Business

• By : Sujeet Kumar
Simulation- • Sohan Ponanna
Going Global - •
•
Shruthi V
Srinivasan
TEAM
5(24840)
 Our strategy is to become the
market leader in the washing
machine market. In order to achieve
this we are focusing on:

Product differentiation by
Innovation

STRATEGY
Best design of the product with
customization(optional).

Customer service.
 KEY PERFORMANCE INDICATORS
P1 P2 P3
KPI FUNCTION P0 P4 P5 DEVIATION % PLAN

1 SHARE PRICE(%) BD 21.66 18.75 13.81 7.71 10.2 11.58 18.72 30.3

2 SALES(UNITS IN 1000) BD 440.2 460 510 300 370.8 387.27 312.73 700

3 PROFIT/LOSS(MILLION EUR) BD 14.9 3.06 -22.8 -51.7 -22.08 -31.1 115.9 147

4 DEBT(MILLIONS EUR) FINANCE 0 52.5 76.1 96.3 138.5 212.6 212.6 0

5 REVENUE(MILLION EUR) FINANCE 204.6 216.2 237.15 136.5 174.28 183.96 149.74 333.7

6 PRODUCTIVITY OF EMPLOYEE P&L 330.45 360.43 385.88 356.68 337.1 347.85 110.21 458.06

7 TRANSPORTATION COST P&L 0 0 0 4.4 0 0 0 0

8 CLOSING INVENTORY (UNITS) P&L 10000 39978 39978 39978 169172 448272 -448272 0

9 MARKET RESEARCH/KNOWLEDGE(INDEX) S&M 81 87 92 100 95 100 0 100

10 COMPETITIVE INDEX S&M 79 83 87 85 79 80 20 100

11 TECHNOLOGY INDEX S&M 1 3 5 7 8 9 1 8

12 COMPANY IMAGE(INDEX) S&M 78 80 81 71 65 60 40 100

13 PRODUCTION HR 1380 1380 1390 900 1000 1100 450 1550

14 QUALIFICATION INDEX HR 0.93 0.97 1.02 0.89 0.9 0.92 0.08 1

15 TRAINING OF PER EMPLOYEES HR 2000 2000 2000 1000 1000 1000 2000 3000
HUMAN RESOURCE DEPATMENT PRODUCTION EMPLOYEES HR
1500
1380 1380 1390
• The decision with respect to HR 1000 1000
1100
900
management were mainly focused on PRODUCTION
500 EMPLOYEES HR
increasing the productivity of the
employees . 0
PERIOD
• From period P0-P03 , we focused on 1 2 3 4 5 6

investing on training of newly hired and 2500

TRAINING OF PER EMPLOYEES(euro) HR
internal employees. 2000 2000 2000 2000
• But from the 4th graph we can see that 1500
1000 1000 1000 1000
the qualification index is 1.02 which is 500
higher , so we reduced cost to 1000 euro 0
1 2 3 4 5 6 PERIOD
per employee to maintain the
qualification index of employee for period 1200 1100
P4-P6. 1000
• By going through the report systems we 800 HUMAN RESOURCE DEPARTMENT
600
got to know that we have to increase the 400 250
112
number of employee as we want to 200 78
0
produce 7,00,000 unit in future period. ADMINISTRATION SALES PRODUCTION PURCHASING AND
• Investment on talent acquisition program LOGISTICS

has helped the company to retain good 1.05

QUALIFICATION INDEX HR
talent which will increase productivity of 1
1.02
0.97
finished goods to achieve greater targets. 0.95
0.93 0.92 QUALIFICATION
0.9 0.89 0.9 INDEX HR
0.85
0.8
1 2 3 4 5 6 PERIOD
• PRODUCTION AND LOGISTICS LOGISTICS AND OPERATION
EXCESS INPUT MATERIAL
• Procurement of raw materials
was .71Million but the actual GLOBAL SUPPLIER-2
production was .42Million, so ASIA 2 SUPPLIER

there was excess procurement 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

of material which added 400

PRODUCTIVITY OF EMPLOYEE P&L
inventory cost 380
385.88
• We were procuring materials 360 360.43 356.68
from Global supplier who were 347.85
340 337.1
charging high rate as fuel cost 330.45
320
was more during P3 which
300
increased transportation cost. 1 2 3 4 5 6
• Inventory was available in
TRANSPORTATION COST P&L PRODUCTION
period P4 still production of
6
finished good was done which
4.4 ACTUAL
4
added inventory cost. PRODUCTION
420,000

• Transportation cost was seen in 2 CAPACITY OF PLANT 710,000

period P3 as we had expanded 0 0 0 0 0 0
0 500,000 1,000,000
to ASIA-1. 1 2 3 4 5 6
CLOSING INVENTORY (UNITS) P&L
• Due to expansion in period P3-
500000
P4 448272
400000
• We reduced the training cost 300000
for employee which resulted in 200000
169172
reduction of productivity from 100000
period P4-P5. 0 10000
39978 39978 39978

