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Enterm ppt

The document outlines the background of Andrews Ltd, a company formed from the breakup of Sensors Ltd, which previously operated as a monopoly. It details the characteristics of the low-tech and high-tech sensor markets, including customer preferences and market growth rates, as well as the company's need to develop a strategic plan to become 'Best in Class' within five years. Additionally, it highlights the importance of analyzing external and internal factors, revising the company's vision and mission, and conducting a SWOT analysis to achieve strategic objectives.

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Vaishnavi Pooja
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13 views21 pages

Enterm ppt

The document outlines the background of Andrews Ltd, a company formed from the breakup of Sensors Ltd, which previously operated as a monopoly. It details the characteristics of the low-tech and high-tech sensor markets, including customer preferences and market growth rates, as well as the company's need to develop a strategic plan to become 'Best in Class' within five years. Additionally, it highlights the importance of analyzing external and internal factors, revising the company's vision and mission, and conducting a SWOT analysis to achieve strategic objectives.

Uploaded by

Vaishnavi Pooja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Study Overview

The Story: Background on your


company
Started as a single corporation named Sensors Ltd who
sold sensors as main product. 8 years ago, Sensors Ltd.
was shut down by Government due to monopolistic
operations and split into 6 companies of equal size.
You are the Executive management team of Andrews Ltd.
The other companies are your competitors

8 Years ago, each of the companies started off with $40


million in sales in the previous year

Andrews Baldwin Chester Digby Erie Ferris


The Product: Sensors
An Overview Of Your Company’s Product
• Customers (OEMs) need sensors for their products to function.
• Used for diverse applications

• There are 2 market segments – Low Tech and High Tech


• Your company chooses to serve both segments
• Your products all start with “A”
Low Tech Consumer Characteristics
Price
• Price sensitive. Prefer prices at lowest possible.
• “I want to spend as little money as
possible!”

Reliability
• Ideal MTBF: 14,000 – 20,000
• “They have to be moderately reliable… but
not enough to drive up the price!”

Age
• Ideal Age: 3 years
• “I want them to have been around for a
while…no beta testing!”

Positioning
• Prefer less cutting edge products (bigger size &
low performance)
• “The technology doesn’t have to be cutting
edge.”
Top Products in Low Tech Segment

• Revision date refers to the last date when the product was revised/upgraded
• Pfmn & Size coord refer to product specs – Customers prefer Higher Pfmn and Smaller Size;
MTBF refers to Reliability
• Promo Budget refers to Marketing spend; Sales Budget refers to Sales budgets; Cust Survey
refers to Customer Satisfaction
High Tech Consumer Characteristics
Price
• Not price sensitive, willing to pay higher prices.
• “Price is not an issue. I want the best
sensors in the market!”

Reliability
• Ideal MTBF: 17,000 – 23,000
• “We need the total package. High
performance and small sensors for our
products.”

Age
• Ideal Age: 0 years
• “Only the most cutting edge products will
cut it!”

Positioning
• Needs smaller and faster sensors
• “I want the newest sensors you have!”
Top Products in High Tech Segment

• Revision date refers to the last date when the product was revised/upgraded
• Pfmn & Size coord refer to product specs – Customers prefer Higher Pfmn and Smaller Size;
MTBF refers to Reliability
• Promo Budget refers to Marketing spend; Sales Budget refers to Sales budgets; Cust Survey
refers to Customer Satisfaction
Segment Growth
According to a Market Analyst, Low Tech growing at 10% and
there will be continuous
High Tech at a whopping 20%.
growth in the sensor market.

Other Factors
• 3 years ago the market had experienced a recession
that lasted 2 years with negative growth
• Every decade, the industry experiences a similar
economic scenario
Last Year Financial Summary
Market Share
Share Price Summary
Oustanding Loans and Credit Rating

• Under Series#, the first 3 digits represent the Interest rate, for example 10.0S2035 refers to
10% interest maturing 2035
Income Statement Summary
Balance Sheet Summary
Cash Flow Summary
Production Analysis

• Age refers to the Perceived age of the product by Customer. Low Tech customers prefer age of
approx. 3 years, High Tech customers prefer products with 0 Age
• Contribution margin refers to Sales Price minus (Material cost + Labour cost)
• Automation refers to the level of automated manufacturing process resulting in lower labour
costs
• Capacity refers to 1st shift capacity to produce goods
Relative Products Positioning
Human Resources Summary
Additional Information
• External Factors
– The Industry is experiencing increased demand based
growth with the stable economic and political climate
– The Government has enacted laws that identify the
sensor industry as a growth area and protecting the
market against new entrants and preventing
consolidation to ensure consumer rights are protected
– Technology is constantly evolving in line with
customers aspirations for better quality sensors and
an increased focus on ESG
Required
• Your company had started with a vision of “Best in
Class Sensor Technology Company” and Mission
“Provide best in class products to customers while
delivering best in class returns to our shareholders
while investing in people, processes and technology”
• As the Executive Management Team, you realise that
after 8 years you are not yet Best In Class – your
competitors have better returns, better products
• Prepare a 5 year Strategic Plan to Achieve Best in Class
aligned with the Vision & Mission of the company
Required
• Your Strategic Plan deliverable must include :
– Strategic Roadmap towards Best in Class in 5 years
– Analysis of External & Internal Factors
– Revised Vision & Mission Statement if required
– SWOT analysis with clear Strategic Factors Analysis
Summary
– Milestone based Strategic Objectives
– Corporate Strategy, Business Unit (Segment
based) Strategy, Functional Strategy

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