RED TEAM-SECOND REPORT-LAURA CAMILA CRISTANCHO FERNANDEZ

The first variable I chose was EPS (Earnings per share), look at the company's ROUND ROUND ROUND ROUND ROUND
ratio INCREASE%
1 2 3 4 5
profitability and determine the share price. The red team behaves negative in this eps -3,5 -5,93 8,69 7,36 -8,86 -220%
indicator because we don´t have the capacity to reinvest part of those earnings to profit -105,05 -177,89 260,62 220,75 -265,86 -220%
improve growth, we have financial problems and we are not visible to the competition. r&d 310000 2748042 61500 0 480000 0%
According to the table, we started in round 1 3.50%, round 2 5.93%, and we had promotion 34500 74900 62800 43000 27300 -37%
positive growth in round 3 8.69%, round 4 7.36% for a collapse of round 5 8.86% with contract
87457 71581 0 0 0
m 0%
a variation of the last round of 220%, a behavior of percentage decrease that generates
cost and
losses in earnings per share. Dividends are important because they must be sold if the 894190 1122238 1062385 1013523 2377603
expenses 135%
company does not have debts or has more extra cash, the shares that pay dividends share
148,79 99,00 106,57 177,69 190,41
keep their price away from the falls, the red team cannot sell dividends, it has a lot of price 7%
debt because a lot of money was invested and we do not have the capacity for other market
15,84 16,75 17,61 21,24 27,84
share 31%
debts therefore affects the eps. Variables that are directly related to EPS were identified
income
and it is important to know that the first is improving profit through the costs and 49827 57402 104567 104919 50771
taxes -52%
expenses that have to be reduced equity 574720 396833 657455 878204 612343 -30%
through R&D, where it is analyzed that net
if a lower investment, more profit is finances 52267 992084 53011 52083 1377589
generated in the action, the expense 2545%
promotion has an impact on the performance of the company. If this is positive, the benefit of the
action will increase, we have a variation of -36.5%. and contract manufacturing should be shortened
because it does not allow the company to be competitive, it represents higher costs that are less
profit, it must be taken into account that in the total costs and expenses in round 3 of 1062385 and
round 4 1013523 a growth 5% and EPS (8.69%, 7.36%) unlike the 5 round where expenses increased
by 135% and our profit collapsed. That is why it is analyzed that the less costs and expenses you can
have a better profit and increase the EPS. My strategy as CEO is to optimize earnings and reduce unnecessary expenses and costs to improve our
income and improve earnings per share. It is also directly related to the share price, since I
earn what I sell at the price I sell it, this makes my company attractive to investors by making
them buy the shares and can generate profits, the variables that affect behavior of the share
price are: market share when the percentage of this we cover is higher, the share prices will
also act in this way and we will have more earnings in the share, our market share is 27.84 and
the share price is 190.41, when we have a share market share of 15.84 the share price is
148.79, that is, this variable is directly proportional to the behavior of the market accordingly,
it is important to note that market share is reduced by sales, R&D and promotion. Income tax
and equity there is an inversely proportional relationship between income tax and share price, because when our income tax increase 82.2% and
15.2%, the price of related shares is 7.6% and -33.5%. Based on the fact that income taxes are the losses of the previous rounds and that decrease
the profit of our EPS; They also lower the share price because it represents a decrease in the value of the company in terms of equity because income
taxes increase, so equity, stability, credibility and reputation decrease, making it less attractive to investors, so the value of the shares falls. Net
financial expenses are the price to be paid by the capital loaned by third parties, therefore, according to other rounds, it is concluded that it has an
inverse relationship with earnings per share, but is directly related to short-term debt term and long-term debt. Net financial expenses increased in
relation since it had a 99284 where the fall in earnings per share was evident in -5.93%, after this there was a net financial expense of 52083 and the
eps was 7.36%. The gains from our actions are negative. As CEO, the strategy is to be able to evaluate short and long-term debts in order to pay and
leave less of these debts. The second variable I chose was INVENTORY it is important to learn to understand it and know what variables affect to
control it. Our team has an important evolution of 0.026%. Variables that affect this are market shares, production, contract manufacturing, and
demand. In the rounds the inventory of the red team has changed. For the first and second round, we only produced what the demand asked us to
do and we did not think about having a reserve that could satisfy a future need and that would help us to have an inventory as a final asset. For the
third round we started to produce more than what they asked for, and the same in the fourth round and in the fifth round we satisfied the demand
and we had some inventory left because we produced more. In our case, round 1 and 2, the inventory value was 274 and 0, so we did not generate
units because the market share was 15, 84% 16.75% we met demand but no extra was produced and we sold what was sold. contracted to
manufacture we only use the use capacity of 35%, from round 3 we began to accumulate inventory because we produced more and not just demand
1846 units with an inventory value of 1108 and a market share of 17.61%, round of 4093 units and a market share of 21.24%, round 5 17 92 units
with a market share of 27.84%, which is analyzed after the third round because it has a higher percentage of participation and produces more, so it
is possible to accumulate inventory, it is analyzed that where there is an increase there is a capacity of use of 90% and manufacturing is no longer
contracted, plants with the red team were used. As CEO, the goal is to build up little inventory but have a percentage so you can use it in future
rounds and not invest in production to cut costs and make more ítem ROUND 1 ROUND 2 ROUND 3 ROUND 4 ROUND 5
profit. Contract manufacturing will be avoided because it has inventory 0 0 1846 4093 1292
very high costs and does not make the company competitive in
% 0 0 122% -68% -85%
terms of quality. Inventory helps in the production process to
balance investment and meet demand for the product offered it is clear that we have had a growth in sales that is a very important factor in inventory.