(iii) Make-Up GroundContinue to invest in R&D,redesign a top of the line brand, and expand ourfocus on the Mercedes target segment


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Strategy for Future Success

What marketing mix changes will we make

ProductWe will continue to review the market researchand cater to our customers needs and desires

PricePrice the brands according to the market demandand competition

PromotionOffer our high end products in the regionswith the highest demand and where the customers are

willing to pay. Reduce the quality of the products weoffer in China

PlaceFocus on Europe and the United States / both insales offices and web channels


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What Phoenix Learned from

Marketplace & Corporate

Simulation

The importance of teamworkalthough each department isindependent of the other, they are all a part of the same machineand the decisions of one department have a definite influence onthe other

How important is to invest in R&D in order to maintain state of theart technology

The influence of R&D expenditure to improve changeover(time& cost)

Pay attention to the market research at all times

The importance of marketing and advertisingif they dontknow who you are they will not know what to buy

Location is key - to choose the right place to establish theproduction plant

phoenix technologies - final presentation - team 1-1

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