Broad Differentiator
For our company, we have decided to seek a broad differentiator strategy. Our goal with
this strategy is to rule every portion within the market. The company will gain a
competitive advantage by creating products with an excellent design, high awareness
and easy accessibility. The company will develop an aggressive R&D strategy that
keeps designs new and exciting. Our R&D strategy will stick to release deadlines
religiously and will bring innovative products to the market in a quick time span. Most
products will keep pace with the market, offering improved size and performance. Prices
will be above average. Capacity will be expanded as higher demand is generated.
Mission Statement
Premium products for the industry: Our brands withstand the test of time. Our
stakeholders are customers, stockholders, management and employees.
Tactics
Research & Development: We will keep our existing product line, maintaining a
presence in every segment. Our goal is to offer customers products that match their
ideal criteria for positioning, age, and reliability. The company will do this by ensuring
that product revisions are completed within a timely manner. The overall goal is to
develop products that will be completed and released before the end of June or July of
the current year. The purpose of this is to maximize the amount of sales for the current
year. To do this, each products reliability or MTBF will need to be set as soon as
possible. Since the Performance segment is the only segment that prioritizes MTBF, the
company’s product, Aft, will be set at a maximum of 27000 MTBF to satisfy the needs of
the consumer. As for the rest of the segments, they will be all set to the minimum
MTBF, Traditional will be set to 14000, Low will be 12000, High will be 20000 and Size
will be 16000. The other reason for this is to reduce the cost of the products and
maximize profitability.
Marketing: Our company will spend aggressively in promotion and sales in all
segments. We want every customer to know about our superb designs, and we want to
make our products easy for customers to find. We will price at a premium. Our company
is planning to price our products based on the competition and customer expectations.
For the Low end segment, price is an important factor and because of this the price of
the product needs to be either the same as the competition or lower. As for the
remaining segments, the prices will most likely be priced at the maximum possible to
make the product profitable as well as to cover the costs involved with the product. The
main goal of marketing for the company is to ensure that each product is budgeted
correctly for both sales and promotion. Our company’s primary objective is to get every
product to 100% awareness by the end of round 4. We will do this by budgeting 1,500 to
2,000 for each product based on how much funds are available. Our best selling
products will most likely receive a budget of 2,000 and as for the lower selling products,
they will receive a budget of 1,500 until they improve. Once a product has reached
100% awareness, the budget will be reduced to 1,400 because that is the area whether
it will maintain 100% awareness and help the company save money for other areas. As
for the sales budget, this is will most likely be the same as the promotion budget. The
only difference is that since it takes a lot longer for accessibility to reach 100% than
awareness, the goal of 100% by the end of round 4 is unreasonable. So, the goal for the
sales budget is to reach that 100% threshold before the 7th round at the latest.
Product Segment Round Price
Able Tradtional
0
$ 28.00
1
$ 29.50
2
$ 29.00
3
$ 28.50
4
$ 28.00
5
$ 27.50
Promo Awareness Sales Accessibility Forecast
$ 1,000
25%
$ 1,000
25%
1,049
$ 2,000
50%
$ 2,000
50%
1,251
$ 2,000
75%
$ 2,000
75%
1,366
$ 2,000
90%
$ 2,000
90%
1,491
$ 1,400
100%
$ 2,000
100%
1,628
$ 1,400
$ 2,000
1,778
Acre
Low
0
1
2
3
4
5
$ 21.00
$ 21.00
$ 20.50
$ 20.00
$ 19.50
$ 19.00
$ 900
$ 2,000
$ 2,000
$ 2,000
$ 1,400
$ 1,400
25%
50%
75%
90%
100%
$ 900
$ 2,000
$ 2,000
$ 2,000
$ 2,000
$ 2,000
25%
50%
75%
90%
100%
1,671
2,085
2,329
2,602
2,906
3,246
Adam
High
0
1
2
3
4
5
$ 38.00
$ 39.50
$ 39.00
$ 38.50
$ 38.00
$ 37.50
$ 800
$ 1,500
$ 2,000
$ 2,000
$ 1,400
$ 1,400
25%
50%
75%
90%
100%
$ 800
$ 1,500
$ 2,000
$ 2,000
$ 2,000
$ 2,000
25%
50%
75%
90%
100%
424
573
666
774
899
1,045
Aft
Pfmn
0
1
2
3
4
5
$ 33.00
$ 34.50
$ 34.00
$ 33.50
$ 33.00
$ 32.50
$ 700
$ 1,500
$ 2,000
$ 2,000
$ 1,400
$ 1,400
25%
50%
75%
90%
100%
$ 700
$ 1,500
$ 2,000
$ 2,000
$ 2,000
$ 2,000
25%
50%
75%
90%
100%
374
543
651
780
934
1,119
Agape
Size
0
$ 33.00
$ 700
25%
$ 700
25%
364
1
2
3
4
5
$ 34.50
$ 34.00
$ 33.50
$ 33.00
$ 32.50
$ 1,500
$ 2,000
$ 2,000
$ 1,400
$ 1,400
50%
75%
90%
100%
$ 1,500
$ 2,000
$ 2,000
$ 2,000
$ 2,000
50%
75%
90%
100%
509
602
713
843
997
Production: We will grow capacity to meet the demand that we generate. After our
products are well positioned, we will investigate modest increases in automation levels
to improve margins, but never at the expense of our ability to reposition products and
keep up with segments as they move across the perceptual map. The goal for
production is to produce 120% of the forecasted amount to prevent a stockout situation
if the possibility occurs that the company sells more than what was forecasted. As for
capacity, the company will increase these amounts only for two segments, the low end
and the traditional segments. So, the company will increase capacity for low end
products by 200 a round and traditional products by 100. These numbers will be
adjusted based on the amount of financing available and low end capacity will have
priority over the traditional. The reason for this decision is that the size of the other three
segments will not grow to the point where the top company will sell over 2,000 units. So,
the best capacity for these other three segments will be 1,000 because at maximum
production it will produce 2,000 units.
