Strategy Statement

Industry ID : C94289
By:
Kyle Signs, Sean Garvey, Aniket Kaushik, & Tammy Zhong

1. We plan to plan phases, starting as a Niche Cost Leader, moving toward a

Niche Differentiator and moving toward a Broad Differentiator. We choose to

pursue this as we see the segment size in the Low-End & Traditional markets

are big and what we want to aim for at first, then focusing on our higher end

products when the market grows in these segments in later years.

2. Our team is comprised of four key members:

a. CEO - Sean Garvey

b. CFO - Tammy Zhong

c. Head of R&D - Kyle Signs

d. Marketing & Sales Director - Aniket Kaushik

3. We are focusing on four key performance indicators

a. Profit - 30%

b. ROS - 30%

c. Stock Price - 20%

d. Market Share - 20%

4. As a company that wants to end as a Broad Differentiator we plan to focus on

the Traditional and Low end segments in the beginning and then High End,

Size and Performance as their markets increase. We will have products in

every market, but our high end markets will not be a focus until year 4 and we

don’t plan to be a full Differentiator until year 7.

5. Overall Strategy
a. Financial Strategy

i. Although we plan to spend less on R&D in the beginning rounds,

we will always make sure we have enough funds available for

our product repositionings before moving onto marketing

budget, production and finally increasing our HR - TQM

ii. We will always make funds available first by issuing stock, then

by long term bonds and then short term loans

iii. In the first two years we plan to improve greatly on Automation

of our product lines and will be taking max amounts of long term

debt and stock to accomplish this.

iv. From there we will only take out Long Term Debt if necessitated

by lack of cash flows

b. R&D

i. Every-product except low end will be moving with the customers

needs

1. High End, Performance, Size will lag behind for the first

three years so we can make updates within 6 months

ii. Our TQM will focus on lowering R&D times as a first priority.

c. Marketing & Sales

i. As we plan to be in everymarket and eventually want to be the

highest market share we will spend aggressively on Marketing

ii. Promo Budget will be at $2000 for Low End/Traditional, $1750

for High/Performance/Size as we increase our

High/Performance/Size presence it will all go to $2000

 iii. Sales Budget will be $2250 for Low End/Traditional and $1,650

and will flip as soon as Low End/Traditional reaches full

accessibility

iv. Projections are based on Potential Market Share from the

previous year * Size of Market * (1 + Market Growth) * (1 +

Projected Market Share increase) (5% overall for the first year.)

d. Production

i. We will focus on increasing Automation for each project

1. Low End Max = 10 over first two years

2. Traditional = 10, 1 per year

3. High End Max = 6, .5 per year until 3-4

4. Performance = 7, .5 per year until 3-4

5. Size = 7, .5 per year until 3-4

ii. Aim to keep second shift within 20% to 50% utilization

iii. Changes in production size between years are seen as a sunk

cost, if projected second shift is less than 10% or more than

60% we will sell or buy capacity.

e. HR - TQM

i. Focusing first on R&D time reduction, then Material Cost

Reduction, then Demand Increase

ii. HR - Same each year, $5000 Recruitment and 80 Hours of

Training

6. Summery

a. Sales Forecast
 i. Sales Budget will be $2250 for Low End/Traditional and $1,650

and will flip as soon as Low End/Traditional reaches full

accessibility

b. Raising Capital

i. Stocks, then Long Term- then Short Term

c. Performance Indicators Y?

i. Profit - All firms need to be worried about making a profit

ii. ROS - Focusing on Automation and Material cost reductions

means or Margin should be high compared to our Returns on

Sales

iii. Stock Price - We want to use the stock market as our main

capital raiser, by focusing on keeping our stock price high we

can receive higher funding each round

iv. Market Share - As a company moving into a Broad Differentiator

strategy, we want to have a large share in each market!