BUSINESS MANAGEMENT COURSE

LOGIC INSTRUMENTSTUDY CASE

of

for

Nicolas Danino, Henri di Costanzo, Pierre Gunet-Caplain, Guillaume SperaJanuary 2014

THE COMPANYStep 1

Strategist ConsultantNicolas Danino

Strategist ConsultantHenri di Costanzo

Strategist ConsultantGuillaume Spera

Strategist ConsultantPierre Gunet-Caplain

The turnover of Logic Instrument is erratic

10 000 000

12 500 000

15 000 000

17 500 000

20 000 000

2006 2007 2008 2009 2010 2011 2012

Turnover of Logic Instrument in euros by year

0

3

6

10

13

16

0 17 34 51 68 85

Aut

onom

y in

hou

rs

Resistance

Logic Instrument ARMOR Getac Darveen Dell

Scatterplot quadrant :Market for rugged mobile devices

Logic Instrument holds 1%of market share for rugged tablets

1%

RECOMMANDATIONSStep 2

Three aims

Newcommunication strategy

Low cost productdifferentiation strategy

Enforce theinternationalization

1 2 3

Focus your strategy on the civil B2B market

0

3

6

10

13

16

0 17 34 51 68 85

Aut

onom

y (i

n ho

urs)

Resistance

Logic Instrument ARMOR Getac Darveen Dell

Targetingproduct zone

for civil company

New product strategy

Typical product

Semi-ruggedIP54 certification

10 hourbattery life

10” screen 1200 €

Semi-rugged Field-book 10” by Logic Instrument

OPERATIONs PLANStep 3

First year

Hire amarketing manager

Hire 2 Product EngineersAssignment of 2 engineers from

R&D department

Marketing budget

First year : Marketing budgetTotal : 48k€

Advertising magazine 9 000 €

Professional Show8 000 €

Google AdWords6 000 €

YouTube Videos10 000 €

New website15 000 €

First year Budget

2 Engineers120 000 €

Marketing Budget54 000 €

Marketing Manager56 800 €

Total : 230k€

Second year

Hire 3 new salesmen

Second year Budget

3 Salesmen255 000 €

2 Engineers122 000 €

Marketing Budget33 000 €

Marketing Manager57 000 €

Total : 468k€

Third year

Braziliansubsidiary

Hire 1Product Engineer

Hire 1Marketing assistant

Third year : Brazilian subsidiaryTotal : 171k€

Office rent35 000 €

Local salesman20 000 €

V.I.E Salesman26 000 €

Director90 000 €

Third year Budget

Brazilian subsidiary171 000 €

3 Salesmen260 000 €

3 Engineers184 000 €

Marketing assistant40 000 €

Marketing Budget34 500 €

Marketing Manager59 000 €

Total : 750k€

Fourth year

Hire 3 new salesmen for international subsidiary (US, DE, BR)

Doublemarketing budget

Fourth year Budget

Germany85 200 €

US 85 200 €

Brazilian subsidiary258 000 €

3 Salesmen265 000 €

3 Engineers188 000 €

Marketing167 000 €

Total : 1,050M€

Fifth year

Chinese subsidiary Hire 2 engineers

Fifth year : Chinese subsidiaryTotal : 238k€

Marketing Assistant30 000 €

Office rent25 000 €

3 Local salesmen60 000 €

2 V.I.E Salesmen58 000 €Director

90 000 €

Fifth year Budget

Chinese subsidiary238 000 €

Germany86 000 €

US 86 000 €

Brazilian subsidiary263 000 €

3 Salesmen271 000 €

5 Engineers328 000 €

Marketing170 000 €

Total : 1.400M€

Whole budget

0

375 000

750 000

1 125 000

1 500 000

Year 1 Year 2 Year 3 Year 4 Year 5

675 206 €

429 320 €

171 000 € 271 245 €

265 926 €260 712 €

255 600 € 328 545 €188 545 €184 848 €

122 400 €120 000 €170 598 €167 077 €133 595 €90 936 €104 800 €

Marketing Product development Sales team International

RESULTS FORECASTStep 4

10 000 000 €

13 000 000 €

16 000 000 €

19 000 000 €

22 000 000 €

25 000 000 €

2014 2015 2016 2017 2018

Current activities Sales Brazil US Germany China

Expected turnover until 2018

Expected products over 5 years

0

1

2

3

4

Year 1 Year 2 Year 3 Year 4 Year 5

New products per year+ 2

+ 1

+ 4

RISKSStep 5

Risks of our strategy

Looses of interestin tablets (convertible, etc.)

Misunderstandingof the product benefits

Price still expansive for developing countries

THANK YOUIcons from The Noun Project

iPad by Edward BoatmanAnnouncement by Olivier Guin

Money by Nathan ThomsonShield by Christopher T. Howlett

Briefcase by Yazmin AlanisWorker by Kris Khoury

Social Media by Joris HoogendoornBattery by Arjun Mahanti

Presentation by Wilson Joseph