Strategy

Simulation
BY TEAM 5
KISHORE| MAHENDRA | MAGESH | SOUMYA| TARUN| VIJAY

Executive Summary

Zaraki Inc. is a Micro Computer manufacturer

Been in business for the past 1 year

Currently headquartered at Chicago, North

America

Manufacturing plant in Latin America

Currently serving in all the regions except

LATAM which we about to do from Q5

Review of Financial
Performance

The net profit for quarters 2 and 3 have been

negative owing to initial investment in setting up
offices, plant, product development, R&D
Expenditure

Quarter 4 shows substantial improvement over

quarters 2 and 3.

The net loss has been reduced from 1,520,421

to 188,811

EPS has been improved from -38 in quarter 3 to

-4 in quarter 4

These reflect the superior finance management

ability of the firm.

Company Strengths &

Weaknesses
STRENGHTS

WEAKNESSES

Highest gross margin out of Loss incurred on web

all the players
offices
No emergency loan

Large inventory holdup

Sales person productivity is Low cash

high
Sales offices across all the
regions
First mover advantage in
MEA region

Major Problems & Opportunities to

be Dealt With in the Next Year
Problems

Opportunities

Low inventory turnover ratio

More sales office to reach all the

regions

Low market share

Spend on R&D and differentiate

the product to grab the market
share

Unutilized production capacity

Scale up production and achieve

economies of scale

Marketing Strategy

Target Segments-Traveller, Innovator, Workhorsealong with Targeting high performance and high
price segments partially

Design new products for all segments, keeping in

mind its needs and creating a new Brand for it

Advertisements targeted at most important needs

of consumers in specific segments

Extensive media coverage for advertising

Offering competitive prices with increase in

economies of scope

Maximizing the sales in MEA region by launching

all category products

Sales Channel Strategy

Looking at a global sales footprint by opening

offices in less penetrated regions

Pursue intensive distribution in coming quarters

by opening more sales offices, hiring and
training more sales people

Greater emphasis on traditional sales and no

web sales

HR Strategy

Offer expanded coverage to both sales and

factory workforce

Have a satisfied staff by offering additional

benefits such as paid vacation

Invest in future of salespeople and factory

workers by providing them competitive pension
plans

Invest in training of salespeople to improve

productivity.

Manufacturing Strategy

Follow lean manufacturing practice to produce

according to present demand

Reduce inventory

Gradually scale up to improve factory utilization

Invest in quality control after increasing scale of

each product to 200 units

Finance Strategy

Raise $5 million from VC

Invest in new product development and

marketing to improve the market share

Strategically targeting high ROI ventures and

avoiding unnecessary expenses

Allocating funds to increase the operational

efficiency

Tactical Decisions for this

quarter
1) Invest in R&D of the product for Innovators because
none of the competitors are able to match the needs of
the consumer.
2) Increase Advertising Budget for all products to grab
a market share
3) Open Sales Channel Office in NORAM and Europe in
order to grab the market share. T4)
5) Opening new brands across all categories in MEA
7) Demand Projection for this quarter was not only
based on Industry Trends but also on trying to grab
market share from other competitors by developing
comparable advertisements and adding an extra
feature.