Foundation Round: 1 Dec. 31, 2016 FastTrack F71143 Andrews Iman Seoudi Baldwin Chester Digby Erie Ferris Andrews -0.6% 1.36 -0.8% Selected Financial Statistics Baldwin Chester 5.0% 5.7% 1.62 8.1% 8.3% Digby 6.9% 1.65 11.4% Erie 4.2% 1.43 6.0% Ferris 7.7% 1.78 13.7% 1.44 1.9 1.9 1.8 1.8 1.9 1.9 ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin% -1.6% $0 $43,981,385 $902,601 ($270,876) $2,222,830 15.4% 20.4% 15.4% $0 $49,882,292 $5,115,505 $2,489,851 $4,983,557 9.2% 22.0% 15.3% $0 $42,124,770 $4,989,151 $2,417,575 $4,911,281 7.3% 22.9% 21.0% $0 $51,224,159 $6.724,491 $3,527,743 $6,021,448 9.6% 25.0% 11.3% SO $40,563,855 $3,867,773 $1,703,257 $4, 196,963 7.2% 20.7% 26.3% $0 $44,798,944 $6,401,298 $3,440,776 $5,934,482 9.7% 26.5% Percent of Sales F71143 $ Market Share F71143 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Var Costs Depr O SGA Other Profit Andrews 16.14% Baldwin 18.33 Chester 15.46 Digby 18.79 Erie 14.88 Femis 16.44 % Andrews Baldwin Chester Digby Erie Ferris Foundation Stock & Bonds Fast Track F71143 Round: 1 Dec. 31, 2016 Stock Market Summary PIE Company Andrews Baldwin Chester Digby Erie Ferris Close $9.76 $14.39 $14.25 $16.43 $12.86 $16.30 Change ($1.41) $3.22 $3.09 $5.27 $1.69 $5.13 Shares 2,400,000 2,076,077 2,051,004 2,036,677 2,051,004 2,000,000 MarketCap ($M) $23 $30 $29 $33 $26 $33 Book Value $7.10 $7.80 $7.72 $8.24 $7.38 $6.55 EPS ($0.11) $1.20 $1.18 $1.73 $0.83 $1.72 Dividend $0.00 $0.00 $0.00 $0.00 $0.00 $1.60 Yield 0.0% 0.0% 0.0% 0.0% 0.0% 9.8% -87.2 12.0 12.1 9.5 15.5 9.5 Closing Stock Price F71143 $35 $30 $25 Andrews Baldwin Chester Digby Erie Ferris $20 $15 $10 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Series# Face Yield Series# Face Yield Close$ S&P Company Andrews 11.0S2017 12.0S2019 13.0S2021 10.082026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $2,480,000 10.6% 11.0S2017 12.082019 13.0S2021 10.0S2026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.0% $2,287,212 10.5% 100.18 102.94 108.17 95.25 BB BB BB BB Baldwin Bond Market Summary Close$ S&P Company Digby 100.00 B 102.44 B 107.39 B 94.11 B Erie 100.00 102.44 B 107.39 B 94.11 Ferris 100.18 BB 102.94 BB 108.17 BB 95.25 BB 11.0S2017 12.082019 13.0S2021 10.0S2026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $2,480,000 10.6% 11.0S2017 12.0S2019 13.0S2021 10.082026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $2,361,878 10.6% 100.09 102.69 107.78 94.68 BB BB BB BB Chester 11.0S2017 12.0S2019 13.0S2021 10.0S2026 $866,667 $1,733,333 $2,600,000 $2,361,878 11.0% 11.7% 12.0% 10.5% 11.0S2017 12.082019 13.0S2021 10.0S2026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $420,545 10.6% 100.00 102.44 107.39 94.11 B B B B Financial Summary F71143 Digby Round: 1 Dec. 31, 2016 Erie Ferris Foundation FastTrack Andrews Baldwin Chester (5271) $2,490 $2,418 $960 $1.064 $1,426 so $0 SO $3.528 $1,703 Cash Flow Statement Survey CashFlows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities