Summary U07A1 – GLO-BUS Decision for Year 11 [BUS4993 – Business Capstone Project]

U07A1 GLO-BUS YEAR 11 REVIEW 2 Once again, Year 10 did not produce the results expected by the Graduates. The strategies employed by the company showed great promise, yet once the results were tallied against the other companies, team Graduates dropped one position ending at the bottom of the list for Year 10. The GSR report for the Graduates indicates warranty cost and claims for both entry-level and multi-featured cameras is too high. In addition, the labor cost for both cameras is too high while the P/Q rating for both cameras has dropped. Obviously, the competitor’s strategy has a huge impact upon the results for the year. With that said, the Graduates worked to develop a different strategy for the company in hopes that the decisions made for Year 11 will again result in the advancement of the company in the market. The Graduates decided that major changes were needed in Year 11 if the company hoped to produce a positive outcome. Earnings per Share for Year 10 were under a dollar, prompting the Graduates to reduce the number of models offered for both entry-level and multi-feature cameras. While reducing the number of models offered, the Graduates decided to enhance the other features in the product design for the entry-level camera and allocate more money for new product R&D. The multifeatured camera has been performing well in the market so only a few minor changes were made in the product design of this camera. These changes increased the P/Q rating for both cameras achieving one of the goals targeted by the Graduates. The overall anticipated result that the Graduates are hoping to attain is to change the net profits for the entry-level camera from a negative to a positive. The marketing decisions employed by the Graduates were minor. The Quarterly Technical Support and the Quarterly Advertising amounts were decreased slightly. The price of both cameras increased slightly due to an anticipated change in the competitive market. Promotion discounts remained the same as Year 10. The Graduates decided that the focus for Year 11 should be on increasing Earnings per Share and Net Profits thus the decision to reduce operating expenses while increasing the price of the cameras.