10. - I N C R E A S E D D A Y S O F W O R K I N G
C A P I T A L
- C R E A T I V E W A Y S T O U T I L I Z E C A S H
- DEVELOP NEW PRODUCT
- INCREASE CAPACITY
- PAY OFF LONG TERM DEBT
- M A I N T A I N L E V E R A G E
BALDWIN COMPANY:
SWIMMING IN CASH?
11. WHAT WE DID RIGHT
BALDWIN COMPANY:
THE FINAL TAKE
12. T H I S W A S O N E A R E A T H A T T R U L Y H E L P E D
O U R T E A M G E T O U R F O O T I N G . Y O U S E E , B Y
T H E E N D O F T H E S E C O N D P R A C T I C E G A M E
O U R T E A M H A D N E A R L Y 2 9 % M A R K E T S H A R E
W H I L E O U R C L O S E S T C O M P E T I T O R O N L Y
H A D 1 9 %
Honed Our Strategy in Practice
Rounds
13. Let Bid Drift Into the Traditional Segment
Helped to cement our
status as a broad
differentiator.
Was a good move
considering Bid was a
weak product in the High
End segment.
Ended up with 26%
market share in this
segment (2nd highest
behind Andrews at 27%)
14. H O W W E C A N A P P L Y T H I S S I M U L A T I O N I N
O U R B U S I N E S S C A R E E R S
Final Takeaways
15.
16.
17. Organizational Skills
A team in chaos with no
idea where to start on
particular projects is
doomed to failure.
Strong organizational skills
must be employed to define
work projects and set them
in motion.
Essential traits needed for
a successful and organized
team include:
Composition
Structure
Hierarchy
Function
18. Communication is Key
Communication is very
important
Each and every team member
has something valuable to
contribute to the project
Things flow much more smoothly
if everyone’s strategy and
expectations are aligned
The fact that our team
communicates very effectively,
greatly contributed to our ability
to come up with solid
presentations the first few weeks
of class.
This was only possible due to the
fact that we communicated a lot
outside of class and were able to
coordinate what everyone would
work on.
EXTERNAL ENVIRONMENT - KUNDAI
TOUCH ON HOW THESE ARE IMPORTANT FACTORS IN BEING A SUCCESSFUL COMPETITOR IN THE SENSOR INDUSTRY
HIGHLIGHT THOSE TEAMS THAT EXCELLED (ANDREWS, CHESTER, ERIE)
MENTION OUR GAIN IN MARKETSHARE IN THE 8TH ROUND
BUILDING THE FOUNDATION TO CLIMB TO THE TOP
EXTERNAL ENVIRONMENT (KUNDAI)
QUICK DESCRIPTION OF EACH NICHE AND VALUE CUSTOMER
OUR FOCUS WAS NICHE CUSTOMERS WITH A COMPLEMENT OF VALUE CUSTOMERS TO HELP CUSHION OUR MARGINS
EXTERNAL ENVIRONMENT (KUNDAI) – HAND OVER TO DAVID WHEN FINISHED
DISCUSS THE SEGMENTS BALDWIN CHOSE TO FOCUS
HIGH END (NEW PRODUCT INTROS)
TRADITIONAL DUAL PRODUCT OFFERING
MAINTAINED PRODUCTS IN REMAINING SEGMENTS AS A BROAD DIFFERENTIATOR
INTERNAL ENVIRONMENT (DAVID)
DISCUSS OUR INITIAL STRATEGY
STRATEGY WAIVERED IN ROUNDS 3-4
ATTEMPTED TO LET BEAD & BID DRIFT INTO OTHER SEGMENTS
NO R&D WHICH CONTRIBUTED TO LOSS OF MARKET SHARE
REBUILT IN ROUND 5
GAINED TRACTION BY MAINTAINING FOCUS ON STRATEGY ROUNDS 6 THROUGH END OF SIMULATION
INCREASED EFFICIENCIES ADDED AS GAINED UNDERSTANDING OF TQM INTIATIVES
INTERNAL (DAVID)
TOUCH ON OUR STRATEGY FOR EACH PRODUCT
OUR FOCUS ON ROLLING OUT NEW PRODUCTS IN THE HIGH END SEGMENT – INTRO’D BISON & BLAZE
INTERNAL ENVIRONMENT (DAVID)
DISCUSS HOW WE WERE ON THE RISE FROM ROUND 6 FORWARD
WERE ABLE TO CONSISTENTLY GROW SALES (W/ EXCEPTION OF R4)
MARKET SHARE CONTINUED TO RISE
CUMULATIVE PROFIT WAS A SERIOUS STRUGGLE AND WAS SLUGGISH TO GROW FOR US
CONTRIBUTION MARGINS GREW EACH YEAR – DESPITE DOWN TURNS AND BAD DECISIONS
LIMITED INVESTMENT IN R4 OF $4.5 MILLION DAMAGED OUR ABILITY TO REMAIN COMPETITIVE
VERY LITTLE INCREASE TO OUR EFFICIENCIES
PUT BALDWIN BEHIND OTHER COMPETITORS
HAD TO REBUILD THE LOSS OF MARKET SHARE ETC THROUGH THE REST OF THE ROUNDS
SHOULD HAVE INVESTED EARLIER IN AUTOMATION OF THE PRODUCTS IN THE TRADITIONAL AND LOW END SEGMENTS
WOULD HAVE HELPED WITH VARIABLE COSTS
INCREASED MARGINS
RESULTING IN MORE PROFIT EACH ROUND
DISCUSS THE DRAW BACKS OF HAVING TOO MUCH CASH AND DAYS OF WORKING CAPITAL
THE STRUGGLE WITH BEING CREATIVE IN USING THE CASH ON HAND WHILE MAINTAINING THE APPROPRIATE LEVERAGE RATIO