first annual report

ANNUAL REPORT: 2015-2016

ORANGE TECH

SESSION’S LANDMARKSA. EXECUTIVE SUMMARY

C. COMPANY’S OVERVIEW

B. ORANGE TECH: EVOLUTION DURING FIRST YEAR

D. STRATEGY FOR THE NEXT YEAR IN BUSINESS

E. DESCRIPTION OF THE TEAM, ITS DYNAMIC AND EVOLUTION

F. CLOSING

ORANGE TECH

EXECUTIVE SUMMARY ORANGE TECH

THE COMPANY: CORPORATE STRATEGYORANGE TECH

HIGH QUALITY GOODS + FRESHNESS

+ SERVICE----------------------------------BE YOUR PERFECT HALF

OUR MISSION1. Be the profit margin leader2. Be the technology leader3. Be the high service provider in

the market4. Provide the most reliable product

on the market

OUR VISION

AUSTIN BUSINESS ORIENTATED

COMPETITIVE PRIORITIES ORANGE TECH

HIGH END

1

2

3

4

QUALITY

FLEXIBILITY

COST

TIME

Set of features requested by consumers that permit a

brand to differentiate

INTRODUCTION GROWTH MATURITY DECADENCE

PRODUCT LIFE CYCLE

MARKETING DEPARTMENT

ORANGE TECH

MARKETING STRATEGY

MARKET RESEARCH

CUSTOMER NEEDS

USES OF THE

PRODUCTDEMAND PRICING

BRAND DESIGN

FEATURES PRICE SALES

ADVERTISEMENT

ORANGE TECH

MARKET RESEARCH ORANGE TECH

USE OF THE PRODUCT1. CUSTOMER NEEDS

2. USE OF THE PRODUCT

3. DEMAND PER CITIES

4. PRICE WILLING TO PAY PER CITIES

FEATURES NEEDED IN EACH BRAND

CITIES TO OPEN

SALES /WEB OFFICES

PRICE AND ADVERTISEMENT

BRAND DEVELOPMENT

1 2 3

ORANGE TECH

O’WAYSO’REKA O’GOLD

Innovator Traveler Mercedes

SALES AND WEB CENTERS ORANGE TECH

REVENUES = MAXIMUM PRICE X DEMAND

COSTS = PRODUCTION COST + OPEN COSTS + SHIPPING COSTS PROFITABILITY

FIRST ROUND

SECOND ROUND

THIRD ROUND

WEB CENTER

OPERATIONS DEPARTMENT

ORANGE TECH

OPERATIONAL STRATEGY

PLANT DECISIONS

PLANT LOCATION FIXED PLANT CAPACITY

PRODUCTION POLICIES

DAY-TO–DAYCHANGES

STOCKOUTS

ORANGE TECH

MACROECONOMIC ASPECTSLATAM has been taking a

serious look into advancing its technology and

infrastructure

Production Cost Index is low (74)

Market Size is huge and shipping cost is low from LATAM to NORAM

LATAM: SAO PAULO

PLANT LOCATION ORANGE TECH

FINANCIAL ASPECTS MARKET ASPECTS

12 units/ day (Through prediction from the

productivity of our sales people)

Incur a huge debt if we buit 50 units/day

High end products- we do not expect huge surge in sale

FINAL DECISION: 25 UNITS/ DAY

FIXED PLAN CAPACITY ORANGE TECH

DEBT-FREE POLICYMACROECONOMIC ASPECTS SEGMENT CONSIDERATIONS

• GOOD COMPENSATION + HIGH SALARY --> HIGH PRODUCTIVITY EXPECTED (around 80%)

• INVESTMENT IN R&D CHANGEOVER

• REPLENISHMENT POINT: SECURITY CUSHION 150 INVENTORY UNITS

PRODUCTION DECISIONS ORANGE TECH

• QUARTER 3: REPLENISHMENT POINT• FIRST MOVE: Prioritized O’WAYS against O’REKA

• CORRECTION APPLIED: Current Priority O’REKA

• QUARTER 4: MARKETING AND MANUFACTURING DECISION• BRAND IMPROVEMENT: New and improved brand, O’WAYS LITE • Lower Price• Better Features.

• UNWANTED INVENTORY DECISION: Selling of O’WAYS Stock.

CHANGES IN PRODUCTION POLICIESORANGE TECH

In production, we try to minimize stock out and meet customers demand

In order to minimize stock outs, we have to increase the changeover frequency of our production.

