Carramrod
Abraham Appleby
 Brittany Beers
 Cornelius Cobb
 Darrell Dragon

Net Revenues
Carramrod Net Revenues
(millions of dollars)
$650
$600
$550
$500
$450
$400
$350
$300
$250
$200
$150
$100
$50
237
216
200
202
194
8
9
253
232
235
245
192
159
5
6
7
10 11
Year
12
13
14
15
Earnings Per Share
Carramrod Earnings Per Share
(EPS)
$14.00
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
4.05
2.00
0.56
1.66
2.05
0.78
$0.00
0.74
2.34
2.08
13
14
1.61
-0.90
–$2.00
–$4.00
5
6
7
8
9
10 11
Year
12
15
= Annual investor expectation of EPS performance.
Return on Equity
Carramrod Return On Equity
(ROE)
70%
60%
50%
40%
30%
24.8
20%
10%
19.0
16.9
15.0
17.5
14.1
13.7
8.1
7.7
5.8
0%
-10.8
–10%
–20%
5
6
7
8
9
10 11
Year
12
13
14
15
= Annual investor expectation of ROE performance.
Stock Price
Carramrod Stock Price
(dollars per share)
$200
$180
$160
$140
$120
$100
$80
$60
49.86
$40
$20
35.50 34.05
30.00
22.93
5
6
23.24
7
17.76
8
23.02 23.04
11.91
9
8.88
10 11
Year
12
13
14
15
= Annual investor expectation of Stock Price performance.
Credit Rating
Carramrod Credit Rating
A+
A
A–
B+
B
B–
C+
C
C–
5
6
7
8
9
10 11
Year
12
13
14
15
= Annual investor expectation of Credit Rating performance.
Image Rating
Carramrod Image Rating
100
90
80
70
75
70
60
76
72
73
72
68
61
61
6
7
71
68
50
40
30
20
10
5
8
9
10 11
Year
12
13
14
15
= Annual investor expectation of Image Rating performance.
Carramrod Strategic Vision

Our vision is to become the
most recognizable brand in
digital cameras by offering
the highest quality products
and accessories at
competitive prices. We
intend to become the global
leader in the production and
marketing of the world's
most premier camera
supported by innovative
technological standards and
a world renound culture
among team members.
Performance Targets


EPS Target for year 16 is $4.25
EPS Target for year 17 is $4.50

ROE Target for year 16 is 25.3
ROE Target for year 17 is 25.8

Credit Rating Target for both years is A+

Performance Targets




Image Rating Target for year 16 is 70
Image Rating Target for year 17 is 72
Stock Price Target for year 16 is $52
Stock Price Target for year 17 is $55
Entry Level Strategy


Our strategy was
differentiated in that we
tried to focus on the
highest quality camera.
We realized that this was
too costly in both
production and labor
therefore we
experimented in latter
years with a best cost
provider strategy.
Multi Level Strategy
Our strategy was a differentiated strategy
in that we focused on providing the
highest quality camera to the most
exclusive retailers.
 Similar to our entry-level strategy we
experimented with several business
models before finding our niche.

Carramrod’s Production Strategy

We preferred employing enough labor to
produce our product in house, and found
that paying our employees overtime was
more cost effective than outsourcing in
most instances.
Financial Strategy
After finding ourselves in some financial troubles we had
to completely cut out our dividends to pay our
outstanding loans in early years in order to maintain a
good credit rating.
 In later years we were able to reinstate the dividends
and plan to gradually increase dividends in years to
come to help boost investor confidence.

Entry Level Competition

We considered companies B, D, and F as
our strongest competitors in the long run,
even though our strategy and our
competitors’ strategies changed over the
years
Multi-Level Competition

We felt that competition changed
throughout the course of the game, but
we considered our strongest competitors
to be A, H, and I in multi-level.
Actions to Take
We are trying to cut labor and production costs
while maintaining our camera’s high quality
standards in both categories of our cameras.
 We plan on putting more money into quarterly
tech support and advertising to gain increased
market share against our competitors.

Lessons Learned…

When deciding a price to place on a
discount bid be sure that you will earn a
profit if you win the bid, by selling the
camera for more than it’s production cost.
– We lost $27 per camera by not grasping the
idea of the discount bidding, therefore we dug
a financial hole that took our company years
to get out of.
Lessons Learned…

Keep a keen eye on your competitor’s
strengths and weaknesses.
QUESTIONS?