Round 2

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Andrew Caldwell

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Apr 13, 2010, 7:48:59 AM4/13/10
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I would say overall we did okay in round 2.  Good market share, just low profits.

Digby had to have an emergency loan so that is good.  Also we threw off positive cash flow from operations.  Our bond rating has suffered a bit so it would be good to lighten up on the debt now.  I still believe we are in 3/4th place. 

This game is not a sprint but rather a marathon.  We are well positioned in the middle of the pack to hammer away in the later years.

--
Andrew Caldwell
Financial Analysis Manager
North American Beverage SBU

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Beau Robertson

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Apr 13, 2010, 8:26:38 AM4/13/10
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I think Andrew is right, we are positioning for the marathon.

 

1.        I think our Returns will improve in the next round.  We now have 100% awareness for Adam, Able, and Acre which means we can reduce Promo budget to 1.4 million.  We also will have two products in Low segment and Traditional Segment whereas competition will not in round three which means we should be able to reduce our Sales budget slightly for round 3.

2.       Also to improve on Returns we need to concentrate on proper pricing and increases in Automation, although I think we were pretty close in this past round.  If you look at the production analysis page overall we did pretty well on forecasting carrying just a little inventory in each product, whereas competition did carry a little more in each product.  We had planned on carrying some inventory for Acre because we plan on dropping price in round three to crunch competition in round 3.  (Just an Idea)

3.        I AM MOST EXCITED TO SEE POSITIONING FOR ROUND 3.   Take a look at the Perceptual Map from Courier of Round 2.  Notice Positioning of products.  It looks as though we will be the only product entering High End at the Very Beginning of Round 3.  Also look at Able and Adam.  Notice that they are moving faster at being positioned in the Low end and Traditional Segment respectively in comparison to competition.  That means we will have two products in each of those segments faster than the competition. 

4.       If you look at the competitors new products that are coming out it looks as though most of them will not be revised until the end of Round 3, which means we do have the jump on competition in this round.

5.       We have large opportunity in High End Segment (Position) at beginning of round 3 and also Low End Segment in round 3.

6.       We should have Large Opportunity in Traditional Segment in Round 4 as we will have two products and they will both be positioned perfectly for round 4.

7.       Our Cash position is set nicely for Round 4 so that we should be able to reduce our amount of withdrawal from Stock and LT debt to 0 and approx. 15000 respectively. (Just an Idea)  Our LT Debt Rating will hopefully improve by doing this, although we are in better shape than both Baldwin and Chester in reference to LT Debt Rating as they are currently at CC and CCC rating respective.  We are currently at C rating. 

8.       I am very hopeful in that we should see some improvement not only in structuring/ positioning/ capital, but also in profit in the next Round as some of our early positioning strategies should start to pay some dividends in Round 3.

9.       Balanced Scorecard Rating for Round 2 improved from 52 in Round 1 to 56 in Round 2.

 

ALSO I HAVE DOWNLOADED SOME DECISIONS THIS MORNING TO GIVE US A START FOR TONIGHT AFTER CLASS.  IF YOU HAVE A CHANCE  TO LOOK AT THEM BEFORE CLASS, IT WILL HELP US MANUEVER MORE SWIFTLY THROUGH OUR DECISIONS TONIGHT. 

 

Thanks  to everyone, and ON TO ROUND 3.

 

Beau Robertson

Field Manager :: Sun City Peachtree

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Beau Robertson

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Apr 13, 2010, 8:28:14 AM4/13/10
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ALSO, FORGOT TO MENTION.

 

RUSSELL, DO YOU HAVE ANY COMMENTS FOR TEAM DIGBY THIS MORNING?

 

 

Beau Robertson

Field Manager :: Sun City Peachtree

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From: financeuwg...@googlegroups.com [mailto:financeuwg...@googlegroups.com] On Behalf Of Andrew Caldwell
Sent: Tuesday, April 13, 2010 7:49 AM
To: financeuwg...@googlegroups.com
Subject: Round 2

 

I would say overall we did okay in round 2.  Good market share, just low profits.

Aletraris, Michel

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Apr 13, 2010, 1:50:55 PM4/13/10
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Guys,

            Does anyone know why our score is 0 for emergency loans on the scorecard when we have not had any loans?

 

Michel V Aletraris

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Product Line Manager - Components

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Beau Robertson

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Apr 13, 2010, 2:26:07 PM4/13/10
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Beau Robertson

Field Manager :: Sun City Peachtree

Direct (404)732-4454 :: Fax (678)245-5393

beau.m.r...@pulte.com

 

*Service requests may be scheduled by dialing 770.381.3457 Monday-Friday 8:30-5:30 or at delwebb.com*

 

Aletraris, Michel

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Apr 13, 2010, 2:49:44 PM4/13/10
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My bad.

I had a hard copy of the practice round. I need to throw away.

Thanks.

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