Product Segment Round Forecast Production Capacity Automation
Able Tradtional
0
1,800
4.0
1
1,049 1,032
1,800
5.0
2
1,251 1,501
1,800
6.0
3
1,366 1,639
1,800
7.0
4
1,491 1,789
1,800
8.0
5
1,628 1,954
1,800
8.0
Acre
Adam
Low
High
0
1
2
3
4
5
0
1
1,671
2,085
2,329
2,602
2,906
1,959
2,502
2,795
3,122
3,488
424 461
1,400
1,400
1,600
1,800
1,800
1,800
5.0
6.5
8.0
10.0
10.0
10.0
900
900
3.0
3.0
2
3
4
5
Aft
Agape
Pfmn
Size
0
1
2
3
4
5
0
1
2
3
4
5
573
666
774
899
374
543
651
780
934
364
509
602
713
843
688
799
929
1,079
900
900
900
900
3.0
4.0
5.0
6.0
355
652
781
936
1,121
600
600
600
600
600
600
3.0
3.0
3.0
4.0
5.0
6.0
362
611
723
855
1,012
600
600
600
600
600
600
3.0
3.0
3.0
4.0
5.0
6.0
Finance: We will Finance our investments primarily through stock issues and cash from
operations, supplementing with bond offerings on an as needed basis. When our cash
position allows, we will establish a dividend policy and begin to retire stock. We are
somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep
assets/equity (leverage) between 1.5 and 2.0.
Strategic Plan - Example Spreadsheets.xlsx
Example Spreadsheet to Prepare a Broad Low-Cost Producer Strategic Plan
NOTE: This Spreadsheet is incomplete. It's your job to update it with your own numbers and to expand it to fit your needs.
Use the Round 0 Capstone Courier to Verify the Information Entered for Round 0
Round
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
Product
Able
Able
Able
Able
Able
Able
Able2
Able2
Able2
Able2
Able2
Able2
Acre
Acre
Acre
Acre
Acre
Acre
Acre2
Acre2
Acre2
Acre2
Acre2
Acre2
Acre3
Acre3
Acre3
Acre3
Acre3
Acre3
Adam
Adam
Adam
Adam
Adam
Adam
Aft
Aft
Aft
Aft
Aft
Aft
Agape
Agape
Agape
Agape
Agape
Agape
R&D
Category
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
Low End
High End
High End
High End
High End
High End
High End
Performance
Performance
Performance
Performance
Performance
Performance
Size
Size
Size
Size
Size
Size
Marketing
Pfmn
Size
MTBF
5.5
14.5
17500
Promotion
Budget
$1,000
-
-
-
3.0
17.0
-
Production
Awareness
Sales Budget
Accessibility
Price
55%
$1,000
54%
$28.00
-
Production
Schedule
-
-
0%
-
-
-
-
14000
$900
52%
$900
54%
$21.00
-
-
-
0%
-
-
-
-
-
-
0%
-
8.0
12.0
23000
$800
49%
9.4
15.5
25000
$700
4.0
11.0
19000
$700
Age
Cost
Market
Share
4
Capacity
Needed
-
-
-
-
-
-
5
-
-
-
-
-
-
-
-
-
-
-
-
$800
48%
$38.00
-
-
3
-
46%
$700
48%
$33.00
-
-
3
-
46%
$700
42%
$33.00
-
-
3
-
Sales Forecast
Automation
Strategic Plan - Example Spreadsheets.xlsx
Example Spreadsheet t
NOTE: This Spreadsheet is incomplete. It'
Use the Round 0 Capst
Round
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
5
0
1
2
3
