“ MINISTRY OF EDUCATION AND TRAINING

UEH UNIVERSITY
COLLEGE OF BUSINESS

FACULTY OF INTERNATIONAL BUSINESS – MARKETING

6TH YEAR REPORT OF D COMPANY IN INDUSTRY 17

Supervisor: : Dr. Nguyen Thi Hong Thu

Class’s ID: : 24D1BUS50320103

Major: : Business Simulation

Ho Chi Minh City, January 28th, 2023

 LIST OF GROUP MEMBERS

NUMBER STUDENT NAMES MSTUDENT ID CONTRIBUTION

RATE (%)

42 Lê Thị Mỹ Tiên 31211026960 100%

48 Phạm Văn Tuyến 31211020035 100%

30 Bùi Phạm Thanh Nhàn 31211027119 100%

35 Nguyễn Tiến Tường Quân 31211024336 100%

39 Hầu Quốc Thái 31211023201 100%

2
 MỤC LỤC

LIST OF GROUP MEMBERS.........................................................................................2

1. Industry overview report...............................................................................................5

1.1. AC Cameras..............................................................................................................5

1.2. UAV Drones..............................................................................................................6

2. Report on the competitive situation..............................................................................6

2.1. AC Cameras..............................................................................................................6

2.1.1. North America Market......................................................................................6

2.1.2. Europe-Africa Market.......................................................................................9

2.1.3. Asia-Pacific Market.........................................................................................11

2.1.4. Latin America Market....................................................................................12

2.2. UAV Drones............................................................................................................13

2.2.1. North American market..................................................................................13

2.2.2. European - African market.............................................................................15

2.2.3. Asia-Pacific market.........................................................................................16

2.2.4. Latin American market...................................................................................18

3. Report on company activities......................................................................................20

3.1. Design & Manufacturing.......................................................................................20

3.1.1. Action-Capture Camera..................................................................................20

3.1.1.1 Design..........................................................................................................20

3.1.1.2 Manufacturing............................................................................................22

3.1.2. UAV Drone.......................................................................................................23

3.1.2.1 Design..........................................................................................................23

3.1.2.2 Manufacturing............................................................................................25

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 3.2. Marketing...............................................................................................................26

3.2.1. AC Camera.......................................................................................................26

3.2.2. UAV Drone.......................................................................................................26

3.3. Human resources....................................................................................................27

3.4. Infrastructure.........................................................................................................29

3.5. Corporate Social Responsibility and Citizenship................................................29

3.6. Finance....................................................................................................................30

3.6.1. Decision Summary...........................................................................................30

3.6.2. Key Performance Measures............................................................................30

3.6.3. Income statement.............................................................................................31

3.6.4. Accounting balance sheet................................................................................32

3.6.5. Cash flow report..............................................................................................33

4. Orientation of the company's operations in the 7th year.........................................34

4.1. Product design........................................................................................................34

4.1.1. UAV Drones.....................................................................................................34

4.1.2. AC Cameras.....................................................................................................34

4.2. Marketing...............................................................................................................34

4.2.1. AC Cameras.....................................................................................................34

4.2.2. UAV Drones.....................................................................................................34

4.3. Labor force and production facilities...................................................................34

4.3.1. Labor force.......................................................................................................34

4.3.2. Manufacture factory........................................................................................35

4.4. Corporate Social Responsibility and Citizenship................................................35

4.5. Finance....................................................................................................................35

4
 1. Industry overview report.

1.1. AC Cameras.

In Year 6, the average whole sale grew by 19.6% over the same period last year, demand
also grew by more than 5.2% compared to expectations, and product supply grew by
12.6% over the previous year. It is expected that in the next 3 years, demand is forecast to
grow by 7.0% per year. In general, the indexes achieved growth.

5
 1.2. UAV Drones.

In Year 7, the average wholesale grew by 32.1% over the same period last year. On the
other hand, demand decreased by more than 9.5% compared to expectations but product
supply grew by 8.6% compared to the previous year. It is expected that in the next 3
years, demand is forecast to grow 13.9% per year. In general, all indexes achieved growth
except for consumer demand.

