INDUSTRY: 93

COMPANY NAME: DIGBY

STRATEGY
I M P L E M E N T A T I O N T H R O U G H
S I M U L A T I O N
 INDUSTRY: 93
COMPANY NAME: DIGBY

MEET OUR TEAM

ADITI ROY BD21056
ADITYA VIKRAM AHUJA BD21057
ANWESH MISHRA BD21062
KIRAN SAI BANDREDDY BD21066
SRIVATSA GORTHI BD21101
WELCOME TO
DIGBY
WHAT WE WILL DISCUSS?
1. STRATEGY
2. POSITIONING
3. PRODUCT
4. PRICING
5. PROMOTION
6. HR
7. TQM
8. FINANCE
9. SUCCESS METRIC
 INDUSTRY: 93
COMPANY NAME: DIGBY

ABOUT STRATEGY
Using a Product Lifecycle and Cost Leader Differetiator, The High End, Traditional, and Low End segments are the main areas
of focus. By continuing to invest in R&D, production, and material, the company will obtain a competitive advantage.
Costs are kept to a minimal, allowing it to compete on price. The Lifecycle of a Product Focus will enable the business to
generate revenue for many years after each new item entered the High End Products will start off in the High End category,
develop into Traditional and low-end in terms of finish.
 INDUSTRY: 93
COMPANY NAME: DIGBY

Reliable products for mainstream customers:

Our brands offer value
 INDUSTRY: 93
COMPANY NAME: DIGBY

POSITIONING
We wanted our products to position mainly in the
HIGH END, TRADITIONAL & LOW END.
 INDUSTRY: 93
COMPANY NAME: DIGBY

20
22
PERIOD 0 PERIOD 1 PERIOD 2

PERIOD 3 PERIOD 4 PERIOD 5

PERIOD 6 PERIOD 7
 INDUSTRY: 93
COMPANY NAME: DIGBY

PRICING
We reduced our product prices consistently to
capitalize on the reduced cost while maintaining a
target margin.
 INDUSTRY: 93
COMPANY NAME: DIGBY

UNDERSTANDING
BUYING CRITERIA

AGE POSITION PRICE

33% 28%
27%
HIGH END: 43%
HIGH END: 29% LOW END: 16% HIGH END: 9%
LOW END: 24% TRAD END: 21% LOW END: 53%
TRAD END: 47% TRAD END: 23%
 PRODUCTION
Asset Turnover Market Share
2 20%

1.5 15% Over the rounds, we moved towards

the strategy of maintaining less on-
1 10%
hand inventory (using customized
0.5 5% formula) aiming for optimal Asset
Turnover.
0
R0 R1 R2 R3 R4 R5 R6 R7 R8
0%
R0 R1 R2 R3 R4 R5 R6 R7 R8 But, it resulted in stockouts in
Inventory Plant & Equipment
the rounds R5, R6, R7 where we
40,000
had best customer survey scores
150,000

30,000 for our products therefore lost

the opportunity to capture
100,000

20,000
additional market share
50,000
10,000 Automation was opted for in low
and traditional segments over high
0 0
R0 R1 R2 R3 R4 R5 R6 R7 R8 R0 R1 R2 R3 R4 R5 R6 R7 R8 end to achieve economies of scale.
SALES &
PROMOTION
We got one of the highest
awareness & accessibiility trends
with moderate budget
allocations compared to
competitors.
So, we learned to leverage the
revenue gain per unit additional
expense in sales budget &
promotional allocations.
Over the rounds (R5, R6, R7), we
have built our proprietary budget
allocation model for each channel
type.
TRAINING & RECRUITMENT LEARNINGS
The recruitment spend saw a 3-fold increase
from Year 0 to Year 8
Between Years 5 to 7, there was a reduction in
recruitment spend, in line with our optimal
asset turnover strategy, which led to a
significant decrease in production

The spend on training activities saw a peak in

the Year 4, post which it steadily declined till
Year 7
The low spend period marked a decreasing
trend in production and increase in turnover
rates
The labor productivity index is defined as the
ratio of output to the number of hours
worked by a worker
Despite decrease in Training and recruitment
costs from Years 5 to 7, the productivity index
kept on increasing steadily by almost 12%

The turnover rate was at its lowest in Years

4 & 5, post which, due to heavy investment
in automation, it increased till 8.9%
LABOR RELATIONS LEARNINGS
2nd shift working was given more preference
than overtime
The overtime across all rounds was
maintained around 0%
Result: Increased plant utilization, and lower
turnover rates as compared to the initial
rounds
In Round 6, the final wages that were offered
at the end of negotiations ($29.49) were higher
than the ceiling position ($28.05) set by our
company, resulting in a strategy setback
The wages offered by us was lower than the
industry standards, hence resulted in 11 strike
days
 TOTAL QUALITY MANAGEMENT

Approach :
In line with our overall strategy, we invested steadily in TQM initiatives targeted at reducing costs,
increasing demand, and reducing R&D Cycle time
Impact:
We succeeded in reducing the target drivers through TQM but we couldn't leverage them in some
aspects because of the situational decisions that we had to make each round
Learning:
TQM Decisions should not only align with the overall strategy but also with where the company is
standing in the near future. Both are important to make the right decisions for TQM
FINANCE
Approach & Impact:
Initial financing through long-term debt and equity to
meet R&D and Capital Expenditure needs
Focus on avoiding emergency loans through a
pessimistic cash flow forecast and aim at maintaining
decent cash in hand
As market value plummeted, new long-term debt was
raised and old debt was retired for better interest rates
Assets that were not utilized to capacity were sold off
to make the firm asset-light and improve returns
Learning:
Financing decisions can't be reactionary but need to be
well planned years ahead to properly finance the firm
activities
Actively tracking debt markets and making swift
decisions that can favor the firm is necessary
SUCCESS METRICS Parameters Default

Profit 12%
The Success metrics were to be
updated at the end of Round-3, Market Share 12%
after going through the decisions and
ROS 12%
output from the rounds played before
Asset Turnover 12%

ROA 12%
All the industries had a default values
of its key areas, on which they would ROE 12%
measure the overall success of their
strategy. Stock Price 12%

Market Cap 16%

SUCCESS METRICS Parameters New

By the end of round-3, our company was Profit 10%

not performing upto the standards.
We had witnessed losses, fall in share price, Market Share 20%
reduction in market capitalization.
ROS 10%

We tried to deploy a balanced approach in

Asset Turnover 20%
maintaing our success metrics,
as we were lagging in all the metrics, we ROA 10%
could not allocate the best KPIs to have the
best possible score ROE 10%

Instead if we had kept the metrics as such Stock Price 10%

that even if we are not on top,
Market Cap 10%
still we can get a higher score by
minimizing the least values
THANK YOU