Segments

Ideal Position Reliability (MTBF)

Performance Size Low
Traditional-Year 5.5 14.5
1 5.7 14.3 14000
2 6.4 13.6 14000
3 7.1 12.9 14000
4 7.8 12.2 14000
5 8.5 11.5 14000
6 9.2 10.8 14000
7 9.9 10.1 14000
8 10.6 9.4 14000
Low End -Year 3 17
1 2.2 17.8 12000
2 2.7 17.3 12000
3 3.2 16.8 12000
4 3.7 16.3 12000
5 4.2 15.8 12000
6 4.7 15.3 12000
7 5.2 14.8 12000
8 5.7 14.3 12000
High End -Year 8 12
1 9.8 10.2 20000
2 10.7 9.3 20000
3 11.6 8.4 20000
4 12.5 7.5 20000
5 13.4 6.6 20000
6 14.3 5.7 20000
7 15.2 4.8 20000
8 16.1 3.9 20000
Performance -Year 9.4 15.5
1 10.4 15.3 22000
2 11.4 14.6 22000
3 12.4 13.9 22000
4 13.4 13.2 22000
5 14.4 12.5 22000
6 15.4 11.8 22000
7 16.4 11.1 22000
8 17.4 10.4 22000
Size -Year 4 11
1 4.7 9.6 16000
2 5.4 8.6 16000
3 6.1 7.6 16000
4 6.8 6.6 16000
5 7.5 5.6 16000
6 8.2 4.6 16000
7 8.9 3.6 16000
8 9.6 2.6 16000
 Consumer Behaviour
Reliability (MTBF) Price Range Age
High Low High Beginning

19000 20 30 3.10
19000 19.5 29.5 2.34
19000 19 29 1.96
19000 18.5 28.5 1.77
19000 18 28 1.68
19000 17.5 27.5 2.68
19000 17 27 2.13
19000 16.5 26.5 1.85

17000 15 25 4.60
17000 14.5 24.5 5.60
17000 14 24 6.60
17000 13.5 23.5 7.60
17000 13 23 8.60
17000 12.5 22.5 9.60
17000 12 22 5.70
17000 11.5 21.5 6.70

25000 40 30 1.70
25000 39.5 29.5 1.48
25000 39 29 1.36
25000 38.5 28.5 1.31
25000 38 28 1.28
25000 37.5 27.5 1.26
25000 37 27 1.26
25000 36.5 26.5 1.25

27000 35 25 2.50
27000 34.5 24.5 1.88
27000 34 24 1.60
27000 33.5 23.5 1.46
27000 33 23 1.39
27000 32.5 22.5 1.35
27000 32 22 1.34
27000 31.5 21.5 1.33

