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Contents: * Executive Summary * Industry Overview * Past Performance Overview * Reference: initial strategy – sent to Controllers on Day 1 * Production Strategy * Financial Strategy * Marketing Strategy * Lessons learned and key points * What if we play again? * Future Plans Executive Summary This report is intended to provide: Our analysis of the context for our entry to the game: * An expanding industry in which our company was well positioned for growth, having access to capital and a history of very stable management. * In a contemplated environment of increased production by our competitors. * Noting a trend of increasing…show more content…
Machine tool prices were observed to be stable, and there was no indication of significant forecasted increase. In summary, the main opportunities were considered to be about high industry growth and no significant barriers to the expansion of the business, while the main threats were the number of competitors, rather low market share of 5 % for each of the competitors, and general availability of capital for each of the competitors to pursue aggressive market strategies. Past performance overview The business was seen as generally healthy, with relatively low gearing, plenty of cash available in the bank and delivering some profit. It was clear that the previous management was planning for some strategic investment, because it has just issued bonds, which introduced €4.5 million of cash into the bank account. From the Direct Production Cost Schedule report it was clear that the size of existing factory was too small to allow for economies of scale, with direct cost sitting in the range of €43 per unit, whilst larger factories could provide savings of €10 to €15 less per unit given the same production level of 60 thousand units per quarter. However, the strategy of previous management was seen to maintain the factory scale at the
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