2. Report on the competitive situation.

2.1. AC Cameras.

We find that all companies use the same P/Q index strategy for all four markets and that
their pricing and other investment strategies are similar for all four markets.

2.1.1. North America Market

6
 Company D and comments: In the 6th year, our company ranks 4th in market share
(gaining 11.0% while the general average is 10%). At the same time, our company's
product quality is also ranked 2th with 4.9 stars and sold for $270 lower than the average
market price of $330. Brand reputation scored 70 points, the same across all companies.

Towards Direct competitors: The current market leader is company E with a P/Q ratio
of 5.9 stars and accounting for 10.1% of the market. Along with that, company F is a
direct competitor to us. With a P/Q ratio of 4.2 stars, the price is $5 higher than our
company.

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 Companies A,B,C,H,I,J all have equal P/Q ratios from 4.5 stars to 5.0 stars. The
remaining companies F and G have the lowest P/Q ratio at 4.2 stars and 3.9 stars
respectively.

In terms of market share, currently company J has the highest market share of 13.6% and
the lowest is company G of 6.8%. The remaining companies all maintain market shares
ranging from 8.2% to 11.3%.

Company A has the most expensive AC Camera product price at 330$/product while
company H has the lowest price in the market at 225$$/product. The remaining
companies' prices range from $270-$316/product.

2.1.2. Europe-Africa Market

- Company D and comments:

+ Our company ranks 5th in market share (10.7% while the general average is 10%).
At the same time, our company's product quality is also ranked 2th with 4.9 stars and
sold for $270, not too low when the average market price is $279.

8
 However, in this market, company J's investment in remaining activities is almost
the lowest in the market. So their market share is at the 9th rank of the market and
lower than ours.

2.1.3. Asia-Pacific Market

9
 Company D and comments: In this market, we still set a P/Q rank of 4.0 stars, but
lowers the price to 235 USD/product. We still maintain the 2nd position with P/Q rank of
4.9 stars and account for 12.2% market share.

In this market, company E still leads. Because Company E did not invest too much in all
aspects, they still ranked last. However, in this market, our company D has risen to
occupy the third market share of 12.2%.

2.1.4. Latin America Market

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 Company D and comments: In this market, we still set a P/Q rank of 4.9 stars, but
lowers the price to 235 USD/product. And our company has risen to the 3th position in
terms of market share (reaching 11.9% while the general average is 10%).

+ Company E: still maintains all indicators when the highest P/Q rank index is 5.7 stars.

+ Company H: invests in other activities is the lowest in the market. However, their
market share in this market ranks 4th.

+ The remaining companies, their investment ranges and prices in this market are similar
to their strategies in another market.

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 2.2. UAV Drones.
2.2.1. North American market

D Company's P/Q score is 5.0*, higher than the industry average of 4.6*, and the UAV's
price is $1650, higher than the industry average of $1451. The company's market share is
currently lower than the industry average (9.7%).

Direct competitors:

- Company C, E: these companies are following the high-end in Search Engine

Advertising/Retailer Discount and a moderate rate of Price and P/Q rating.

Indirect competitors:

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- Company A, B, I, J: The products of these companies are in the mid-range segment
and they invest heavily in Retailer Recruitment costs. In which company A has the most
outstanding investment in the industry with $802.47/unit.

- Company F, G, H: these companies are following the low-end of P/Q and price.
They invest low in Website Displays costs, Search Engine Advertising, Retailer
Recruitment.

2.2.2. European - African market

D Company's P/Q score is 5.0*, higher than the industry average of 4.6*, and the UAV's
price is $1650, higher than the industry average of $1452. The company's market share is
currently lower than the industry average (9.9%).

Direct competitors:

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 - Company C, E: these companies are following the high-end in Search Engine
Advertising/Retailer Discount and a moderate rate of Price and P/Q rating.