21000 35 25 2.60
21000 34.5 24.5 1.96
21000 34 24 1.64
21000 33.5 23.5 1.48
21000 33 23 1.40
21000 32.5 22.5 1.36
21000 32 22 1.34
21000 31.5 21.5 1.33
Age R&D Expense (000$) Awareness
End Average Percentage
55%
2.34 2.72 60.0%
1.96 2.15 65.0%
1.77 1.87 70.0%
1.68 1.72 75.0%
2.68 2.18 75.0%
2.13 2.40 75.0%
1.85 1.99 75.0%
1.72 1.79 75.0%
52%
5.60 5.10 0 57.0%
6.60 6.10 62.0%
7.60 7.10 67.0%
8.60 8.10 67.0%
9.60 9.10 67.0%
5.70 7.65 67.0%
6.70 6.20 0 67.0%
7.70 7.20 0 67.0%
49%
1.48 1.59 696 54.0%
1.36 1.42 696 59.0%
1.31 1.33 696 64.0%
1.28 1.29 696 69.0%
1.26 1.27 696 74.0%
1.26 1.26 696 79.0%
1.25 1.26 696 79.0%
1.25 1.25 696 79.0%
46%
1.88 2.19 749 51.0%
1.60 1.74 669 56.0%
1.46 1.53 669 61.0%
1.39 1.42 669 66.0%
1.35 1.37 669 71.0%
1.34 1.35 669 76.0%
1.33 1.33 669 81.0%
1.32 1.33 669 81.0%
46%
1.96 2.28 669 51.0%
1.64 1.80 669 56.0%
1.48 1.56 669 61.0%
1.40 1.44 669 66.0%
1.36 1.38 669 71.0%
1.34 1.35 669 76.0%
1.33 1.34 669 81.0%
1.33 1.33 669 81.0%
 Market
Accessibility Market Size
Promo Budget Percentage Sales Budget
54% 167832
1000.00 59.0% 1000.00 183273
1000.00 64.0% 1000.00 200134
1000.00 69.0% 1000.00 218546
1000.00 74.0% 1000.00 238652
1000.00 74.0% 1000.00 260608
800.00 74.0% 800.00 284584
800.00 74.0% 800.00 310766
800.00 74.0% 800.00 339356
40% 222138
800.00 45.0% 1100.00 247017
800.00 50.0% 1100.00 274683
800.00 55.0% 1100.00 305448
700.00 60.0% 1100.00 339658
700.00 65.0% 1100.00 377700
700.00 70.0% 1100.00 420002
700.00 75.0% 1100.00 467042
700.00 80.0% 1100.00 519351
48% 83448
1000.00 53.0% 1000.00 96967
1000.00 58.0% 1000.00 112675
1000.00 63.0% 1000.00 130929
1000.00 68.0% 1000.00 152139
1000.00 73.0% 1000.00 176785
1000.00 78.0% 1000.00 205425
800.00 78.0% 800.00 238704
800.00 78.0% 800.00 277373
37% 70884
1000.00 42.0% 1000.00 84919
1000.00 47.0% 1000.00 101733
1000.00 52.0% 1000.00 121876
1000.00 57.0% 1000.00 146008
1000.00 62.0% 1000.00 174917
1000.00 67.0% 1000.00 209551
1000.00 72.0% 1000.00 251042
800.00 72.0% 800.00 300748
42% 62172
1000.00 47.0% 1000.00 73549
1000.00 52.0% 1000.00 87009
1000.00 57.0% 1000.00 102932
1000.00 62.0% 1000.00 121768
1000.00 67.0% 1000.00 144052
1000.00 72.0% 1000.00 170413
1000.00 77.0% 1000.00 201599
800.00 77.0% 800.00 238491
Market Forces
Market Growth Segment as percentage of industry Price

9.2 26.7268251193214 26
9.2 25.7826326984327 28
9.2 24.8423785288062 28
9.2 23.9076493423581 26
9.2 22.9800539863254 28
9.2 22.0612097873115 26
9.2 21.152728304531 28
9.2 20.2562007277331 26

11.2 36.0228117307723 17
11.2 35.3866659939332 20
11.2 34.7206389747498 23
11.2 34.0262086125594 19
11.2 33.3050336265107 20
11.2 32.558943584675 20
11.2 31.7899262770889 20
11.2 31.000112539968 23

16.2 14.1407363187548 35
16.2 14.5156137518445 36
16.2 14.8828055116683 37
16.2 15.2409486032332 38
16.2 15.5886912504525 39
16.2 15.9247060682366 40
16.2 16.2477033596881 41
16.2 16.5564442817627 41

19.8 12.3838304856294 30
19.8 13.1059669362672 32
19.8 13.8538078881011 32
19.8 14.6267232088283 32
19.8 15.4239422329124 33
19.8 16.2445561477283 33
19.8 17.0875223608898 33
19.8 17.9516708373833 33

18.3 10.7257963455221 28
18.3 11.2091206195223 30
18.3 11.7003690966746 35
18.3 12.198470233021 35
18.3 12.7022789037989 34
18.3 13.2105844120486 33
18.3 13.7221196978022 33
18.3 14.2355716131529 32
Target Market Share Demand Original Forecast (Unit) Production

18% 32989 1269 1300

20% 40027 1430 1500
22% 48080 1717 1800
22% 52503 2019 2000
24% 62546 2234 2200
23% 65454 2517 2500
25% 77691 2775 2600
23% 78052 3002 3000

