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Term III
INDUSTRY: C65257
COMPANY: ERIE
Group E4:
Pramod Rathi
265/51
Puneet Agarwal 280/51
Ratnabali Majumdar
291/51
Reshma Babu
297/51
Rohit Patidar
299/51
Dhruvin Seth
327/51
Round Wise
Strategies
INTENTIONS AND
RESULTS
Started R&D for new product East in the high segment (also bought capacity) (end of 2 nd yr)
Started R&D for new product Energy in the size segment (also bought capacity) (end of 3 rd yr)
Started doing sales forecast by using previous data and market share; ignored automatic
forecast
Results:
Product stock out in low and size segment; could not meet potential sales target
Financial:
Bought back shares at low price in 4th round; issued at 5th round expecting recession and
buy back at a later stage at low price
Results:
Round 4 results very good with highest cumulative profits; marketing decisions paid off;
demand prediction was spot on
Survived shock in recessionary round 5; stock price stable; bond rating improved to CC
Round 6 : Unexpected
Emergency
Distributed marketing and sales budget among various channels according to product
requirements; pricing tweaked to increase in low end and reduce marginally in size
Financial:
Retired long term debt of $5M; issued short term debt to $8M
Results:
Continued investment in R&D; launching perfect products (for next year too)
Financial:
Issued shares in both rounds to increase market cap; paid dividends in both rounds
Paid off all debt in the last round; kept AP days low to increase profit (better numbers)
Results:
Market cap increased from $40M at the end of round 6 to ~$249M at the end of
round 8
Competitors
Key Learnings
WHAT WORKED
AND WHAT DIDNT
TQM from the very beginning, reduced costs through this balance
Questions?
Thank you!