Team Chester Capstone Presentation
Chester’s Mission Statement
“Premium products for mainstream customers. Our brands withstand the test of time. Our stakeholders are customers, stockholders, management and employees.”
Company Strategy
We will be approaching the simulation using the “Differentiator with Product Lifecycle Focus” company strategy. Entering the market with all competitors including ourselves starting fresh we hope to gain an early advantage through high sales from a high tech product. With the introduction of our first high tech product, essentially no time has surpassed allowing for that product to become “old.” This planned successful first quarter will determine our continuing approach. By introducing new products and lowering the manufacturing quantity and price of previous products we plan to capture both the new market, as well as, be a cost leader in the old market. Ultimately, we hope to stop production of old products and sell off our inventory. By keeping a low inventory of old product we minimize the risk of having large inventories that do not sell or sell for the cost of production.
Research & Development: We will have multiple product lines in both segments. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability.
Marketing: We will spend aggressively in promotion and sales. We want every customer to know about us, and we want to make our products easy for customers to find. We will price at a premium.
Production: We will grow capacity to meet the demand that we generate. After our products are well positioned, we will investigate modest increases in automation levels to improve margins.
Finance: We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets/equity (leverage) between 1.5 and 2.0.
BUS 499, Business Strategy and Policy
Dave Quirk
P103
1 – 3 PM