18% 44463 2615 2700

20% 54937 2747 2700
24% 73308 3187 3200
22% 74725 3933 4000
22% 83094 4155 4200
23% 96601 4830 4900
23% 107420 5371 5300
25% 129838 5645 5500

18% 17454 499 500

19% 20958 582 600
19% 25138 679 700
20% 30124 793 800
20% 36064 925 900
21% 43139 1078 1100
22% 51560 1258 1300
22% 61577 1502 1400

18% 15285 510 500

18% 18770 587 600
19% 23035 720 750
19% 28252 883 900
20% 34634 1050 1100
20% 42434 1286 1300
21% 51966 1575 1500
21% 63608 1928 1900

18% 13239 473 500

19% 16532 551 600
23% 23674 676 700
26% 31660 905 900
26% 37453 1102 1150
25% 42603 1291 1300
24% 48384 1466 1500
23% 54853 1714 1650
 Production
Material Cost Labour Cost Capacity Capacity Difference

12610 12389 3600 2300

14550 14295 3600 2100
17460 17154 3600 1800
19400 19060 3600 1600
21340 20966 3600 1400
24250 23825 3600 1100
25220 24778 3600 1000
29100 28590 3600 600

14067 17712 2800 100

14067 17712 2800 100
16672 20992 2800 -400
20840 26240 2800 -1200
21882 27552 2800 -1400
25529 32144 2800 -2100
27613 34768 2800 -2500
28655 36080 2800 -2700

6535 6690 1800 1300

7842 8028 1800 1200
9149 9366 1800 1100
10456 10704 1800 1000
11763 12042 1800 900
14377 14718 1800 700
16991 17394 1800 500
18298 18732 1800 400

7560 6475 1200 700

9072 7770 1200 600
11340 9713 1200 450
13608 11655 1200 300
16632 14245 1200 100
19656 16835 1200 -100
22680 19425 1200 -300
28728 24605 1200 -700

5750 6505 1200 700

6900 7806 1200 600
8050 9107 1200 500
10350 11709 1200 300
13225 14962 1200 50
14950 16913 1200 -100
17250 19515 1200 -300
18975 21467 1200 -450
 Finance
Capacity Difference Automation Increase Complement Equity

1500

1300
1

700

450
Finance HR
LT Debt ST Debt Rectt spend Trainign Hours

1500 50
1500 50
1500 50
1500 50
1500 50
1500 50
1500 50
1500 50
 TQ
CPI JIT QIT CSS

600

600
600
600

600
 TQM Drivers
TQM Spend
CE UNEP Benchmarking QFED

1000
1000
800 600 800
1000 1000
1000 600 1000
1000 600 1000
700 600 700
Six Sigma GEMI

Author:
+1 step

Author:
For 6th round specs

Author:
+1 step
Sumeet Larzoo
+2000 Reliability
+1 steps
Author:
+1 step
 Investments
Investment in Automation
1
2
3
4
5
6 4800
7 4800
8

Investment to double capacity First Shift Capacity x {6 + (4 x automation level)} 

Investment to take automation level to 10 First Shift Capacity x [4 x (10 - automation level)] 
nvestments
Investment in Capacity Total Investment
0
16500 16500
0
0
29850 29850
4800
4800
0
 Round 1

Andrews
No of Employees 850
Sales 123431
VC
Material 46522
Labour 0
Contr Margin 76909
Depreciation 6828
SGA 9900
RnD 0
Promo 4800.00
Sales 5100.00
Admin
Other 1000
Fee
Write off
TQM 1000
Bonus
EBIT
Interest 5004
Taxes 6764
Profit Sharing 0

Net Profit 47412

Round 0 Round 1
Balance Sheet Survey Andrews Andrews
Cash 3434 #DIV/0!
Accounts Receivable 8307 #DIV/0!
Inventory 8617 #DIV/0!
Total Current Assets 20358 #DIV/0!

