2022

YEAR 6 TRIAL REPORT

Subject: International Business Simulation
Class: IBC03
INDUSTRY 1

TEAM MEMBER:
Võ Thị Mỹ Chi
Phạm Thị Hương Giang
Nguyễn Ngọc Minh
Nghiêm Trà My
Nguyễn Trí Nhân
Dư Tâm Như
Trần Thị Như Quỳnh
Hồ Lê Anh Thy
Lê Ngọc Tường Vi
 TABLE OF CONTENTS
A. GENERAL REPORT:...................................................................................... 2
I. Industry Overview: ..................................................................................................... 2
1. Action-Capture Camera Global Statistics Overview ......................................... 2
2. UAV Drone Global Statistics Overview ................................................................ 2
II. 3C Analysis: .................................................................................................................. 3
1. Company:................................................................................................................... 3
2. Competitor: ............................................................................................................... 4
3. Customer: .................................................................................................................. 5
B. YEAR 6 REPORT: ........................................................................................ 6
I. Overview: ...................................................................................................................... 6
II. R&D Report: ................................................................................................................. 6
1. Changes in Product Design: ................................................................................... 6
2. Products’ Journal: Benchmarks ............................................................................ 8
III. Operations Report:.................................................................................................. 9
1. Citizenship – CSRC: .................................................................................................. 9
2. Performance Highlight: .......................................................................................... 9
3. Compensation & Facility ...................................................................................... 11
4. Workforce: .............................................................................................................. 14
IV. Marketing & Sales Report: ................................................................................... 15
1. AC Cameras ............................................................................................................. 15
2. UAV Drones ............................................................................................................. 17
3. Competitive Intelligence Report: ....................................................................... 20
V. Financial Report: ....................................................................................................... 27
1. Trends in the company’s annual total revenues: ............................................ 27
2. Trends in the company’s annual earnings per share (ESP): ......................... 27
3. Trends in the company’s annual return on equity investment (ROE): ...... 28
4. Other financial report: ......................................................................................... 29
5. Cashflow Statement .............................................................................................. 29
VI. Conclusion and Strategy for Year 7:................................................................... 30
1. Reflection of Year 6: .............................................................................................. 30
2. Strategy for Year 7: ............................................................................................... 30

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 YEAR 6 TRIAL REPORT

A. GENERAL REPORT:
I. Industry Overview:
1. Action-Capture Camera Global Statistics Overview

- This report includes detailed information and global statistics of action-

capture cameras. The first statistic shows the average selling price of
cameras for the year that had just been completed by geographical area
and totaled across all marketplaces. Along with that, the report will
discuss the associated developments from the previous year. Secondly,
the number of AC cameras required to suit the demands of clients in each
area and globally is listed below. This quantity is computed in the 000s.
The number of cameras assembled, delivered, and sold by all industry
players in each area and throughout the world follows. In the statistics,
“Unsatisfied Demand” is at zero across all regions listed. This means that
one or more businesses did not have enough assembly capacity to meet
retailer demand in that region; the total number of unfilled orders
throughout the sector is the worldwide “Unsatisfied Demand” figure.
- In-stock firms include those who had a reduction in sales owing to limited
assembly capacity, as well as those that saw a rise in sales from merchants
eager to refill inventory with alternative brands. The "Comparative
Competitive Efforts of Competitors" for each geographic region are
shown in the "Gain/Loss" section of the current year's Competitive
Intelligence Report.
- The final data is the "Demand Forecast" (unit: 000s) of the next 3 years:
Year 6, Year 7, Year 8. The demand for AC cameras is projected to grow
at a rate of roughly 7.0 percent each year. It's considered to be really
useful in identifying the company's immediate requirement for increased
camera assembly capacity. Furthermore, they aid in determining if
varying-sized growth potential in the four areas merit your company's
objective of increasing/decreasing market share in particular regions
and/or putting more/less attention on marketing cameras in certain regions
than others.
- The graph of Action-Capture Camera Global Trends allows you to swiftly
examine changes in global average wholesale camera prices, all-company
average P/Q ratings, and all average number of extra performance features
implemented in AC camera designs and specifications.
2. UAV Drone Global Statistics Overview