Acounts payable Inventory Accounts Receivable Net cash from operations $3.441 $1,020 $0 $1,426 $0 $1,133 $0 ($170) $2,352 ($3,876) ($1.005) $300 $307 (5746) $3.415 (3657) $166 ($109) $3.244 5222 $801 (5857) $4.714 (836) ($131) $19 $2,182 ($161) ($144) ($329) $3.941 ($6.920) ($6,925) ($6.995) ($6,500) ($6.995) ($2,600) SO $4,467 SO $2,480 SO SO $5,000 SO $0 $850 $0 $2.480 $0 $0 $3,691 $0 SO $570 SO $2.362 so SO $3,679 so $0 $410 $0 $2.287 $0 $0 $3,679 $0 $0 $570 $0 $2.362 $O $0 $3.679 SO ($3,195) SO $0 $421 $0 $0 $3.679 $0 $11.947 $7,021 $6.610 $6,376 $6.610 $905 $4,022 Andrews $9,624 $7.230 SO $16.854 $3.510 Baldwin $9,112 $4,100 $2.045 $15,257 $2,859 Chester $8.461 $3.462 $2,186 $14.109 $4,590 Digby $10.191 $4.210 $1,551 $15.953 $1,798 Erie $7,399 $3,334 $2.483 $13.216 $2.246 Ferris $7.847 $3.682 $2.496 $14,025 $21,320 ($5.760) $15.560 $21,325 ($5,864) $15,461 $21,395 ($6.226) $15,168 $29.278 $20.900 ($5,820) $15.080 $21,395 ($6.226) $15,168 Cash flows from investing activities Plant improvements(net) Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets Total Assets Account Payable CurrentDebt Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & Owners" Equity Income Statement Survey Sales Variable Costs Labor, Material,Carry) Depreciation SGA/R&D Promo, Sales Admin) Other(Fees Writeoffs, TOM, Bonuses) EBIT Interest(Short term Long term) Taxes Profit Sharing Net Profit $17.000 ($5.933) $11,067 $32.414 $30.718 $31,033 $28,385 $25.092 $2,684 $5,000 $7.680 $15,364 $3,154 $3,691 $7.680 $14,525 $2.196 $3.679 $7,562 $13.437 $3,076 $3,679 $7.487 $14.242 $2.017 $3.679 $7,562 $13,258 $2,693 $3.679 $5,621 $11.992 $6.790 $10.260 $17,050 $3,173 $13,020 $16,193 $2.893 $12.948 $15.841 $2.733 $14,058 $16,791 $2.893 $12.234 $15,127 $2.323 $10.777 $13,100 $32.414 $30.718 $29,278 $31,033 $28,385 $25,092 Andrews $43.981 $35,005 $960 $6,767 $347 $903 $1,319 ($146) SO ($271) Baldwin $49.882 $38,922 $1.064 $4,614 $166 $5,116 $1.207 $1,368 $51 $2.490 Chester $42.125 $32,489 $1,426 $3.073 $147 $4,989 $1,194 $1,328 $49 $2.418 Digby $51.224 $38.409 $1,020 $4.936 $135 $6.724 $1,186 $1,938 $72 $3,528 Erie $40,564 $32.184 $1,426 $2.940 $147 $3.868 $1,194 $936 $35 $1,703 Ferris $44.799 $32.917 $1,133 $4326 $21 $6.401 $1,000 $1,891 $70 $3.441 foundation Production Analysis Fast Track F71143 Round: 1 Dec. 31, 2016 Production Vs. Capacity F71143 Andrews Baldwin Chester Digby Erie Femis D 100 200 300 400 1,000 1,100 1,200 1,300 1,400 500 600 Capacity 700 800 900 O Production Primary Segment Low Name Able Awsom Away Apple Units Sold 1,374 0 0 0 Unit Inven tory 0 0 0 0 Revision Date 1/29/2016 7/31/2017 2/27/2017 8/24/2017 Age Dec. 31 MTBF 4.1 19000 0.0 0 0.0 0 0.0 0 Pfmn Size Coord Coord Price 6.4 13.6 $32.00 0.0 0.0 $0.00 0.0 0.0 $0.00 0.0 0.0 $0.00 Material Labor Cost Cost $14.13 $10.60 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2nd Shift & Contr. Over- Marg. time 20% 63% 0% 0% 0% 0% 0% 0% Auto mation Next Round 3.0 1.0 2.0 1.0 Capacity Next Plant Round Utiliz. 