Plant and equipment 113800 113800

Accumulated Depreciation -37933 -45519.7
Total Fixed Assets 75867 68280.3

Total Assets 96225 #DIV/0!

Accounts Payable 6583 #DIV/0!

 Current Debt 0 #DIV/0!
Long Term Debt 41700 41700
Total Liabilities 48283 #DIV/0!
Common Stock 18360 18360
Retained Earnings 29582 76994
Total Equity 47942 95354

Total Liabilities & Owners' Equity 96225 #DIV/0!

Stock Price 33
23.97

1.38

Dividend/Share 0 0
d1 Round 2

Per Unit(units could be

employees, product)

MC/no of units 54.73 Material 0

0.00 Labour 0
90.48 0
8.03 7795
11.65 0
RD/No of units 0.00 RnD 0
Prom/No of units 5.65 Promo 0.00
Sales/Noof units 6.00 Sales 0.00
Admin/No of units 0.00 Admin
1.18 3200
Fee/No of Units Fee
Writepff/No of units Write off
TQM/No of Units 1.18 TQM 3200
Bonus/No of Units Bonus

5.89 Interest 5004

7.96 Taxes 0
Profit Sharing 0

Profits/No of units 55.78 -15999

Round 2 Round 3 Round 4 Round 5

Andrews Andrews Andrews Andrews
-1600 7502 35696 60782
-2106 #DIV/0! #DIV/0! #DIV/0!
0 #DIV/0! #DIV/0! #DIV/0!
-3706 #DIV/0! #DIV/0! #DIV/0!

130300 130300 130300 160150

-52347.73 -60142.957 -67158.6613 -73472.79517
77952.27 70157.043 63141.3387 86677.20483

74246 #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!
41701 41702 41703 41704
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
18360 18360 18360 18360
60995 61051 49733 47430
79355 79411 68093 65790

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

0 0 0 0
d2 Round 3

Per Unit(units could be

employees, product)

MC/no of units Material

Labour

RD/No of units RnD

Prom/No of units Promo
Sales/Noof units Sales
Admin/No of units Admin

Fee/No of Units Fee

Writepff/No of units Write off
TQM/No of Units TQM
Bonus/No of Units Bonus

Interest
Taxes
Profit Sharing

Profits/No of units

Round 6 Round 7 Round 8

Andrews Andrews Andrews

97040 155106 251757

#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0!

164950 169750 174550

-82140.515653 -90421.4640877 -98354.31767893
82809.484347 79328.5359123 76195.68232107

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0!
41704 41704 41704
#DIV/0! #DIV/0! #DIV/0!
18360 18360 18360
26410 4911 -94
44770 23271 18266

#DIV/0! #DIV/0! #DIV/0!

0 0 0

Round 1 2
ROS (%) 38.41 #DIV/0!
Asset Turnover 1.81 0.00
ROA (%) 69.44 #DIV/0!
Leverage 0.72 0.98
ROE (%) 49.72 #DIV/0!
Free Cash Flows from Operations
Working Capital 13775 #DIV/0!
Days of working capital 40.73 #DIV/0!
Book Value per share 47.68 39.68
Market to Book Value 1.91 #DIV/0!
Dividend Yield 0 #DIV/0!
Dividend Pay out Ratio 0 0
Round 3

Per Unit(units could be

employees, product)

0 MC/no of units
0
0
7015.7043
0
0 RD/No of units
0.00 Prom/No of units
0.00 Sales/Noof units
Admin/No of units
1000
Fee/No of Units
Writepff/No of units
1000 TQM/No of Units
Bonus/No of Units

5004.12
0
0

-13020 Profits/No of units Profits/No of units

 3 4 5 6
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.00 0.00 0.00 0.00
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
0.88 0.93 1.32 1.85
#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!
39.71 34.05 32.89 22.39
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
0 0 0 0
 Round 4

Per Unit(units could be

employees, product)

Material 0 MC/no of units

Labour 0
0
6314.13387
0
RnD 0 RD/No of units
Promo 0.00 Prom/No of units
Sales 0.00 Sales/Noof units
Admin Admin/No of units
0
Fee Fee/No of Units
Write off Writepff/No of units
TQM 0 TQM/No of Units
Bonus Bonus/No of Units

Interest 5004.24
Taxes 0
Profit Sharing 0

-11318 Profits/No of units

 7 8
#DIV/0! #DIV/0!
0.00 0
#DIV/0! #DIV/0!
3.41 4.17
#DIV/0! #DIV/0!