4
Product
Able
Able
Able
Able
Able
Able
Acre
Acre
Acre
Acre
Acre
Acre
Adam
Adam
Adam
Adam
Adam
Adam
Adam2
Adam2
Adam2
Adam2
Adam2
Adam2
Aft
Aft
Aft
Aft
Aft
Aft
Aft2
Aft2
Aft2
Aft2
Aft2
R&D
Category
Traditional
Traditional
Traditional
Traditional
Traditional
Traditional
Low End
Low End
Low End
Low End
Low End
Low End
High End
High End
High End
High End
High End
High End
High End
High End
High End
High End
High End
High End
Performance
Performance
Performance
Performance
Performance
Performance
Performance
Performance
Performance
Performance
Performance
Pfmn
Size
MTBF
5.5
5.5
5.5
5.5
5.5
14.5
14.5
14.5
14.5
14.5
17500
17500
16000
15000
14000
3.0
3.0
3.0
3.0
3.0
17.0
17.0
17.0
17.0
17.0
14000
14000
13000
12000
11000
8.0
8.0
8.0
8.0
8.0
12.0
12.0
12.0
12.0
12.0
23000
23000
22000
22000
22000
-
-
-
9.4
9.4
9.4
9.4
9.4
15.5
15.5
15.5
15.5
15.5
25000
25000
24000
24000
24000
3.0
3.0
3.0
3.0
3.0
10.0
10.0
10.0
10.0
10.0
10000
10000
9000
9000
9000
5
0
1
2
3
4
5
0
1
2
3
4
5
Aft2
Agape
Agape
Agape
Agape
Agape
Agape
Agape2
Agape2
Agape2
Agape2
Agape2
Agape2
Performance
Size
Size
Size
Size
Size
Size
Size
Size
Size
Size
Size
Size
4.0
4.0
4.0
4.0
4.0
11.0
11.0
11.0
11.0
11.0
19000
19000
18000
18000
18000
-
-
-
xample Spreadsheet to Prepare a Broad Differentiator Strategic Plan
heet is incomplete. It's your job to update it with your own numbers and to expand
se the Round 0 Capstone Courier to Verify the Information Entered for Round 0
R&D
Marketing
Age
Cost
3.1
3.1
3.1
3.1
3.1
11.59
10
10
10
10
Promotion
Budget
$1,000
$1,500
$1,800
$1,800
$1,800
4.6
4.6
4.6
4.6
4.6
7.81
6
6
6
6
1.7
1.7
1.7
1.7
1.7
15.98
14
14
14
14
2.5
2.5
2.5
2.5
2.5
15.87
14
14
14
14
1.9
1.9
1.9
1.9
1.9
9.87
8
8
8
8
Awareness
Sales Budget
Accessibility
Price
55%
65%
80%
90%
100%
$1,000
$1,200
$1,500
$1,500
$1,500
54%
60%
70%
85%
100%
$28.00
$27.00
$25.00
$25.00
$25.00
$900
$1,300
$1,500
$1,500
$1,500
52%
65%
80%
90%
100%
$900
$1,100
$1,500
$1,500
$1,500
54%
60%
70%
85%
100%
$21.00
$20.00
$18.00
$18.00
$18.00
$800
$1,100
$1,300
$1,300
$1,300
49%
65%
80%
90%
100%
$800
$1,000
$1,500
$1,500
$1,500
48%
60%
70%
85%
100%
$38.00
$37.00
$35.00
$35.00
$35.00
-
0%
-
-
-
$700
$1,000
$1,200
$1,200
$1,200
46%
60%
70%
85%
100%
$700
$900
$1,500
$1,500
$1,500
48%
60%
70%
85%
100%
$33.00
$31.00
$30.00
$30.00
$30.00
$200
$500
$500
$500
0%
20%
30%
50%
70%
$200
$500
$500
$500
20%
30%
50%
70%
$14.00
$18.00
$18.00
$18.00
2.6
2.6
2.6
2.6
2.6
13.62
12
12
12
12
$700
$1,000
$1,200
$1,200
$1,200
46%
65%
80%
90%
100%
$700
$900
$1,500
$1,500
$1,500
42%
60%
70%
85%
100%
$33.00
$31.00
$30.00
$30.00
$30.00
-
0%
-
-
-
rs and to expand it to fit your needs.
