Eric Edmonds Sarah WhiteJordan KirwinAshish Bagree

Plant Cumulative Sales

Cumulative Net Profit Net Margin ROE ROA Market

Share

OO $5,188,979 $306,194 5.90% 3.69% 1.52% 14%

PP $6,429,579 $1,206,243 18.76% 13.10% 5.69% 17%

Silo Busters $8,079,652 $2,092,739 25.90% 20.74% 9.47% 22%

RR $6,075,736 $1,717,409 28.27% 17.67% 8.28% 16%

SS $4,414,461 ($826,064) -18.71% -11.51% -4.25% 12%

TT $7,357,153 $1,895,696 25.77% 19.16% 8.56% 20%

PERFORMANCE REVIEW

Quarter 1 – Initial market investment/sensitivity to determine consumer preference

Revenue market share of 19% - 20%

Return on Assets – 25% (based on +5% from last year)

Return on Equity – 45% (based on +5% from last year)

Constantly evaluate our product off erings

Compete on margins

Compete on analytics

BUSINESS GOALS

Product Strategy Offer 6 products to spread our

risk Test market sensitivity in Q1 Introduce new product to

market Only sell in distribution

channels 10 and 12 Advertising Strategy

No marketing expenses Pricing Strategy

Specialize in DCs to learn the customer

Monitor our prices relative to industry average

Utilize Monopoly Index

MARKETING STRATEGY

Blueb

erry

Mixed

Fru

itNut

Origin

al

Raisin

Stra

wberry

0%5%

10%15%20%25%30%35%40%45% 42%

22% 22%19%

27%

39%

Monopoly Index

Blueb

erry

Mixed

Fru

itNut

Origin

al

Raisin

Stra

wberry

0%5%

10%15%20%25%30%35%

20%

6%

30% 31%26%

19%

Gross Margins

$ 3.

00

$ 3.

10

$ 3.

75

$ 3.

80

$ 4.

00

$ 4.

12

$ 4.

17

$ 4.

25

$ 4.

30

$ 4.

49

$ 4.

50

$ 4.

75

$ 4.

80

$ 4.

99

$ 5.

00

$ 5.

25

$ 5.

50

$ 5.

75

$ 5.

99

$ 6.

00

$ 6.

25

$ 6.

50

$ 6.

80

$ 6.

99

$ 7.

00

$ 7.

49

$ 7.

50

$ 7.

99

$ 8.

00

$ 8.

99$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

Price vs. Revenue (DC #12)

Total

PRICE VS. REVENUE

PRICE VS. REVENUE

$3.0

0

$3.2

5

$3.7

0

$4.0

0

$4.4

9

$4.5

5

$4.9

0

$5.0

0

$5.2

0

$5.4

0

$5.5

0

$5.9

2

$6.0

0

$6.1

5

$6.2

5

$6.5

4

$6.8

0

$6.9

2

$7.0

4

$7.9

2

$8.1

8$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Price vs. Revenue (DC #10)

Total

Production lot size of 50,000 units per product to reduce down time

Improve set up time from 12 hrs. to 8 hrs. by investing in production improvements

Game time decisions each quarter

Procure at day 20 of each quarter to be ready for production on day 1 of subsequent quarter

Prevent stocks outs! – Continuous production initially

Plan to have no finished products on Quarter 4 Day 30

OPERATIONS STRATEGY

OPERATIONS STRATEGY

Blueberry Mixed Fruit Nut Original Raisin Strawberry0

20,000

40,000

60,000

80,000

100,000

120,000

Quarter 1 - Operations

ProductionQuantity SoldEnd Inventory

Produce more of the products we did not have in stock Keep prices relatively high on Strawberry/Blueberry in

anticipation of other companies selling out Aim to end quarter with 25,000 units of each product in stock

@RISK SIMULATION – QUARTER 2

OPERATIONS STRATEGY

Blueberry Mixed Fruit Nut Original Raisin Strawberry0

20,000

40,000

60,000

80,000

100,000

120,000

140,000 Quarter 2 - Operations

ProductionQuantity SoldEnd Inv.

Anticipated increased sales due to slight lowering of prices Increased production on Strawberry/Blueberry due to

Monopoly Index and low commodity prices Monopoly Index of Strawberry in Q1 – 72%; Blueberry – 30%

OPERATIONS STRATEGY

Blueberry Mixed Fruit Nut Original Raisin Strawberry0

20,000

40,000

60,000

80,000

100,000

120,000Quarter 3 - Operations

ProductionQuantity SoldEnd Inv.

Low production of Strawberry/Blueberry due to high inventories Very low Nut prices to make way for new product – sold out in

few days Introduction of Buster Nut Cereal™ Procurement on Day 20 to last remainder of year*

*FORECASTING ERROR

1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 101105109113117$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Inventory Levels

Finished Product Inv. Raw Material Inv.

