Funky Junk INCYears 6-15 Review

Willomina WonkaXavier XenonYitzhak YankovicZero Zevon

Financial Performance Annual revenues grew at a CAGR of 2.8%

per year Annual EPS grew at a CAGR of 10.7% per

year Annual ROE grew at a CAGR of 4.9% per

year Annual credit rating reached A+ in year 9

and continued through year 15 Stock price grew at a CAGR of 9.8% per

year Image rating peaked at year 8 with a 74

Strategic Vision

Establish the company as a leading low cost provider of digital cameras while providing high quality products and maximizing stockholders' return. We also strive to employ the best workers in the industry through training and highly competitive compensation.

Future Targets

Year 16 EPS – $4.12 ROE – 24% CR - A+ IR - 65 Stock $ - $67

Year 17 EPS - $4.50 ROE – 27% CR – A+ IR - 70 Stock $ - $72

Competitive Strategy E-L To be a overall low cost provider of

entry-level digital cameras in the four geographic regions in which we operate.

Strategy had to evolve during years 9-10 because of high operating and marketing costs

Strategy back on track by year 15 with a price 4% below industry average

Competitive Strategy M-F

To be a overall low cost provider of multi-feature digital cameras in the four geographic regions in which we operate.

Strategy had to evolve during years 9-10 because of high operating and marketing costs

Strategy focused by year 15 with price 13% below industry average

Production Strategy Our production strategy included

utilizing overtime capabilities to avoid costly outsourcing

Expanding in-house assembly to 71 available workstations by year 15

Maximum bonus for perfect attendance and an average of $1500 in training per PAT

Compensation package around $35,000 per year

Finance Strategy Our finance strategy centered around

paying off L/T debt within the first 4 years to free up capital and achieve an A+ CR

Repurchasing maximum amount of stock with extra capital

Steadily increasing dividends to reward shareholders, ending with the highest dividends paid in the industry

Continue paying near maximum dividends in the future years to increase SE in the company

Strongest CompetitorsEntry-Level

Closest competitors were companies B & D because of same P/Q ratings (2) and competitive prices among the companies

Multi-Feature Closest

competitors were companies D & H because of similar P/Q ratings (3 – 3 ½) and price battling between the companies

Out – Competing Rivals

Entry –Level and Multi-Feature Continue to lower production costs

which will enable us to decrease prices Invest more in marketing and R&D to

capture market share away from our closest rivals

Lessons Learned You must observe and take action to

decrease costs associated with marketing and production

Study your rivals and the industry when deciding what offensive tactics to pursue

Stick to your competitive strategy, allowing for evolvement over time

Do not lower ethical standards in order to just make money