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 - In newly built facilities in Taiwan, our company assembles camera-
equipped drones. Once the cameras have been assembled and tested, they
are shipped directly to multi-store chains and online retailers that sell
electronics products, as well as a wide variety of local retail shops in
Europe-Africa, Asia-Pacific, Latin America, and North America that sell
cameras, sporting goods equipment, or outdoor adventure trips.
- Unmanned aerial view (UAV) drones are far more sophisticated and
feature-rich than cheap toy drones sold for recreational purposes. Indeed,
our company will be competing against companies that manufacture
copter drones as large as four feet wide that can be used for a variety of
commercial and business purposes and retail for $850 to $2,000 or
more.UAVs are used for a variety of purposes, including professional
photography, video recording of fires and storm damage, assisting
insurance companies in inspecting difficult-to-access areas, collecting data
and 3-D images, and so on.
- In year 5, the total cost of drone components and features was $506.31 per
unit. In year 5, the total cost of drone production/assembly was $806.22
per unit.
- For the fifth year in a row, North America was the company's most
profitable market, with an operating profit of $111.60 per unit. At the same
time, with $79.69 per unit, this market has the highest marketing cost of
the four markets.
- Many countries have chosen to levy import duties on Taiwanese cameras
and drones. In Year 6, import duties equal 4% of the average price charged
to customers in Europe-Africa, and 6% of the average price charged to
customers in Latin America and Asia-Pacific; there are no import duties on
cameras or drones shipped to customers in North America. Drone buyers
in Latin America and the Asia-Pacific region are more sensitive to price
differences than buyers in North America and Europe-Africa.
II. 3C Analysis:
1. Company:
- The company began operations five years ago and maintains its
headquarters in Taiwan. It assembles wearable or mountable video
cameras smaller than teacup camera-equipped drones at recently-
constructed facilities in Taiwan:
+ Those cameras (action-capture camera), which are assembled and
tested, will be shipped directly to multi-store chains and online
retailers selling electronics products and to a wide variety of local
retail shops selling cameras or sporting goods equipment or
outdoor adventure trips in Europe-Africa, Asia-Pacific, Latin
America, and North America.

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 + The unmanned aerial view (UAV) drones assembled at the Taiwan
plant are sold directly to buyers at the company’s website and to
other online retailers of commercial drones.
- The company has regional facilities in Milan, Italy; Singapore; São Paulo,
Brazil; and Dallas, Texas to lead the company's marketing efforts in four
geographies of the global market, to support regional retailers' sales efforts
who stock the company’s action cameras and UAV drones, and to process
camera/drone warranty claims (including making needed repairs).
- Assembly and Shipping:
+ The company assembles the process of cameras and drones usually
lasts for two weeks after receiving an order and strives to ship an
order no later than 2-3 days after assembly. No product models are
assembled in advance, warehoused in company facilities, and then
used to fill incoming orders.
+ The company has a team of people engaged in product research and
development; This group is capable of developing new and
improved models of cameras and drones at the direction of senior
management.
+ The company has two facilities for assembling products in Taiwan
—one for cameras and one for drones.
- Competitive Efforts: To capitalize on ongoing technological advances and
the pipeline of product enhancement capabilities flowing from the
company’s expenditures for product R&D, each year the company typically
changes the specs for important components, adds/modifies performance
features, upgrades the internal software,...
- Stock Listings: The company's shares are listed on the NASDAQ stock
exchange in the United States. The closing price of the 5th year was
$12/share. The Company's financial statements have been prepared
according to generally accepted accounting principles and are presented in
US dollars. The company's financial accounting complies with the rules and
regulations of all the authorities where the company's shares are traded.
2. Competitor:
Our company F basically has 5 other competitors with very close
competitive characteristics: Company A, B, C, D, and E.
All 5 companies are currently investing in 4 major markets that company F
is also targeting including North America, Europe-Africa, Asia-Pacific, Latin
America.
To analyze competitive advantages, those below competitive factors show
and update how other companies in year 5 have positioned themselves
compared to us.
a. Average Wholesale Price