Day

Invento

ry V

alu

e

OPERATIONS STRATEGY

High raw materials inventory forced abandonment of margins strategy

Anticipated price war, drastically cut prices across the board Took advantage of our short set up time to produce at will

Blueberry Mixed Fruit Nut Original Raisin Strawberry0

20,000

40,000

60,000

80,000

100,000

120,000

Quarter 4 - Operations

ProductionQuantity SoldEnd Inv.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 300

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Quarter 4 Inventory

1 Kg Blueberry Muesli 1 Kg Mixed Fruit Muesli 1 Kg Nut Muesli 1 Kg Original Muesli 1 Kg Raisin Muesli 1 Kg Strawberry Muesli

Days

Invento

ry (

Finis

hed P

roduct

s)

ENDING INVENTORY

Assets Q1 Q2 Q3 Q4Cash $1,352,266 $1,181,357 -13% $2,942,324 149% $2,654,847 -10%

Inventory - FP $449,290 $1,119,149 149% $1,100,894 -2% $56,792 -95%

Inventory - RM $1,188,464 $327,525 -72% $1,381,082 322% $1,069,949 -23%

Receivables $1,511,521 $2,028,059 34% $1,383,934 -32% $1,879,333 36%

ST Assets $4,501,541 $4,656,090 3% $6,808,235 46% $5,660,921 -17%

Land $2,000,000 $2,000,000 0% $2,000,000 0% $2,000,000 0%

Building $10,000,000 $10,000,000 0% $10,000,000 0% $10,000,000 0%

Depreciation -$79,545 -$147,727 86% -$215,909 46% -$284,091 32%

Machinery $5,000,000 $5,000,000 0% $5,000,000 0% $5,000,000 0%

Depreciation -$79,546 -$147,727 86% -$215,909 46% -$284,091 32%

LT Assets $16,840,909 $16,704,545 -1% $16,568,181 -1% $16,431,818 -1%

Total Assets $21,342,450 $21,360,635 0% $23,376,416 9% $22,092,739 -5%

Liabilities

Payables $937,450 $0 -100% $1,535,727 $0 -100%

Debt $12,000,000 $12,000,000 0% $12,000,000 0% $12,000,000 0%

Equity

Capital Stock $8,000,000 $8,000,000 0% $8,000,000 0% $8,000,000 0%

Retained Earnings $404,999 $1,360,635 236% $1,840,689 35% $2,092,739 14%

Total Liabilities + Equity $21,342,450 $21,360,635 0% $23,376,416 9% $22,092,739 -5%

BALANCE SHEET

Q1 Q2 Q3 Q4 YEAR Nearest Competitor

Revenues $ 1,782,782 $ 2,047,268 $ 1,801,363 $ 2,448,238 $ 8,079,652 $ 7,357,153

Cost of Goods Sold

$ 778,028 44% $ 582,814 28% $ 882,108 49% $ 1,771,269 72% $ 4,014,219 50% $ 3,743,390

Gross Margin $ 1,004,754 56% $ 1,464,454 72% $ 919,255 51% $ 676,969 28% $ 4,065,433 50% $ 3,613,763

Other Expenses $ 599,755 34% $ 508,818 25% $ 439,202 24% $ 424,919 17% $ 1,972,694 24% $ 1,718,067

Net Profit $ 404,999 23% $ 955,636 47% $ 480,054 27% $ 252,050 10% $ 2,092,739 26% $ 1,895,696

INCOME STATEMENT

Percent shown is % of revenues

Operating ActivitiesNet Income $ 2,092,739

Depreciation Building $ 284,091

Depreciation Machinery $ 284,091

Increase in Inventory $ (56,792)

Increase in A/R $ (1,879,333)

Increase in Raw Material $ (1,069,949)

Net Cash from Operating Activities

$ (345,153)

Investing Activities

Building $ (10,000,000)

Land $ (2,000,000)

Machinery $ (5,000,000)

Net cash from investing activities

$ (17,000,000)

Financing Activities

Bank Loan $ 12,000,000

Common Stock $ 8,000,000 Net cash from financing activities

$ 20,000,000

Net Increase (Decrease) in Cash $ 2,654,847

STATEMENT OF CASH FLOWS

No stock outs

Investment to our processes

Specializing in distribution channels to learn the market

Game-time decisions (Day 20)

New product introduction

COMPETITIVE ADVANTAGE

QUESTIONS?

Continue to maximize shareholders wealth

Further invest in our processes and equipment to improve effi ciency

Fix the Raw materials cost error

Analyze distribution channel and regional opportunities

Continue to compete on margins

LOOKING AHEAD

Outstanding Inventory – 39 daysA/R Outstanding – 24 daysPayables – 0Cash-to-Cash Cycle – 63 days

High A/R High raw materials inventory

Inventory Turns – 9.4

RATIOS (Q2-Q4)