#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
11.64 9.13
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
0 0
 Round 5

Per Unit(units could be

employees, product)

MC/no of units Material

Labour

RD/No of units RnD

Prom/No of units Promo
Sales/Noof units Sales
Admin/No of units Admin

Fee/No of Units Fee

Writepff/No of units Write off
TQM/No of Units TQM
Bonus/No of Units Bonus

Interest
Taxes
Profit Sharing

Profits/No of units
Round 5

Per Unit(units could be

employees, product)
Year 1
0

0 MC/no of units
0
0
1303
0
0 RD/No of units
0.00 Prom/No of units
0.00 Sales/Noof units
Admin/No of units
1000
Fee/No of Units
Writepff/No of units
1000 TQM/No of Units
Bonus/No of Units

0
0
0

-2303 Profits/No of units

 Round 6

Per Unit(units could be

employees, product)
Year 1
0

Material 0 MC/no of units

Labour 0
0
16015
0
RnD 0 RD/No of units
Promo 0.00 Prom/No of units
Sales 0.00 Sales/Noof units
Admin Admin/No of units
0
Fee Fee/No of Units
Write off Writepff/No of units
TQM 0 TQM/No of Units
Bonus Bonus/No of Units

Interest 5004.48
Taxes 0
Profit Sharing 0

-21019 Profits/No of units

Cash Flow Statement Survey Andrews

Cash flows from operating activities
Net Income (Loss)
Adjustment for non-cash items:
   Depreciation
   Extraordinary gains/losses/writeoffs
Changes in current assets and liabilities:
   Accounts payable
   Inventory
Net cash from operations

Cash flows from investing activities

Cash flows from financing activities
Dividends paid
Sales of common stock
Purchase of common stock
Early retirement of long term debt
Retirement of current debt
Cash from current debt borrowing

Cash from emergency loan

 Round 7

Year 1
0

Material 0
Labour 0
0
16495
0
RnD 0
Promo 0.00
Sales 0.00
Admin
0
Fee
Write off
TQM 0
Bonus

Interest 5004.48
Taxes 0
Profit Sharing 0

-21499

Baldwin Chester Digby Erie

d7 Round 8

Per Unit(units could be

employees, product)

MC/no of units Material

Labour

RD/No of units RnD

Prom/No of units Promo
Sales/Noof units Sales
Admin/No of units Admin

Fee/No of Units Fee

Writepff/No of units Write off
TQM/No of Units TQM
Bonus/No of Units Bonus

Interest
Taxes
Profit Sharing

Profits/No of units

Ferris
Round 8

Per Unit(units could be

employees, product)
Year 1
0

0 MC/no of units
0
0
0
0
0 RD/No of units
0.00 Prom/No of units
0.00 Sales/Noof units
Admin/No of units
0
Fee/No of Units
Writepff/No of units
0 TQM/No of Units
Bonus/No of Units

5004.48
0
0

-5004 Profits/No of units

 Products RnD Price Promotion

More launches but less

compared to PLC diff and Niche More the more the
Broad Differentiation Diff but number of launches per Promotion, check per
(H,T,L,S,P) 5 to 8 product
Less launches but more High unit promotion
compared to PLC cost
leadership and Niche CL, More the more the
Broad Cost Leadership number of launches per Promotion, check per
(H,T,L,S,P) 5 to 8 product Lower unit promotion

More the more the

PLC Differentiation Promotion, check per
(H,T,L) 3 to 8 Frequent Launches High unit promotion