800 161% 150 0% 280 0% 150 0% Low Baker Bold 1,493 0 79 0 3/11/2016 5/13/2017 2.5 0.0 19800 0 6.4 0.0 13.8 $33.40 0.0 $0.00 $14.16 $10.95 $0.00 $0.00 22% 0% 88% 0% 3.2 3.0 849 186% 298 0% Cake Low 1,292 88 7/22/2016 2.3 18250 5.7 14.2 $32.60 $12.50 $10.56 23% 63% 4.8 849 162% Low Daze Dabble 1,464 0 59 0 3/15/2016 5/9/2017 2.4 0.0 20600 0 6.1 0.0 13.4 $35.00 0.0 $0.00 $14.52 $10.88 $0.00 $0.00 25% 0% 81% 0% 3.0 2.5 850 179% 350 0% Eat Low 1,282 100 7/27/2016 2.3 17500 6.0 14.4 $31.65 $12.40 $10.54 21% 63% 4.8 849 162% Fast Low 1,231 94 10/20/2016 2.1 21500 7.6 12.7 $36.40 $17.15 $10.50 27% 56% 3.5 850 155% Foundation Low Tech Segment Analysis Fast Track F71143 Round: 1 Dec. 31, 2016 Low Tech Statistics Accessibility F71143 Low Tech Total Industry Unit Demand 5,544 Actual Industry Unit Sales 5,544 Andrews Segment % of Total Industry 68.1% Baldwin Next Year's Segment Growth Rate Chester 10.0% Low Tech Customer Buying Criteria Digby Expectations Importance Erie 1. Price $15.00 - 35.00 41% Ferris 2. Age Ideal Age = 3.0 29% 3. Reliability MTBF 14000-20000 21% 0% 20% 60% 80% 100% 4. Ideal Position Pfmn 5.3 Size 14.7 9% Perceptual Map for Low Tech Perceptual map (at end of this year) Actual vs Potential Market Share 20 2016 F71143 Low Tech 18 20% 18% 16 16% 14 14% 12 12% 10% 10 8% 6% 4% 2% 0% Size N Chester 0 2 4 6 8 10 12 14 16 18 20 Performance Actual Potential Top Products in Low Tech Segment Dec Stock Out YES Name Able Baker Daze Cake Eat Fast Market Share 18% 18% 17% 17% 17% 13% Units Sold to Revision Seg Date 1,003 1/29/2016 999 3/11/2016 3/15/2016 7/22/2016 927 7/27/2016 730 10/20/2016 Pfmn Size Coord Coord 6.4 13.6 13.8 6.1 13.4 List Price MTBF $32.00 19000 $33.40 19800 $35.00 20600 $32.60 18250 $31.65 17500 $36.40 21500 Age Dec 31 4.10 2.45 2.45 2.27 2.26 2.14 Cust. Promo Aware- Budget ness $1,500 73% $1,300 67% $1,450 $925 $875 54% $1.500 73% Cust Sales Access- Budget ibility $1,500 42% $1,300 39% $1,450 41% $925 34% $850 33% $1.275 36% Cust. Survey 19 20 19 17 16 946 72% 56% 938 5.7 6.0 7.6 14.2 14.4 12.7 8 25% 0% High Tech Segment Analysis Fast Track F71143 Round: 1 Dec. 31, 2016 High Tech Statistics Accessibility F71143 High Tech Total Industry Unit Demand 2,592 Actual Industry Unit Sales Andrews 2.592 Segment % of Total Industry 31.9% Baldwin Chester Next Year's Segment Growth Rate 20.0% High Tech Customer Buying Criteria Digby Expectations Importance Erie 1. Ideal Position Pfmn 8.1 Size 11.9 33% Ferris 2. Age Ideal Age=0.0 29% 3. Price $25.00 - 45.00 20% 40% 60% 80% 100% 4. Reliability MTBF 17000-23000 13% Perceptual Map for High Tech Actual vs Potential Market Share Perceptual map (at end of this year) 20 2016 F71143 High Tech 18 20% 18% 16 16% 14 14% 12% 12 10% 10 8% 8 6% 4% 2% 0% dahil Size + 8 4 2 Andrews Baldwin 0 N 4 6 8 10 12 14 16 18 20 Performance Actual Potential Top Products in High Tech Segment Units Cust. Dec Size Stock Out Pfmn Coord 6.1 Coord 13.4 