UNIVERSITY OF ECONOMICS HCMC

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Subject: International Business Simulation

Class: IBC01

INDUSTRY 11
OPERATING REPORT
B COMPANY
Members:

Nguyễn Hoàng Lân Nguyễn Thành Đạt

Huỳnh Quý Danh Trần Lê Cẩm Nhàn

Trương Minh Hoàng Lang Tăng Hoài Thanh

Phan Tuấn Kha Đào Phương Thủy Tiên

Phạm Minh Phương

Hà Phương Hảo
TABLE OF CONTENTS

INTRODUCTION ...................................................................................................................... 3

ANALYSIS BUSINESS PERFORMANCE OVER YEAR 6 ................................................... 3

1. Industry Analysis ............................................................................................................... 3

1.1. Market size and trends ............................................................................................ 3

1.2 Competitor ................................................................................................................. 3

2. Implemented Strategy of Year 6 and its Results .............. Error! Bookmark not defined.

2.1 Performance Highlights .......................................... Error! Bookmark not defined.

2.2 Assembly and Facility Operations ......................... Error! Bookmark not defined.

2.3 AC Camera Segment Performance ....................... Error! Bookmark not defined.

2.4 UAV Drone Segment Performance ........................ Error! Bookmark not defined.

2.5 Financial Statements ............................................... Error! Bookmark not defined.

PLAN IN YEAR 7 .................................................................... Error! Bookmark not defined.

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 INTRODUCTION

Our company is B Company, with its two main products is Action-capture (AC)
cameras & Unmanned Aerial View (UAV) drones. The company’s headquarters based in
Taiwan and operating in four market regions across the world—Europe-Africa, Asia-Pacific,
Latin America, and North America. These two products are quite well-known and favored by
the consumers. In the most recent year (Year 5), the company had worldwide sales of 840,000
action-capture cameras and 140,000 UAV drones. Prior-year revenues were $334.1 million
and net earnings were $15 million, equal to $0.75 per share of common stock.

ANALYSIS BUSINESS PERFORMANCE OVER YEAR 6

1. Industry Analysis
1.1. Market size and trends
- Further market research reveals that the buyers of AC cameras in North America and
Europe - Africa are more sensitive to cross-brand differences in P/Q ratings than those
of the Asia-Pacific and Latin America regions. Most of the North America and Europe
- Africa buyers consider the widely-available and much-publicized annual P/Q ratings
while shoppers in Asia-Pacific and Latin America prefer products with lower price.

- Market research indicates that buyers around the world consider P/ Q ratings of AC
camera brands as one of the two most important factors (along with price) in their
choice of which AC camera brand to purchase. A company with an above average P/Q
rating will have competitive advantage in terms of quality and vice versa.

1.2 Competitor
Company Name Net EPS ROE (%) Stock Credit Image
Revenues ($/Share) Price Rating Rating
($000s) ($/Share)
A SpaceX Company 382,703 1.38 21.5 35.30 B+ 70

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B Titanium Company 410,576 1.71 26.0 49.55 B+ 75
C Company 396,497 1.87 28.1 56.42 A- 73

D Company 415,183 1.62 24.8 47.00 A- 74

E Company 511,579 1.37 21.4 36.17 B+ 81

- Our D Company had highest Net Revenues.

- Company C ranked 1 with highest ROE, EPS, Stock Price.
- About Credit Rating, 3 Company A, Titanium and E Company ranked B+; C and D
Company ranked A-.
- The counterparts are more focused on AC Camera products or parallel development
on both products.

1.2.1 Market North America

*AC Cameras

This year, we - Titanium Company - decide to pursue a competitive advantage keyed to

average quality and performance, and reached the first rank in this market with 27.3% market
share increasing compared to last year because our Company focused on Advertising as well
as Websites Display. Our biggest competitor is A Company, ACC P/Q Rating was high (4.5*)
but their Price was not too high (256$) and they ranked 2nd in Market Share. C Company
increased Retailer Support, Sales Promotions and Weeks Discount as well as Warranty
Period. E Company had highest Advertising Budget and Website Display.
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 *UAV Drones

Our Company got 4th position in Market Share (18.7%). Company C, D and E had high
P/Q Rating but their Price were not high, this attracted customers. E Company had highest
Website Displays and Search Engine Advertising. We have the same P/Q as Company A
SpaceX (4.2*) but our price is a little higher than them. Other Companies had strategy that
High P/Q Rating but Low Price. Our Company should pay attention and have some
adjustment.

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1.2.2 Market Europe – Africa.

*AC Cameras

In Europe-Africa market, our strategy is reasonable price with quality of AC Camera, we

had lowest Price as well as P/Q Rating We still focused on Advertising and Websites Displays
and ranked 2nd in Market Share. Our biggest competitor is Company E, they had P/Q Rating
4.9* but the Price was just 300$, this meant their AC Cameras had high quality but the price
was not too high and customers might pay attention to this. Our Company should have to

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adjust some sections. E Company also focused on Marketing and Warranty Period and they
got 1st positions in Market Share.

*UAV Drones

In year 6, our company used strategy " more value for money” for UAV products in this
market but it was not successful. We just ranked 3rd in Market Share. Our company pay
moderate for Marketing as well as Website Display. Our competitors, Company C, D and E
had high P/Q Rating but reasonable Price, they also had good Warranty Period (120 days) so
they got well in Market Share. Company E also pay more in Websites Display and Search
Engine Advertising and ranked 1st in Market Share. Our Company should change the strategy,
we have to increase P/Q Rating and adjust Price.

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