The company aims maintain the competitive edge keeping the minimum cost
Business Decision-Making Simulation – BUSS 3074
Competitor Analysis Exercise
| Team Name | Andrews | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Student Name | Student ID | |||||||||
| Team being Analysed | Andrews | Baldwin | Chester | |||||||
| Digby | Erie | Ferris | ||||||||
| Give a short description of your competitor’s current strategic position | ||||||||||
| Products | Able, echo, baker, cake, dot, fist, duck, fume, edd, fast, daze, and eat | |||||||||
| Segments | Traditional, low-end, high-end, performance, and size | |||||||||
| Plant capacity and automation | Plant capacity: 6000 Automation: 6500 |
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| Current Assets | $44,250 | |||||||||
| Market Share | 30% | |||||||||
| Source/s of competitive advantage | ||||||||||
| Assess your competitor’s current opportunities and threats | ||||||||||
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| Which four performance measures should your competitor use and how should they be weighted? | ||||||||||
| Cumulative Profits | % | Average ROA | 3.8% | |||||||
| Average Market Share | % | Average ROE | 3.0 % | |||||||
| Average ROS | 2.4 % | Ending Stock Price | % | |||||||
| Average Asset Turnover | 1.57 | Ending Market Cap | % | |||||||
| Explain why you have chosen the weightings. You must show any calculations you used to arrive at these decisions. | ||||||||||
Asset turnover: through these weightings, it will be easier for the company to evaluate how well the company is using their asset for generating sales. Return on asset: through these earnings, it will be easier for the company to analyze and utilize their asset for each earnings. |
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| What do you believe will be this company’s Total Sales and Cumulative profits at the end of Round 8? Explain how you determined these figures. |
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| The total cumulative profit for Erie at the end of round 8 will be $4,644 and total sales will be $192,725. All the figures have been drawn from the income statement survey. The total cumulative profit of the company is the aggregate profit that the company has earned over the period. Total sales are the revenue that is produced due to the result of normal business operations. In many of the cases companies derive income from the other source such as non-operating, peripheral and incidental income, in the case of Erie, it is $192,725 which figure is drawn from the income statement which starts with the gross sales where necessary deductions are done to report the net sales for calculating the gross profit. The remainder of the income statement indicates expenses and other income which is subtracted from the gross profit so that the cumulative profit is derived $4,644 |