Final Analysis

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

Balanced Score Card Results

20
17.455

15 10 5 0
2.122 0.229 0.783 1.87

Phoenix Technologies
Total Performance Orange 81.363 (1st) Aries 4.995 (2nd )
0.324

Comtek Geek 2.132 (3rd)

0.896 3.801 0.594 0.553

Phoenix 2.122 (4th)

Kamac 1.345 (5th)

Bolt 0.00 (6th)

Financial Performance Overview

Q1
Revenues Gross Profit 0 0

Q2
0 0

Q3
50,983 18,794

Q4
388,491 88,380

Q5
4,211,795 1,751,107

Q6
8,599,602 4,310,619

Q7
13,361,125 6,785,496

Q8
20,622,329 8,921,689

Q9
25,535,811 10,247,693

Q10
36,505,869 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 EBITA Net Income

-88,000 -88,000 -74,320

-110,000 -110,000 -110,000

-695,372 -695,372 -695,373

-949,921 -949,921 -949,921

-4,708,476 -4,708,476 -4,708,476

-277,092 -277,092 -408,493

-552,286 -552,286 -716,530

887,116 887,116 714,379

-1,048,447 -1,048,447 -1,206,004

3,318,317 2,249,917 2,073,443

Earnings Per Share

-7

-6

-23

-24

-50

-4

-7

-11

18

Market Share
Cost Cutter - 4th
8.11%

16.12% 17.38%
18.22%

7.54%

Aries Bolt Comtek Kamac Orange Phoenix 18.89% 14.05% 18.79% 23.50% 9.63% 15.14% Aries Aries Bolt Comtek Kamac Orange Phoenix

32.64%

Mercedes 2nd

Innovators 2nd
21.39% 14.62% 17.22%

Bolt Comtek Kamac Orange

22.36%
13.81%

10.61%

Phoenix

Market Share
Work Horse 2nd
20.54% 23.23% 11.54% 15.75% 15.87% 13.06% Aries Bolt Comtek Kamac Orange Phoenix 20.65% 23.32% 15.67% 22.50% 30.19% 17.71% Aries 7.41% 6.33% Bolt Comtek Kamac Orange Phoenix 15.98% 13.46% 10.92% Aries Bolt Comtek Kamac Orange Phoenix

Total Share 2nd

Traveler 2nd

15.87%

2-Year Business Plan What Was Supposed to Happen

Our initial goal was to capture the Work Horse and Cost

Cutter Segments

We initially set out to aggressively expand sales force in regions where there is reduced competition Our initial marketing strategy was to lead the industry in frequency and effectiveness of ad campaign and media placement We set out to reduce stock outs by setting correct target points

2-Year Business Plan What Really Happened

Once we realized what the market demand was we decided to

change our focus and target the Traveler, Work Horse, Innovator and Mercedes Segments

We ultimately redistributed and reduced our sales force in order to reduce costs and increase individual productivity We had to reevaluate our advertising and completely revamp our marketing campaign We became more aggressive in our spending, designed higher quality brands and introduced them to the market We expanded production capabilities and increased our manufacturing

Greatest Success & Failures

Greatest Success
We 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 expanded our sales We improved our productivity by expanding and opening sales offices in Europe Opening additional web channels in Europe and the US

Greatest Failures / Errors

We were too conservative in our initial spending Should not have explored Greenfields by entering China Underestimating our demand in Quarter 8 and producing too many lost sales due to stock outs We were too aggressive with our sales force hiring which had a negative impact on our human resource management

Competitors
Most Admired

Fiscally responsible Willing to Barter for technology

Most Despised

Made negotiations difficult Were unwilling to negotiate Sold expensive technology for cheap

Strategy for Future Success

(i) Getting Ahead Continue on the path we began in Quarter 10 by focusing on customer needs and understanding the market data for each individual region

(ii) Staying Ahead Continue to open more web channels and focus on our higher producing markets

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

Strategy for Future Success

What marketing mix changes will we make

Product We will continue to review the market research and cater to our customers needs and desires
Price Price the brands according to the market demand and competition

Promotion Offer our high end products in the regions with the highest demand and where the customers are willing to pay. Reduce the quality of the products we offer in China
Place Focus on Europe and the United States / both in sales offices and web channels

What Phoenix Learned from Marketplace & Corporate Simulation

The importance of teamwork although each department is independent of the other, they are all a part of the same machine and the decisions of one department have a definite influence on the other How important is to invest in R&D in order to maintain state of the art 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 advertising if they dont know who you are they will not know what to buy

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