Indirect competitors:

- Company A, B, I, J: The products of these companies are in the mid-range segment

and they invest heavily in Retailer Recruitment costs. In which company A has the most
outstanding investment in the industry with $781.25/unit.

- Company F, G, H: these companies are following the low-end of P/Q and price.
They invest low in Website Displays costs, Search Engine Advertising, Retailer
Recruitment.

2.2.3. Asia-Pacific market

D Company's P/Q score is 5.0*, higher than the industry average of 4.6*, and the UAV's
price is $1650, higher than the industry average of $1388. The company's market share is
currently lower than the industry average (8.1%).

In this market, companies still maintain P/Q and reduce product prices, so the average
wholesale drops to $1388.

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 Direct competitors:

- Company C, E: these companies are following the high-end in Search Engine

Advertising/Retailer Discount and a moderate rate of Price and P/Q rating.

Indirect competitors:

- Company A, B, I, J: The products of these companies are in the mid-range segment

and they invest heavily in Retailer Recruitment costs. Company A does not invest in
Retailer Recruitment costs.

- Company F, G, H: these companies are following the low-end of P/Q and price.
They invest low in Website display costs, Search Engine Advertising, and Retailer
Recruitment.

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 2.2.4. Latin American market

D Company's P/Q score is 5.0*, higher than the industry average of 4.6*, and the UAV's
price is $1650, higher than the industry average of $1388. The company's market share is
currently lower than the industry average (7.5%).

We see that all companies use the same P/Q ratio and pricing strategy for markets Asia-
Pacific market and Latin American market.

Direct competitors:

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 - Company C, E: these companies are following the high-end in Search Engine
Advertising/Retailer Discount and a moderate rate of Price and P/Q rating.

Indirect competitors:

- Company A, B, I, J: The products of these companies are in the mid-range segment

and they invest heavily in Retailer Recruitment costs. Company A does not invest in
Retailer Recruitment costs.

- Company F, G, H: these companies are following the low-end of P/Q and price.
They invest low in Website display costs, Search Engine Advertising, and Retailer
Recruitment.

3. Report on company activities.

3.1. Design & Manufacturing.

3.1.1. Action-Capture Camera.
3.1.1.1 Design.

In year 6, we decided to improve the quality of AC Camera products in year 5.

Specifically as follows:

- Image Sensor Size: remains at 9mm.

- LCD Display Screen: remains at 460k.

- Image Quality: set at 2704x2028 pixels

- Number of Photo Modes (video/still): keep 8/3 modes.

- Product Enhancements :

+ Camera Housing: increased to $16 per product.

+ Editing/ Sharing Capabilities: increased to $16 per product.

17
 + Included Accessories: increased to $16 per product.

- Extra Performance Features: Keep 3 features intact

- Number of AC Camera Models: increased to 4 models

- Product R&D Expenditures: increased to $45,000,000.

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 3.1.1.2 Manufacturing.

The company initially had 300 factories with a cost of $120,000, in the 6th year the
company expanded by 40 more factories, currently the company has a total of 340 AC
Camera factories with a total cost of $142,250.

Regarding the initial machinery and equipment, there were 280 machines costing
$30,000. During the year, 6 companies bought 60 more machines and the total number of
machines in operation is 340 machines with total value is $37,500.

Our total investment in factory and machinery to produce AC Camera up to now is

$179,750 minus accumulated depreciation at the end of the year

5 is $37,500 and the current year's depreciation is 5% The total investment for AC
Camera is about $8,988. Thus, the total plant and machinery investment cost for AC
Camera until year 6 is $133,262.

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 3.1.2. UAV Drone.
3.1.2.1 Design.

For UAV products, the company decided to upgrade some features to attract customers.
As follows:

- Built-in Camera: increased from Minor Upgrade to Significant Upgrade.

- GPS/Wifi/Bluetooth: increased from Enhanced level to Advanced level.

- Battery Pack: increased from 12 minutes to 21 minutes.

