GREY TEAM

CONSULTANCY
BY RED TEAM
 CURRENT SITUATION
COST AND EXPENSES
Round 3 Round 4 VAR% Round 5 VAR% Round 6 VAR% Round 7 VAR%
1474332 920436 -37,57% 1282071 39,29% 1663309 29,74% 1658763 -0,27%

Feature
Promotion Administration
costs

Contract
V. production
R&D manufacturing
costs costs

Round 3 413 000 Round 4 242 230

Round 5 551 725
Round 6 804 207
Round 7 777 148
 Round 3 Round 4 VAR% Round 5 VAR% Round 6 VAR% Round 7 VAR%

7 features

R&D 413000 22000 -94,67% 8000 -63,64% 75000 837,50% 345000 360,00%

Promotion 137000 144000 5,11% 146000 1,39% 110000 -24,66% 40000 -63,64%
HIGHLIGHTS
Grey is the company that has had
the highest short-term debt over
the years, yet managed to control
this in the best way.
MARKET
This Grey company has greater
participation in the European
market, which in recent years
has been affected by the
implementation of new
technologies
COMPETITIVE
ADVANTAGE
Grey is the company that has developed
more features; is the only team with 7
features in Tech 1 and Tech 2, which
make them more competitive in terms of
technological development.
 PRICING
ASPECTS TO IMPROVE

1 This strategy is based

on setting low prices for new
products to achieve mass
market penetration,
generating a large volume of
sales and discouraging
potential new competitors.

we consider it necessary not

to stop selling tec1 in this
market!
 PRICING
ASPECTS TO IMPROVE

2 This strategy they need

to increase in asia in the last
technology they have is to
increase the features so that
their price can be more
competitive in the market
 PRICING
ASPECTS TO IMPROVE

The prices which we present below have been

a proposal focused on the average increase that
has been had in prices of the other groups, the

3 PRICE CHANGE idea is to maintain the technologies that

already have increasing the features with more
accessible prices to the market to be more
competitive and increase sales
 PRODUCTION
ASPECTS TO IMPROVE

HIGH COST OF IMPORTED

MISUSE OF CONTRACT
HIGHEST INVENTORY COSTS PRODUCTS AND TRANSPORT AND
TARIFF COSTS MANUFACTURING
HIGHEST INVENTORY COSTS
STRATEGY STEPS
● Tech 1 1000 UNITS USA ● Tech 3 1900 UNITS ASIA
● Tech 2 1700 UNITS USA ● Tech 1 1000 UNITS EUROPE
● Tech 1 6000 UNITS ASIA ● Tech 2 1700 UNITS EUROPE

1 Better planning of demand by

taking into account the units
2 Establish a better pricing
sold by competitors and the
internal production capacity. By
way of advice, priority should be
given to tech 1 and tech 2 in the
Asian and European markets,
which are the most profitable
markets for the company.
strategy focused on being
economical and offering several
features (mainly in Asia) as this
will increase sales, decrease
inventory management costs
and in this way increase
Cumulative Shareholder Return.

● Tech 1 USA 7feat 200USD ● Tech 3 Asia 1 feat 2300USD

● Tech 2 USA 7 feat 220USD ● Tech 1 Europe 7 feat 180EUR
● Tech 1 Asia 7 feat 1600RMB ● Tech 2 Europe 7 feat 280EUR
 HIGH COST OF IMPORTED
PRODUCTS AND TRANSPORT STRATEGY STEPS
AND TARIFF COSTS
Taking advantage of the plants they have
acquired (4), always looking for a lowest unit

1 They should focus on

producing in Asia
cost at the best capacity (between 50% and
97%) focusing on tech 1 and 2 which are the
most developed and relevant technologies
for this market.

Should ensure that there is market

coverage. If Grey run out of offer, they
Pay more attention
2 when establishing
logistic priorities
should make sure that it happens in the
market where the unit's margin is the
lowest, in Grey's case it would be the USA,
thus reducing Transport and Tariff costs.

Grey should be alert To know in which country it is better to

produce having also in mind that paying an
to the duty variations
% SOLD UNITS IN
ASIA
%PROFIT COMES
FROM ASIA
3 between countries
and the exchange
import with a currency that over time has
been devalued give as a result paying
higher prices for the import of these
rate products.

