1. DTMR Flash
Co-managers: Tom Bush Maria Gorrell Reni Lazova MNGT December 9, 2013

2. Our Vision:
Here at DTMR Flash, our vision is to provide customers around the globe with top-quality cameras at an affordable price. When we sell you a camera, we aren't looking for a one-time deal; we want to make you a customer for life!
-“CAPTURE EVERY MOMENT IN A FLASH!”

3. Total Revenues (annually)
Why these trends occurred & how the measures are inter-connected?
At the start of the simulation, our company’s sales gradually increased until we reached year 8 (the point where simulation rules were changed). At first, we did not make the correct adjustments to continue the uptrend of sales our company had previously maintained. However, after realizing what needed to be done in order for our company to “get back on track” and continually increase our sales year after year, we were able to execute those decision and the sales volume in final two years of the simulation shows that.

4. Earning Per Share (EPS)
Why these trends occurred & how the measures are inter-connected?
We were able to consistently increase our company’s EPS at a good rate up through year 8 (year 8 is where the rule changes came into effect). At year 9, we saw our company’s EPS begin to creep back down, but we still outperformed the investor expectations in terms of EPS. At year 10, however, our EPS no longer outperformed the investor expectations in place. Instead, we fell below these expectations. Around this point in the simulation, there was a rise in fuel cost and there was an increase in shipping and duties for our cameras. These factors likely influenced our company’s earnings to drop. Therefore, we were forced to make some important decisions regarding our operations costs, etc. in order to work our way back up to the level investors expected us to maintain.

5. Return on Equity (ROE)
Why these trends occurred & how the measures are inter-connected?
From the start of the simulation, we were able to consistently perform well as a company in terms of our Return on Equity (ROE). This trend continued through year 8. At this point in the simulation, however, there were some changes to the rules which forced our company's operating costs to rise, which in turn caused the company’s earnings to drop. At year 9, we saw the beginning of the company’s decline in ROE; although we were still able to out perform investor expectations for that year. Year 10, however, was the point where our company’s ROE no longer outperformed the investor expectations and our ROE fell below investor expectations. Therefore, we were forced to make some important decisions regarding our operations costs, etc. in order to work our way back up to the investor expectations. Looking at this chart shows that we barely missed our investors’ expectations for year 11, so that means that some of the decisions we made as managers of the company were good ones which got us closer to “back on track” as far as profitability is concerned.

6. Stock Price
Why these trends occurred & how the measures are inter-connected?
It’s no surprise that the pattern displayed by our company’s stock price closely resembles that of our EPS and ROE charts. With the ROE and EPS ratios being measures of how profitable our company actually is, its is only natural to assume that our stock price will rise when we meet or exceed investor expectations. Conversely, it is also safe to assume that our company’s stock price will fall in the event that the company does not meet; or it falls short, of investor expectations in terms of EPS and ROE.

7. Credit Rating
Why these trends occurred & how the measures are inter-connected?
Through effective management decision making, we were able to maintain a good credit rating level throughout the simulation. This credit rating out-performed the investor expectations every year as well. The first point we focused on here was how we managed the company’s long-term debt. We also tried to continually look for was to improve our debt payback capability. We could improve our debt payback capability simply by improving upon the company’s Free Cash Flow (FCF). The FCF for our company is directly linked to the net income and dividends that the company brings in and pays out; respectively (because our company’s [debt payback capability= Amount of Long-Term Debt/FCF] and [FCF=Net Income+Depreciation-Dividends])

8. Image Rating
Why these trends occurred & how the measures are inter-connected?
As co-managers of DTMR Flash, we were able to make decisions as a team in order to ensure a certain level of quality for our cameras. Therefore, we specifically focused on meeting or exceeding investor expectations in terms of image rating; a goal which we accomplished successfully. We focused on this area because we knew we could make decisions internally as far as operations, etc. in order to cut costs, improve profitability, increase our credit rating, etc. but we felt that putting a sub-par product out on the market would be a sure way to lose customer loyalty and greatly harm our company’s revenues. This was one area which we wanted to make sure we met; even if it meant “missing” a target for the company elsewhere at the end of the year. For example, the trends in all of the previous graphs shows a drop in year 9 virtually across the board. However, we were able to meet investor expectations of image rating in year 9. Meeting this goal was likely a result of “taking a hit” (however small it may be) in terms of our company’s ROE and EPS for that year.