- Number of Rotors: keep 6 rotors.

- Rotor Performance / Flight Controller: increased from Enhanced level to Advanced

level.

- Body frame Construction: increased to Carbon Fiber.

- Obstacle Sensors: keep Front/Rear intact.

- Camera Stabilization Device: increased from Enhanced level to Advanced level.

- Extra Performance Features: keep the level of 5 features.

- Number of UAV Drone Modes: increased to 3 modes.

- Product R&D Expenditures: increased to $45,000,000.

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3.1.2.2 Manufacturing.

21
The company initially had 100 factories at a cost of $90,000, in the 6th year the company
expanded by 10 factories, currently the company has a total of 110 factories producing
UAV Drones with a total cost of $95,250.

Regarding the initial machinery and equipment, there were 100 machines worth $10,000.
During the year, 6 companies bought 10 more machines and the total number of machines
in operation is 110 machines with a total value of $11,750.

5th is $10,000 and the current year's depreciation is 5% The total investment for UAV
Drones is about $5,350. Thus, the total plant and machinery investment cost for UAV
Drones until year 6 is $91,650.

3.2. Marketing.
3.2.1. AC Camera.

In this 6th year, our company's total budget is allocated to all three forms of Marketing in
all four markets as follows:

- According to the form of the Marketing channel: the focus is still on the advertising
channel

+ Budget for retailer support activities: $9,490,000

+ Budget for advertising activities: $10,100,000

+ Budget for website display activities: $6,650,000

- By each market: focus evenly on all four markets, stronger in each market North
America and Europe - Africa

+ Budget for North American market: $9,100,000

+ Budget for Europe - Africa market: $7,050,000

+ Budget for Asia-Pacific market: $5,810,000

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 + Budget for Latin American market: $4,280,000

3.2.2. UAV Drone.

In the 7th year, the total budget for Marketing activities for our company's UAV Drones
product is allocated to all three forms of Marketing in all four markets as follows:

- According to the form of Marketing channel: the focus is Website Product Displays and
Search Engine Advertising

+ Budget for Website Product Displays activities: $8,500,000

+ Budget for Search Engine Advertising activities: $10,300,000

+Retailer support budget: $7,180,000

- By each market: focusing almost equally on all four markets, stronger in North America
and Europe - Africa

+ Budget for North American market: $8,944,000

+ Budget for Europe - Africa market: $ 7,944,000

+ Budget for Asia-Pacific market: $5,316000

+ Budget for Latin American market: $3,776,000

In conclusion, budgets spent on both AC Cameras and UAV Drones are suitable for the
company strategy.

3.3. Human resources.

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 AC CAMERA: In year 6, the company officially decided to sharply increase the P/Q
rating of the AC Camera product line is 4.9 and the company decided to optimize costs to
achieve the company's strategic goals. .

Base wage increase to 2%, Assembly Quality Incentive, Attendance Bonus, Fringe
Benefit Package indicators reduced to the lowest level. If you spend too much money but
productivity is not optimized, this will lead to low Net profit.

The Best Practices / Productivity Improvement Training index alone will be at the highest
threshold of 9,000. Because during the number editing process, increasing the Assembly
Quality Incentive, Attendance Bonus, Fringe Benefit Package indicators does not affect
Projected PAT Productivity too much.

The total cost of labor productivity training at the end of year 6 is $9,000/worker
annually. Increasing the cost of The Best Practices / Productivity Improvement Training
to the highest level affects AC Camera production productivity more than if increasing the
remaining 3 costs. The total number of employees currently working is 1,360. At the end
of year 6, the total number of AC Camera products produced was 3,004 products.

UAV DRONE: In year 6, the company officially decided to sharply increase the P/Q
rating of the AC Camera product line is 5.0 stars and the company decided to optimize
costs to achieve the company's strategic goals. .

Increasing base wage by 2%, Assembly Quality Incentive, Attendance Bonus, Fringe
Benefit Package, Best Practices / Productivity Improvement Training indicators increased

24
 to the highest level. Because in the process of editing the data, all five indicators affect
employee productivity.

