Answer the different questions: Agree= "1"; Disagree = "0"

Q1 Management pursues a process orientation not just to reduce costs, but also because of a value proposition based
Q2 Leaders are personally involved with visioning, launching, steering, and the coaching of innovation efforts
Q3 Leaders formally express their commitment to personalized services: they declare that customers must feel specia
Q4 Minimizing total cost and/or efficiency improvement are important goals for most units in the company.
Q5 Innovation and experimentation are seen as a competitive necessity, not as “nice to have.”
Q6 The company uses feedback from its customers as a guideline for the definition of its business objectives.

Q7 The organization pursues close partnerships with suppliers to facilitate quality-driven improvement efforts throug
Q8 The company actively manages its portfolio of innovation projects.
Q9 The company does not focus on general needs but caters to individual requirements and takes the time to find the
Q10 Process quality and process speed are primary goals for the organization.
Q11 The company recognizes and rewards innovators and successful projects at all levels.
Q12 The company measures the lifetime value of the customer; this means it estimates the costs and revenues of a giv

Q13 The company has an enterprise-wide integrated information platform that helps to coordinate and streamline pro
Q14 The company is eager to nurture individual talents and fosters a climate of creativity, innovation, and developme
Q15 Data on customer satisfaction is disseminated at all levels in the organization on a regular basis.

Food@Home's Operating Mo

Operational
Product Le
Customer I
Customer Intimacy
33%

Ope

Product Leadership
22%

Operational Excellence Product Leadership Custom

Based on toolkit from Prof. Dr. Kurt Verweire
 Answer
value proposition based on price, quality, reliability, and convenience. 1
novation efforts 1
stomers must feel special and important 0
the company. 0
1
ness objectives. 0

rovement efforts throughout the entire supply chain. 1

0
akes the time to find the real needs of the customer. 1
1
0
sts and revenues of a given relationship over a longer period of time. 1

nate and streamline processes and workflows (f.e., zero-level inventories). 1

ovation, and development (other than technical training). 0
1

e's Operating Model

4
2
3

Operational Excellence
44%

adership Customer Intimacy

 Food@Home: Part A: Budgeting Data 2016

Sales Information:
Sales Growth Assumptions: 50% yearly growth for the basic box (customer price sensitive)
0% yearly growth for the deluxe box (customer less price sensitive)

Sales in units: 2015 2016 Selling

Price
Basic 130,000 195,000 €15
Deluxe 40,000 40,000 €30

Collection Sales Information: Purchase Payment Policy:

Credit Policy: Cash Sales Credit Sales In same In next Payments made in current year
0% 100% Year Year Payments made in next year
Collection Policy: 90% 10%

Direct Material Information: Direct Labour Information:

Units Cost per Cost per Hours of DL per Basic box:

Basic Box Needed Unit Box Hours of DL per Deluxe box:
Basic Ingredients 12 €0.50 €6.00 Wages per Hour:
Standard Cartons 1 €1.00 €1.00
Manufacturing Overhead (OH) Informa
Units Cost per Cost per
Deluxe Box Needed Unit Box Variable OH Allocation per DL hr:
Deluxe Ingredients 16 €0.60 €9.60 Fixed OH per year:
Deluxe Cartons 1 €1.50 €1.50 Of which depr & amm

Investment Information: Fixed Marketing, General & Admin Exp

Box filling/cooling €500,000 Marketing

Sourcing Software €250,000 HR/IT
Executive Salaries
Total investment €750,000 R&D Costs

Cash information:
Account receivable (sales) 342,000
Acc payable (goods) 160,600
price sensitive)

ent Policy:

90.0%
10.0%

nformation:

0.1
0.2
€40

Overhead (OH) Information:

€1.50
€275,000
€ 225,000

g, General & Admin Expenses per year:

€400,000 (Advertising No)

