Update Graded A+
Segment/Perf/Size
Thrift +-0.5 -0.5
Core +0.8 -0.8
Nano +0.8 -1.1
Elite +1.1 -0.8
THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW END SEGMENT. LEAVE THIS
PRODUCT AT 3.0 AND 17.0
You want to increase
performance and reduce size as much as you can without the revision date reaching July.
Prices between each round
Don't change the price!
Price for each product
Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation
increase automation by 1 point each round in each product
get low end up as high as you can
What is your target leverage and how do you get there?
borrow money until you hit 2.2 and get 60 days of working capital (will have to pay dividends)
To calculate leverage,
divide total assets by total equity. This number will represent the number of dollars of assets owned
per dollar invested by equity holders.
If a company has leverage of four, that means they have $4 in debt for every $1 in equity.
sales and promo budgets (all four rounds)
For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
Recruiting hours and spend
$5,000
80 hours
, TQM
$1,500 first round
$1,500 second round
$1,000 third round
$0 fourth round
adding capacity
a couple hundred each round
best date for new products to come out
June 26-28th
forecasting shift capacity
forecast next year's demand directly
This year's potential market share * next year's demand is a good starting point, but then make
judgment adjustments as necessary (e.g. is my product improving, are my competitors improving,
etc.)
use 200% of plant utilization
you must calculate capacity _____ rounds ahead
2 rounds
MTBF
Set to maximum amount
Steps for getting a good finance position
Goals is to get a cash position of $5,000 in Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock
when you have a good cash position and you have some money left over to purchase stock back from
the market
when to give out dividends
it's for when you have cash leftover in capital investment to give to your
shareholder.
when to retire long-term debt
it's for when you want to pay your debt early (This usually decreases your interests expense)
Buy/Sell Capacity Strategy