The total cost of labor productivity training at the end of year 6 is $9,000/worker
annually.. In contrast to AC Camera, all 4 indicators have a strong influence on
productivity, so increasing all 4 costs will increase the productivity of UAV Drone in the
best way. The total number of employees currently working is 308. At the end of year 6,
the total number of AC Camera products produced was 1,804products.

3.4. Infrastructure.

- It is necessary to maximize mechanical operations to minimize operating costs as well as

make full use of working space.

- Build and expand moderately to produce quantities without too much excess, wasting
resources and increasing commodity costs.

- Avoid opening an unreasonable number of workstations, leaving the workplace

redundant.

3.5. Corporate Social Responsibility and Citizenship

25
In year 6, we invested in the Renewable Energy Program at an annual cost of $5,000,000,
which reduced taxes since it was counted as an investment expense but is depreciated at
5% each year. Besides, we also invested to Improved Working Conditions activities such
as Cafeteria and On-Site Child Care Facilities for Plant Employees and Additional Safety
Equipment and Improved Lighting / Ventilation, which lead to a one-time increase in
productivity by 100 units/year for camera PATs and 50 units/year for drone PATs for
both criteria. Therefore, the total cost for CSRC in Year 6 was $11,600,000.

3.6. Finance.
3.6.1. Decision Summary

- We spent $2,424,000 to buy 200,000 shares.

- The company paid off 2 10-year loans with a total amount of $96,000,000 and we re-
borrowed a 10-year loan worth $150,000,000 with an interest rate of 6.5% to invest in
other activities and purchase shares.

3.6.2. Key Performance Measures.

In this 6th year, it can be seen that our financial indicators are very good and meet
investors' expectations. The results are the same as in the table below:

Year 6 Rank Investor Expect

EPS 0.54 6 1.25

ROE 8.9 6 17.5

Stock Price 5.79 7 20

Credit Rating B B+

26
 Image Rating 78 3 70

In year 6, we did not meet investors' expectations for the 4 indicators EPS, ROE, Stock
Price, and Credit Rating. It can be explained that this year we decided to invest heavily in
R&D and Marketing so our Net profit is low.

3.6.3. Income statement

- Our total revenue in all 4 markets in year 6 increased by 45% compared to year 5, of
which AC Camera increased by 41% and UAV increased by 49%.

- All of our costs increased compared to the previous year, but we invested heavily in
R&D activities so Cost of goods sold increased by 51% compared to the previous year.

- Because costs increased, Operating Profit decreased by 24% and Net Profit decreased by
29% compared to the previous year.

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 3.6.4. Accounting balance sheet

- Total assets in the 6th year reached $354,260,000, an increase of 28.4% compared to the
previous year. In which we have invested in equipment in the past year so our Gross
Investment in Plant and Equipment is very high $286,750,000.

- Total liabilities for the 6th year are $231,550,000 increase of 42.8% compared to the
previous year. This entire increase comes from a significant increase in total long-term
debt, specifically a $150,000,000 bank loan to promote investment in improving product
quality and upgrading facilities and human resources.

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- Total Shareholder Equity reached $122,710,000 an increase of 7.13% compared to the
previous year.

3.6.5. Cash flow report

- In Year 6, Total Cash Available is $336,860,000 coming mainly from Sales and a 10-
year bank loan of $150,000,000.

- Total Cash Outlays is $585,021,000 increase of 76.28%. Because expenses increased

compared to the previous year and we paid $96,000,000 for a 10-year loan.

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-> So Net Cash Balance at the end of Year 6 is $27,746,000, consistent with our target of
maintaining cash between $25,000,000 and $35,000,000 for the first 3 years.

