Project Hummingbird

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Information about Project Hummingbird
Business & Mgmt

Published on March 7, 2014

Author: TeamPramkaew

Source: slideshare.net

Description

Glo-Bus global business strategy simulation

Ketaki|Megha|Neha|Sugan|Team|Yash DIARIES

VISION & MISSION

Vision To be the global leader of the Innovative Digital Camera Industry Mission Provide Quality Entry Level & Multi Featured Cameras by motivating our employees to deliver at their highest potential while also having a strong sense of CSR.

Trial – The game begins…

OBSERVING OBSERVING COMPETITION COMPETITIO

The game begins before first round  How competitors do?  What decisions went well?  What decision went wrong?

HERD MENTALITY

D-Company was the best Everybody will learn: What D did? How D did? Why D did it? And follow suit

The Rise of Hummingbird

BUSINESS STRATEGY BUSINESS STRATEGY

We are in business to make MONEY

PRODUCT STRATEGY

PRODUCT STRATEGY Entry Multi • Global best cost • Standard P/Q • Reasonable price • 5 models • High R&D

PRODUCT STRATEGY Entry Multi • Global best cost • Standard P/Q • Reasonable price • 5 models • High R&D

MARKETING STRATEGY

PRODUCTION STRATEGY

FINANCE STRATEGY

WHY DID WE DO

Entry-level High model, Low quality, Higher price To get higher profit margin But lower market share High price = above industry average We refused to take part in price wars

Multi-Featured High model, lower quality, lower price Lower quality = higher profit margin Lower price = bigger market share First-mover advantage Capitalize on the market share

Hummingbird flying to the TOP

Humming bird flying to the top Winning strategy Industry leader Global top 100 best performing team

All good things must come to an end

The Fall of Hummingbir d

What went wrong? Myopic Vision – only Focussed on MF. Poor planning - lost market share in EL. Did not develop strategy to keep low Cost/unit for EL. - Forced us to keep a higher price Our image rating was below our main competitors

Competition is heating up Price War had begun in EL. Big Drop in Quality, Huge Drop in Price Competitors dropped both quality and price

Changing Market Dynamics

Changing market condition Failed to adopt to the dynamic Market trend ( Apple vs Samsung) Unable to maintain 20% Market share in MF Market share in entry dropped Clash of opinions in boardroom

The biggest enemy lies within Lower profit margin Higher volume Higher market share High profit margin Lower volume Lower market share HAMMERED!!!!

Poor Decision Making  Sales & profit drop by 47%  Image rating went crashing (33%)  Stock price go down (36%)  Team dynamics gone sour  Competitors laugh their ways to the banks

Lost Opportunities Demand(000's of units) Market Share 97 92 17.9% 17.0% 46 84 64 66 54 39 8.5% 15.5% 11.8% 12.2% 10.0% 7.2%

Final Result  #3 in Competition.  Overall Score of 98.  Overall Game to date Score of 99

Decision making process  Chose Collaborative Effort to craft strategy  Assigned Functional Area Strategists  Jointly chose among strategic alternatives by evaluating Pro/Cons  Every Team Members buy-in was required

What we could have done better?  Failed to create Conflict Management System  For Year 10 - Conflict in Board Room  Resorted to Democracy.  Conflicting & Inconsistent strategic elements impaired firms performance

Competitors analysis

Entry-level  F & D- our biggest competitor  How they did it?  Low P/Q rating = Low production cost = Low price

Multi-Featured  F & B - our biggest competitors  Good P/Q rating at lower price  How did we beat them?  Best- cost leadership

Always stick to the plan • Make Decision by Strategy • Do not rely on Gut Feeling or Projection Numbers • Have a Proactive and reactive Strategy

Leader today, irrelevant tomorrow • Never Relax in the game of Business • Use Competitive Intelligence Reports to keep an eye on Competitors Strength & Weakness • We were market leaders for first 4 rounds. We should have evaluated how our competitors were catching up to us.

Different region, different strategy • Focus Decision Making on Geographical Regions • We had same prices and same marketing prices for each region. Forex was the only reason for price change

To be the best, you need the best • Invest in compensations, benefits and PAT training • Improve productivity due to high incentive for reduced warranty claims ($2.5/ unit). • Reduce absenteeism by giving highest quarterly bonus for attendance ($250/PAT member) • To attract and retain the best employees.

Don’t depend on single source of income -Warren Buffet • We were too dependent on multi-level segment • Things may not go according to plan • We couldn’t rely on entry-level

Don’t let finance control your business, use business to control your finance • Finance was controlling our strategy • We adjusted our decisions according to the financial projection • We abandon long-term goals for short-term gains

What you can learn from us? COMPANY/STATIS NET SALES TICS REVENUE NET INCOME DIVIDEND DECLARED RETAINED EARNINGS A 1,328,439 64,353 8,647 55,706 B 1,695,374 144,153 17,488 126,665 C 1,283,218 104,241 36,755 67,486 D 1,446,558 123,083 56,600 66,483 E 990,544 57,744 23,886 33,858 F 2,033,440 163,175 76,276 86,899 G 1,414,503 73,185 23,320 49,865 H 1,423,306 159,509 11,343 148,166

Taking the learning beyond simulation • Do not get comfortable with your current position, always strive for more. • Respect opinions from every member of the team. • Never take hasty decisions based on intuition.

Project Hummingbird was a FAILURE!

We will rise again! Thank you

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