d for Round 0
Production
Market
Share
13
20
35
55
75
Sales Forecast
999
1100
1150
1300
1500
Production
Automation
Schedule
1200
4
1250
8
8
8
8
Capacity
Needed
1800
1800
1800
1800
1800
17
20
35
55
75
1763
1850
2000
2200
1500
1820
1900
5
8
8
8
8
1400
1400
1400
1400
1400
14
20
35
55
75
366
400
600
800
1000
410
450
3
8
8
8
8
900
900
900
900
900
-
-
-
-
17
35
45
65
85
358
400
700
1000
1100
440
500
3
3
5
7
9
600
600
600
600
600
200
-
-
10
25
40
55
200
300
400
500
15
20
35
55
75
314
400
700
1000
1100
380
420
3
8
8
8
8
600
600
600
600
600
-
-
-
-
Segment Centers (at end of round)
Traditional Low End
High End Performance
Size
Round Pfmn Size Pfmn Size Pfmn Size Pfmn
Size Pfmn Size
0
5
15
2.5 17.5
7.5 12.5
8
17
3 12
1
5.7 14.3
3
17
8.4 11.6
9
16.3
3.7 11
2
6.4 13.6
3.5 16.5
9.3 10.7
10
15.6
4.4 10
3
7.1 12.9
4
16 10.2 9.8
11
14.9
5.1
9
4
7.8 12.2
4.5 15.5 11.1 8.9
12
14.2
5.8
8
5
8.5 11.5
5
15
12
8
13
13.5
6.5
7
6
9.2 10.8
5.5 14.5 12.9 7.1
14
12.8
7.2
6
7
9.9 10.1
6
14 13.8 6.2
15
12.1
7.9
5
8 10.6 9.4
6.5 13.5 14.7 5.3
16
11.4
8.6
4
Table 2 Segment Centers at the End of Each Round: As shown in the
Perceptual Map Form above, size is on the vertical axis and performance
(Pfmn) is on the horizontal axis.
Ideal Spot Offsets
Traditional
Low End
High End
Performance
Size
Pfmn Size
0
0
-0.8 0.8
1.4 -1.4
1.4
-1
1 -1.4
Ideal Spots (at end of round)
Traditional Low End
High End Performance
Size
Round Pfmn Size Pfmn Size Pfmn Size Pfmn
Size Pfmn Size
0
5
15
1.7 18.3
8.9 11.1
9.4
16
4 10.6
1
5.7 14.3
2.2 17.8
9.8 10.2 10.4
15.3
4.7 9.6
2
6.4 13.6
2.7 17.3 10.7 9.3 11.4
14.6
5.4 8.6
3
7.1 12.9
3.2 16.8 11.6 8.4 12.4
13.9
6.1 7.6
4
7.8 12.2
3.7 16.3 12.5 7.5 13.4
13.2
6.8 6.6
5
8.5 11.5
4.2 15.8 13.4 6.6 14.4
12.5
7.5 5.6
6
9.2 10.8
4.7 15.3 14.3 5.7 15.4
11.8
8.2 4.6
7
9.9 10.1
5.2 14.8 15.2 4.8 16.4
11.1
8.9 3.6
8 10.6 9.4
5.7 14.3 16.1 3.9 17.4
10.4
9.6 2.6
Table 2 Ideal Spots at the End of Each Round: As shown in the Perceptual
Map Form above, size is on the vertical axis and performance (Pfmn) is on
the horizontal axis.
Running head: HO WEIHUNG LLC
1
Strategic Planning Li Jia Xin LLC
Weihung Ho
Calypoly Pomona
HO WEIHUNG LLC
2
Ho Weihung LLC Strategic Planning
Ho Weihung LLC intends to use broad differentiation approach. This will involve having
high quality products, easily accessible to customers and carrying out constant promotional
activities. The customers will be able to identify with products. The organization intends to
create a niche market. Achieving this will involve various strategies which are further discussed
below.
Vision
Memorable products-The consumers will be able to identify with the products instantly
due to their high quality and convenience..
Strategies for Success
Research and Development (R & D)
The organization will not only maintain the current product line but add a new product
Aft, under the performance segment. The organization listens to its customers and all products
are requested based on their needs. The company will increase the promotional budget steadily
as shown in the excel sheet. By round 2, promotional budget will be maintained at a constant, for
example in the traditional segment it will be at $1800. This will also be done for sales budget and
in traditional segment from round 2 sales budget will be a constant of $1500. MTBF will be
reduced steadily by 1000 units for each round so that costs are contained and profitability
maximized.
HO WEIHUNG LLC
3
Marketing
Sales and promotion will go hand in hand. Promotional and sales budgets will be
increased by between $100 and $200 and then maintained at a constant as the promotional
activities are done. The company intends to go full throttle on marketing so that current market
size increases to 75 percent by the 4th round.
Production
Production capacity and size are to be maintained but automation increased to 8 across all
segments in order to achieve efficiency.
Finance
The organization will use operational cash to expand and if need be there will be
borrowings or shares offered to the public so that the company raises money. Borrowing is to be
used as a last resort as the company does not want to keep paying debt since it increases costs
and minimizes profits.
Strategic Plan - WEI
Spreadsheet.xlsx
Purchase answer to see full
attachment