SLP4 MGT.docx - Running head MODULE 4 SLP 1 Trident University International Rachel Rosenthal Module 4 SLP Strategy Implementation and Strategic

SLP4 MGT.docx - Running head MODULE 4 SLP 1 Trident...

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Running head: MODULE 4- SLP 1Trident University International Rachel Rosenthal Module 4- SLP: Strategy Implementation and Strategic Controls Clipboard Tablet Co.Strategic Management 599Dr. Sarita WesleyAugust 2, 2017Module 4- SLP: Strategy Implementation and Strategic Controls
MODULE 4- SLP2Clipboard Tablet Co. I felt strongly that the new strategy I devised would be more successful than Joe’s because I had learned from my many mistakes in the second exercise. I was eager to implement my strategy and see how it compared to my estimates of market saturation and total profit. I knew I had lofty goals, with a strategy aimed at full market saturation of both the X5 and X6 at the end of 2015, and 60% saturation of the X7. My profit goals, were simple, try to not lose too much on the X7, and greedily attempt to make 20% more profit on the X5 and X6 then Joe in 2012. The ultimate goal is to exceed Joe’s cumulative profit score of $1,153,237,527, and attempt to near the high score of $2.1 Billion. The following is an analysis of the affects my strategy had on each of our company’s tablets financial standing and market saturation by product. Financial ReviewThe following financial review covers the financial impact using my strategy of the three models of tablets our company offers, between 2012 and 2015 by individual product. For a financial review of the company’s standing by year please review their income statements with additional calculations in Tables 7 to 11 in the Appendix. X5My decision to raise the price of the X5, was not the right one, and please see Table 1 for all figures I refer to in this analysis. It was immediately apparent, by its near standstill in sales volumes, not only in the first year of implementing my strategy, but through all four years. Joe’s strategy saw an increase in profit when it hit a high of 217%, jumping from $43 million to nearly$139 million. In comparison, I only saw an 88% increase in profit of $38 million. 2012 was where the X5 saw the sharpest spike in profit, but profits slowly rose in 2013 and in 2014 where
MODULE 4- SLP3sales and profits peaked at 1,366,201 and $135.4 Million. This peak could be attributed to the 2%price discount offered to try and combat the likely decrease in sales in comparison to Joe’s strategy.His sales peaked a year earlier in 2013, and was able to hit $206 million in profit withouta discount. In 2015 the X5 was discounted another 2% but sales still declined by 20%. Overall, Joe was far more successful with the X5 than I was, his cumulative profits between 2012 and 2015 were $560.7 million versus my $426.3 Million. He was also able to sell 2 million more units than I was at his lower price point. Table 1The Clipboard Tablet Co.’s Income Statement for the X5 Tablet for Years 2011 Through 2015X6Because I had not made any initial changes in price and the amount of R&D only increased 6%, I did not expect many changes in the sales of this tablet. The X6 was Joe’s largest contributor to the company’s overall profit, so I was hesitant to make too many changes that could jeopardize the company’s financial standing, like I had previous done. Again, please refer to Table 2 to follow along with my analysis of the X6’s sales. Like it gained tremendous

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