€300,000
€150,000
€49,750
 Food@Home: Part A: Budgeting Data 2016

Sales Information:
Sales Growth Assumptions: 50% yearly growth for the basic box (customer price sensitive)
25% yearly growth for the deluxe box (customer less price sensitive)

Sales in units: 2015 2016 Selling

Price
Basic 130,000 195,000 €15
Deluxe 40,000 50,000 €30

Collection Sales Information: Purchase Payment Policy:

Credit Policy: Cash Sales Credit Sales In same In next Payments made in current year
0% 100% Year Year Payments made in next year
Collection Policy: 90% 10%

Direct Material Information: Direct Labour Information:

Units Cost per Cost per Hours of DL per Basic box:

Basic Box Needed Unit Box Hours of DL per Deluxe box:
Basic Ingredients 12 €0.50 €6.00 Wages per Hour:
Standard Cartons 1 €1.00 €1.00
Manufacturing Overhead (OH) Informa
Units Cost per Cost per
Deluxe Box Needed Unit Box Variable OH Allocation per DL hr:
Deluxe Ingredients 16 €0.60 €9.60 Fixed OH per year:
Deluxe Cartons 1 €1.50 €1.50 Of which depr & amm

Investment Information: Fixed Marketing, General & Admin Exp

Box filling/cooling €500,000 Marketing

Sourcing Software €250,000 HR/IT
Executive Salaries
Total investment €750,000 R&D Costs

Cash information:
Account receivable (sales) 342,000
Acc payable (goods) 160,600
price sensitive)

ent Policy:

90.0%
10.0%

nformation:

0.1
0.2
€40

Overhead (OH) Information:

€1.50
€275,000
€ 225,000

g, General & Admin Expenses per year:

€600,000 (Advertising Yes)

€300,000
€150,000
€49,750
 Food@Home: Part A: Budgeting Data 2016

Sales Information:
Sales Growth Assumptions: 50% yearly growth for the basic box (customer price sensitive)
0% yearly growth for the deluxe box (customer less price sensitive)

Sales in units: 2015 2016 Selling

Price
Basic 130,000 195,000 €15
Deluxe 40,000 40,000 €30

Collection Sales Information: Purchase Payment Policy:

Credit Policy: Cash Sales Credit Sales In same In next Payments made in current year
0% 100% Year Year Payments made in next year
Collection Policy: 95% 5%

Direct Material Information: Direct Labour Information:

Units Cost per Cost per Hours of DL per Basic box:

Basic Box Needed Unit Box Hours of DL per Deluxe box:
Basic Ingredients 12 €0.50 €6.00 Wages per Hour:
Standard Cartons 1 €1.00 €1.00
Manufacturing Overhead (OH) Informa
Units Cost per Cost per
Deluxe Box Needed Unit Box Variable OH Allocation per DL hr:
Deluxe Ingredients 16 €0.60 €9.60 Fixed OH per year:
Deluxe Cartons 1 €1.50 €1.50 Of which depr & amm

Investment Information: Fixed Marketing, General & Admin Exp

Box filling/cooling €500,000 Marketing

Sourcing Software €250,000 HR/IT
Executive Salaries
Total investment €750,000 R&D Costs

Cash information:
Account receivable (sales) 342,000
Acc payable (goods) 160,600
price sensitive)

ent Policy:

90.0%
10.0%

nformation:

0.1
0.2
€40

Overhead (OH) Information:

€1.50
€275,000
€ 225,000

g, General & Admin Expenses per year:

€400,000 (Advertising No)

€300,000
€150,000
€49,750
 Cashflow A 1

CASHFLOW BEGIN 530,176

Cash 530,176

Operational cashflow 174,800

Collections from sales 4,054,500
Collections from cust (current year) 3,712,500
Collections from cust (last year) 342000
Supplier costs -1,788,700
Cash paid to suppliers (current year) -1,628,100
Cash paid to suppliers (last year) -160,600
Overhead costs -91250
Fixed overhead costs (incl D&A) -275000
Depreciation & Ammortization 225000
Extra overhead / hour -41250
Salary costs -1,100,000
Cash paid to employees -1,100,000
Other expenses -899,750
Extra overhead / hour -400,000
HR/IT -300,000
Executive Salaries -150,000
R&D Costs -49,750