More the more the

PLC Cost Leadership Promotion, check per
(H,T,L) 3 to 8 Lower unit promotion

Very Frequent, as fast as every More the more the

Niche Differentiation 6 months, as a result very high Promotion, check per
(H,P,S) 3 to 8 RnD expenses Very high unit promotion

Very slow changes and very few More the more the
Niche Cost Leaderhip re/launches, not very high RnD Promotion, check per
(T,L) 2 to 8 expenses Very low unit promotion,

Net Profit Promotion expense per

per product product
Number of relaucnhes/year CM per Promotion expenses per
KPI Number of launches/year product unit
Distribution Production Age Costs TQM

More segments and hence Demand

higher per product distribution More plants, lower and Cycle
expenses automation High Time

More segments and hence

higher per product distribution More Plants, higher Demand
expenses automation Low and Cost

Fewer segments and hence Smaller plants, low Not very high costs to Demand
lower per product distribution investment, lower get right age, low and Cycle
expenses automation positioning costs Higher Time

Fewer segments and hence Not very high costs to

lower per product distribution Bigger plants, more get right age, low Demand
expenses investment, higher volumes positioning costs Lower and Cost

Fewer segments and hence

lower per product distribution Smaller plants, lower Cycle
expenses investment, low automation very high Time

Fewer segments and hence Bigger plants, more

lower per product distribution investment, higher volumes,
expenses high automation very low Cost

Average age of
Per Product Distr expense Plant Utilization product Maintain SNP
Per unit Distr expenses Revenue per unit capacity rating of BB
Asset/Equity

Lower

Higher

Higher
A Broad Cost Leader strategy maintains a presence in all segments of the market. The company will gain a competitive advantage by keeping
compete on the basis of price, which will be below average. Automation levels will be increased to improve margins and to offset second shift

Mission Statement

Low-priced products for the industry: Our brands offer solid value. Our stakeholders are bondholders, customers, stockholders and managem

Tactics

Research & Development: We will keep our existing product line, maintain a presence in every segment, and work to keep our products up to

Marketing: Our company will spend modestly on promoting and selling products in our industry. Our prices will be lower than average. After w
options to improve awareness and accessibility.

Production: We will significantly increase automation levels on all products. However, because automation sets limits upon our ability to repos
Low End segments than in the fast moving High End, Performance, and Size segments. We will prefer second shift/overtime to capacity expa

Finance: We will Finance our investments primarily through long-term bond issues, supplementing with stock offerings on an as needed basis
retire stock. We are not adverse to leverage, and expect to keep assets/equity between 2.0 and 3.0.
A Broad Differentiator strategy maintains a presence in every segment of the market. The company will gain a competitive advantage by distin
high awareness and easy accessibility. The company will develop an R&D competency that keeps designs fresh and exciting. Products keep
and performance. Prices will be above average. Capacity will be expanded as higher demand is generated.

Mission Statement

Premium products for the industry: Our brands withstand the test of time. Our stakeholders are customers, stockholders, management and em

Tactics

Research & Development: We will keep our existing product line, maintaining a presence in every segment. Our goal is to offer customers pro
positioning, age, and reliability.
Marketing: Our company will spend aggressively in promotion and sales in all segments. We want every customer to know about our superb d
easy for customers to find. We will price at a premium.

Production: We will grow capacity to meet the demand that we generate. After our products are well positioned, we will investigate modest inc
margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map.

Finance: We will Finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an
allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments.
between 1.5 and 2.0.

Higher RnD,
A Niche Cost Leader Strategy concentrates primarily on the Traditional and Low End segments of the market. The company will gain a compe
enabling the company to compete on the basis of price, which will be below average. Automation levels will be increased to improve margins

Mission Statement

Reliable products for low technology customers: Our brands offer value. Our stakeholders are bondholders, stockholders, customers and man

Tactics

Research & Development: We will concentrate our existing product line into the Low End and Traditional segments. The traditional product wi
Traditional segment. During the early years we will migrate (gradually) our Performance and Size segment products to the Traditional segmen
Marketing: Initially we will attempt to keep pace with the awareness and accessibility of our competitors' products. After we establish our cost
promotion budgets should be reduced or if we should continue to match our competitors. Our prices will be lower than average.