12.7 Name Daze Fast Baker Able Eat Cake Market Share 20% 19% 19% 14% 14% 14% Sold to Revision Seg Date 517 3/15/2016 501 10/20/2016 494 3/11/2016 372 1/29/2016 354 7/27/2016 354 7/22/2016 Age Dec.31 2.45 2.14 2.45 4.10 List Price MTBF $35.00 20600 $36.40 21500 $33.40 19800 $32.00 19000 $31.65 17500 $32.60 18250 Cust. Promo Aware- Budget ness $1,450 72% $1,500 73% $1,300 67% $1,500 73% $875 54% $925 56% Sales Access- Budget ibility $1,450 42% $1.275 39% $1,300 40% $1,500 43% $850 33% $925 34% Cust. Survey 12 24 12 7.6 6.4 6.4 6.0 5.7 13.8 YES 13.6 14.4 14.2 11 8 2.26 2.27 8 Foundation Market Share Fast Track F71143 Round: 1 Dec. 31, 2016 Units Sold vs Demand Chart F71143 Market Share F71143 5,000 4,000 3,000 2,000 1.000 20% 15% 10 % 1 5% 0% 0 Andrews Baldwin Ene Chester Digby Femis Low High Industry Unit Sales Total Unit Demand Low High Actual Market Share in Units Potential Market Share in Units Industry Unit Sales % of Market Low 5,544 68.1% High 2,592 31.9% Total 8,136 Units Demanded 100.0% % of Market Low 5,544 68.1% High 2,592 31.9% Total 8,136 100.0% Able 18.1% 18.1% 14.3% 14.3% 20.4% Total 16.9% Able 16.9% Total 16.1% 16.2% 19.1% 20.4% 19.1% Baker 18.0% 18.0% 17.9% 19.1% 19.1% 17.5% 17.5% Total 18.4% Baker 18.4% Total 18.7% 18.7% 17.9% Cake Total 16.9% 16.9% 13.7% 13.7% 15.9% Cake 15.9% Total 16.5% 16.5% 13.4% 13.4% 15.5% 15.5% Daze Total 17.1% 17.1% 20.0% 20.0% 18.0% Daze 18.0% Total 16.6% 16.6% 19.5% 19.5% 17.5% 17.5% Eat Total 16.7% 16.7% 13.7% 13.7% 15.8% Eat 15.8% Total 16.3% 16.3% 13.4% 13.4% 15.4% 15.3% Fast 13.2% 13.2% 19.3% 19.3% 15.1% Fast 15.1% Total 12.8% 12.8% 18.9% 18.9% 14.7% 14.7% Total Look at the accompanying FastTrack, which shows the results for Round1 for a Foundation industry. Answer the following questions, explaining the reasons and justification for your answers. 1) Which company had the biggest difference between actual and potential market share in the Low Tech segment? (Look at pages 5 & 7) 2) Why did this difference happen? In other words, is the difference a result of stock-outs and therefore lost sales? Or is the difference due to selling more than the company's fair share? 3) Calculate the quantity (in units) of lost sales/extra sales. 4) How could the company you named in Q (1) have avoided this situation? 5) Which company is selling the top product (in terms of customer appeal) in the Low tech segment? What is the product's name? 6) What was the product's actual market share in 2016 (Rd1)? 7) What was the product's potential market share in 2016 (Rd 1)? 8) What is the product's potential market share in the beginning of next year 2017 (Rd 2)? Show your calculations. 9) Why is the answer of Q(8) different from the answer of Q(7)? Explain. 10) How many products do you expect to find in the Low Tech segment in 2017 (Rd2)? 