Financial cashflow 0

Investment cashflow -750,000

Box filling -500,000
Sourcing software -250,000

CASHFLOW END -45,024

 Cashflow B

CASHFLOW BEGIN
Cash

Operational cashflow
Collections from sales 4,324,500
Collections from cust (current year)
Collections from cust (last year)
Supplier costs -1,888,600
Cash paid to suppliers (current year)
Cash paid to suppliers (last year)
Overhead costs -94250
Fixed overhead costs (incl D&A)
Depreciation & Ammortization
Extra overhead / hour
Salary costs -1,180,000
Cash paid to employees
Other expenses -1,099,750
Extra overhead / hour
HR/IT
Executive Salaries
R&D Costs

Financial cashflow

Investment cashflow
Box filling
Sourcing software

CASHFLOW END
Difference
 2 Cashflow C

530,176 CASHFLOW BEGIN

530,176 Cash

61,900 Operational cashflow

Collections from sale 4,260,750
3,982,500 Collections from cust (current year)
342,000 Collections from cust (last year)
Supplier costs -1,788,700
-1728000 Cash paid to suppliers (current year)
-160,600 Cash paid to suppliers (last year)
Overhead costs -91250
-275000 Fixed overhead costs (incl D&A)
225,000 Depreciation & Ammortization
-44,250 Extra overhead / hour
Salary costs -1,100,000
-1180000 Cash paid to employees
Other expenses -899,750
-600000 Extra overhead / hour
-300000 HR/IT
-150000 Executive Salaries
-49750 R&D Costs

0 Financial cashflow

-750,000 Investment cashflow

-500,000 Box filling
-250,000 Sourcing software

-157,924 CASHFLOW END

112,900 Difference
 3

530,176
530,176

381,050

3,918,750
342000

-1,628,100
-160,600

-275000
225000
-41250

-1,100,000

-400,000
-300,000
-150,000
-49,750

-750,000
-500,000
-250,000

161,226
206,250
 Operating Income: Advertising No Operating Income: Advertising Yes

Sales Sales
Basic 2,925,000 Basic
Deluxe 1,200,000 Deluxe
4,125,000

Direct materials Direct material

Basic ingr 1,170,000 Basic ingr
Standard carton 195,000 standard carton
Deluxe ingr 384,000 deluxe ingr
Deluxe carton 60,000 Deluxe carton
-1,809,000 -43.85%

Direct labor Direct labor

Basic costs 780,000 Basic costs
Deluxe costs 320,000 Deluxe Costs
-1,100,000 -26.67%

Manufacturing overhead Manufacturing overhead

Variable costs 41250 Variable costs
Fixed 275,000 Fixed
-316,250 -7.67%

Overhead Overhead
Marketing 400,000 Marketing
HR/IT 300,000 HR/IT
Exec salaries 150,000 Exec salaries
R&D costs 49,750 R&D costs
-899,750 -21.81%

0 0.00%
e: Advertising Yes 1 Operating Income: Collection Policy Change 2

Sales
2,925,000 Basic 2,925,000
1,500,000 Deluxe 1,200,000
4,425,000 4,125,000

Direct materials
1,170,000 Basic i 1,170,000
195,000 Standar 195,000
480,000 Deluxe 384,000
75,000 Deluxe 60,000
-1,920,000 -1,809,000

Direct labor
780,000 Basic c 780,000
400,000 Deluxe 320,000
-1,180,000 -1,100,000

Manufacturing overhead
44,250 Variabl 41,250
275,000 Fixed 275,000
-319,250 -316,250

Overhead
600,000 Market 400,000
300,000 HR/IT 300,000
150,000 Exec sa 150,000
49,750 R&D co 49,750
-1,099,750 -899,750

-94,000 0