UEH UNIVERSITY BUSINESS SCHOOL
FACULTY OF INTERNATIONAL BUSINESS — MARKETING UEH
UNIVERSITY
REPORT 2" 3 YEAR PLAN
Subject: International Business Simulator E Company — Industry 11
Instructor > Mr Ha Quang An
Student name : Hoang Le Bao Tran Le Thanh Binh Nguyen Xuan Mai Vo Ngoc Thy Ngan Lam Thanh Truc Class : IBCO6
Batch : 46
Ho Chi Minh city, March 20th, 2023
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Step 1: Strategic Vision Statement
Answer: Benefiting from the accumulation from previous years, our goal for the last 3 years is 1st place which include driving the stock price to its optimistic point; taking market leadership position in UAV product in two regions North America and Europe - Africa; and employing a global best-cost strategy in AC product that offers “extra value” to our customers in the form of great quality We need to have effective strategies for staking out a market position and striving for good performances by gaining the highest net profit; minimizing the costs of production and marketing As there’s no built-in bias that favors any one strategy, we keep our vision statement as our first 3-year plan
Step 2: Objectives/Performance Targets
Our overall performance goal is to achieve or above the goals defined by investors for EPS, ROE, Credit Rating, Image Rating, and year-end Stock Price In addition, we calculated that the company's aim would not be excessively high compared to the actual prediction to avoid system penalties
Table 1 E Company’s performance targets
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2.1 Earning per Share (EPS)
By either spending less on facilities and compensation, we want to enhance net income This will guarantee that the earnings per share figure satisfies requirements, which is crucial because it represents the profitability of the company
2.2 Return on Equity (ROE)
We aim for a higher ROE because it indicates that more profit was earned after taxes Similar to how we want to increase EPS, we may cut expenses while boosting the ROE percentage
2.3 Credit Rating
Up until Year 13, we intend to repurchase the maximum amount of shares per year, which will result in a very low credit rating this year But, after that, we aim to pay dividends to improve the stock price, EPS, ROE, and credit rating greatly
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Here is our evidence that our company is offering “extra value” to buyers in the form of better styling/quality and/or wider product selection at “value” prices and “best costs” on a global basis:
Table 2 AC Camera Strategy
North America $428 $421 $+7 Wholesale Prices] Europe-Africa $430 $424 $+6
of AC Cameras
Latin America $393 $383 $+10
North America $5950 $6391 -6.9% - i - 9 Advertising Europe-Africa $4675 $5652 17.3%
Budget ($000s) | Asia_pacific $4000 $4674 -14.4%
Latin America $3275 $4024 -18.6%
North America $44.77 $49.97 -10.4% Marketing Costs ; ° ($ per unit) Europe-Africa $43.90 $52.72 -16.7%
Asia-Pacific $40.41 $42.71 -5.4%
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Latin America $45.63 $45.98 -0.8%
Step 4: UAV Drone Strategy
The company will employ a focus strategy for UAV Drones aimed at: + We will take a market leadership position in: North America and Europe-
Table 3 UAV Drone Strategy
Industry Average Industry Leader’s
Market Share the Target Segment egment (from data in data in the Competitive arget Segment (from
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STEP 5: Operating Projections
Table 4 Forecast trend
UAV Drone Unit Growth Rate 5.60% | Journal
Wage Increase 3,00% | Compensation & Facilities
Forecast from previous yea
Increase in Average Net Revenue (Increase) 10,00% | data
We found that the sizes of the exchange rate adjustment each year are always equal to 5 times the actual period-to-period percentage change in the real-world exchange rates for US$, €, Brazilian real, Sing$, and Taiwan$ After analyzing the exchange rate in Year 10, Year 11, we evaluated the revenue impact in Year 14, Year 15 as the table
Table 5 Exchange rate prediction
e Average Net Revenue’®*"" = Average Net Revenue’®*" ™ x (1+Revenue impact)
x (1+ Growth in Average Net Revenue)
e AC Camera Units Sold’*#"T = Units Sold’e#"™ x (1+5.2%) e UAV Drone Units SoldY2rT = Units SoldYr "1 x (1+5.6%)
e Cost of Units SoldYsr" = (Units SoldY92r "1/ Units SoldY*ar) x Cost of Units soldYr T1 x (1+ Wage lncrease)
Trang 7e Marketing ExpensesYrT = Marketing Expensesr T1 x (1+Marketing Growth
Rate)
e Administrative ExpensesY*r " = (Units SoldY* ™'/ Units Sold’e@" ") x
Administrative ExpensesYr T-1 The results we obtain in these tables below:
Table 6 Camera/Drone Operations in North America
NORTH AMERICA
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UAV Drones
Average Net Revenue (% per
Operations in Year 10 Year 11 Year 12
Trang 9118,99 171,47
118,99 176,62
Sold ($ per unit)
Trang 10Historical Operating Performance
Trang 11Historical Operating Performance
Trang 12Pre-Tax Profit 204,478 205,211 284,882 | $409,363 | $423,649| $595,517 Income Taxes 61,343 61,563 85,465 | $122,809] $127,095| $178,655 Net Profit 143,135 143,648 | 199.417] $286,554 | $296,554| $416,862
Earnings Per Share
Dividends Per Share
(ROE) on Average Equity 104.3% | 156.2% | 195.8% | 200% 210% | 220%
ods) Stock Outstanding | 47 935 16,520 15,829 | 15,000 | 15,000 | 15,000 Total Shareholder Equity 88,114 95,844 107,865| 121,000 | 342,376| 417,662