OL-421 Strategic Management & Policy final PDF

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OL-421 Final Project

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OL-421 Strategic Management & Policy Final Project Rosalee Brown 24 June 2020

Executive Summary In 2020, Brownink Crew Company was establish with the idea of using a broad cost leader strategy creating sensors that’s on the leading edge of the low-tech market. The Brownink Crew Company’s mission statement is to design quality products at a low cost. We are dedicated in executing excellence, as well as, continuing to maintain our products existing in for our consumers. Our focus is on high quality function though low cost (priced) tech sensors products and creating new sensors that stand out from the competition, keeping pace with the market by keeping our designs fresh and improving size and performance and providing solid beneficial value for investors. Within the last 8 years we offered a quality product line, we also faced a few struggles, low inventory, stock-out, emergency loan, automation, capacity and asset management, with miscalculation over new sensor production during years, 4- 7 causing emergency loan, and cash flow issues. This overview will provide you with the progress of our company over the past eight years, a SWOT analysis explaining the company’s current situation, Ethical, Legal, and Social Challenges to include a global overview.

Progress of the Company Brownink Crew Company’s Return on Assets (ROA) History display good balance over the first few years, with 2022 as the best year, afterwards several declining years 2023 – 2027, and this decline in ROA was due to inefficiencies with working capital, diminishing asset productivity, massive asset acquisition mishap, greatest lost happening in 2027, however 2028 showed upward positive movement. Return on Assets (ROA) is a financial ratio an indicator of

how well a company utilizes its assets. ROA analyze a company’s profit relative to its total assets by determining how profitable a company is relative to its total assets.

Brownink Crew Company ROE History chart display(s) that during the years 2020 – 2023, the company shows self-investment, however from 2024 – 2027, there’s a continued decline ROE, this is from new R&D sensor product (Arry), created without proper Marketing and Productions requirements provide for the new product Arry until 2027, even though product introduce for manufacturing during year 2025. ROE quantifies what number of dollars of benefit are produced for every dollar of investor's value. ROE is a measurement of how well the company utilizes its equity to generate profits. Return on Equity (ROE) is a gainfulness proportion from the investor’s perspective not the company.

Reviewing the ROS History for Brownink Crew Company, shows ROS averaging 7% for years 2020 – 2025, and during the year(s) 2026 & 2027 the ROS was in a negative state, and show slight recovery during year 2028. ROS is a measure of how efficiently a company turns sales into profits, a financial ratio used to evaluate a company's operational efficiency. ROS (return on sales) calculated as revenue minus expenses, excluding taxes and interest, when comparing companies with same line of business and equal in size, ROS is most useful.

As you can see for Brownink Crew Company the Asset Turnover History – there was little action, or slight Asset Turnover usage for years 2020 – 2025, until year 2026 with the largest Asset Turnover usage in 2027, which used was to re-establish growth for the company. Asset Turnover History gauges how effectively a firm uses its advantages to generate sales and is the percentage of a company’s revenue, it quantifies how proficient the company utilizes its assets to generate income. Companies with Higher Asset turnover indicates utilizing its assets more efficiently, whereas companies showing Lower Asset ratio isn't utilizing its benefits productively, indicating management and/or productions concerns.

. During the years 2020 – 2025 Brownink Crew Company, market share average 12%, however there was a deep lost during 2025 – 2027, rounding out with 6% of the market share for year 2028. Market share speaks to the level of an industry, or a market's total sales that is earned by a particular company over a predetermined timeframe. Market share is determined by taking the company's sales over the period and dividing it by the complete sales of the industry over the same timeframe period.

Overview of the Brownink Crew Company’s Profit History displays, the largest Profit History gained during years 2021 – 2023, with decline starting year 2025; with year 2027 showing greatest decline, whereas year 2028 demonstrating slight comeback. Financial definition

of profit is the positive gain after all costs and expenses have been deducted from total sales; referred to as net profit, or net earnings

Cash Flow for Brownink Crew Company started out solid, showing steady increase from year 2020 – 2023, then during year 2024, a downward trend started, and then from delayed/bad decision for asset, automation and capacity issues was the main down-fall of the Cash Flow, currently finance is showing in a slight positive state.