4. Orientation of the company's operations in the 7th year.

4.1. Product design.

4.1.1. UAV Drones.

Continue to improve and develop products to higher P/Q at low cost

4.1.2. AC Cameras.

Continue to improve and develop products to higher P/Q at low cost

4.2. Marketing.
4.2.1. AC Cameras.

Invest heavily in marketing costs and improve optimal selling prices with product P/Q to
achieve optimized operating profits and improve financial indicators such as EPS and
ROE.

4.2.2. UAV Drones.

Invest heavily in marketing costs and improve optimal selling prices with product P/Q to
achieve optimized operating profits and improve financial indicators such as EPS and
ROE. Increase strong investment in marketing costs in high-profit markets: North
America and Europe-Africa markets.

4.3. Labor force and production facilities.

4.3.1. Labor force.

AC Camera: Reduce base wage to 2%, adjust Assembly Quality Incentive to a reasonable
level so that Net profit index is at the highest level. The remaining indicators will remain
the same.

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 UAV Drone: increase the base wage to 2 %, the remaining indicators will remain the
same

4.3.2. Manufacture factory.

At both AC Camera and UAV Drone factories, adjustments will be made based on the
amount of demand from the marketing department.

4.4. Corporate Social Responsibility and Citizenship.

The company's CSRC strategy in year 7 will continue to invest in the items implemented
in year 6.

4.5. Finance.

- Currently, the company's stock price is $5.79 so we cannot buy shares next year.

- We decided to continue borrowing debt with low-interest rates to invest in business

activities and repay debt with high interest rates.

Statistics
Gender Age Status Occupation Salary
N Valid 289 289 289 289 289
Missing 0 0 0 0 0

Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid Female 150 51,9 51,9 51,9
Male 139 48,1 48,1 100,0
Total 289 100,0 100,0

Age
Cumulative
Frequency Percent Valid Percent Percent

31
Valid From 11 to below 18 32 11,1 11,1 11,1
From 18 to below 23 233 80,6 80,6 91,7
From 23 to below 29 24 8,3 8,3 100,0
Total 289 100,0 100,0

Status
Cumulative
Frequency Percent Valid Percent Percent
Valid Married 16 5,5 5,5 5,5
Single 273 94,5 94,5 100,0
Total 289 100,0 100,0

Occupation
Cumulative
Frequency Percent Valid Percent Percent
Valid Freelancer 14 4,8 4,8 4,8
High school student/ 243 84,1 84,1 88,9
University student
Officer 31 10,7 10,7 99,7
Teacher 1 ,3 ,3 100,0
Total 289 100,0 100,0

Salary
Cumulative
Frequency Percent Valid Percent Percent
Valid Below 2 million VND 109 37,7 37,7 37,7
From 2 million VND to 61 21,1 21,1 58,8
below 5 million VND
From 5 million VND to below 76 26,3 26,3 85,1
10 million VND
Over 10 million VND 43 14,9 14,9 100,0
Total 289 100,0 100,0

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 Descriptive Statistics
Mea
N Minimum Maximum n Std. Deviation
ENT1 289 1 5 4,12 ,545
ENT2 289 1 5 4,07 ,633
ENT3 289 1 5 4,10 ,601
ENT4 289 1 5 4,08 ,668
INT1 289 1 5 4,04 ,689
INT2 289 1 5 4,03 ,666
INT3 289 1 5 4,06 ,675
INT4 289 1 5 4,07 ,636
TNS1 289 1 5 4,05 ,683
TNS2 289 1 5 3,83 ,774
TNS3 289 1 5 4,12 ,640
TNS4 289 1 5 3,93 ,749
EWOM1 289 1 5 4,09 ,630
EWOM2 289 1 5 3,89 ,817
EWOM3 289 1 5 4,00 ,680
EWOM4 289 1 5 3,79 ,878
CTN1 289 1 5 4,09 ,608
CTN2 289 1 5 4,02 ,615

Identify research objectives

Build theoretical basis and

models

Draft scale

33
 Discussion group

Official scale

Test the measurement model

Test the SEM structural model

by using Smart PLS software

Test research hypotheses

Analyze the influence of

demographic factors

34