Simulation International Presentation

STOCKHOLDER MEETING #1

-Think different, print different-

Jeroen Boon, Kerstin Liebl, Rafi Hovsepyan, Joost Verbakel, Elvira Walter, Manuela Werwein, Linda de Witte

CONTENT OF THE MEETING

1. What was planned? 2. How did things arise? 3. Where do we stand after this period? 4. How are we to continue?

(incl. advertising concept) 5. What have we learned? 6. What was our group work like?

1. PLANNING AND STRATEGIC DECISIONS

OBJECTIVES FOR THE PAST 6 PERIODS:

1. Increase market share2. Provide products of good quality

for average price3. Decrease liabilities

(50% of original amount)

4. Optimize production (full efficiency >95% of production capacity)

5. Global market player (EU, USA, Japan and Russia)

STRATEGIC DECISIONS For period 1-2:

› Plan efficiently production› Enable sufficient distribution channels (sales

people)› Invest in quality and employees

For period 3-4:› Achieve strategic advantage in foreign markets

(build warehouses)› Select reliable suppliers to meet production demand

For period 5-6:› Invest in growing markets› Achieve economies of scale› Become a major player in the market

Split up in 4 topics:

2.1 - Sales revenue2.2 - Marketing mix2.3 - Profit for year2.4 - Liabilities

2. ARISING BUSINESS ALONG THE PERIOD

0,0

100,0

200,0

300,0

400,0

500,0

600,0

1 2 3 4 5 6

EU market 1

0,0

10,0

20,0

30,0

40,0

50,0

60,0

1 2 3 4 5 6

USA market 3

The Sales quantity per market

0,02,04,06,08,0

10,012,014,016,0

1 2 3 4 5 6

Rus market 52. ARISING BUSINESS ALONG THE PERIOD- 1. SALES REVENUE -

0,0

10,0

20,0

30,0

40,050,0

60,0

70,0

80,0

1 2 3 4 5 6

EC market 2

1 2 3 4 5 6

EU

USA

Rus

0,0

50,0

100,0

150,0EU

EC

USA

Jap

Rus

The pricing per market

2. ARISING BUSINESS ALONG THE PERIOD- 1. SALES REVENUE-

-10,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

1 2 3 4 5 6

EU

EC

USA

Jap

Rus

2. ARISING BUSINESS ALONG THE PERIOD- 1. SALES REVENUE-

95

100

105

110

115

120125

130

135

140

145

1 2 3 4 5 6

HighpriceLowpriceIprint

Average

• PriceThe marketingmix contains the 5 P’s:

- Price- Place- Promotion- Product- Personell

2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -

Place

Market priority’s:- The biggest market first (European market)

- Continious focus on low delivery times Foreign markets: Using warehouses, (to be able to have low delivery times.)

- Payment period extended (to 45 days)

2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -

PromotionGraph of change in sales personal

2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -

Period 1 Period 2 Period 3 Period 4 Period 5 Period 60

5

10

15

20

25

30

35

40

Sales personal

Europe USA

Japan Russia

Product

Quality management; Average investment per period:

Plant 1 Plant 2 Main Plant

0,17 million 0,17 million 0,31 million

Production costs

35,00

40,00

45,00

50,00

55,00

60,00

65,00

Production costs

Production costs

2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -

PersonellAmount of production personell

0

20

40

60

80

100

0 1 2 3 4 5 6

Main plant

Plant 1

Plant 2

Qualificationindex of workforce

0,8

1

1,2

1,4

1,6

0 1 2 3 4 5 6

Main plant

Plant 1

Plant 2

Total productivity of workforce

200000250000300000350000400000450000500000550000600000

0 1 2 3 4 5 6

Main plant

Plant 1

Plant 2

2. ARISING BUSINESS ALONG THE PERIOD- 2. MARKETING MIX -

Sales results

-2

0

2

4

6

8

10

0 1 2 3 4 5 6

Rus

Jap

USA

EC

EU

Profit / loss

-6

-5

-4

-3

-2

-1

0

1

2

0 1 2 3 4 5 6

periods

Mil

ion

s

Net profit / loss this period

2. ARISING BUSINESS ALONG THE PERIOD- 3. PROFIT FOR YEAR -

Decided to focus on low liabilities

(In period 3 an investment had to be made in a production line)

2. ARISING BUSINESS ALONG THE PERIOD- 4. LIABILITIES -

0 1 2 3 4 5 6

0

10.000.000

20.000.000

30.000.000

40.000.000

Total amount of loan

Overdraft

Long loan

Short loan

Company 112%

Company 212%

Company 322%

Company 410%

Company 510%

Company 623%

Company 712%

Market Share (All markets)

1 2 3 4 5 60.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

Share Price

Company 1Company 2Company 3Company 4Company 5Company 6Company 7

Periods

EU

R /

share

- 1. Share Price

3. WHERE DO WE STAND AFTER THE PERIOD?- 1. MARKET SHARE-

Strengths: Highly efficient Low liabilities High utilization and qualification of production

staff (period 5 & 6 -100%) Short delivery times (except for period 6)

Weaknesses: High inventory due to unrealized sales Missed to increase production volume earlier;

now not able to compete with group 1 & 3• Relative low production volume => High cost

price

3. WHERE DO WE STAND AFTER THE PERIOD?- 2. SWOT-ANALYSES -

Opportunities: By decreasing prices, higher market share

possible Expansion in markets Japan and Russia Industrialization of emerging markets

=> more possibilities to reach new customers

Threats: Competitors may increase their market share Higher oil price More usage of internet opportunities => less

printing of paper => less demand Price focused countries/consumers

3. WHERE DO WE STAND AFTER THE PERIOD?- 2. SWOT-ANALYSES -

Keep lower pricing› Find a combination between a low cost

price and a pricing based on competitors and market average

Continue with the low-liablity management

Keep economies of scale› Remain efficient

Increase market share in EC and Russia Increase shareholder value

4. HOW ARE WE TO CONTINUE?PROSPECTS FOR THE NEXT FIVE PERIODS:

MARKETING CAMPAIGN

LOGO

MARKETING CAMPAIGN

SLOGAN

MAGAZINE ADVERTISEMENT

MARKETING CAMPAIGN

MARKETING CAMPAIGN

This game requires unique decisions

Efficiency depends on many fine-tuned

factors

Long-term thinking needed for success

Increase production volume earlier

Start aggressive price policy earlier

Risk aversion keeps you from winning

5. WHAT HAVE WE LEARNED FROM THIS PROJECT?

• Very interesting and fun (different characters + cultures)

• Tasks were split up in departments

• Every department was discussed as a group before

entering the information

Very time intense (focused on details)

Attitude was serious and hard-working (reality vs.

game)

High personal commitment to the common

goals

6. WHAT WAS OUR GROUP WORK LIKE?

STOCKHOLDER MEETING #1

Did any questions arrive?

Thank you for your time

and interest in our company