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 - It is one of the most important factors determining the competitive
advantage of companies. If the company's Wholesale price is lower than the
regional price, there will be more competitive advantages.
- We can see that in Year 5, the Average Wholesale Price at all 5 companies
A, B, C, D, E, and F are equal at $225 per AC camera product and the same
for the Drone UAV at a price of $1,100 in 5 regions.
b. P/Q rating:
- This rating shows the positive level of the company's market share and
product sales in the market. A higher-than-average P/Q rating indicates
that the company will have a more competitive advantage in a given area.
In year 5, 2 products of company F have a P/Q rating of 4.0 in 4 regions and
so do other competitors.
- Besides the above two factors, with the same market share of the starting
line of the 6 companies (16.7% per company), other strategic
competitiveness indicators of company F such as Brand reputation,
Number of Models, budget for retail outlets, Ads, Websites, Warranty, etc.
As well as Demand for both products in 4 regions compared to 5
competitors is almost the same in Year 5.
3. Customer:
Latin
North America Europe - Africa Asia - Pacific
America
According to the The buyers of AC Action camera Buyers in
research, Price and Camera and UAV buyers in Asia- Latin America
Quality are the Drones in Europe - Pacific are more area are more
most influential Africa are more sensitive to sensitive to
factors that affect a sensitive to cross- pricing cross-brand
customer’s decision brand differences disparities price
to purchase. Among in P/Q ratings and between brands differences
the four chosen less sensitive to than camera than in North
markets, North cross-brand price buyers in North America and
Price and American differences than America and Euroupe-
Quality consumers are less are buyers in the Europe-Africa. Africa.
sensitivity sensitive to cross- Asia-Pacific and However,
band price Latin America Action camera Latin America
differences. regions. customers in the customers are
However, they are Asia-Pacific less sensitive
more sensitive to Market research region are less to cross-brand
differences also shows that likely to be differences in
between P/Q when two brands sensitive to P/Q ratings
ratings. If two of drones have changes in P/Q than are
products have relatively different ratings between camera buyers
slightly different pricing and P/Q brands than in the North
prices and quality, ratings, a slightly camera buyers in America and
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 North American larger percentage North America Europe-Africa
consumers tend to of customers in and Europe- region.
choose the brand Europe-Africa will Africa.
that offers higher select the brand
quality with the higher
P/Q rating.

B. YEAR 6 REPORT:
I. Overview:
- Our company has the 3rd highest IE score (after Diggi and BONQUACAM),
the 2nd highest B-I-I score (after Diggi) and is currently ranked 2nd, behind
Diggi and tied with BONQUACAM. The overall score of Finding Nemo is 93,
far ahead of the remaining 3 competitors: A Company, C Company, and
Elite. Our financial-economic indicators: EPS, ROE and Stock Price are
currently ranked 2nd, just behind Diggi company. However, the credit
rating for the two products is not high, the image rating is even at the
lowest level.
II. R&D Report:
- Following the strategy of “more value for the money”, our company came
to the conclusion of enhancing the quality of both products, which is
illustrated in the following sections:
1. Changes in Product Design:
- Action-Capture Cameras:

+ For this product, our R&D team decided to upgrade its P/Q Rating
to 4.3 instead of 4.0 as Year 5. The upgrade is implemented by
changing the figures of Image Sensor as well as LCD Display Screen,
which our R&D team considered as important features of Cameras.
+ In Year 6, we invested more in Product R&D expenditures to reduce
warranty claims and costs as well as improve the quality of the
products.
+ Totally, the R&D Department spent $107,612,000 for Action-
Capture Cameras.

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 + In detail, we have the costs of each component of the AC Cameras in
the picture below. The most important figure that we need to pay
attention to here is the Total Camera Production Cost per unit -
$155.09,. This number is the key factor of deciding the selling price,
which will be discussed in detail later in the sections of the Sales
Department.

- UAV Drones

+ With UAV Drones, we recognized that this is a high-end product.

Therefore our strategy is to enhance it significantly every year. In
Year 6, we raised the P/Q rating for this product from 4.0 (in Year
5) to 4.8 stars. However, as following the strategy mentioned above,
this is just the first step of our R&D Team in upgrading the UAV
Drones, we planned to continue our strategy in the following years.
+ With the total Product R&D Expenditures of $21,000,000, our team
can ensure product quality. Furthermore, similar to AC Cameras,
this cost contributed to warranty claims and expenditures
reduction.
+ The net investment in UAV Drones Facilities in Year 6 was
$87,612,000.

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 + The detailed costs of UAV Drone production is demonstrated in the
picture below. As a high-end product, the Total Production/
Assembly Cost of UAV Drone per unit is much higher than AC
Cameras - 1,041.19.

2. Products’ Journal: Benchmarks

Benchmark is an extremely vital term that every firm needs to consider.
It is crucial to emphasize that benchmarking does not imply slavishly
'copying' what competitors do. Simply said, it involves determining
what the industry's accepted norm is and where the organization is in
relation to that level. Benchmarking allows businesses to keep on top
of market trends and client demands. Thus, it is necessary to include
benchmarks of the two products in this report:
- Action-Capture Cameras:

+ After making some changes, according to the data of Year 6, most of

the index belonging to our Action-Capture Cameras were between
Low and Average standard, which leads to an overall cost of
components and features at $73.00, higher than Low standard and
lower than Average one.