11) If all the products in the Low Tech Segment are equally attractive to the customers, what would the market share of each product be in 2017 (Rd2)? Foundation Round: 1 Dec. 31, 2016 FastTrack F71143 Andrews Iman Seoudi Baldwin Chester Digby Erie Ferris Andrews -0.6% 1.36 -0.8% Selected Financial Statistics Baldwin Chester 5.0% 5.7% 1.62 8.1% 8.3% Digby 6.9% 1.65 11.4% Erie 4.2% 1.43 6.0% Ferris 7.7% 1.78 13.7% 1.44 1.9 1.9 1.8 1.8 1.9 1.9 ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin% -1.6% $0 $43,981,385 $902,601 ($270,876) $2,222,830 15.4% 20.4% 15.4% $0 $49,882,292 $5,115,505 $2,489,851 $4,983,557 9.2% 22.0% 15.3% $0 $42,124,770 $4,989,151 $2,417,575 $4,911,281 7.3% 22.9% 21.0% $0 $51,224,159 $6.724,491 $3,527,743 $6,021,448 9.6% 25.0% 11.3% SO $40,563,855 $3,867,773 $1,703,257 $4, 196,963 7.2% 20.7% 26.3% $0 $44,798,944 $6,401,298 $3,440,776 $5,934,482 9.7% 26.5% Percent of Sales F71143 $ Market Share F71143 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Var Costs Depr O SGA Other Profit Andrews 16.14% Baldwin 18.33 Chester 15.46 Digby 18.79 Erie 14.88 Femis 16.44 % Andrews Baldwin Chester Digby Erie Ferris Foundation Stock & Bonds Fast Track F71143 Round: 1 Dec. 31, 2016 Stock Market Summary PIE Company Andrews Baldwin Chester Digby Erie Ferris Close $9.76 $14.39 $14.25 $16.43 $12.86 $16.30 Change ($1.41) $3.22 $3.09 $5.27 $1.69 $5.13 Shares 2,400,000 2,076,077 2,051,004 2,036,677 2,051,004 2,000,000 MarketCap ($M) $23 $30 $29 $33 $26 $33 Book Value $7.10 $7.80 $7.72 $8.24 $7.38 $6.55 EPS ($0.11) $1.20 $1.18 $1.73 $0.83 $1.72 Dividend $0.00 $0.00 $0.00 $0.00 $0.00 $1.60 Yield 0.0% 0.0% 0.0% 0.0% 0.0% 9.8% -87.2 12.0 12.1 9.5 15.5 9.5 Closing Stock Price F71143 $35 $30 $25 Andrews Baldwin Chester Digby Erie Ferris $20 $15 $10 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Series# Face Yield Series# Face Yield Close$ S&P Company Andrews 11.0S2017 12.0S2019 13.0S2021 10.082026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $2,480,000 10.6% 11.0S2017 12.082019 13.0S2021 10.0S2026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.0% $2,287,212 10.5% 100.18 102.94 108.17 95.25 BB BB BB BB Baldwin Bond Market Summary Close$ S&P Company Digby 100.00 B 102.44 B 107.39 B 94.11 B Erie 100.00 102.44 B 107.39 B 94.11 Ferris 100.18 BB 102.94 BB 108.17 BB 95.25 BB 11.0S2017 12.082019 13.0S2021 10.0S2026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $2,480,000 10.6% 11.0S2017 12.0S2019 13.0S2021 10.082026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $2,361,878 10.6% 100.09 102.69 107.78 94.68 BB BB BB BB Chester 11.0S2017 12.0S2019 13.0S2021 10.0S2026 $866,667 $1,733,333 $2,600,000 $2,361,878 11.0% 11.7% 12.0% 10.5% 11.0S2017 12.082019 13.0S2021 10.0S2026 $866,667 11.0% $1,733,333 11.7% $2,600,000 12.1% $420,545 10.6% 100.00 102.44 107.39 94.11 B B B B Financial Summary F71143 Digby Round: 1 Dec. 31, 2016 Erie Ferris Foundation FastTrack Andrews Baldwin Chester (5271) $2,490 $2,418 $960 $1.064 $1,426 so $0 SO $3.528 $1,703 Cash Flow Statement Survey CashFlows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities Acounts payable Inventory Accounts Receivable Net cash from operations $3.441 $1,020 $0 $1,426 $0 $1,133 $0 ($170) $2,352 ($3,876) ($1.005) $300 $307 (5746) $3.415 (3657) $166 ($109) $3.244 5222 $801 (5857) $4.714 (836) ($131) $19 $2,182 ($161) ($144) ($329) $3.941 ($6.920) ($6,925) ($6.995) ($6,500) ($6.995) ($2,600) SO $4,467 SO $2,480 SO SO $5,000 SO $0 $850 $0 $2.480 $0 $0 $3,691 $0 SO $570 SO $2.362 so SO $3,679 so $0 $410 $0 $2.287 $0 $0 $3,679 $0 $0 $570 $0 $2.362 $O $0 $3.679 SO ($3,195) SO $0 $421 $0 $0 $3.679 $0 $11.947 $7,021 $6.610 $6,376 $6.610 $905 $4,022 Andrews $9,624 $7.230 SO $16.854 $3.510 Baldwin $9,112 $4,100 $2.045 $15,257 $2,859 Chester $8.461 $3.462 $2,186 $14.109 $4,590 Digby $10.191 $4.210 $1,551 $15.953 $1,798 Erie $7,399 $3,334 $2.483 $13.216 $2.246 Ferris $7.847 $3.682 $2.496 $14,025 $21,320 ($5.760) $15.560 $21,325 ($5,864) $15,461 $21,395 ($6.226) $15,168 $29.278 $20.900 ($5,820) $15.080 $21,395 ($6.226) $15,168 Cash flows from investing activities Plant improvements(net) Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets Total Assets Account Payable CurrentDebt Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & Owners" Equity Income Statement Survey Sales Variable Costs Labor, Material,Carry) Depreciation SGA/R&D Promo, Sales Admin) Other(Fees Writeoffs, TOM, Bonuses) EBIT Interest(Short term Long term) Taxes Profit Sharing Net Profit $17.000 ($5.933) $11,067 $32.414 $30.718 $31,033 $28,385 $25.092 $2,684 $5,000 $7.680 $15,364 $3,154 $3,691 $7.680 $14,525 $2.196 $3.679 $7,562 $13.437 $3,076 $3,679 $7.487 $14.242 $2.017 $3.679 $7,562 $13,258 $2,693 $3.679 $5,621 $11.992 $6.790 $10.260 $17,050 $3,173 $13,020 $16,193 $2.893 $12.948 $15.841 $2.733 $14,058 $16,791 $2.893 $12.234 $15,127 $2.323 $10.777 $13,100 $32.414 $30.718 $29,278 $31,033 $28,385 $25,092 Andrews $43.981 $35,005 $960 $6,767 $347 $903 $1,319 ($146) SO ($271) Baldwin $49.882 $38,922 $1.064 $4,614 $166 $5,116 $1.207 $1,368 $51 $2.490 Chester $42.125 $32,489 $1,426 $3.073 $147 $4,989 $1,194 $1,328 $49 $2.418 Digby $51.224 $38.409 $1,020 $4.936 $135 $6.724 $1,186 $1,938 $72 $3,528 Erie $40,564 $32.184 $1,426 $2.940 $147 $3.868 $1,194 $936 $35 $1,703 Ferris $44.799 $32.917 $1,133 $4326 $21 $6.401 $1,000 $1,891 $70 $3.441 foundation Production Analysis Fast Track F71143 Round: 1 Dec. 31, 2016 Production Vs. Capacity F71143 Andrews Baldwin Chester Digby Erie Femis D 100 200 300 400 1,000 1,100 1,200 1,300 1,400 500 600 Capacity 700 800 900 O Production Primary Segment Low Name Able Awsom Away Apple Units Sold 1,374 0 0 0 Unit Inven tory 0 0 0 0 Revision Date 1/29/2016 7/31/2017 2/27/2017 8/24/2017 Age Dec. 31 MTBF 4.1 19000 0.0 0 0.0 0 0.0 0 Pfmn Size Coord Coord Price 6.4 13.6 $32.00 0.0 0.0 $0.00 0.0 0.0 $0.00 0.0 0.0 $0.00 Material Labor Cost Cost $14.13 $10.60 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2nd Shift & Contr. Over- Marg. time 20% 63% 0% 0% 0% 0% 0% 0% Auto mation Next Round 3.0 1.0 2.0 1.0 Capacity Next Plant Round Utiliz. 