MANAGING STOCKOUT ORANGE TECH

EXAMPLE

HUMAN RESOURCESDEPARTMENT

ORANGE TECH

HR. STRATEGY

NUMBER OF EMPLOYEES

SALES FORCE WEB SALES FORCE

LABORAL POLICY

INITIAL COMPENSATIONS

IMPROVEMENTS POLICY

ORANGE TECH

COMPENSATION POLICY ORANGE TECH

Focus on achieving the best level of compensation in the market

COMPENSATION CRITERIA

Increase of productivity- high salaries and minimum health benefits package

CHANGES APPLIED ORANGE TECH

IMPROVEMENT OF NORAM WORKFORCE COMPENSATION

Due to the importance given to health care

benefits, we implemented an

EXPANDED COVERAGE

FINANCIALDEPARTMENT

ORANGE TECH

FINANCIAL STRATEGY

DEBT-FREE POLICY MARKET PROFITABILITY STUDIES

ORANGE TECH

COMPANY’S OVERVIEWORANGE TECH

FINANCIAL OVERVIEW ORANGE TECH

FIRST among competitors in… A. Total PerformanceB. Financial PerformanceC. Human Resource

ManagementD. Asset Management

FINANCIAL OVERVIEW ORANGE TECH

Generated 4.5 million revenues in last two quarters of the year

Trend: Upward slope

GROSS PROFIT MARGINREVENUES

45% gross profit margin in the last quarter

FINANCIAL OVERVIEW ORANGE TECHEARNINGS

MARKET OVERVIEW ORANGE TECH

ORANGE TECH SHARES MILESTONES- One third of the market share in the

computer industry- Obtained over 40% market share in

both innovator & traveler market

MARKET OVERVIEW ORANGE TECH

ORANGE TECH SHARES

MILESTONES- HIGHEST brand judgement for O’REKA

in innovator segment

- HIGHEST brand judegement for O’WAYS LITE in traveler segment

- Both brands are recommended byCustomer Union

- HIGHEST Reliability index of the industry

STRENGHTSGENERAL PERFORMANCE: BEST Balanced Scorecard in

the Market

LOYALTY: BEST Reliability score in the Market, TOP Rated brands for Innovator and Cost Cutter

SEGMENT SHARE: BEST Performers in Traveler and Innovator

LIQUIDITY: GROWING Tendency in Revenues, GROWING Cash levels, DEBT-FREE Company

WORKFORCE SATISFACTION: MOST Productive and Satisfied in the Market

SWOT ANALYSIS ORANGE TECH

WEAKNESSESADVERTISEMENT RATING: ACCEPTABLE for O’WAYS and

O’GOLD, POOR for Innovators.

PROFITABILITY: NEGATIVE RE and Operating Margin for the moment, but improving.

INVESTMENT IN THE FUTURE: WORST in the industry

DIVIDEND POLICY: DIFFICULT To provide dividends until next year because of the investment required to make the firm grow.

SWOT ANALYSIS ORANGE TECH

OPPORTUNITIESNEW BRANDS: DOMINANT Company in Mercedes

Market for Q5.

HIGH END POSITION: LESS Efect of Seasonability.

SWOT ANALYSIS ORANGE TECH

THREATSSEASONABILITY: BAD Perspectives for next

Quarters.

STRONG COMPETITORS: ENTRY of New Competitors into our chosen segments.

SWOT ANALYSIS ORANGE TECH

FUTURE STRATEGYORANGE TECH

FUTURE STRATEGIES ORANGE TECH

To respond to the changing external environment, competitors’ moves, and customer needs…

1. IMPROVE CURRENT BRANDS: We will review market research reports and invest in R&Dof computer components so as to improve our brands tofit customers’ needs better

2. INTRODUCING NEW PRODUCT BRAND: We will expand our brands to satisfy a larger & highermargin market to maximize earnings and profits

FUTURE STRATEGY ORANGE TECH

To respond to the changing external environment, competitors’ moves, and customer needs…

3. ADD NEW SALES CHANNELS: We will open new sales offices and web centres in different locations so as to diversify risks

4. MANAGE HUMAN RESOURCE: We will pay our employees better than the averagesalary in the market so as to encourage and motivatethem

5. MANAGE MANUFACTURING PRODUCTIVITY: We will invest in improving the changeover time and production cost.

TEAM DYNAMICSORANGE TECH

ORANGE TECH TEAM ORANGE TECH

1. CORE VALUES: 1. RESPECT2. FRATERNITY3. COLLABORATION

2. EASY DECISION MAKING PROCESSES

3. GOOD FRIENDS

THANK YOU FOR YOUR ATTENTION

Una ZhaoyanGloria Ho

Andries VenterFernanda TattoJudit Mompín

ORANGE TECH