1 2 3 4 5 6
 BUSINESS DEVELOPMENT
• Business development
SHARE PRICE(%) BD department has decided to
25 21.66 achieve the target sales of
18.75
20 700 thousand units.
13.81
15
10.2
11.58 • As from the sales unit graph
10 7.71
we can see that from period
5
0
0-3, we kept on increasing
1 2 3 4 5 6 our sales to achieve the
SALES(UNITS IN THOUSANDS ) target in period 3-4 in ASIA-
600 510
440.2 460 2 can see a decrease as we
370.8 387.27
400 300 planned to expand to ASIA-
200 1.
0
• We failed to fix the correct
1 2 3 4 5 6 competitive selling price in
PROFIT/LOSS(MILLION EUR) BD ASIA -1 region.
20 14.9 • From period 0-4 we are
3.06
0
continuously in loss
1 2 3 4 5 6
PROFIT/LOSS(MILLION because we are much
-20
-22.8 -22.08
EUR) BD focused on increasing our
-40 -31.1
market share instead of
-60 -51.7 allocation our resources
correctly.
The decision with respect to sales and marketing
were mainly focused on increasing the market
share. SALES AND MARKETING
During the period 0 - period 3 the company kept
120
on increasing the market knowledge index from
100 100
81 to 100.since there is a slight decline in the 100 92 95
87 87 85
market knowledge index in period 4 in order to 81 79 78 83 80 81 79 80
80
reduce our cost as we are lack of cash and we 71
65
60
went into loss because from analysis report we 60
get to know we don’t required to spend so much
on market knowledge. 40

20
Regarding competitive index from period 0-5 we
tried to maintain our competitive index in order 0
to give tough competition to our competitors. 1 2 3 4 5 6

The decision of the department to expand by MARKET RESEARCH/KNOWLEDGE(INDEX) S&M

collaboration has not worked out in the period 3, COMPETITIVE INDEX S&M

we incur heavy loss, due to which our company COMPANY IMAGE(INDEX) S&M
image declined from 81 to 60.
TECHNOLOGY INDEX S&M
The decision of the department to keep on 10

investing on technology level in order to become 9 9

8 8
the market leader does not work out and we
7 7
ended in loss. 6
5 5
Huge amount of money was invested for 4
advertising at the beginning till P2. This decision 3 3
was taken as the company image played a huge 2
1 1
role in attracting the customers from Asia 2.
0
1 2 3 4 5 6
1. From period 0 to 4 there is steep decline in 1. EBIT and P&L
the EBIT, because we spent much on the
40000000
expenses like technology level, Competitive
index and the interest expense. And from period 20000000
= Operating Result
4 to 5 we increase EBIT because we cut down

Axis Title
0 (EBIT)
our expenses and focus on increasing our sales. 1 2 3 4 5 6
-20000000 Period Profit and
There is slight decrease in period 5 because of Loss
-40000000
over piling of overdraft loans and interest
expenses. -60000000

2. Gross Profit 2. If we increase the sales and decrease the

120000000
overdraft loans we can increase revenue.
100000000
We are planning to focus on selling our
80000000
inventory part instead of manufacturing more.
60000000
= Gross Profit
40000000
20000000
0
1 2 3 4 5 6
3. Profit/loss
40000000
20000000
3. You can see our profit decreases and we 0
1 2 3 4 5 6
made a huge loss in period 3, its all because -20000000 Period Profit and
Axis Title

-40000000 Loss
our expense is high.
-60000000 = Balance Sheet
In the balance sheet we have a linear decrease Profit/Loss
-80000000
in profit and loss because our overdraft loans -1E+08
is piling up every period. -1.2E+08
-1.4E+08
 KPI FUNCTION P5 Traget

1 SHARE PRICE(%) BD 11.58 30.3

2 SALES(UNITS IN 1000) BD 387.27 700

3 PROFIT/LOSS(MILLION EUR) BD -31.1 147

4 DEBT(MILLIONS EUR) FINANCE 212.6 0

5 REVENUE(MILLION EUR) FINANCE 183.96 333.7

6 PRODUCTIVITY OF EMPLOYEE P&L 347.85 458.06

7 TRANSPORTATION COST P&L 0 0

8 CLOSING INVENTORY (UNITS) P&L 448272 0

9 MARKET RESEARCH/KNOWLEDGE(INDEX) S&M 100 100

10 COMPETITIVE INDEX S&M 80 100

11 TECHNOLOGY INDEX S&M 9 8

12 COMPANY IMAGE(INDEX) S&M 60 100

13 PRODUCTION HR 1100 1550

14 QUALIFICATION INDEX HR 0.92 1

15 TRAINING OF PER EMPLOYEES HR 1000 3000

THANK YOU