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 + As can be seen from the picture, we need to pay attention to the
Image Quality as well as Extra Performance Features - the two
lowest costs and least qualified components of our cameras.
Specifically, Image Quality is pretty low compared to the same
figure of the industry, we will work on this component in Year 7.
- UAV Drones:
+ With UAV Drones, we recognized that this is a high-end product.
Therefore our strategy is to enhance it significantly every year. In
Year 6, we raised the P/Q rating for this product from 4.0 (in Year
5) to 4.8 stars. However, as following the strategy mentioned above,
this is just the first step of our R&D Team in upgrading the UAV
Drones, we planned to continue our strategy in the following years.
+ With the total Product R&D Expenditures of $21,000,000, our team
can ensure product quality. Furthermore, similar to AC Cameras,
this cost contributed to warranty claims and expenditures
reduction.
+ The net investment in UAV Drones Facilities in Year 6 was
$87,612,000.
+ The detailed costs of UAV Drone production is demonstrated in the
picture below. As a high-end product, the Total Production/
Assembly Cost of UAV Drone per unit is much higher than AC
Cameras - 1,041.19.
III. Operations Report:
1. Citizenship – CSRC:

- In year 6, the company decided not to invest in Charitable Contributions

with 0% of operating profit. While that we continued to improve working
conditions and promote the Institution of a Supplier Code of Conduct and
Compliance Monitoring of Suppliers.
2. Performance Highlight:
a. Action-Capture Cameras

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- As can be seen from the table above, in year 6 the revenue increased
and market share in year 6 of our company fluctuated with 2 products.
Sales of both AC Camera and UAV Drone products tended to decrease.
- Specifically, for AC Camera products, the highest market share was in
Latin America (17.4%) with sales increasing from $130,000 to
$148,000 in year 6, the lowest one was in Europe Africa (14.3%) with
sales decreasing from $240,000 to $209,800.

b. UAV Drone

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 - As for UAV Drones, the overall performance in the 4 targeted regions
declined in year 6. The most severely impacted region was Asia-Pacific
with a decrease of 5.2% in market share. The total units of UAV Drones
sold subsequently decreased from 140.0 to 122.7 (000s of units), which
led to a drop in the total market share in the 4 regions, from 16.7% to
just 13.6%.

- To improve the production of UAV Drones, most of the statistics in the

operating plan had increased moderately. Our company decided to
enhance the compensation per PAT member by 2% after a year, from
$25,000 to $25,608. Moreover, we required an upgrade in the
productivity of PAT members, from 1500 units per PAT to 1,605 units.
Aside from the decrease in the labor cost, most of the cost in operation
had risen in year 6, including production cost and marketing cost. The
UAV Drones’ overall operating profit had a significant improvement,
from 6.3% to 16.2%.
3. Compensation & Facility
a. AC Cameras:
- Assembly Facility:

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 + Demand for AC Camera and UAV Drone products did not
fluctuate greatly, so we decided not to install additional
workstations for the production process of the two products.
- Investment in Facility

+ According to the two tables, the costs of workstations and

facilities were paid in full in year 6. For AC Camera, we increased
its investment to $122,750,000 in facilities. The total investment
for AC Camera's facilities reached $152,750,000, an increase of
more than $30,000,000 compared to the previous year.
b. UAV Drones:
- Assembly Facility:

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 + The assembly facility for UAV Drones remained unchanged from
the previous year as the procedure for production did not
require a facility improvement.
- Investment in Facility:

+ In year 6, we invested an extra $2,750,000 in plant facilities for

the production of UAV Drones, raising the total investment for

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 this product facility to $102,750,000. Furthermore, after
excluding the accumulated depreciation at the end of year 5 and
the current-year depreciation, the net investment had declined
to $87,612,000 for this year.
4. Workforce:
Total compensation terms: The concern about the significant
difference in compensation packages for the assembly team of AC
Camera and UAV Drone products will cause dissatisfaction. Then this
will lead to a negative effect on the productivity and efficiency of
workers. Our company has tried to balance the total compensation for
the assembly team of both AC Camera and UAV Drone products.
a. AC Cameras:
- In year 6, the company decided to increase Base Wage Per PAT and
Attendance Bonus by 1% and $200 per worker respectively. We also
increased the investment in Training by $2000 per PAT in order to improve
PAT productivity in year 6.

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 b. UAV Drones:
- In terms of workforce, we decided to raise the base wage for PAT members
from 1% per year to 2%, which increased the wage per worker to $20,808.
The other factors that we changed were the attendance bonus and best
practices/productivity improvement training, as we aimed to encourage
the labor to work sufficiently without skipping or being unmotivated.
Ultimately, in year 6, the total annual compensation per worker was
$25,608, a $608 increase since year 5.

IV. Marketing & Sales Report:

1. AC Cameras
- This section contains detailed information of revenue, cost, and profit
statistics for your company's cameras sold in each of the four
geographic areas of the globe marketplace in the most recent year (year
6).

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- Firstly, we will analyze 3 factors: Revenue, Cost, Profit of Regular AC
Camera product line.
- According to initial reports, the company attracts a lot of attention in
the two markets of North America and Europe-Africa. Moreover, Asia-
Pacific and Latin America are two markets that are considered to be
quite price-sensitive, so the selling price of a product is $230 per unit
($20 lower than North America and Europe-Africa). Therefore, the total
revenue in North America and Europe-Africa marketplaces is larger
than the other 2 markets. That is why the promotion strategy focuses
on hitting the first two markets that can attract more customers. Total
sales minus promotional prices and after adjusting for exchange rates
show net revenues in all regions. Details are shown in the figure above.
- Statistical costs include: Production Costs, Delivery Costs, Marketing
Costs, Administrative Expenses. Because of seeing an abundant source
of customers in two markets: North America and Europe-Africa, the
company focused on investing in those two markets more.
- As a company that sells technology products, the company's goal is to
improve product quality, so the cost of the production process is the
most invested in other costs, the total production cost of all 4 markets.
school is $126,628,000. This cost includes the cost of components, the
cost of assembling finished products. The average total cost of
production that the company invests in all four markets is $31,567,000,
the production cost per unit is about $155.
- Total shipping cost (Shipping Import Duties) is $4,083,000. Regarding
Marketing Costs, it includes Retailer Support, Advertising, Website
Expenditures. In which, advertising costs are the most with the total

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 spending for all markets is $ 5,650,000. Administrative Expenses per
unit of product are the same across all markets. Overall, the investment
metrics in order from high to low are North America - Europe-Africa -
Asia-Pacific - Latin America. This shows that the company is focusing
the most on North America and gradually reducing investment costs for
Latin America.
- After all these costs, we get the Operating Profit. North America is the
region with the largest operating profit is 16,939,000$ and Latin
America is the region with the smallest operating profit is 4,656,000$ .
As a result, small operating profit margins are also associated with low
overall operating profit and operating profit per camera sold in
locations with low operating profit margins. Therefore, we need to
make corrections for this year to increase profits.
- Secondly, there is Unit Demand and Sales. There is quite a change
between Projected Demand and Actual Demand here when there is
research from competitors. In which, Asia-Pacific market share
decreased the most, down 6.4%. Through these four markets, the
largest total units assembled and shipped is North America with a
product volume of 252.4 thousand units. There is a noticeable
difference when the markets that are heavily invested have a lower
market share, especially Latin America's market share is the largest in
the 4 regions (17.4%).
- Retail Outlets of the company include 3 store systems: Multi-Store
Chains, Online Retailers, Local Retail Shops. This is a list of retail
locations that are willing to carry the company's AC camera brand. In
which, the number of local retail shops is significantly different from
the other two retail systems. These stores have a very large number, up
to thousands of stores. Meanwhile, the number of multi-store chains
and online retailers has only a few dozen stores.
2. UAV Drones
- North America Market
+ The sales of UAV Drones in the North American market are the
highest and strategic. With a selling price of $1550 for each
product, the total revenue that Company F collects is more than
$54,000 (000s)
+ Along with that, the cost and budget of marketing, incentives,
and production poured into this area is also the highest among
the 4 regions.
+ Net profit here is also the highest at 12 dollars with a profit
margin of more than 22%
+ Direct online sales of the region totaled 35 units (the highest)
and increased by 74% compared to the same period last year.

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 + With a selling price of $1335/product, net sales at Company F's
3rd-Party Online Retailers for UAV Drones in North America are
also the highest among regions (over $16,000,000).
+ Choosing a selling price of $1335/product, net sales at Company
F's 3rd-Party Online Retailers for drones in North America are
also the highest among regions (over $16,000). Fees and
budgets such as Production Costs (12.000), Delivery Costs
(122),
+ Retailer Support (1000), Administrative Expenses (158) all
accounted for the highest proportion in regions. From there, net
profit also prevailed with over $2 million and a profit margin of
12.6%.
+ In North America, there are 12.2 (000s) units of 3rd-Party Sales,
but unit sales account for 26% (lower in Europe - Africa region).
+ The number of 3rd-Party Online Retailers of year 6 in North
America is 36 outlets and is expected to be reduced to 32 in year
7.
- Europe-Africa Market
+ Ranked 2nd after North America, the Europe-Africa market is
also a strategic market with very high revenue up to more than
44 thousand (000s $)
+ Production costs and budgets such as Delivery (1,734),
Marketing (1,200), Administration (373) costs in this region are
also within the high investment level of Company F (only about
10-20% less than North America).
+ The final Operating Profit is about 8000 (about 33% lower than
North America) with a high-profit margin (18.5%)
+ This market helps company F sell 29,000 products directly
online, accounting for 73% of the target.
+ Revenue from 3rd-Party Online Retailers in this market also
ranked at second place with more than $14 million. Along with
that is the high production cost (11 thousand) along with the
high cost of shipping, retailer recruitment, and Import duties
(there are no import duties in North America).
+ Profit earned in this channel is over 1200 (000s $) with
Operating Profit Margin is about 8.6% (quite low).
+ 3rd-Party Sales in this area helped the company to sell more
than 10,000 products, accounting for 27% of the target.
+ The number of Retail Outlets at this place in year 6 is 30,
expected to decrease significantly (29) in year 7.
- Asia-Pacific Market
+ Asia - Pacific ranked third in total revenue compared to the rest
of the regions, reaching $23,850 (000s).

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 + With input costs such as Product cost, delivery,... for each
product, especially Search Engine Advertising is the lowest (
$37.74/unit) and Administrative Expenses is the largest
($12.96/unit), the total amount that company F has to spend is
$20,534, equivalent to $ 1,291.45 for 1 product sold successfully.
From that figure, with each product sold at a cost of $1,500 per
product ($50/unit lower than in North America and Europe -
Africa), the business earns total profit in Asia - Pacific is $
3,316(000s) with a profit margin of nearly 14%, equivalent to
$208.55 for 1 product sold. With a total sales volume in this
region of 16,000 products, achieving 74.5% of the target, this is
the highest percentage of total unit sales among 4 regions.
+ For the 3rd-Party Online Retailers, with the Total revenue of the
Asia - Pacific is $ 7.013 (000s) (higher than Latin America nearly
$1500 (000s)), each product sold in this area also has the lowest
price ($ 1,275).
+ In this region, import duties is the highest ($76.55/unit) and
administrative expenses is the lowest ($12.73/unit). From
there, the net profit is $300 (000s), which equates to $54.55 for
1 successfully sold product and the profit margin is calculated as
4.3%.
+ A total of 5,500 products were sold in Asia - Pacific through 3rd-
party sales, reaching 25.5% of the target, which is the lowest
number in the remaining 3 markets.
+ The number of 3rd-Party Online Retailers of year 6 in this
market is 24 outlets and is expected to decrease to 20 in year 7.
- Latin America
+ This is a sub-region of company F's UAV Drone, but the online
direct sales situation here is also quite stable. In terms of
revenue, although lower than the Asia-Pacific region by more
than 30%
+ In Latin America, our company F also covers lower operating
costs with production costs of over $10 million, and
Administration, marketing, and shipping costs under 1,000
($000).
+ Net profit here compared to North America is very small (about
84% lower) with a total direct online sales of 10k units, reaching
70.5% of the intials.
+ At the price from third-party retailers on par with the Asia
Pacific, third-party retailer sales in Latin America are currently
22 percent lower. The cost of production, marketing and
transportation, basic import tax here is lower, there is a fixed
administrative cost of 500 (000$) on par with the Asia-Pacific

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 region. The total profit of this channel is 112 (less than 50%
compared to the Asia Pacific) and the profit margin is only 2%
(6 times lower than the North American region).
+ With sales from 3rd parties of 4.3k units, reaching 29%. It is
estimated that there are 18 retail outlets in Year 6 and is
expected to increase to 19 by year 7, showing that Latin America
is a potential market that Company F should pay more attention
to.
 Overall, with average sales of 138k ($000) for 4 strategic regions, company
F currently has an unbalanced strategy and has a large gap between
markets.Although the Latin market brought in sales reaching more than
70% of the target in Direct Online Sales and achieved the largest target when
selling through 3rd-Party Online Retailers, the cost level here is still quite
high compared to the other 3 markets. With the lowest profit margin, it is
necessary to rethink the strategy in this market.

3. Competitive Intelligence Report:

a. Price
- AC Cameras:
+ All five companies set a common price for both the North
American and Europe-Africa markets.
+ Company A sets a price of $215, which is significantly lower than
the prices set by the other four competitors and the market
average.
+ Company D charges a very high price, whereas the other
companies only charge between $215 and 275. Company D's
price is $68 higher than the market average, indicating that this
company is adhering to the strategy. high-cost strategy

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+ Latin America and Asia-Pacific markets are price-sensitive, so
companies tend to lower their selling prices in comparison to
the two markets mentioned above.
+ Company A continues to sell low in these two markets, with a
price of 205, $48 less than the market average.
+ Companies C and E maintain the same 255 price.
+ Company D maintains its high-price strategy, charging 320, $90
more than our company.

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- UAV Drones:
+ For UAV drone products, our company has raised the selling
price to $1550 in North America and Europe-Africa, and $1500
in Latin America and Asia-Pacific.
+ Companies A, B, C, E, and F all sell at the same price in two
markets: North America and Europe-Africa. However, in these
two markets, company D has a different selling price of $2,200
in North America and $2,195 in Europe - Africa.
+ Company B chose a low price strategy for its UAV drone,
charging $1,070, $370 less than the market average and $480
less than our company.
+ Company D employs a high-priced sales strategy, with 2,200 in
the North American and Europe-Africa markets.

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+ Most companies lower their prices in two markets: Latin
America and Asia-Pacific; however, company E raised the price
to $1365, $35 more than the two markets mentioned above.
+ Companies A, B, and F are all $50 cheaper in these two markets
than in the two markets above. The remaining two companies
have lost more than $90 million.

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 b. Market share:
- In North America market:
+ AC Cameras: Our company (company F) has a 14.6 percent
market share and ranks fifth in the North America market. With
a market share of 18.3 percent in North America, the company
has risen to first place. Company A was successful in its low-cost

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 strategy, and the company also invested heavily in its
advertising budget and website displays. With 14.5 percent
market share, the company has at least a C market share.
Company D has a market share of only 17.8 percent, but it is the
only company with a high end product market share.
- In Europe-Africa market:
+ Companies C and F tied for fifth place in the Europe-Africa
market, AC Camerasounting for 14.3 percent of the market.
+ With 18.4 percent of the market, Company E is the market
leader. Company E has spent more money in this market on
Retailer Support and Website Displays.
+ Company A had 18.3 percent of the market share, ranking
second only to Company E. Company A reduced its investment
in advertising budget and website displays in the Europe-Africa
market.

- In North America and Europe-Africa markets:

+ UAV Drone: In terms of market share, companies in both
markets rank similarly, with only a small percentage difference
between the two markets. Company B holds the largest market
share in both markets, AC Camerasounting for 20.6 percent of
the total. The remaining public works are listed in the following
order: C 2nd, E 3rd, A 4th, F 5th, and D 6th. Company B sells at
the lowest price in these two markets, so it has the largest
market share of the remaining five companies.

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- In Latin America and Asia-Pacific markets:
+ AC Cameras: In terms of market share, the companies rank
equally in Latin America and Asia-Pacific, with only a small
percentage difference between the two markets. Company A has
the largest market share, while Company C has the smallest.
Companies A and D lost 0.1 percent of their market share in
Latin America, while the remaining companies all increased by
0.2 to 0.4 percent.
+ UAV Drone: Company B has risen to the top of the Latin
American and Asia-Pacific markets, with the largest market
share. In Latin America, most companies have a lower
percentage of market share, but company F has a higher
percentage of market share. Companies that lost market share
in Latin America reduced their investment in website displays
and search engine advertising.

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 V. Financial Report:

F Company was part of Industry 1 within the Glo-Bus simulation. Our company was
battling for the top 2 companies in year 6. Our final weighted average score was 93, but
our highest score competitor was at a weighted score of 107. Our final investor
expectation score was 112 and our best in industry score was 73. We kept a high earning
per share finishing with a $2.10 per share and ROE at 31.0, 2nd highest compared to rival
companies.

1. Trends in the company’s annual total revenues:

- This graph represents the net revenues of our companies throughout the
years. Net revenues for AC Camera in year 5 was 188,637, in year 6 was
201,274. Net revenues for UAV Drones in year 5 was 145,491, year 6 was
180,857. We can see how our overall net revenues rose from 334,128 to
382,131 within two years. According to the visible trends in the graph, we
believe that the revenues of F Company will rise even more.
2. Trends in the company’s annual earnings per share (ESP):

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- EPS stands for Earnings Per Share, the EPS ratio represents the profit
earned per share. Therefore, it is considered as an indicator to
determine the profitability of a company or an investment project. EPS
is also used to compare the performance of businesses with each other.
Usually, businesses with higher EPS than others attract more
investment.
- This chart shows the earning per share increase from year 5 to year 6
for our company. This is calculated by using the net income divided by
the outstanding number of shares. Company D has the highest EPS in
year 6 at 3.7%, our company's result is just behind company D. The
graph shows an increase over time, from an EPS of around 0.75 in year
5 to 2.1 in year 6. Although only ranked second in year 6, this is
something really good as the smallest change in the EPS could affect the
company as a whole. Companies B, A, C, and E achieved EPS of 1.8%,
1.09%, 0.95%, and 0.47%, respectively.
3. Trends in the company’s annual return on equity investment
(ROE):

- A company’s return on equity (ROE) is calculated by dividing its net

profit by the average of total shareholders’ equity at the beginning of
the year and the end of the year. ROE is an indicator that measures the
efficiency of using equity to generate profits. Similar to the EPS report,
company D's ROE was still the highest in year 6 at 43.4%, and our
company's results were also ranked 2nd behind company D. As visible
in the above graph, our return on equity started at around 14% and
rose to around 31.0% by year 6. The higher the ROE, the more
effectively the equity is used, which means the optimal shareholder

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 value. B,A,C,E companies have ROE results of 27.1%, 17.4%, 15.4%,
7.9%, respectively.
4. Other financial report:
- Report on the company’s credit rating: In Year 6, the company had a
B+ rating. In the first year, the company took out a loan of $14,000 to
cover the cost. The loan amount was minimized in order to repay the
loan as soon as possible. FindingNemo used the loan to invest in
marketing, R&D, and other costs.
- Report on the company’s image rating: The company's image rating
(brand reputation) depends on product quality and corporate social
responsibility. In Year 6, FindingNemo had an image rating of 70, which
is rather low compared to the competitors. This is due to a lack of
investment in sustainability, as the company’s budget is limited.
- Report on the company’s stock price: In Year 6, FindingNemo’s stock
price is $64.04. Our stock price is the second-highest among
competitors. The stock price shows a company’s market value, so our
company’s market value is currently the second-highest.
- Expense and Loss: Our interest expense in Year 5 and Year 6 is
respectively 12,417,000$ and 10,300,000$. The interest expense is the
cost of borrowing money from banks. In year 6 we borrowed less than
the previous year by 2,117,000$. The operating profit in Year 6
(70,190,000$) is greater than the previous year (33,846,000$),
therefore, the 30% income tax loss is larger.
5. Cashflow Statement

- We have a beginning cash balance carried from year 5 is 5,000$ and the
total cash available from all sources in year 6 is 442,054$. Following are
cash outlays of our company in year 6, we used 138,579$ for payments
to component suppliers. The company spent 101,499$ for Production

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 and Assembly Expenses and 57,557$ for Delivery, Marketing, and
Administrative Expenses. Capital outlays for facilities improvements
are 5,500$. We also paid 110,000$ for 10-year Bank Loan Principle and
10,350$ interest for Bank Loans. Our company repurchased stock with
a price of 602$ and used 17,967$ for Income Tax Payments. That's all
spending on our company's 442,054$ cash available.
VI. Conclusion and Strategy for Year 7:
1. Reflection of Year 6:
- Strengths: financial ratios EPS, ROE, Stock price, are all quite high
compared to rival companies. This helps the company become more
valuable in the eyes of investors and other shareholders when they realize
the profit as well as the potential for growth if they invest in FindingNemo.
It will be easier to call for capital and borrowed capital, and good quality
products will also make share prices more attractive.
- Weaknesses: The company's market share for AC Camera and UAV Drones
products is near the lowest level. The reason for this is that the company's
investment in advertising and marketing items is very low, so not many
customers know about the product. In addition, the PQ ratings of the two
products above are about the same. Compared with other competitors, we
made the mistake of selling at a higher price (specifically with AC Camera,
company B has a P/Q rating of 4.4 stars but only sells for 250, and our
company is 4.3. but the price is 260). Low market share makes the number
of products sold and profits still low.
2. Strategy for Year 7:
- The company will not change the selling price of the products, but will
invest in more superior features such as increasing the number of models
for cameras, increasing image quality,... for AC products. Camera, increase
battery life, build quality built-in-camera,...for UAV Drones. AC Camera's
P/Q rating has been increased from 4.3 to 4.5 stars, while that of UAV
Drones has increased from 4.8 to 5.1. The company still aims to hit the mid-
range customer segment, the segment with the most potential and the most
competitors. We want to build products that are not expensive but have
good value and have many resources and opportunities for development,
following the “more value for the money” strategy. The profit calculated on
each product will be lower, but the sales volume and ending cash will be
more optimal in the end. In addition, the company will also step up
investment in advertising, with the aim of attracting more customers and
capturing more market share, selling a large number of products but still
within the production capacity.

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