The SWOT analysis of Brownink Crew shows the opportunity for growth exists but incorrect capacity and asset management issues/decisions needed to be handle, and more focus on further use of the assets for building new products, ensuring they meet the market’s demand timely and more learned approach to finance. SWOT has been depicted as the time-tested device of vital investigation. It is intended for use in the preliminary stages of decision-making processes and can be utilized as a tool for assessment of the vital strategic position of an organization. Strength = asset, market share…Weakness = Marketing & Production… Opportunity = growth, new products…Threats = uncertainty, competitors.

Assets Market Share

Stock-outs/Mis-forecasting Low Cash-flow

Strengths

Weaknesses

Opportunities

Threats

Establish new investments Increase in demand

Competitors Demand decreases Production issues

Ethical, Legal, and Social Challenges When it comes to an ethical standpoint, we need to remain honest with thorough communication throughout each level within the company. Ethical considerations in practice settings might appear difficult and open to interpretation at times. This is a broad area for consideration that covers a range of practice issues. Some ethical and legal issues in practice settings may include bribery, theft, and sabotage. As well as those not seen for example marketing policies, HRM policies, as well as corporate acquisition. Lastly, the most ethical option, the one that has the best possible balance of benefits over harm, would be reviewed and considered, to look at long term / short term effects of all actions with regards to value of individuals and their preferences, relationships involving supervisors and associates, staying current with changes to the field by providing continuing on-the-job training courses and maintaining ethical billing practices.

Global

After SWOT investigation and auditing the chances and dangers in our, Brownink Crew Company, at its current financial position is not prepare/ready to expand globally. While there are many advantages to entering the global market such as global brand recognition, the opportunity to increase its market share, the company has many instabilities that it needs to improve to enter the global market. In any case, factor that needs most improvement is to be the best performing in Low-Tech marketplace we should initially move ourselves to improve our plant procedures, re-gain our Cash flow position, and work effectively with the R&D group. With a stronger financial position we can expand our cash flow, we will have the option to present our established sensors or new sensors into the worldwide market. Then again, a weakness of going into the worldwide market is that there will be an ascent in cost. By extending our business into the worldwide market, we will confront recognized markets and new guidelines. We’ll also face distinguished markets and new rules and regulations. Most importantly, this will mandate a substantial amount of R&D and marketing investments to be an effective transition. Lastly, we will continue to invest in HR and TQM and recruiting the most qualified personnel to help increase productivity levels, as well as, make decisions that pertain to product expansion globally.

Capstone Component 2: Professional Reflection Beginning CAPSIM, I knew about the procedures and elements of various components of the recreation. This was a learning involvement with which I needed to break down my organization and figure out how to take care of the issue. The greatest test that I looked all through Capstone, I bounced directly into the game as opposed to investing more energy finding out about the venture and the framework, the deficient information on (not concentrating

effectively) of the game brought about helpless dynamic. I had to survey each part of the business to make sense of why. The best asset I found all through the reproduction was to contemplate what my rivals were doing and utilizing the conversations from cohort's conversation discussions. In conclusion, on the off chance that I can transform anything, the primary thing I would do any other way is to set up my piece of the pie while building a significant and reliable income before contributing and acquainting a second item with the market appropriately. Similarly as with different undertakings, an appropriate comprehension of each issue, what they speak to, and how they can be utilized for my potential benefit, will assist me with thinking of more intelligent answers for arrive at organization objectives and increment positive execution reliably. In particular, in spite of the fact that I'm certain that I will commit errors I feel that this reproduction went about as a hands-on device that furnished me with genuine perspectives to maintain a genuine business. I feel that I can deal with the obligation of being an entrepreneur and settle on compelling business choices while understanding the disappointment of a business is an expectation to learn and adapt as it were.

References Capsim Business Ethics. (n.d.). Introduction to business ethics. Capsim Unforgettable Business Learning. Retrieved on June 22, 2020, from http://ww3.capsim.com/modules/downloads/ethics/pdf/Introduction_To_Business_Ethics.pdf Capsim Ethical Reasoning. (n.d.). Five ways to shape an ethical decision. Capsim Unforgettable Business Learning. Retrieved on June 23, 2020, from http://ww3.capsim.com/modules/downloads/ethics/pdf/Strategies_for_Ethical_Reasoning.pdf Foundation Fast-Track. (2019). Capsim. Reports: Retrieved from Team Member Guide. (n.d.). Six basic strategies: broad cost leader. Foundation: Team Member Guide. Retrieved on June 20, 2020, from http://ww2.capsim.com/...