Chester-Fad Executive Summary

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Foundation Simulation Annual report MANA 4322- ORGANIZTIONAL STRATEGY Company: Chester - F64450 Ariana Cadena Jason Scanlan Syed Ali William Rodriguez Executive Summary [1] Our company adopted the Niche Differentiation strategy. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, easy accessibility, and new products. We will develop an R&D competency that keeps our designs fresh and exciting. Our products will keep pace with the market, offering improved size and performance. We will price above average. We will expand capacity as we generate higher demand. Vision Statement [1] Premium products for the technology oriented customers: Ferris brands define the cutting…show more content…
However, C_Fad came out of development and was able to be sold, so a price was set at $35, since it was slightly bigger and a whole unit slower than Cake. C_Fad was created to help appeal to both the low tech and high tech markets, so the price was a compromise for both markets. Marketing budgets were set based on the idea that Cake had been out for 3 years and C_Fad was just getting kick-started. Cake’s Promotions and Sales budget was reduced by $100, down to $1,100, and C_Fad’s Promotions and Sales budget were both set at $1,400. C_Fad was a brand new product appealing to both markets; therefore more money was needed to ensure awareness and accessibility to our customers. A moderate sales forecast for Cake was set, based on year three’s final sales numbers, at 650 units, and C_Fad at 520 units, since we were unsure of its success in its first year on the market. Production amounts were set high because there was no inventory on-hand to begin year four, so the team was counting on not stocking out this year. With that in mind, 850 orders of Cake and 1,000 orders of C_Fad were set to be produced. The total amount of machines on-hand seemed appropriate for production, but the number designated to each product was altered since more units were being produced of C_Fad. Automation for Cake and C_Fad were left at 4.0 and 3.0, respectively. Under fiscal policies, since the cash was available, $2 of dividends was paid out and $3,000,000 of bonds was retired. Given that a new product was coming out this year, it seemed necessary to require 10 hours of training per employee per year to keep everyone up-to-date on the products. Lastly, as part of the company’s Total Quality Management strategy, $1,000,000 was put toward Channel Support, and an additional $1,000,000 was put toward CCE and Six Sigma

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