9. Investor Expectation & Best-In-Industry Scores
At the beginning of the simulation, our company was performing well in terms of investor expectations. We did, however, see a sharp drop in year 10 and we had to make some adjustments to come back up to meet investor expectations. One area which we focused on was the company’s EPS. While it wasn’t necessarily at a “poor” level, we thought we could improve it by making some decisions in the simulation. Once we accomplished this, we were able to see our investor expectation score begin to climb back up towards where we previously had it.
However, our “Best-In-Industry” score was something we likely needed to focus on improving upon more. Our company kind of hovered within the middle of the pack throughout the simulation. When we focused on improving our profitability ratios, etc., our Best-In-Industry score would end up taking a hit as a result. This was likely because as we were doing things such as cutting production costs in order to improve our EPS, for example, the quality of the cameras we were producing would fall a bit. While the quality of of products may have been “acceptable” from a managerial standpoint, when looking at the entire industry we were competing within, we were not necessarily “out-performing” the competition.

10. Entry Level Competitive Strategy
The changes in trends occurred because we were focusing on producing more of the entry level cameras. What we needed to focus on was expanding our marketing strategy and the quality of the cameras.

11. Multi Level Competitive Strategy
In the multi level competitive strategy we were not focusing on making our cameras have the best quality. What we did was we tried to get the quality to a four star level.

12. Production Strategy
Production is closely tied to deciding what components to include in entry level or multi feature cameras
The production line is closely tied to deciding how many models we want to produce

13. Financial Strategy
We aimed at having a good credit score so we would be able to borrow at a lower percentage. The funds were used to grow the business and offer customers a wider range of products to choose from.
Without the proper financing the business couldn’t function as a whole.

14. Market Strategy
Marketing strategies helped the business reach our sales goals and promote our product.
Marketing played key role in deciding our production line. How much of our production department should aim to make available to retailers.

15. Entry Level Competition
The strongest competitors in entry-level cameras compared to us are Company E and Company B.

16. Multi Level Competition
The strongest competitors in multi feature cameras are the same as entry-level, Company E and Company B.

17. Actions to Take Entry Level
In order to outcompete our close rivals we need to cut production costs and become more efficient in producing good and cheap entry level cameras. We would offer better warranty periods so customers would choose our product over rivals.

18. Actions to Take Multi Level
To improve our multi level cameras we would focus on providing consumers with the necessary tech support to help with troubleshooting.
We would offer better warranty period. We already offer a high quality product but consumers would feel more confident in our cameras if we offer them a longer protection period.

19. Lessons Learned Crafting a winning strategy.
Aligning (pulling together, integrating) functional activities to support your strategy
Integrating knowledge from other courses in order to help “manage” your company.
Competing successfully against shrewdly-managed rival companies.

20. Crafting a Winning Strategy
Figure out what you want your company to be known for.
Known for entry-level cameras
Known for multi-feature cameras
Known for high P/Q ratings
Known for being a socially responsible company

21. Aligning Activities
We aligned our production, marketing, and financing strategies to focus on producing more entry-level cameras.
We also strived for good P/Q ratings on both cameras

22. Integrating Knowledge
Business Ethics and Sustainability
We invested in energy efficient programs
Marketing
We adjusted our techniques for marketing warranty discounts according the market in each country
Finance and Accounting
Predicting what our EPS and ROE were going to be for future years

23. Competing Successfully
We learned that we can’t be too confident after a few good years.
The economy and market are always changing so we need to make adjustments in our strategies to keep up.
Analyze the competitive efforts to see what we did differently.

24. Advice for Future Students
Continually make changes every year. Just because you do well one year, don’t think you don’t have to make changes the following week.
Do not push aside countries where your sales are low.