Production: We will significantly increase automation levels on our products. However, because automation sets limits upon our ability to repo
Size products until they arrive in the Traditional Segment. We will prefer second shift/overtime to capacity expansions.

Finance: We will Finance our investments primarily through long-term bond issues, supplementing with stock offerings on an as needed basis
to retire stock. We are not adverse to leverage, and expect to keep assets/equity between 2.0 and 3.0.
A Niche Differentiator strategy focuses on the high technology segments (High End, Performance and Size). The company will gain a compet
products with an excellent design, high awareness, easy accessibility and new products. The company will develop an R&D competency that
Products will keep pace with the market, offering improved size and performance. The company will price above average, and will expand cap

Mission Statement

Premium products for technology oriented customers: Our brands define the cutting edge. Our stakeholders are customers, stockholders, ma

Tactics

Research & Development: We will keep our existing technology products (High, Size & Performance), phase out Low End & Traditional, and i
extenders in the High End, Performance and Size segments. Our goal is to offer technology oriented customers products that match their idea
reliability.
Marketing: Our Company will spend aggressively in promotion and sales in the technology segments. We want every customer to know abou
make our products easy for customers to find. We will price at a premium. In the low technology segments we will exit gracefully, harvesting o
segment.
Production: We will grow capacity to meet the demand that we generate. After our products are well positioned, we will investigate modest inc
margins, but never at the expense of our ability to reposition products and keep up with the high technology segments as they move across th

Finance: We will Finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an
allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments.
(leverage) between 1.5 and 2.0.

Very high Rnd, very sm

A Cost Leader with a Product Lifecycle Focus centers on the High End, Traditional and Low End segments. The company will gain a competit
and material costs to a minimum, enabling it to compete on the basis of price. The Product Lifecycle Focus will allow the company to reap sal
introduced into the High End segment. Products will begin their lives in the High End, mature into Traditional and finish as Low End products.

Mission Statement

Reliable products for mainstream customers: Our brands offer value. Our stakeholders are bondholders, stockholders, customers and manag

Tactics

Research & Development: We will introduce a new High End product every two years. We will reposition our Low End product before it becom
segment circle). We will reposition our Performance and Size segment products into our targeted segments. We will ultimately have a steady
End, Traditional, and Low End segments.
Marketing: Initially we will attempt to keep pace with the awareness and accessibility of our competitors' products. After we establish our cost
to decide whether sales and promotion budgets should be reduced or if we should continue to match our competitors. Our prices will be lower

Production: We will significantly increase automation levels on products we intend to keep for more than three years (Traditional & Low End) a
highly automated plants for our new products as they are launched. We will sell off the plants for the Size & Performance products over the ne

Finance: We will Finance our investments primarily through long-term bond issues, supplementing with stock offerings on an as needed basis
establish a dividend policy and begin to retire stock. We are not adverse to leverage, and expect to keep assets/equity between 2.0 and 3.0.

Lowe
A Differentiator with a Product Lifecycle Focus strategy concentrates on the High End, Traditional and Low End segments. The company will
easy accessibility and new products. The company will develop an R&D competency that keeps designs fresh and exciting. Products will keep
company will price above average and will expand capacity as it generates higher demand.

Mission Statement

Premium products for mainstream customers: Our brands withstand the test of time. Our stakeholders are customers, stockholders, managem

Tactics

Research & Development: We will reposition our Size and Performance segment products to the Traditional segment. We will allow our prese
as the segments drift. We will eventually introduce a new product to the High segment and will ultimately have two products each in the High,
products that match their ideal criteria for positioning, age, and reliability.
Marketing: Our company will spend aggressively in promotion and sales in our targeted segments (High, Traditional, and Low). We want ever
our products easy for customers to find. We will price at a premium.

Production: We will grow capacity to meet the demand that we generate. After our products are well positioned, we will investigate modest inc
expense of our ability to reposition products and keep up with segments as they move across the perceptual map.

Finance: We will Finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an
dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets