G4 How did we do?

Mission: To make high quality products for a low cost and lower price to satisfy the needs of consumers and reward our shareholders/investors with the fruits of our labor.

(It’s through the money invested into Sales people, R&D and Marketing that sales will go up. With this we tried to build facilities to make quality goods at a cost less than our competitors and expanding with product 2 later on.)

Henry Jones built a good name for the Company and we wanted to keep that good name with all our stake holders. Group 4’s main stakeholders were, like in any company Shareholders, Employees, our Customers and Suppliers. Sales were a main priority. Research and Development helped attain a good Idea of our customers need and tastes. This coupled with a lower price than our competitors helped us in this market and we came in second in the stimulation.

All stakeholders have a vested interest in a company. However, Stockholder’s as in any company are very demanding wanting greater returns. Attaining a higher stock price and dividends did just that.

P’5

Threat of New Entrances: The Dinner ware industry is very unattractive. It is largely flat and new entries from countries such as China, where cost of production is low make this market even more unattractive to enter. In addition, the cost of building factories to make Dinner wear would serve to keep away new entrances. Threats of New Entries are LOW.

Power of Suppliers: Ceramic materials such as bone china and porcelain like any commodity there days is relatively high in price. Suppliers have a relatively HIGH power in this market.

Power of Customer: The customer can pick and choose what ever kind of China they would like. The market is saturated. If a customer does not want China (dinner wear) there are many substitutes that many also satisfy their need. Customer Power is HIGH.

Power of Substitutes: The purpose of China can be substituted by Paper plates, or even plastic plates. It is not a necessity. Therefore, substitutes are HIGH.

Rivalry: As an industry becomes more mature, much like Dinner ware. There are only a few big players that will stay in this industry. Rivalry among these players to win over the customer becomes HIGH.

The model gives us a picture of an unattractive market. The market changes in a matter of days. Other groups are always out to get you with pricing. It is impossible to have one fixed strategy from the start. Staying flexible is important.

There has to be a well trained, knowledgeable sales force. This is the only way to grab customers. Our advantage was just that. During team meeting, analyzing price was the most important. We built our strategy for success around sales people, “a well paid sales person is a loyal sales person.” Having enough money to pay and keep these sales people was always a topic of discussion and a barrier. In addition we found out that through under pricing we would never be able to change the industry conditions in the long term.

Our Business and Corporate level Strategy was very basic; Quality products at a good price which would equal satisfied Customers and Share holders. This would help make products for a low cost to maximize profits. Sales people were instrumental in making this happen.

All in all we had a very good strategy. Return on Investment, Stock price, Sales Growth and Credit Rating are all high. What strikes me most looking at the grades of the stimulations is the successful groups were consistent. I believe consistency is important in anything, especially when it comes to running a business. You must change with the market’s needs but remain consistent. A professor of mine once said, “It’s like shooting fish in a pool while you’re bouncing on a bouncing board.” We wouldn’t make any changes in the way we have run our business.