800 161% 150 0% 280 0% 150 0% Low Baker Bold 1,493 0 79 0 3/11/2016 5/13/2017 2.5 0.0 19800 0 6.4 0.0 13.8 $33.40 0.0 $0.00 $14.16 $10.95 $0.00 $0.00 22% 0% 88% 0% 3.2 3.0 849 186% 298 0% Cake Low 1,292 88 7/22/2016 2.3 18250 5.7 14.2 $32.60 $12.50 $10.56 23% 63% 4.8 849 162% Low Daze Dabble 1,464 0 59 0 3/15/2016 5/9/2017 2.4 0.0 20600 0 6.1 0.0 13.4 $35.00 0.0 $0.00 $14.52 $10.88 $0.00 $0.00 25% 0% 81% 0% 3.0 2.5 850 179% 350 0% Eat Low 1,282 100 7/27/2016 2.3 17500 6.0 14.4 $31.65 $12.40 $10.54 21% 63% 4.8 849 162% Fast Low 1,231 94 10/20/2016 2.1 21500 7.6 12.7 $36.40 $17.15 $10.50 27% 56% 3.5 850 155% Foundation Low Tech Segment Analysis Fast Track F71143 Round: 1 Dec. 31, 2016 Low Tech Statistics Accessibility F71143 Low Tech Total Industry Unit Demand 5,544 Actual Industry Unit Sales 5,544 Andrews Segment % of Total Industry 68.1% Baldwin Next Year's Segment Growth Rate Chester 10.0% Low Tech Customer Buying Criteria Digby Expectations Importance Erie 1. Price $15.00 - 35.00 41% Ferris 2. Age Ideal Age = 3.0 29% 3. Reliability MTBF 14000-20000 21% 0% 20% 60% 80% 100% 4. Ideal Position Pfmn 5.3 Size 14.7 9% Perceptual Map for Low Tech Perceptual map (at end of this year) Actual vs Potential Market Share 20 2016 F71143 Low Tech 18 20% 18% 16 16% 14 14% 12 12% 10% 10 8% 6% 4% 2% 0% Size N Chester 0 2 4 6 8 10 12 14 16 18 20 Performance Actual Potential Top Products in Low Tech Segment Dec Stock Out YES Name Able Baker Daze Cake Eat Fast Market Share 18% 18% 17% 17% 17% 13% Units Sold to Revision Seg Date 1,003 1/29/2016 999 3/11/2016 3/15/2016 7/22/2016 927 7/27/2016 730 10/20/2016 Pfmn Size Coord Coord 6.4 13.6 13.8 6.1 13.4 List Price MTBF $32.00 19000 $33.40 19800 $35.00 20600 $32.60 18250 $31.65 17500 $36.40 21500 Age Dec 31 4.10 2.45 2.45 2.27 2.26 2.14 Cust. Promo Aware- Budget ness $1,500 73% $1,300 67% $1,450 $925 $875 54% $1.500 73% Cust Sales Access- Budget ibility $1,500 42% $1,300 39% $1,450 41% $925 34% $850 33% $1.275 36% Cust. Survey 19 20 19 17 16 946 72% 56% 938 5.7 6.0 7.6 14.2 14.4 12.7 8 25% 0% High Tech Segment Analysis Fast Track F71143 Round: 1 Dec. 31, 2016 High Tech Statistics Accessibility F71143 High Tech Total Industry Unit Demand 2,592 Actual Industry Unit Sales Andrews 2.592 Segment % of Total Industry 31.9% Baldwin Chester Next Year's Segment Growth Rate 20.0% High Tech Customer Buying Criteria Digby Expectations Importance Erie 1. Ideal Position Pfmn 8.1 Size 11.9 33% Ferris 2. Age Ideal Age=0.0 29% 3. Price $25.00 - 45.00 20% 40% 60% 80% 100% 4. Reliability MTBF 17000-23000 13% Perceptual Map for High Tech Actual vs Potential Market Share Perceptual map (at end of this year) 20 2016 F71143 High Tech 18 20% 18% 16 16% 14 14% 12% 12 10% 10 8% 8 6% 4% 2% 0% dahil Size + 8 4 2 Andrews Baldwin 0 N 4 6 8 10 12 14 16 18 20 Performance Actual Potential Top Products in High Tech Segment Units Cust. Dec Size Stock Out Pfmn Coord 6.1 Coord 13.4 12.7 Name Daze Fast Baker Able Eat Cake Market Share 20% 19% 19% 14% 14% 14% Sold to Revision Seg Date 517 3/15/2016 501 10/20/2016 494 3/11/2016 372 1/29/2016 354 7/27/2016 354 7/22/2016 Age Dec.31 2.45 2.14 2.45 4.10 List Price MTBF $35.00 20600 $36.40 21500 $33.40 19800 $32.00 19000 $31.65 17500 $32.60 18250 Cust. Promo Aware- Budget ness $1,450 72% $1,500 73% $1,300 67% $1,500 73% $875 54% $925 56% Sales Access- Budget ibility $1,450 42% $1.275 39% $1,300 40% $1,500 43% $850 33% $925 34% Cust. Survey 12 24 12 7.6 6.4 6.4 6.0 5.7 13.8 YES 13.6 14.4 14.2 11 8 2.26 2.27 8 Foundation Market Share Fast Track F71143 Round: 1 Dec. 31, 2016 Units Sold vs Demand Chart F71143 Market Share F71143 5,000 4,000 3,000 2,000 1.000 20% 15% 10 % 1 5% 0% 0 Andrews Baldwin Ene Chester Digby Femis Low High Industry Unit Sales Total Unit Demand Low High Actual Market Share in Units Potential Market Share in Units Industry Unit Sales % of Market Low 5,544 68.1% High 2,592 31.9% Total 8,136 Units Demanded 100.0% % of Market Low 5,544 68.1% High 2,592 31.9% Total 8,136 100.0% Able 18.1% 18.1% 14.3% 14.3% 20.4% Total 16.9% Able 16.9% Total 16.1% 16.2% 19.1% 20.4% 19.1% Baker 18.0% 18.0% 17.9% 19.1% 19.1% 17.5% 17.5% Total 18.4% Baker 18.4% Total 18.7% 18.7% 17.9% Cake Total 16.9% 16.9% 13.7% 13.7% 15.9% Cake 15.9% Total 16.5% 16.5% 13.4% 13.4% 15.5% 15.5% Daze Total 17.1% 17.1% 20.0% 20.0% 18.0% Daze 18.0% Total 16.6% 16.6% 19.5% 19.5% 17.5% 17.5% Eat Total 16.7% 16.7% 13.7% 13.7% 15.8% Eat 15.8% Total 16.3% 16.3% 13.4% 13.4% 15.4% 15.3% Fast 13.2% 13.2% 19.3% 19.3% 15.1% Fast 15.1% Total 12.8% 12.8% 18.9% 18.9% 14.7% 14.7% Total Look at the accompanying FastTrack, which shows the results for Round1 for a Foundation industry. Answer the following questions, explaining the reasons and justification for your answers. 1) Which company had the biggest difference between actual and potential market share in the Low Tech segment? (Look at pages 5 & 7) 2) Why did this difference happen? In other words, is the difference a result of stock-outs and therefore lost sales? Or is the difference due to selling more than the company's fair share? 3) Calculate the quantity (in units) of lost sales/extra sales. 4) How could the company you named in Q (1) have avoided this situation? 5) Which company is selling the top product (in terms of customer appeal) in the Low tech segment? What is the product's name? 6) What was the product's actual market share in 2016 (Rd1)? 7) What was the product's potential market share in 2016 (Rd 1)? 8) What is the product's potential market share in the beginning of next year 2017 (Rd 2)? Show your calculations. 9) Why is the answer of Q(8) different from the answer of Q(7)? Explain. 10) How many products do you expect to find in the Low Tech segment in 2017 (Rd2)? 11) If all the products in the Low Tech Segment are equally attractive to the customers, what would the market share of each product be in 2017 (Rd2)