Transcript Results Assessment and Analysis

FOUNDATION
BUSINESS
SIMULATION
Assessment & Analysis
Foundation® Provides Several Tools to
Assist in Results Assessment & Analysis
• Benchmarking Reports – website only:
Round Analysis
Analyst Report
The Round Analysis & Analyst
Report provide coaching
• Industry & Team Reports – both website & foundation.xls:
Foundation FastTrack
Annual Reports
Benchmarking & Coaching
Round Analysis Report
•
•
The Round Analysis
Report uses five simple
benchmarks for:
1.
Profit
2.
Margins
3.
Emergency Loan status
4.
Inventory Management
5.
Stock Price
Students are quickly
pointed towards potential
problem areas.
Benchmarking & Coaching
•
Comprehensive scoring for each
team for every round of
competition.
•
The Analyst provides detailed
coaching on each of ten
categories:
Analyst Report
1.
Margins
2.
Profits
3.
Emergency Loans
4.
Working Capital
5.
Market Share
6.
Forecasting
7.
Customer Satisfaction
8.
Productivity
9.
Financial Structure
10. Wealth Creation
Foundation® FastTrack
Page 1- Front Page
• Page 1 and Page 2 report the “big
picture” headline-grabbers -- Sales,
Profits, Margins, Market Share,
Return Measures, Stock Prices,
Earnings Per Share, etc.
• What constitutes good or bad
results? Benchmarks are provided on
the website in the “Analyst Report,”
and the “Round Analysis” report.
Pages 1 & 2 report “what” happened.
• Compare your results against
competitors in the FastTrack.
Remember that overall customer
demand is growing at somewhere
around 14% a year, which means
Sales -- and Profits -- should likewise
be on the increase.
Foundation® FastTrack
Page 2 - Stocks & Bonds
• Closing Stock Price
• Earnings Per Share (EPS)
• Market Capitalization
• Dividend Payouts
• Bond Rating (S&P)
• S&P rating of BBB and higher
- considered a good credit risk
• BB and below is “junk” bond
rating
• The “Analyst Report” on the
website (Wealth Creation
category) provides extensive
coverage of Stock Price issues
Foundation® FastTrack
Page 3 – Financial Analysis
• Cash Flow Statement helps
diagnose Emergency Loans and
analyze use of working capital.
Numbers in parenthesis? Money is
being sucked out of the cash account.
Excessive inventory and un-funded
Plant & Equipment investments are
two common causes for Emergency
Loans.
• Balance Sheet Survey what does a
large $ value for the Plant &
Equipment line on the Balance Sheet
Survey suggest? Either that team
wants to be a cost leader (automation
increases/capacity expansions), or
they have added new products.
Pages 3-9 illustrate “why.”
• Income Statement Survey allows
teams to compare cost structures and
R&D/Marketing expense return rates
against competitors. More detailed
Income Statement provided as part of
team’s private Annual Reports.
Foundation® FastTrack
Page 4 – Production Analysis
•Assess plant utilization, inventory
management, analyze competitors
plant automation and capacity
changes, and compare unit sales
figures.
•Good number for plant utilization?
At least 100%, 150% to 180% is
better (as long as it doesn't end up in
a warehouse as excess inventory).
•Ideal inventory position? One unit in
each line - rarely happens. About
10% worth of sales is a good
benchmark for inventory when
developing sales forecasts. If you
sold 1M units, about 100K in
inventory would be fine.
• Stockouts are costly: 1) The SG&A
costs have already been recovered, so
missed sales would have gone more
heavily towards profit;
2) Competitors often pick up
additional sales as a result of your
stockout.
Foundation® FastTrack
Pages 5-6 Market Segment Analysis
• Assess market penetration,
effectiveness of Marketing
expenses, competitor R&D
revision dates.
• Get a consumer’s perspective
on products in the market
(December Customer Survey).
• "Statistics" box - was all
customer demand met? If not,
how much missed opportunity
was left on the table? (Unmet
demand doesn't carry forward to
the next round).
• Market Share Actual vs.
Potential graph shows the impact
of stockouts.
• Detailed product comparison
Foundation® FastTrack
Page 7 – Market Share Report
• Quick reference for
checking whether market
customer demand was
met (chart on the left),
and assessing where each
team is placing emphasis
(chart on the right).
Foundation® FastTrack
Page 8 – Perceptual Map
• Shows where all products are
positioned at the end of the round. The
more products, the more intense the
competition.
• Products positioned outside the
parameters of all segments will
generate zero customer demand.
• Products positioned outside the solid
line, but inside the dotted line, will
generate decreased demand within that
segment.
• Products that straddle the fence
between segments may be sofa-beds:
not great sofas, not great beds.
• Products positioned at the trailingedge of any given segment will have
lower material costs than they would
have at the leading-edge of the segment
(given an identical MTBF rating).
Annual Reports
Company Annual Reports are provided on the website and
in the foundation.xls spreadsheet program
Balance Sheet
Cash Flow Statement
Income Statement
Same Format as Proforma Reports
Annual Reports
Income Statement
Detailed by product
An indispensable tool
for all Managers
Compare to Proforma
Income Statement to
identify tactical
mistakes