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Baldwin Sensors Ltd

Capsim presentation
by

Chelsia Ong

on 11 October 2012

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Transcript of Baldwin Sensors Ltd

Baldwin Sensors Ltd Introduction Marketing & Production Less sensitive HR - TQM - Finance Our Performance We made
it!
Performance compared to our competitors

Period between 2012 to 2020

Goal is to ensure our company sustains continued growth in the future Success Measures Baldwin Average – 0.88, 4th
Industry Average – 1.02
Use of assets to generate revenue – company with high profit margins have lower Asset Turnover Assets Turnover Baldwin Average – 5.11%
Industry Average – 0.14%
ROA: How effectively does a company convert invested funds into net income Return on Assets (ROA) Baldwin Average – 4.93%
Industry Average – 1.04%
ROS: How much profit is generated per dollar of sales Return on Sales (ROS) Baldwin – $500,000,000
Market capital increased by $431,000,000
Industry Average – $285,800,000 Market Capitalization Baldwin – $94.04 at December 2020
Increase of $59.79 per share
Industry Average – $49.80 Stock Price Capacity:
Reduced capacity initially, overproduced - excess inventory
Buy back capacity when chances that demand will exceed the capacity available is high

Automation:
Invest heavily in automation for all segments
Attained automation level of 8-10 for all segments by the 8th year
Significant in labour cost, in contribution margin for all lines (>30%)

Production Schedule:
Produce accordingly to customer's survey score
Early years, produce 1-3% above forecast, increase to 2-4% at later year
Maintain a balance between 2nd shift and overtime in production
(High overtime % = High labour turnover rate) Production Goals:
Achieve 100% awareness and accessibility as early as possible

Strategies and Achievements:
Maximize spends in promotion and sales up to 3 million each year for segments generating higher profits
Scale back to 1.5million a year after hitting 100% awareness and accessibility
Awareness and accessibility from the 4th year onwards is between 98%-100%
Relatively high customer survey score for all segments Promotion & Sales Budgets Goals:
Maintain price competitiveness in the market
Generate contribution margin of >30%
Maintain a healthy growth on return on sales (ROS)

Strategies and Achievements:
Focus on customer's buying criteria
Traditional & Low end are price sensitive
High end, Performance & Size least sensitive to price
Minimize variable costs (Labour+Inventory carry+Material) through TQM initiatives Marketing - Price Pricing History and Comparison
to Major Competitors More sensitive One of the price leader in the market
Contribution margin increase from +25.4% +47.2%
Significant increase on ROS from -14.9% +14.8% Strengths:
Wide variety of sensor
Cost leadership
High awareness and accessibility
Low interest rate
Triple A rated company SWOT Our company is one of the best in the market

Low risk company

Profitable company generating high revenue

Conclusion Weaknesses:
Low capacity

Opportunity:
Market growth

Threat:
Strong competitor (Erie) SWOT (contd.) Misjudgments
- Creating a low end products
Products we focused on - Bold, Bead & Bandit Slow Start
High end product wasn’t competitive  moved so traditional
New Products;
- Bandit
- Badboy Research & Development 7 products;
Baker – Traditional
Bead – Low
Bid – Traditional
Bold – Performance
Buddy – Size
Badboy – High
Bandit - Size Research & Development Encourage risk taking and innovation
Encourage equality and democratic
management
Decisions made at meetings Management Style Borrowing – long term borrowing

Stock Issues – maintain high stock price

Retain earnings – 30% or more

Dividend Policy Finance Capacity – maintain capacity at optimum output and ensure production meets market
requirements. Production Strategies Promotion – increase awareness

Products – wide variety of product

R & D – constantly review and improve

Price – main price competitiveness Marketing Strategies Implement cost leadership and differentiation strategies to provide high quality and reliable sensors for extensive distribution whilst maintaining a prominent market share and focussing on a customer orientated approach. Mission Statement Sophie Macqueen
Chelsia Ong
Seek Sean Chong
Christopher D’Ippolito
Billy Sing Jing Wong Board of Directors Formed in 2012
Manufacturing sensors for a broad customer base
Overall market share of 23.74%
Current stock rating of AAA Baldwin Sensors Ltd Strategies and achievements:
Issue new shares
Borrow less
Retire long term debt with interest higher than current borrowing
Investment within the budget
Issue dividend Finance Goals:
Having adequate cash flow
Increase market capitalization
Increase stock price
Triple A credibility
No emergency loan
Maintain retain earnings ≥30%
Issue dividends to shareholders Finance Strategies and achievements:
Maximise cumulative impacts
- Reducing cost
- Shorten R&D cycle time
- Increase demand for production Total Quality Management Goals:
Reduce material, labor and administrative cost
Shorten length of time required for R&D project to be release
Increase demand of product line Total Quality Management Strategies and achievements:
Workforce complement =100%
Overtime =0%
Max recruitment spending
Spend max hour on training Human Resources Goals:
Ensure number of workers meets production complement without overtime
Increase workers productivity
Lower turnover rate Human Resources Human Resources
Full transcript