49,39% 59,59%
 MISUSE OF CONTRACT
MANUFACTURING
% Sold units over %Contract % Inventory
STRATEGY STEPS
Produced units manufacturing over production
YEAR 1 60,07% 9,29% 39,93%

YEAR 2 68,92% 51,97% 31,08%

YEAR 3 26,78% 30,69% 73,22%

1 They have to calculate the demand If they are going to do
2
YEAR 4 9,42% 22,90% 90,58%
well based on the units sold by the Contract
YEAR 5 5,54% 94,46% competitors, the units previously sold Manufacturing they
by the company, the production have to do it for a
YEAR 6 60,92% 39,08%
capacity and the market where they representative
YEAR 7 79,45% 20,55% want to sell to determine if it is really number of units that
necessary to do Contract reduce the unit cost,
Manufacturing to satisfy the demand because otherwise
or not. the costs will increase.
L
I
A
B
I
L
I
T
I
E R3
1288659
R4
2766261
VAR% R5 VAR% R6 VAR% R7 VAR%
114,66% 1686130 -39,05% 561444 -66,70% 453623 -19,20%

S
INVENTORY

- PRICING
- OVERESTIMATE YOUR
DEMAND

Round 3 - 4 Round 4 - 5 Round 5 - 6 Round 6 - 7

VAR % 129,91% -33,69% -44,88% 13,09%

EQUITY

- PROFIT FOR THE ROUND

- SHORT TERM DEBT
- CASH FLOWS
- INVESTMENTS

Round 3 - 4 Round 4 - 5 Round 5 - 6 Round 6 - 7

VAR % 11,09% 8,70% 43,53% -5,75%

TAXES
- REPORT MORE EARNINGS IN
LOW TAXES REGIONS
- LOSSES OF PREVIOUS
ROUNDS

Round 3 - 4 Round 4 - 5 Round 5 - 6 Round 6 - 7

VAR % -21,40% -20,79% -4,49% -23,62%

 MARKET
SHARE
- ANALYZING THE MARKET
AND THE DEMAND
- PRICING
- INVESTMENTS
- SALES IN THE GLOBAL
MARKET

Round 3 - 4 Round 4 - 5 Round 5 - 6 Round 6 - 7

VAR % -26,43% 43,61% 31,83% -20,93%

PROMOTION
ASPECTS TO IMPROVE
The Asian market is driven
mainly by good prices and
Asia is not a very
high technologies, they

1 receptive
market for
should take advantage that
they are the company that
promotion has developed the most
features

They must have a good price

strategy, balance the features
The best with the price of the

2 features, but not

the best sales
technologies, Asia is the
perfect market to sell in mass
achieving the ideal balance as
it is a very receptive market
 USA
Next steps

1. Maintain prices on
2. Put features 3. Promotion is the
the tech with good
depend of the way to increase.
behaviour (Tech 1
market.
and Tech 2).

R7 R7

R6
R5 R6
R5
 FINANCES
ASPECTS TO IMPROVE

Since short-term debt has

already been eradicated, in

1 Reducing
long-term debt
order to improve the financial
situation they must start
reducing long-term debt

When you reduce your

Benefits of long.term debt your company

2 reduce the
long-term debt
will be more attractive and
this it's going to affect positive
on your share price
FINANCES
ADVICES

This is a good strategy to

increase the share price, you

1 Buying shares can do it now that your

finances have improved
considerably

With a gradual purchase in

the three remaining rounds of
1000 shares to see how they

2
react, the share price could
¿How to do it?
increase (Don't forget that
buying shares its not the only
factor that affects the share
price)
 TIMELINE OF ACTIVITIES
Reset prices and demand to increase With the changes made in the various
sales and reduce the existing inventory, operations of the company is projected
in this way cumulative shareholder to have a greater share in the Asian
return is expected to growth. market, and be more competitive in the
other two markets,

ROUND 8 ROUND 10

ROUND 9

Reduce long-term debt gradually and

buy shares to increase the share price,
invest in features to be more competitive
to be able to generate an increase in
sales of 8% to 15% for this year.
FINANCIAL PROJECTIONS
THANKS FOR YOUR
ATTENTION
BY RED TEAM